Expert: Jim Root - 2/6/2008

Question
we found a house we would like to purchase. our real estate broker asked us for the good faith estimate as well as other disconcerting questions. she also didnt seem to know the difference between closing at the end of the month and the beginning of the month, as far as prepaid interest goes. is it wise, now that we found the house we want, to bid without a broker? what precautionary steps would we need to take?

Answer
BRIAN--

You didn't send this question to me, but whoever you sent it to must have put it in the Question Pool--I found it there & hate to see you-all waiting for a reply that may never come... So I'll answer this for you--

It's not unusual for a Realtor to ask questions about, and/or to see documents from,his/her Buyer/Client's FINANCING PACKAGE. It helps the Realtor do a better job for the prospective Buyer with regards to Price Range "restrictions" and/or "terms & conditions" to be included in the Offer, etc!

And it's very important that your LOAN OFFICER (LO)fully understands things like the difference a first-of-the month and an end-of-the month closing makes in the pr-paid interest required of you,not so much so that the Realtor does. The Realtor, however, should certainly listen to you &/or your LO with regard to when YOUR closing should be requested in your Offer to Buy! And the BETTER Realtors know Real Estate Financing as well as the Mortgage Bankers/Brokers do!

That said, however,I need to say that IF YOU DON'T FEEL THAT YOUR REAL ESTATE AGENT IS KNOWLEDGEABLE ENOUGH--AND IS DOING A "POOR" JOB REPRESENTING YOU, YOU SHOULD INFORM THE BROKER FOR THE COMPANY HE/SHE WORKS IN & REQUEST ANOTHER AGENT! It sounds like this Agent has lost your trust & respect! A complaint to the Company's Broker--or Sales Manager--and a request for another Agent MAY just "do the trick!"

Is it wise to go it alone, without an Agent? Certainly NOT if you've signed a "Buyer's Agent Agreement" with the Realtor you're "unhappy" with--nor is it wise IF the home you're thinking about bidding on was FOUND for you & SHOWN to you by that Agent!
If either--or both-- of these circumstances exist, lawsuits over a Commission COULD be brought be the Agent...against you,any other Realtors involved, the Seller, etc. IT'D BE BETTER TO TRY TO KEEP WORKING WITH "SOMEONE ELSE" FROM THE COMPANY THAT YOUR CURRENT AGENT WORKS IN--that should preclude any arguments over who "earned" a Commission!

By-the-way, if the Company Broker or Sales Manager WON"T
replaced your current Agent with another, you CAN go to the local ASSOCIATION OF REALTORS and file a complaint against the Company, the Broker or Sales Manager AND the Agent. Sometimes just the "threat" of going to the "Association" gets Brokers or Sales Mangers "moving," as they don't want the "hassle" involved with answering complaints to that Professional Group! That'll likely get you a NEW Realtor A.S.A.P!  GOOD LUCK,Brian .

--JIM ROOT,
 CRO,RMU,CRA