Buyers Information

 

I want to take a moment to let you know that the information that follows may seem a little lengthy, but I think that it is vital information for you to have. I want to make sure that you have a good understanding of what a real estate agent is and what they can do for you. With this knowledge you will feel more secure in the decisions you make while in the process of buying a home. Thank you for taking the time to read it.

 

First, let me say that I understand how important it is to you to find the right home. It is the single largest purchase you will make and you want to know that you are making a great investment. You also want it to be the perfect house, so when you walk through the front door you know you are home. The process of buying a home can seem overwhelming at times. There are so many homes to choose from in many different neighborhoods and communities. That is what I am here to help with. I want to help make buying a home an exciting time for you. I want to put my experience to work for you.

 

Before buying a home I would like to take a few moments to talk about real estate agents and the term “agency”. The term “agency” refers to the real estate agent’s roles and responsibilities to you. Many of you have heard the terms Buyer’s Agent, Seller’s Agent, and Dual Agent, but what do these really mean? A true understanding of these terms will ensure that you are receiving the best possible service from a real estate agent when buying your home.

 

The state of North Carolina requires that real estate agents must, at first substantial contact with customers, disclose the nature of “agency”. This is usually done by giving you a pamphlet called “Working With Real Estate Agents” and reviewing what a Buyer’s Agent, Seller’s Agent and a Dual Agents are. What does this mean to you? It explains the roles and responsibilities of a real estate agent and what they can or can’t do.

 

Did you know that every real estate agent works for the seller? It’s true; the state of North Carolina mandates this so there won’t be any confusion when you first talk to an agent. What this means to you as a buyer is that if you call an agent to show you a home, he/she is technically working for the seller of that home, even if his/her name is not on the For Sale sign. The agent has an obligation not to harm the seller’s position even though you called the agent to show you the home. In other words, this means that the agent is working with you but not working for you as your agent.

 

How does this affect you? It means that there is information that the real estate agent can’t provide you with at that time. Examples of items that can’t be revealed would be things such as; how many days the home has been on the market or if the price has been reduced. Without this information, you can see that you would be limited on how to proceed going into negotiations. Obviously you would be in a much better position to negotiate if you knew these things up front. As I said earlier, the more you know about the process, the more confident you will feel that you are getting a fair deal.

 

As you can see, not having this kind of information could weaken your negotiating position. The only way to know that your interests are truly being protected during negotiations is to hire a real estate agent. When you hire an agent to help you find and purchase a home, they are there to protect your interest. This is called a Buyer’s Agent. Once you hire an agent, their role and responsibility changes. They are then working for you, not with you. They are there to protect your interest and not the seller’s. It opens the door for key information that you can’t get when working with a Seller’s Agent and having this information gives you a better negotiating position.

 

What are some of the duties of the real estate agent if you hire him/her to represent your interest? They must:

·        Be loyal to you

·        Promote and protect your best interests

·        Provide you with all material facts

·        Lawfully follow your instructions

·        Use reasonable care, skill and diligence

·        Not give any confidential information about you to the seller or seller’s agent without your permission

 

Cautionary note: Until you hire a real estate agent, you should avoid telling an agent anything you would not want the seller to know.

 

What are some of the services of the real estate agent if you hire him/her to represent your interest? They may include helping you:

·        Find a home

·        Arrange financing

·        Schedule inspections

·        Learn more about properties

·        Prepare and submit written offers

·        Negotiate counter-offers

 

As you can see, there are many benefits to having a real estate agent by your side throughout this process. Now that you have a better understanding of how “agency” works, I hope that you will use this information to make your home buying experience rewarding. Having a real estate agent working for you is the best way to protect yourself when making such an important decision. In conclusion, hiring a Buyer’s Agent to help you find and purchase a home is important when it comes to protecting your largest purchase and investment.

 

 

 

 

 What Is Dual Agency?

 

Many people are confused by the term “Dual Agent or Agency” and what it means. Here is the simplest explanation I can come up with on the matter. It is where a real estate agent or firm represents both the buyer and the seller during the same sales transaction. As an agent or firm, the same benefit is given to both the buyer and the seller. The job of the agent is still to get the seller the best price and protect their interest while negotiating the best price and protecting the interest of the buyer. Agents must treat both the buyer and seller fairly and equally.

 

An example of how Dual Agency may come about is when you are working with a real estate agent and have agreed to have them be your Buyer’s Agent. Afterwards, they take you out to show you properties and one of the properties happens to be listed by your agent. You like the house that is listed buy your Buyer’s Agent and want to make an offer to purchase the home. Your Buyer’s Agent working with you is also the Seller’s Agent for the home you want to purchase. As you can see, this would now create a situation where the agent needs to represent both sides during the negotiations and purchase/sale of the home. That is what Dual Agency is all about.