Buying Tips
Make no mistake… study after study shows that the RIGHT real estate broker can save you serious time, money and future problems… the key phrase here is “the RIGHT real estate broker”…
Seller’s (Listing) Agents. In North Carolina, real estate agents work for the Buyer or the Seller. The agent who is advertising the property, works for the Seller… to you, the Buyer, that agent will be helpful and professional and friendly and encouraging and do everything in their power to get the Seller (not you) the best possible deal. You wouldn’t use your opponent’s attorney in a major lawsuit and yet Buyers routinely look to the Seller’s agent for advice in a real estate transaction.
Buyer’s Agents. A Buyer’s Agent is legally committed to get the best possible deal FOR YOU, THE BUYER! A good Buyer’s Agent can get you a lower price with better terms and reduce your risk, but you need to understand how the process works. In North Carolina, by law, ALL agents work for the Seller, unless they have a Buyer’s Agency Agreement with you (the Buyer). The Buyer’s Agency Agreement can be verbal or written but it must be specific… leaving no doubt in your mind or the Agent’s mind that the agent is working for you. In other words, if that agent is not clearly working for you, then by law, that agent IS working for the Seller… Caveat Emptor!.
Who pays… As most of us know, the Seller often pays the real estate commission… but there are two points to consider here. First, some buyers believe that they can reduce the commission and save money by working directly with the listing agent… NOT TRUE! The seller is contractually committed to pay a certain commission no matter how many agents are involved in a transaction… in other words, it doesn’t decrease the commission if you don’t have a Buyer’s Agent! Second, occasionally, the Seller will not pay commission and your Buyer’s Agent will look to you for compensation… here are a couple things to keep in mind:
A good broker can easily save you more than the commission in cost, time, and risk… a “do it yourself” real estate transaction can be very expensive!
You need a GOOD agent… not a cheap agent. “On the cheap” is probably not a good strategy with heart surgeons and real estate brokers. A good broker will always alert you to situations where you might be paying commission… then it is simply a matter of considering this cost along with the other costs, as you negotiate the deal.
Agency Disclosure. By law in North Carolina, all commercial real estate agents are required to discuss Agency with you and inform you whether they represent the Buyer or the Seller. An agent who “forgets” to mention Agency or who dismisses the topic is probably an agent who will also “forget” to look out for your best interests at a critical point in the negotiations… again, buyer beware.
Hiring a Broker. Look, as real estate brokers, we all look and sound pretty good when you first meet us… but what do you do if your broker is a dud … or is not responsive … or you just don’t get along? Well, what do you do with ANY employee that doesn’t perform? In the words of the immortal Mr. Trump, “You’re Fired!” Make sure that you have some form of performance guarantee with any broker you hire… commercial real estate transactions are too important to entrust to someone in whom you do not have full confidence. Obviously, We would like to be your Buyer’s Agent! But whether you choose to work with us, you need to seriously consider the advantages of working with some broker as your Buyer’s Agent… it’s just smart!
