Buyers Agents protect first time homebuyers
Anyone who buys real estate should consider having the assistance of a real estate agent. This is especially important when you are buying your first home. Actually, it is almost a necessity for a first time homebuyer, because they have no experience to guide them. Contemporary real estate sales usually revolve around the efforts of Realtors—a Seller Agent, who represents the seller of a property; and the Buyer Agent, who represents the buyer of that property. While neither is mandatory, most buyers prefer to have expert representation because purchasing real estate is costly, mistakes can be extremely expensive and surprises can lead to a failed transaction or worse. Since the seller pays the commission, in most cases all the fees of a Buyer Agent are effectively paid for by the seller out of the commission paid by the seller. So, being represented by a buyers agent costs the first time homebuyer nothing. Not being represented by a buyers agent can cost the first time home buyer a great deal, because errors in judgment can lead to an expensive education.
Keep in mind that when a buyer enlists a real estate agent to help buy a property, they are really hiring a real estate firm along with all its agents. Of course, the buyer’s main contact is the specific agent they signed with, though other agents within the firm might help as needed. If a Buyer Agent is hired to represent you, they must…
• Promote your best interests
• Be loyal to you
• Follow your lawful instructions
• Provide you with all material facts that could influence your decisions
• Use reasonable skill, care and diligence
• Account for all monies they handle for you
As part of this agreement, a Buyer Agent cannot pass along any confidential information about you to sellers or their agents thereof without your permission—while they represent you. While it is possible to establish either oral or written Buyer Agency, an agent must have the agreement in writing before an offer can be made to purchase a property. If you decided not to sign the agreement then, however, the agent does not owe you a duty of loyalty and is not required to keep your personal information confidential.
In North Carolina, a buyer should ALWAYS assume a real estate agent is working as a subagent of the seller; and NEVER tell a real estate agent anything personal or confidential until a buyer agency relationship has been established with that agent.
If you sign a buyers agency agreement, your agent works for you. If you do not sign a buyers agency agreement, the agent works for the seller. Since you get all the benefits of full representation without any cost, signing a buyers agency agreement gives a first time homebuyer much better representation. Also, an agent who knows the buyer is going to be loyal to them can concentrate more time and effort getting that first time homebuyer better properties on better terms.
Buyers agency is an amazing consulting relationship. The buyers agent has to use every skill available to represent you, dig out all the material facts you might want to know, give you the best advice, and you do not get to pay the agent. Just try to find that consulting relationship in any other field.