Referrals Benefit First Time Homebuyers

lighthouse70First time homebuyers get better agents from referrals

Referrals are the lifeblood of real estate agents. A referral is a recommendation, most valued when introduced by someone both the agent and client regard highly.  Since the majority of referrals come from clients that an agent has worked with before, this is highest form of flattery an agent can receive. Having never bought a home, first time homebuyers might be most comfortable with this process, because they can rely on the experiences of friends they trust to help them find the right agent. The next best thing is working with an agent who specializes in dealing with first time homebuyers, like our Team For YOUr Dreams. First time homebuyers take a lot more time, need many more questions answered, and require more care in making a decision, so it is important to find an agent who can provide this extra level of service.

Referrals also come from other agents. In this case, a referral fee is paid to the referring agent if the lead results in the sale of a property. This arrangement is often used when a client relocates from one region to another and asks their local agent for help with their impending move. Keep in mind, however, that North Carolina law restricts payment of a referral fee only to licensed real estate agents. 

However, there are some companies that have found a way to sully the process of getting referrals.  There are companies who generate leads for Realtors, then refer the clients to anyone who will pay the fee.  In the normal referral relationship, a Realtor finds a qualified agent in another area and confirms that their clients will be well cared for.  Unfortunately, in the lead generating process, the care in selection provided by your Realtor in your home town goes out the window, and you get stuck with anyone who can pay the fee.

If you are trying to find the right Realtor, ask a friend who has bought a house in Cary, Raleigh, Apex or anywhere else you want to live in the Triangle area of North Carolina.   If you are a first time homebuyer who is new to the area, find a team that specializes in first time homebuyers so they can give you the extra care you deserve.

First Time Homebuyers Shouldn’t Buy Without A Buyers Agent

protect70Buyers 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.

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