Charlotte Home Guide

Buyer's Agency

Over 90% of homebuyers use an agent. Why? An agent can help you find the most homes possible using the Multiple Listing Services (MLS) and can help guide you through the entire home-buying process. However, not all agents are equal. Your choice of agents can greatly influence:

(a) the number of homes you have to choose from;

(b) the quality of information and guidance you receive;

(c) the price you pay; and

(d) the quality of the home you purchase.

The types of agents are listed below.

Homebuyers have three choices of real estate representation.

An exclusive buyer's agent
An exclusive buyer's agent represents the buyer's interests only. Not all agents who show homes to buyers represent them. The buyer's agent's duty is to locate the right home for the buyer, and negotiate on the buyer's behalf for the best price and terms, maintain the buyer's confidentiality and disclose all known information about the seller and the home to the buyer. The buyer's agent helps his client find more homes because, having no homes of his own to favor, the buyer's agent aggressively searches all homes listed with all other companies without bias.The buyer is the client. Less than one half of one percent of active agents qualify as true, exclusive buyer's agents. Yet, they are the only way for a buyer to be guaranteed 100% representation.

A seller's agent
Also known as a "listing agent," a seller's agent is an agent whose name is on the sign and is legally obligated to represent the seller's interests. His or her duty is to get the highest price and best terms for the seller, maintain the seller's confidentiality and disclose all known information about prospective buyers. The seller is the client.

A dual agent
Whenever the agents for the seller and the buyer work for the same real estate company, or broker, they both become dual agents. Neither buyer nor seller is fully represented. "Designated agency" is a form of dual agency. Liken this to attorneys not representing both sides in the same court case. When they work with both sides they are conducting mediation, helping the parties reach their own agreements, but not going to bat for either one. Generally you, as the buyer, assume the greatest risk in a dual agency scenario. The odds of such conflicts are great. Firms earn the highest commissions when they represent both parties. Agents are often paid bonuses for selling such listings. So, dual agency gives the least protection to both buyer and seller, yet agents are drawn toward it to maximize their earnings.

So, why use a Buyer's Agent for your next home purchase?

Research by the National Association of Realtors has shown that when a buyer's agent is used, the buyer finds a home one week faster and examines three more properties than consumers who did not use a buyer's agent.

The buyer's agent works for the buyer and has the buyer's best interests in mind throughout the entire real estate process. A buyer's agent will:

Who pays for the services of the buyer's agent?

The important aspect about using a buyer's agent is that it doesn't cost you anything.  We get paid just like the seller's agent, by taking a share of the seller's broker's fee.