A couple I know just recently acquired their first home. But due to the fact that the representative representing them also represented the seller and this lead to a high level of distrust throughout the transaction. Having one agent to represent both the buyer and seller isn’t doing any favors for either party.
Though the couple ended up closing on the house, their relationship with the representative, a good friend, was ruined. “Our underlying source of tension in this case– and we are novice home buyers– was whether the agent was watching out for our best interest or the seller’s, as my partner and I were never ever 100% sure,” the couple later commented.
The couple questions whether the deal would have worked out better if they had hired a Myrtle Beach buyer’s agent to represent them in the deal.
For years, numerous property buyers have utilized a Realtor to show them readily available homes, prepare offers, and help pin down a purchase arrangement. However Myrtle Beach Real Estate Agents typically make their money from fees paid by the seller and so plainly have an interest in making a sale. They also have less incentive to point out possible flaws in a home or its specific location. It’s not unexpected, then, that a recent study by the Federal Trade Commission showed that 72% of property buyers thought the agent showing them your house represented them. However that wasn’t necessarily the case.
To improve possible confusion and dispute, a number of states passed laws requiring agents to disclosure of the duties of representatives involved in a real-estate transaction – specifically to disclose if they were a dual agent (i.e. representing both the seller and the buyer). The modifications also prompted house buyers to increasingly use a “buyers agent”– a real-estate sales representative who exclusively represents the purchaser.
By 2001, 46% of all home buyers signed contracts with a buyer’s representative, according to the National Association of Realtors, a Washington, D.C.-based trade group for the market.
The Property Buyer’s Agent Council (REBAC), a division of the NAR based in Chicago, notes that more than 33,000 purchaser’s agents are active in the U.S., serving most neighborhoods in all 50 states.
Promoting for the Purchaser
Myrtle Beach Buyer’s Agents are licensed real-estate agents. The significant distinction between them and a seller’s representative is that they work specifically on behalf of the buyer. A purchaser’s representative may assist and negotiate with the seller for a smaller deposit for your house, help negotiate for the seller to pay closing costs or negotiate a lower purchase price. They also will assist purchasers to find a real-estate lawyer to examine the sales contracts and inspectors to analyze the home being purchased.
Cheryl Woodward, a broker with Full Potential Real Estate, attempts to assist home buyers just as a business consultant would assist a corporation. “Buyers can make the emotional choice of whether they like the house or do not like your house,” says Ms. Woodward. “But they require someone on their side to help them make a sensible corporate decision also.”
Ms. Woodward is familiar with local areas and can discuss them with purchasers. She also can offer customers with access to databases revealing the insurance-claims history of a home they wish to buy and the history of the neighborhood. In unusual cases, such information might even consist of whether any sexual transgressors reside in the location, divulged through regional versions of Megan’s Law.
“That’s certainly something that somebody with a family will would like to know about,” she says. “And a seller’s agent doesn’t have an obligation to inform you about these things. They probably wouldn’t want you to even find out of those things.”
Buyer’s representatives have access to the multiple-listing service, which notes houses being marketed through other real-estate representatives. But, since they represent the buyer, they also frequently will reveal homes that are listed as “for sale by owner” and “for sale by builder” if a buyer has an interest in a specific home.
How They’re Paid
The typical mode of payment is a commission at the time of the closing from the profits of the offer. Buyer’s representatives likewise may work on a hourly or retainer basis, much as an attorney or expert. Still, home buyers need to bear in mind that per hour costs can accumulate quickly.
When paid a commission at closing,– a normal practice in the market– a buyer’s agent naturally has an interest in having a sale close. “So the buyer’s agent’s primary motivation is still to get you to buy something,” states Michael Golieb, a Florida real-estate broker.
To lower the possibilities of other conflicts, do not employ a buyer’s agent who works for the exact same company as representatives who are listing properties that you wish to see. This is called “dual agency.”
Who Pays the Commission?
Another potential issue can develop when a buyer’s representative shows a potential property buyer a home that’s for sale by owner (FSBO). “Often the seller will state, ‘OK. I’ll pay the commission.’ Often, the seller will say, ‘No. I won’t pay the commission, you’ll need to pay it,'” says Elisa Galati, a vice president at GoneHome Inc., an online real-estate listings service.
“FSBOs are a scary thing for representatives because the real-estate deal is so complex, and any variety of things can go wrong and postpone the sale,” says Mark Hayden, a director of communications at eRealty.com, an online house seller. “Most of the time, the FSBO owner is unrealistic about the price and ignorant about the charges and documents that have to be expedited in order for the house to close.” Sometimes, what ends up occurring is the seller will “look for counsel from the buyer’s representative, putting the buyer’s agent in a conflict-of-interest scenario,” states Mr. Hayden.
Working with a Buyer’s Representative
Before signing a contract, prospective home buyers need to interview a number of agents and check their recommendations with present and previous customers. You also might want to call your state’s real-estate regulatory agency and ask if any grievances were submitted about your options.
Home purchasers must get the terms of the agreement in writing, with the representative’s services, rate and other costs plainly defined in a document called a buyer’s agency agreement.
Call Full Potential Real Estate, LLC today to schedule a time for her discuss being a buyer’s agent for your next home purchase.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577