Buyer Agency in North Carolina

Buyer agency is described as having a written agreement between a buyer and a real estate agent that outlines the agent’s fiduciary duties to the buyer.  It also describes the term of the agreement and confirms compensation paid to the buyer agent.

Do I Have to Have a Buyer Agent?

No.  You do not have to have a buyer agent represent you, however the process can be much harder and confusing if you are not familiar with contract law, protocol, home values, material facts, and a plethora of other scenarios that may pop up in a transaction.  You could call the listing agent, but they represent the seller.  You could have an attorney write up an offer, but it is very unlikely an attorney is going to drive you around town to show you houses and have the same knowledge things to look out for at a showing that an experienced agent is used to seeing.

What Does a Buyer Agent Do?

First and foremost, having a buyer agent gives you representation. “Without a buyer’s agent, no one would be legally required to help buyers understand their risks and options”.  When buying a home it is somewhat easy nowadays to go on an app and see all of the houses for sale.  There are many pitfalls that come along and your buyer agent is there help you avoid them.

One of the biggest advantages of having a buyer agent is their expertise.  This is from experience gained in the amount of years the agent has been in practice.  They will help you locate listings that match your criteria.  Once found, research is a pretty big compenent of their scope.  They will pull comps for you to make sure the house is priced appropriately.  They will pull disclosures and guide you on understanding value; how some things may give value and some things are just “maintaining” a home.  Another component is walking through home with you to spot red flags.  To most consumers, a crack in the foundation could be easily missed.  An unlevel floor, filters never changed, aging roofs and HVAC, windows with broken thermal seals, and many other tell tale signs your agent can advise you on either walking or making a lower offer based on condition.  Though it is great to catch these things up front, it is almost impossible to catch certain issues with a home; that is why you have a home inspection.

Another key aspect is knowledge of the current market.  As of typing this blog post, we are in a declining market.  Most listings are being reduced.  Sitting on the market longer.  However, a good buyer agent can advise on the property in question.  Meaning, some neighborhoods sell much fast than others.  Some neighborhoods may be somewhat close to a major highway or may be close to an airport.  Again, an experienced agent is there to point these things out.

Do I Have to Pay a Buyer Agent?

When you sign a buyer’s agreement with a buyer agent there is a fee charged by the agent’s firm.  This fee is and always has been negotiable.  Typically, the fee, a.k.a. compensation, is either offered by the listing firm or seller, OR it is requested by the buyer agent for the listing firm or seller to pay it. If there is no fee or compensation being offered, you will pay the buyer agent fee.  This is a discussion to have with your agent prior to signing the agreement.

I will say, in my opinion being a buyer agent most times can be more time consuming compared to being a listing agent.  There is a lot of research and discussions that go on far before finding a home and writing an offer.  Then, once under contract there is much more work to be done to get to the finish line.  So a good buyer agent is well worth the compensation.

So, if you are ready to buy a home or you are getting closer to that big step, it is strongly advised to contact an agent and start that relationship; even if you are months away.  A good relationship with your agent is a must.