Recently, a couple that I know bought their first house. The real estate agent who represented them also represented the seller, which led to a high degree of distrust during the entire transaction. One agent representing both the buyer as well as seller does neither party any favors.
The couple’s relationship with their representative, who was also a friend, suffered a major blow. The couple said that the tension was based on whether or not the agent was looking out for their best interests, and they were novice homebuyers.
The couple wondered if the deal would have been better had they hired a buyer’s agent to represent their interests in the transaction.
Many property buyers use a realtor to help them find homes that are available, make offers and determine a purchase agreement. Myrtle Beach Real Estate Agents make most of their money by charging fees to the sellers. They have a vested interest in securing a sale. Also, they have less incentive in pointing out flaws or problems with a house. A recent Federal Trade Commission study showed that 72% thought that the agent who was showing them the house represented the buyer. But that wasn’t always the case.
In order to avoid confusion or disputes, some states have passed laws that require agents to disclose their duties as representatives in real estate transactions – and specifically to disclose whether they are dual agents (i.e. The dual agent is a real estate sales representative who represents both the buyer and seller). These modifications have also led to a rise in the use of “buyer’s agents” – real estate sales representatives who represent only the buyer.
What You Need To Know About Buyer’s Agents
Promotions for Purchasers
Myrtle Beach Buyer’s Agents have real estate licenses. They work exclusively on behalf of buyers, which is a significant difference between them and seller’s representatives. A buyer’s agent may help you negotiate with the seller and get a smaller down payment for your home, or for the seller pay the closing costs. They will also help buyers find an attorney to review the contract and inspectors who can check the house for sale.
Cheryl Woodward is a broker at Full Potential Real Estate. She tries to help home buyers in the same way a consultant would. Ms. Woodward says that buyers can make an emotional decision about whether or not they like your home. But they need someone to be on their side and help them make a rational corporate decision as well.
Ms. Woodward knows the local area and can share her knowledge with buyers. She can also provide customers with databases that reveal the history of insurance claims for a house they want to purchase and the history surrounding the area. Such information could include, in rare cases, whether there are any sexual offenders living nearby, revealed through local versions of Megan’s Law.
She says, “That is something that a person with a family would want to know.” “A seller’s representative does not have to tell you these things.” “They probably don’t want you to know about these things.”
The multiple-listing system allows buyers’ representatives to see houses that are being sold by other Myrtle Beach real estate agents. Since they represent the buyer they will also reveal listings for “for sales by owner” or “for sales by builder”, if there is an interest from a buyer in a particular home.
How Are Buyer’s Agents Paid?
A commission is usually paid at the time the deal closes, from the profit of the sale. The buyer’s representative may also work on an hourly basis or on a retainer, similar to that of an expert or attorney. Home buyers should be aware that hourly costs can quickly add up.
A buyer’s agent in Myrtle Beach is naturally interested in a successful sale when they are paid a commission upon closing. This is a common practice on the market. The primary goal of a buyer’s agent is to convince you to purchase something.
Avoid using a buyer agent that works for the same company as the agents who list the properties you want to see. It is known as a “dual agent.”
Who pays the commission?
A buyer’s agent can also cause a problem when they show a prospective property buyer a house that is for sale by the owner (FSBO).
FSBOs can be a frightening thing for agents because the real estate deal is so complicated and anything could go wrong, postponing the sale. Most of the time the FSBO is naïve about the cost and unaware of all the documents and charges that must be completed in order to close the sale. sometimes the seller will seek counsel from the buyer’s representative and put the buyer’s agent in a conflict of interest situation.
Working with Buyer’s Agents
Prospective home buyers should interview several agents before signing a contract and verify their recommendations from current and past customers. Call the real estate regulatory agency in your state to see if there are any complaints about your options.
The terms of the contract must be in writing. This includes the services provided by the agent, the rate charged, and any other charges. It is called a Buyer’s Agency Agreement.
Call Full Potential Real Estate, LLC to set up a time when she can discuss her role as a buyer’s representative for your next property purchase.
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