North Carolina provides many options for representation when you are thinking about buying a home. In North Carolina, every agent has to represent someone in a real estate transaction. Either they represent the seller or the buyer. Some states offer a more “transaction broker” style of agency, but not in the Tarheel State.
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Here’s What You Need to Know About Buyer Agency
Seller’s Agent/Sub Agent
If the agent you’re working WITH is not representing you, they must represent the seller. That means their fiduciary duties are to their client, the seller, not you. To the customer, they owe honesty and fairness.
Oral, Non-Exclusive Buyer Agency
In this type of agency, the agent can provide you with representation, owing fiduciary duties to you, under a verbal agreement. If you later decide you want to work with someone else, you may. This type of agency can remain verbal until the time you decide to write an Offer to Purchase and Contract for a property.
Written, Non-Exclusive Buyer Agency
This agency is put in writing on a simple agreement but is not exclusive and does not obligate the buyer to pay the broker’s commission. Since the agent’s fee is collected through the cooperating listing firm, the agent is not under an obligation to provide representation on any FSBO listings.
Exclusive Buyer Agency
This is an all-encompassing agreement to provide exclusive representation. It does make the payment of agent’s fee the responsibility of the buyer, even though they may first seek to be compensated through the cooperating listing firm. This agreement provides a more in-depth approach to your representation. If you are very comfortable with your agent, this is the way to go.
Biggest buyer myth: If I call the listing agent directly, I’ll get a better deal.
WRONG! The listing agent works for the SELLER, not YOU. The listing agent’s job is to get the seller the best deal. Since the majority of buyer’s agents are paid through cooperation with the listing broker, it does not cost the buyer anything to have their own representation.
Occasionally, a buyer will be interested in a property listed by the Buyer Agent’s firm. That creates a dual agency situation. Be advised in that capacity a buyer agent is prohibited from providing any pricing suggestions. They may show you comparable sales, but cannot actually recommend a price other than what’s listed or the seller has given permission for.
If you want to work with your agent on a listing held by the firm, be sure to ask if the firm practices Designated Agency. In that capacity, the agent can remain the exclusive agent for the buyer and another agent will exclusively represent the seller.