Why Having A Buyer's Agent is Important!

First, a buyer's agent represent you and your interests. Second, it is a service you receive that is typically paid by the listing agent.

Real Estate is a local market and this is especially true here in the Outer Banks. Our area is rich in waterways, wetlands, and environmentally senstive areas. It is essential that buyer's know as much as possible about the various agencies and regulations that govern use of beach and waterfront property. Only a real estate professional familiar with the area can fill this need. Now here is the big question! Agents can work for the seller or the buyer. Do you know whether an agent is working for you as your agent or simply working with you while acting as an agent of the seller?

Buyer's Agent

When buying real estate, you may have several choices as to how you want a real estate firm and it's agents to work with you. For example, you may want them to represent only you as a buyer's agent (good choice). You may be willing for the firm to represent both you and the seller at the same time through Designated Agency (OK choice). Or, you may agree to let them represent only the seller as the seller's agent or sub-agent (a risky choice).

Why Use A Buyer's Agent

First and foremost if the real estate firm and it's agents represent you, they must promote your best interests, be loyal to you, and follow your lawful instructions. They perform a valued service by providing you with all material facts that could influence your decisions, use reasonable skill, care, and diligence, and account for all monies they handle for you.

Once you agree (either orally or in writing) for the firm and its agents to be your buyer's agent, they may not give any confidential information about you to sellers or their agents without your permission; so long as they represent you.

Does a buyer gain any financial advantage by just using the agent who listed the property? First the listing agent typically works exclusively for the seller so they are required to do what's in the best interest of the seller. A buyer doesn't gain any price advantage because only one agent is involved. The seller ends up paying the full commission to the listing agent, regardless.

How is A Buyer's Agent Paid?

Typically, if the property is listed with the Multiple Listing Service the listing agent, who is paid by the seller, agrees to split that commission with the buyers agent. So, in this case it cost you nothing! In other cases (not typical) the buyer's agent locates a property for you that is 'for-sale-by-owner'. In this case the buyer's agent will try and negotiate with the seller a compensation agreement. The few times when this doesn't work, then the buyer always has the option of paying the agent's compensation. Regardless, the compensation should be clear and understood and in writing. The majority of the time compensation is paid by the listing agent through the MLS agreement.