WORKING WITH REAL ESTATE AGENTS
The North Carolina Real Estate Commission reguires that all agents, Buyer or Listing Agents, explain at first substantial contact (anytime you provide personal or financial information to an agent), the Working With Real Estate Agents brochure. They will ask you to sign the back panel, which is not a contract. This signing is required by the NCREC to demonstrate that you have been informed of the responsibilities and duties of both agents, the seller or buyer.
In North Carolina there are two forms of agency: Single Agency and Dual Agency
Single Agency is when an agent represents a seller to sell their property in one transaction and then helps them purchase another property in, another, separate transaction.
Dual Agency is when an agent represents the seller but also finds the buyer. In this situation the agent must play an impartial role when assisting both parties, but must reveal all "material facts" about the property to both parties, equally.
Another form of Dual Agency is called Designated Agency. A real estate office is required by law to have a written policy authorizing Dual Agency that requires the Broker in Charge to designate an agent to represent the seller and another one to represent the buyer, so that there is no conflict.
North Carolina is a "BUYER BEWARE State". Unless you have a Buyers Agency Agreement everyone you speak with will be a sub-agent of the seller. It means that any information you share with them, because they owe their allegiance to the seller, will be shared with the seller.
Buyers agents are paid by the seller at closing. So there is no cost to be well represented in the purchase of your dream home. More important is the service the Buyers Agent provides for the home purchaser. They will hold your hand through the entire buying process from home selection to how and what to make for an offer, provide you with detail about the property that the "listing" agent will not, assist you with mortgage brokers and loan institutions, help you with the home inspection process, understanding and providing valuable information on the many documents required for home purchase and the closing process. Rest assured you will be in good hands with a Buyers Agent.
Co-Broke is another term that you will hear. Co-Broke simply means that the commission is split between two agencies, one who represents the seller and another who brings the buyer. Broker commissions are most often split 4 ways. Between the agents representing the seller (the listing agent and the listing firm) and the buyer (the selling agent and selling firm).
Brokers earn their commission by the work that is done to complete the marketing and sale of the property. This includes meeting with the seller to determine the best price that will affect a sale in the shortest period of time. They generally do what is called a CMA (Comparative Market Analysis). Some Buyers Agents will also do a CMA for their buyer to make sure that since the property was listed what affect the market has had on the value of the property.
The agent will advertise on the MLS (Multiple Listing Service), various local and national publications, the internet, and working through the legal documentation that is required for selling, or buying, residential or commerical property. Agents go through rigorous training and scrutiny by the Real Estate Commission and are very well informed of the latest laws and regulations. And, the change often to benefit the seller or buyer. These laws are complex and can be very difficult to understand. This is their job to explain in plain English their meaning and how this will affect the parties.
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