Why bother with buyer representation? I can name two big reasons, to avoid financial losses and being stuck with terms and conditions of the contract that come back to haunt you.
I can give many examples in my experience where I represented a client and had I not been there, they would not have had the knowledge to keep them from trouble. But one experience that stands out, I’ll relate:
I was with my buyer client, an investment group looking at a home to renovate, on a walk-through to close in two days. The seller, in the pre-foreclosure process, had a number of items still in the house, pieces of furniture and personal items, some that were clear sign he had not fully moved out yet. After the walk through, I called the seller’s agent and was informed the items would be removed before closing. On the day of closing, I went by to verify the items were removed and nothing was.
At closing with my investors and the seller sitting there, I mentioned the items were still there and the seller promised to move out and the items removed by the next day. I asked the closing attorney who I knew very well and very good at what she does, a question I already knew the answer to but needed my investor clients to hear it from her; “If we were to close today, with the items still there and the seller living there, the laws of tenancy kick in, don’t they?” She replied, “They certainly do.”
As there was no rent-back agreement or tenant agreement, I recommended to my clients one of two things, we close several days from now after the seller had moved out, or the seller agrees to leave $20,000 dollars in escrow, to be released to him if he is out within two days or the money will be released to the buyer and eviction proceedings begin immediately and he’d be out within 30 days. The seller screamed, cursed and swore as he needed the closing funds while agreeing that the money be held in escrow by the closing attorney.
The seller and belongings were gone in two days. On day two of my client investors ownership, the demo permit was filed, on day 10 the demo began. By day 30, the house was fully demo’d down to the studs with new permits submitted for the new conversion process. My client investors learned later the seller had been running a number of scams in two states as multiple legal firms and creditors were knocking on the door asking for him.
Without my Broker/Realtor experience, my client investors admitted they would have allowed the seller to stay without the knowledge and protections needed at close as they said, “For just a couple days.” My client most likely would have lost thousands in eviction and delay costs that would have clearly affected their bottom line and final ROI.
Along your way in property searching, you’ll receive from me sound real estate advice, enjoy the process, search Coastal Carolina properties and homes for sale and save yourself time and possibly the pain others encounter when in situations they suddenly and unexpectedly find themselves in. Contact me to see what I can do for you in your property search.
HIRING A BUYERS AGENT:
To hire a buyers agent: you will sign a standard NC Buyer Agency Agreement and within it, the buyer agent and you agree, that the buyer agent will be representing you, not the seller, not a builder, ONLY YOU in the home buying transaction.
Further, with the new NAR settlement regarding commissions and who pays, buyers need to know are they paying their agent’s fee or is the seller? If the buyer is paying, do they have the additional funds to pay their agent besides paying for the seller’s property, taxes, closing costs? An experienced agent will help greatly in navigating the new rules on commissions to protect a buyer from getting in over their head.
Acting in the capacity as a buyer agent at times, I disclose factual information I know about a home or neighborhood/area as part of my responsibility, sound guidance, this includes local insight and any negative aspects that would affect you, my client.
Confidentiality, Loyalty and Fiduciary Responsibilities I owe to you, the Homebuyer. What many buyers don’t realize when they call the Listing Agent, the one with the sign in the yard, they only represent the seller! The Listing Agent’s Confidentiality, Loyalty and Fiduciary Responsibilities is with the seller, not you! As does the sales person in the model home, where the builder is the seller.
BUYER AGENTS ACCESS ALL HOMES:
Buyer agents get you in to view the homes in person. These are homes that work with your criteria, that you have selected.
It includes all homes listed on the MLS, REO’s, foreclosures, new construction and builders spec homes and models.
YOU FIND THE PERFECT HOME, NOW WHAT?
As your Buyers Agent, first, we create a Market Analysis on the home you choose. This helps determine a “fair market value” for the home and what you should offer to pay for it.
We guide you through the Offer to Purchase. In NC, this is a 17-page contract. Together, we write the offer up.
Afterwards, we present the offer to the sellers listing agent.
At this point, the negotiations begin: Buyers Agent and Sellers Agent going back and forth negotiating on their respective clients behalf. This continues until both parties agree to all of the terms. If the terms cannot be concluded, I withdraw the offer and start looking for another house with you.
IF YOUR OFFER IS ACCEPTED:
My job continues. Working the Offer isn’t just about putting pen to paper. As a buyers agent, I am here to guide you through the whole process so that you may buy the house you choose, get the keys and move in!
I will help you through general guidance on the loan process. Other things addressed include information on closing costs, home warranties, timing, conditions, loan processing, and counter-offers.
When I represent you, as a Buyers Agent, I’m also there to guide you through the home inspection.
This includes help with selecting a good professional home inspector; what to expect from your home inspector; issues that come up on the house and means to get those taken care of prior to closing and/or the options you have available to you, if the inspections are downright horrific.
I also work with you in recommending a good real estate closing attorney to make sure all documents are in order. This includes the lender, the appraisal, survey, and all the sellers information from the listing agent.
The real question is:
Why wouldn’t you hire a Buyers Agent to represent you on your biggest purchase?
BUYING A NEW HOME IN THE COASTAL CAROLINAS
South Brunswick, NC and it’s coastal beaches are one of the more viable markets for a national builder. They’re are a number of new developments now underway or planned within minutes from the Coastal Carolina beaches.
Some of these developers are offering incentives, providing possible instant equity. If you are a buyer, you can now get in a neighborhood that was not affordable to you a few years ago.
As a buyer, be careful. Some of the new homes being thrown up to get the contract may be diluting the entire neighborhoods value…use your buyers agent, to make sure you buy in a quality neighborhood, for future value, construction and location.
For builders, this is a business. For my clients, this is your home.