Do I Need a REALTOR®
Understanding Buyer’s Agency in North Carolina
Entering into a Buyer’s Agency Agreement in North Carolina has countless advantages and no disadvantages to you as a buyer. When you sign the Agreement, you are simply agreeing to “hire” a professional, personal representative who, by law, must represent your best interests to the best of our ability. And this is all achieved at NO COST to you as a buyer. The seller is responsible for paying your Buyer’s Agent fee.
A Buyer’s Agent acts solely on behalf of the buyer and owes their fiduciary duties to the buyer which include – the utmost good faith, loyalty and fidelity. The agent will negotiate on behalf of and act as an advocate for the buyer. The buyer is legally responsible for the actions of the agent when that agent is acting within the scope of the “Agency”.
The agent must disclose to seller all adverse material facts concerning the buyers financial ability to perform the terms of the transaction and whether the buyer intends to occupy the property. A written Buyer’s Agency Agreement is required which sets forth the duties and obligations of each of the parties.
A Seller’s Agent acts solely on behalf of the seller and owes their fiduciary duties to the seller which include – the utmost good faith, loyalty and fidelity. The agent will negotiate on behalf of and act as an advocate for the seller.
The seller is legally responsible for the actions of the agent when that agent is acting within the scope of the “Agency”. The agent must disclose to buyer all adverse material facts about the property known by the broker/agent. A separate written “Listing Agreement” is required which sets forth the duties and obligations of each of the parties.
Do I Need a Realtor® to Purchase a New Construction Home?
One word… YES! The builder has a professional representative watching out for and protecting his best interests.
Why would you not demand the same? It is very important that your interests be professionally represented, especially when you are entering into a contract for a custom, semi- custom, or traditionally built home. These transactions are very complex and the contract details must be exact in order to protect you and ensure that you get exactly the home that you want and are paying for. It is a common misconception that buying directly from the builder, without the representation of a REALTOR® will save you money. As someone who worked for a builder for a number of years I can tell you that this is absolutely NOT TRUE. The price is the same whether you are represented or not. Commissions, like those for the builder’s agent are paid from their marketing budget not the “sticks and bricks” cost of constructing the home. So why would you not want to have a professional REALTOR® assist you with contract negotiations against a builder’s rep who is sitting on the opposite side of the table from you?