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My office got a phone call today that prompted me to remind people that there is still real estate being offered for sale in coastal NC that is designed to seperate you from your money. I won't mention the specific development but a potential buyer from outside of our area was offered real estate at more than four times it's current market value by an agent that was representing a coastal development in Brunswick County. I saw hundreds of uninformed buyers get ripped off during the real estate bubble but I was shocked by the inquiry today.
Please accept my free advice. If you don't live here do not buy real estate without the help of a local buyers agent. There are developments that will market real estate to buyers from outside our area specifically because they know that an uninformed buyer is easy prey. If you are looking for retirement property in this area your risk to over pay increases dramatically.
awesome post and scary ANYONE ANYWHERE would buy without a buyers agent!
even being as (relatively) close to wilmington as i am during my search (were north of raleigh), I cant imagine doing it without a professional's help!!! And this with us coming down several times a month to look at properties, and even just hang out with friends!
Some people are just idiots with money.
You need to get your lazy butt off the computer and go spend a week in the area. Do your homework. See what's going on in the surrounding areas and seek plenty of advice. I spend months seeking advice and gathering info on a particular area. After all of that, I make a visit and spend a week in the area by myself and scout.
I spent a lot of time researching Oriental NC and spent a few days there. Very nice place but guess what?...not for me so I bailed.
Researched Brunswick County for months and paid a visit. Spent 2 full days with a real estate agent and visited a bunch of communities. The other 3 days I just scouted the area and got a feel for it. I saw a few good opportunities, and a lot of places to avoid.
I took all the info I gathered and made a decision to purchase. It took me a total of 3 years and a few trips to find an area that was right for me. I made a very good decision purchasing where I did and the hard work really paid off.
With saying that, I don't feel sorry for people who simply jump at an "opportunity" blindfolded.
As a Buyer's Agent, I can tell you all, be careful. Just because you use a buyers agent, make SURE that the agent provides you with current comparable sales for a property in the area you want to buy. And do some comparison shopping of DIFFERENT areas, developments, etc...times are tough, and you will want to make sure your agent is not just 'driving' you to certain properties that make 'them' money...
Ask if the agent will make a BONUS for you buying that property...No one is against a small bonus, but $10,000 bonus? A littlemuch wouldnt you say?
By law there must be full disclosure to the client by the real estate broker of any and all compensation. Yes I know-The key words are "by law" and there is no 100% guarantee that a real estate broker will act accordingly.
Keep this in mind. A listing/selling broker is working for the seller. They are not working for the benefit of you the buyer. Although legally the listing/selling broker can not lie or decieve, they also don't have to further your cause. What you don't know will cost you time and money.
I thank Carolina Appraiser for the post. In my opinion the worst case scenario for a buyer is to deal direct with the Developer. I know, I know they'll tell you that the money they save by selling on their own is passed on to you. I'll agree that something is being passed along to you but it usually isn't savings.
And in my opinion-If you want the opportunity for the best deal as a buyer then you need an objective, third party real estate professional to go to work for you.
Full Disclosure-I am a licensed real estate broker and an Acredited Buyers Broker. I have many years experience representing buyers. I am not soliciting business nor am I actively seeking clients. But maybe I should jot down a few horror stories of what I have encountered with a few developments, developers and listing agencies. It wouldn't take long to convince someone to seek out a qualified buyers broker
A listing/selling broker is working for the seller. They are not working for the benefit of you the buyer.
That is exactly what happened in the scenario I mentioned. The agent representing the developer was doing nothing illegal but both the agent and the developer knew they were taking advantage of the buyer. I'm tempted to name the development but I'll refrain since it is located in my appraisal territory. It's hardly necessary anyway since they already have an earned reputation locally. I've dealt with the marketing people in the past and they are snake oil salesmen. I wasn't exaggerating when I said the buyer was about to pay 400% of market value.
That is exactly what happened in the scenario I mentioned. The agent representing the developer was doing nothing illegal but both the agent and the developer knew they were taking advantage of the buyer. I'm tempted to name the development but I'll refrain since it is located in my appraisal territory. It's hardly necessary anyway since they already have an earned reputation locally. I've dealt with the marketing people in the past and they are snake oil salesmen. I wasn't exaggerating when I said the buyer was about to pay 400% of market value.
An "agent for the developer" is not required to have a real estate license in NC to work for certain developers in NC. This should be made known to the readers on this forum as well as the general public.
These type of "agents" for developers are salaried, and thus exempt from the NC licensing laws because the developer is the owner of the land and/or buildings. Cite: N.C. Gen. Stat. § 93A-2.
An "agent for the developer" is not required to have a real estate license in NC to work for certain developers in NC. This should be made known to the readers on this forum as well as the general public.
These type of "agents" for developers are salaried, and thus exempt from the NC licensing laws because the developer is the owner of the land and/or buildings. Cite: N.C. Gen. Stat. § 93A-2.
Great post. I did not realize that salaried agents were not required to be licensed. That explains a lot. Thanks for sharing that information.
Great post. I did not realize that salaried agents were not required to be licensed. That explains a lot. Thanks for sharing that information.
You're welcome. That would be salaried agents working for adeveloper and are onsite only.
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Buyers Agent
