? for real estate agents.....need your viewpoint (fit in, sales)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
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So we've viewed homes on our own and also w/an agent during our last trip....
This time down we are going to a different area and I have called the onsite agent at a development to get some information. I also asked about homes in other development/areas, and he only works at this development as the onsite agent.
So now I run into two ?'s.......how does this work? I know when you have a buyers agent they are looking out for your best interest.....what happens with an onsite agent.....they are working for the builders...no?
I did speak with the onsite agent but nothing more than that.....I plan on going down in a couple of weeks and am not sure the best way to handle it......Should I find another agent to show us other homes and take us to this development or does it cause a problem since I spoke with him already?
I want to make sure that whatever agent I use they are looking out for our best interest and I worry that if we fell in love there could be a conflict of interest since he would be working for both parties.....ontop that now we would have to be referred to another agent since he doesnt go outsite that developement
What is the best advice on how to handle this and what should we do to make this work prior to our trip down....
The agent who went with you to look at houses should have explained the role of agency in North Carolina.
NOTE: Effective July 1, 2001, in every real estate sales transaction, a real estate agent shall, at first substantial contact directly with a prospective buyer or seller, provide the prospective buyer or seller with the following information [NC Real Estate Commission Rule 21 NCAC 58A.0104(c)].
There is a brochure called "Working With Real Estate Agents" that will explain the rules of engaging an agent. It is available from the NC Association of Realtors too:
You have not hired a buyer's agent until the agent has explained to you the bullet points in the brochure and you agree that they are your agent. Once you've engaged them as an agent (can be oral, but must be in writing by the time you write up an offer), the agent then has fiduciary duties to look out for your interests. Until then, the agent is considered working for the seller. A buyer's agent may pressure you to sign a form called Exclusive Right to Represent Buyer. An agent may ask that you sign for a period of time and for a specific geographic zone or locale. If you don't feel comfortable signing for a period of a few months, you can sign for only a specific house or a specific day (so that there is no commitment, other than if you choose to purchase a house that the agent shows you).
The on-site agent (if they are a licensed broker in NC) should also have referred you to the brochure, Working With Real Estate Agents once you started asking questions about other developments. The on-site agent represents the builder and has duties to represent the builder's interests. The builder is considered their "client" and if you were work directly with them, you would be their "customer." An agent owes primary loyalty to their client.
The information in the brochure will explain Seller's Agent, Dual Agent, Buyer's Agent. An agent, upon "first substantial contact" should give you this brochure and keep the tear-off portion of the brochure as proof that he/she has explained to you the terms in the brochure. Signing this tear-off does not obligate you to the agent in any way, shape, or form. Signing this tear off portion does not mean that you have hired the person to be your agent or to represent you.
I hope this information helps. Good luck in your home purchase and welcome to North Carolina.
Last edited by DanielChang; 07-29-2008 at 11:33 PM..
Ok....so first I should have explained.....we did sign for a couple months with an agent back in february.... although we did ask for a release since he was from wake county and really wasnt familiar with clayton and we almost showed him around.....so that was taken care of...
we do plan on revisiting clayton during the latter part of our trip but the area that we will be visiting first is over near winston salem
My ? is if we go and meet this onsite agent and look around then meet up with anothe agent to look at homes in other areas that he does not cover since he's onsite and say we decide to go back to the original development and now we have a good relationship with this other agent that has shown us around (the other areas) and we decide we want them to represent us.....(only because I almost feel like we would be represented better)
only hypethetical......
God I'm just rambling..........is it in our best interest to go in with another agent or is it ok to go in on our own and then bring in another agent down the line? Who does the onsite agent truly work for? and who would be looking out for our best interest?
sorry for all the ?'s back and forth....hope I made some type of sense...
My ? is if we go and meet this onsite agent and look around then meet up with anothe agent to look at homes in other areas that he does not cover since he's onsite and say we decide to go back to the original development and now we have a good relationship with this other agent that has shown us around (the other areas) and we decide we want them to represent us.....(only because I almost feel like we would be represented better)
only hypethetical......
God I'm just rambling..........is it in our best interest to go in with another agent or is it ok to go in on our own and then bring in another agent down the line? Who does the onsite agent truly work for? and who would be looking out for our best interest?
The on-site agent works for the builder. If you want a buyer's agent to represent you, you should (1) find a buyer's agent to represent you, and (2) allow this agent to take you to the developments where you are considering a purchase.
What you are describing does occur; a potential buyer goes off to look at new developments by him/herself before getting serious about buying. The decides that he/she is ready, finds a buyer's agent. Unfortunately, in this situation, if that person were to go back to the original development and say, "here's my agent," they may (but not necessarily) say, "you have already seen this property and stated that you don't have an agent, so we are not going to pay a buyer's agent compensation."
This sucks for you, since you are either going to have to go in unrepresented, or have to pay your buyer's agent out of pocket. This sucks for that agent, as the agent has spent resources in building a relationship with you, searching and sifting through listings, and showing you houses, and at the end of the day, might not get compensated at all.
It's just not a happy situation.
The moral of the story? If you want a buyer's agent to represent you, you should probably hire one first.
I worked in real estate here for 8 years so I definately don't want to make anyone lose a commission and don't want to cause any conflicts.....I just was not sure how it works with an onsite agent and want to make sure that our best interests are looked after....and didnt think just going thru the onsite was the best interest...
I guess since we will have to find someone to show us around the other areas anyway I will just tell them we want to go to this development and if we meet this agent I will just let him know that I figured we'd have this agent take us and that we felt it was in our best interest to work with an outside agent....
I would find a buyers agent that knows the area you are interested in and have them show you around. Maybe Vicki or Mike (from this board) can pm you with a name of someone.
The onsite agent is many times like the "badger" at certain car dealerships.
No loyalty to you at all. Goal is to make max profit for their client, the builder.
That is my concern.......I figured how could I get the best info and deal if they're only means of selling is at this development then they have had to had made good relationships with the builders and dont think that would benefit us at all....
I will have to search.......but if anyone knows of a real estate agent over in the winston salem/davidson county area please pm me.....I know it cant be posted here......(there's never really anyone over on the w-s greensboro thread) and I do have a friend who I guess I will call who works and lives/clayton to cover that area......
thanks for clearing it all up.......I just didnt want to find out I handled it wrong and caused issues....
The onsite agent is many times like the "badger" at certain car dealerships.
No loyalty to you at all. Goal is to make max profit for their client, the builder.
That doesn't really make sense. Wouldn't the on-site's goal be to make money for themselves by selling houses? Sure they have to work within the parameters given to them by the builder and sure...profit is part of the equation, but they still have to sell houses. Otherwise, nobody is going to make any money.
Nowadays it seems that a lot of builders are almost selling at cost (or just above) just to stay afloat. It would be foolish of an on-site or a builder to try and maximize profit in this market. Better to sell with a small profit, keep positive cash flow and stay in business.
The long and the short of it is - get a buyer's agent that knows the area you want to live in and can represent you in the transaction, but don't freak out too much about the on-site. Most that I've met are not "badgers" just normal Realtors working on-site for a builder rather than in general brokerage.
The onsite agent works for the builder and therefore, legally, is bound to the builder. Their goal is to get you to buy in THEIR NEIGHBORHOOD and pay the most they can get you to pay.
Since you already went onsite without your buyer's agent, I'd suggest you either tell the onsite agent that once you decide you are serious about this neighborhood that you will be coming in with your buyer's agent. I can't imagine he'd have a problem with it because he wants a sale and in this market, can't be too greedy.
Once you do have a buyer's agent, have them call the onsite person and tell them that you are their agent.
I've had this situation a few times and have never had an onsite person tell me that there is going to be a problem with me representing my buyer and that they are more than happy to pay my commission.
Years ago, there was a builder that had problems with buyers unless they mentioned their buyer's agent at the beginning of the conversation but with the market being so slow, a builder would be cutting off his nose to spite his face, to do this now!
I wish I knew someone in WS to refer you to but I do not.
If your agent (in the state you live in) will send you through her Relocation Dept., she'll get a referral fee and you'll get an experienced agent to help you.
Vicki
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