Who does the REALTOR work for anyway?!?

This is a critical question for any homebuyer in North Carolina. Anytime you talk to a real estate agent or broker, you should be careful to establish what your relationship is with him/her before you tell any sensitive information ("We could spend $500,000 but we don't really want to . . . ")

Real estate agents and brokers work in three different capacities:

Listing Agents work for the seller. They are trying to get the most money for the seller. You don't want to work with an agent who represents the seller only.

Buyer's Agents work for the buyer. They are trying to get the buyer the best deal possible - sometimes that means getting the house cheaply, othertimes it means getting it on the buyer's timetable. Regardless, as a Buyer's Agent my duty is to look out for your interests as a buyer. In any real estate deal, you want to have a Buyer's Agent.

Dual Agents work for both the buyer and the seller. I really don't like dual agency very much. Dual Agents are supposed to pretend that they do not know the buyer's secrets when they talk to the seller, and that they do not know the seller's secrets when they talk to the buyer. The whole thing smells fishy.

The best thing about having a Buyer's Agent is that it usually doesn't cost a dime! You see, when sellers list their property with a Realtor, the property is entered into the MLS. Sellers also enter into a contract with the Listing Agent, promising to pay him/her a commission. When the Realtor enters it into the MLS, s/he is offering to split that commission with a Buyer's Agent. If the buyer deals directly with the listing agent, then the commission goes entirely to the Listing Agent - either way it is the exact same amount. Dealing directly with the listing agent saves nothing on commission and only hurts the buyer's interest! So, why not get a Buyer's Agent?

PS I want to note that when I profile a property on this blog where I am the listing agent, I will always point out that fact. Generally, almost all properties profiled on this blog are represented by other agents. I am presenting them to you as a Buyer's Agent - so you can look for unflinching criticism of over-priced and bad-condition properties! I represent the Buyers!