…and, You REALLY Don’t Want Me To Be!

Charlotte Home Buyers, BEWARE!

In most states, dual agency is illegal. Unfortunately, as I’ve written before, NC is not one of those states. The agents with whom I have discussed the topic, all agree that they do not practice dual agency. None of us think it will be long before North Carolina follows suit and bans the practice in our state as well.

Now, we are even more hopeful than ever that this ban takes place sooner rather than later. For now though, I would like to explain how real estate agency works in our state.

Most real estate agents have what is called an IDX (Internet Data Exchange), meaning that when we sign listing agreements with our sellers, they most likely will allow the use of IDX to broadcast their listings to other agents’ IDX’s and nationally syndicated sites. This means that we all share one another’s listings on our individual websites.

More often than not, when we receive calls from buyers visiting our home searches (provided by IDX) on our websites, the caller asks for information on ‘your listing.’ The caller in convinced that any home listed on my IDX is my listing.

We have thousands of listings in the Charlotte Metro region and no, I am not the listing agent for all of them! I don’t think I have the bandwidth for that many listings!

Now this week, on more than one occasion, a buyer indicated to me that they weren’t working with a real estate agent and would like to see 1-5 properties. Upon meeting them at the first home, they realize that my name is not the same name as is on the sign in the front yard!

Shocked and confused, they ask me if I work for that particular brokerage or ‘for that agent!’ When I explain how our system works, they explain that they were looking to only work with the listing agent!

My first question to them is always, “Why?” I have never understood how buyers don’t consider the following:

The allegiance of the listing agent is inherently to the seller. Let me explain…

Keep in mind that the listing agent either sold the sellers their home and has likely remained in contact with those sellers over the years. As well, the sellers are often family, friends, referrals or simply an internet lead who has an existing relationship which has been cultivated with THEIR real estate agent.

Even if the seller was recently introduced to the listing agent, the seller and THEIR real estate agent have typically spent a good deal of time together, getting to know one another while preparing the home for sale.

A sign or internet-buyer call is an unknown customer who doesn’t realize that the agents’ relationship with the sellers have long since been established. Thinking of this from a business perspective, this is not a position in which one would want to be–basically being the ‘third wheel’ in a business transaction is not a smart financial move.

What the buyer doesn’t realize is two-fold:

The allegiance of the listing agent IS inherently TO THE SELLER; no matter how ‘honest’ one is, it is difficult to be 100% fair to both parties in a single-agent, dual real estate transaction.
The listing agent’s firm already has a signed listing CONTRACT with the Seller in place. To be clear, the seller and the real estate agent’s firm already have an agreed upon listing Contract stating that the seller is going to pay the firm X amount when the property sells.

Do you think that seller or his brother who is his agent, is going to inform you of the planned freeway that is coming through the community, sure to reduce the value of your new home by half in the next year? This is why he’s selling! Don’t think I’m exaggerating; this has really happened.

Buyers think that they are saving a small percentage of the list price by not having their own representation and using the SELLER’S agent. Unfortunately the buyers don’t realize that all sellers are not 100% forthcoming when it comes to property disclosures and that the small percentage that the buyers think they’re saving, can, and often does, actually cost significantly more in hidden defects. Every buyer needs their OWN representation!

There are so many variables that are involved in a real estate transaction. Do you really want to gamble on such a large investment? I think that every savvy businessman and woman would agree, a buyer needs an agent who has the buyer’s best interest at heart.

If you are ready to find the perfect Charlotte neighborhood and home for sale, contact a Charlotte real estate agent who will represent YOU. I’d love the opportunity to share my knowledge and experience with you and to spare you the heartache and likely costly mistake of not having your own agent.

Phone one of us today at (704) 491-3310 (Debe) or (704) 609-2381 (Scott), or email SavvyBroker@me.com to schedule an appointment.