Homebuyers need their own “buyer’s agent”

Listing agents represent the seller.

Most buyers begin their quest on the Internet where over 70 percent of today’s home buyers start their search. At this point, the home search can become murky because many prospective home buyers contact the home’s listing agent, either by e-mail or by phone.

Although the listing agent is likely to be extremely helpful, few buyers realize that a listing agent primarily represents the home seller, not the buyer.

Open houses present the same problem. No matter how helpful and charming the real estate open house host agent might be, most prospective buyers don’t understand that agent legally represents the home seller, not the buyer.

Dual agency creates potential conflict.

In South Carolina, a home’s listing agent can also represent the home buyer. When both buyer and seller fully understand the agent represents both parties, this is called a disclosed “dual agency.”

But home buyers should be certain they fully understand who represents whom. In a dual agency situation, the one agent theoretically represents both buyer and seller. Such an agent owes a fiduciary duty of honesty, truthfulness, and full disclosure (with notable exceptions) to the other party.

However, this is an inherent conflict of interest situation for the dual agent.

Homebuyers need their own “buyer’s agent.”

To prevent misunderstandings, South Carolina requires real estate agents to provide written agency disclosures to home buyers and sellers who they represent in the sale. At this point, smart home buyers ask, “Who really represents me?“

Do homebuyers need their own “buyer’s agent?” The answer in most situations is probably “yes.” The reason is a buyer’s agent, who is truly looking out for the buyer’s best interests and using the best efforts to find a house or condo meeting the buyer’s needs, will emphasize to the buyer the pros and cons of each residence inspected.

But a “dual agent” representing both home seller and buyer can hardly be expected to do so, especially pointing out the drawbacks of a listed home under consideration by the prospective buyer.

Sellers pay “buyer’s agent” commissions.

In most buyers’ agent situations, the buyer’s agent receives half of the sales commission paid to the listing agent. This commission split is usually stated in writing in the local Multiple Listing Service (MLS) disclosure between MLS member agents.

Just because the home seller pays the listing commission, which is then split with the buyer’s agent, doesn’t mean the buyer’s agent works for the home seller.

Any real estate agent can be a buyer’s agent to help locate your home purchase. In addition, there are a few exclusive buyers’ agents who represent only home buyers, never accepting listings from home sellers.

Avoid conflict of interest.

Home buyers need their own buyers’ agents, just as most home sellers hire listing agents to represent their best interests. Likewise, home buyers need a separate buyer’s agent looking out for their best interests. Representation by a “dual agent” who represents both seller and buyer creates an inherent conflict for the home buyer.

See full article by Robert Bruss, naplesnews.com

For more information on South Carolina Buyer Agency, contact Barbara Chartier at 843-902-0204.