THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: SUNDAY, June 12, 1994 TAG: 9406100266
SECTION: CAROLINA COAST PAGE: 36 EDITION: FINAL
SOURCE: Chris Kidder
DATELINE: 940612 LENGTH: Long
They promise to call the agent soon. Then the buyers' name shows up on a land-transfer list.
{REST} Usually, the sale has been brokered by another agent. Occasionally, the buyers worked the deal themselves.
Either way, the loss of the sale is money out of the first agent's pocket.
If agents weren't giving the customer good service, they say, or if personalities clashed, the situation would be understandable.
``Everybody's not going to like me and the way I do business,'' one agent says. ``I can accept that.''
But that's not it. I've talked with several buyers who shopped for real estate around the Outer Banks as they might shop for cars or washing machines. They had nary a bad word to say about the agents they dealt with, the ones who spent hours talking with them, driving them up and down the beach, and providing other useful information.
The reason these buyers went from agent to agent was the worst kind of reason, really, for everyone concerned: They did it for no good reason at all.
\ In most cases, buyers assumed they were getting a better selection by using a variety of agents. In some cases, buyers thought they might get a better deal by going to the listing agent.
In no case did the buyers ever stop and consider that what they did might be unfair to the agents they dealt with. As one agent told me, most customers think agents are paid by the hour to sit in their office or drive buyers around.
In almost any case, these assumptions are wrong.
The current system of agency and commissions leaves consumers confused about proper real estate shopping etiquette, about who's working for whom and a lot of other aspects of the buyer-seller equation.
On the Outer Banks, real estate agents are self-employed contractors who earn commissions only: no base salary, no guaranteed minimum. Near-sales, sales that fall through, don't count. Nothing produces income for them except the actual closing of a deal.
Most transactions involve two agents: the listing agent and the selling agent. They share the sales commission.
If the listing agent also sells a property, that agent gets both shares.
In the past, real estate agents have worked for sellers. As legal agents of the sellers, real estate agents were, technically, on the seller's side of any deal.
And though state law permitted buyer agency, the North Carolina Association of Realtors did not. Last year, the group changed its rules to allow buyer agency.
Consumer advocates applauded the move. It seemed a step toward better representation for buyers and more equitable compensation for agents.
While some buyer agency contracts simply shift the legal obligations of the agent from seller to buyer, many call for a buyer's fee.
In most cases, the fee is credited to closing costs if the buyer makes a purchase. In effect, then, buyer agency costs nothing extra. If the buyer doesn't buy, the agent keeps the fee for services rendered.
Whether a real estate agent is representing the buyer or the seller, their role these days is less the salesperson and more the broker.
With the widespread use of the multiple listing service - computerized listings available to all participating agents - agents are matchmakers. The days of an agent strong-arming buyers into houses that fall short of their dreams are long gone.
Today's real estate agents are facilitators: They make possible the deals their buyers and sellers want while making sure the listings, the offers, the contracts and the closings are completed in a timely and legal manner.
Real estate agents are professional, licensed, service providers. They are required by law to be educated about real estate law and practice and demonstrate that knowledge on an exam. They've invested time and money in learning their market and developing networks of information and services.
So what's the proper real estate shopper's etiquette? Before you hunt for a house or a lot, shop for an agent. Make a personal visit.
Explain what kind of property you're looking for and what kind of service you expect. If after 15 or 20 minutes you don't feel comfortable with an agent, you're under no obligation to do more than thank the agent and leave.
You don't need to choose an agent by what the agent can show you. With the Realtors' multiple listing service, member agents can show you everything on the market. Almost every active agent north of Oregon Inlet, and most of those on Hatteras Island, are members.
Have at least a rough idea of what you want. Go to an agent with examples of what you like and don't like. If it means driving around the Outer Banks on your own for a day, do it.
Know what you can afford. If you're not sure, talk with your banker or your accountant first. Be prepared to answer financial questions for your real estate agent.
Agents aren't being nosy; they're doing their job. Unless you've opted for buyer agency, agents are legally obligated to pre-qualify buyers for their sellers.
As a buyer, you gain nothing by agent-hopping. It won't get you a better deal. Unless you hire a buyer's agent, they're all working for the seller anyway.
And the goal of every agent - whether their legal responsibilities are to the seller or the buyer - is to find you the property you want to buy.
by CNB