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I am sure that you know that in the world of Real Estate there are those who sell the
real estate know as agents. I think you know that these agents can be classified as
Buyer’s Agents, Seller’s Agents or Dual Agents. I am not sure you know that the state
of North Carolina is a “Buyer Beware” state, which means that the seller does not have
to reveal information about the home they are selling.

When you are buying real estate I am sure you know that you have the option of being
a client of the Buyer’s agent or being a customer of a Seller’s Agent. What I don’t
know is why anyone who is buying real estate would not select an agent as a Buyer’s
Agent.

Let me explain more. In the world of Real Estate, at least in the North Carolina world,
the process and the players are much like a football game analogy. The owner of the
property wants to sell it some they get a team together to sell it. Let’s just call it Team
Seller. Joining the Team Seller is the Seller’s Real Estate Agent (Seller’s Agent) and
along with the agent comes the Broker-in-Charge. The team is building.

Along you come and you stop by a Real Estate office, let’s say Harry Norman Realtors,
and you get a Sales Person. This Sales Person shows you the “Working With Real
Estate Agents” pamphlet and you decide not to select the Sales Person as your Buyer’
s Agent, even though it is not a contract and you do not have any cost associated with
that selection. Now you are a Customer of the Sales Agent. What you may not realize
is that Team Buyer has one member—you. The Sales Agent you are working with has
now just joined Team Seller as a Seller’s Sub-Agent—now there are three on their
team and you are alone. Just for good measure your agent’s Broker-in-Charge is now
also on Team Seller—it is now five against one.

Everyone on Team Seller has a fiduciary responsibility to the Seller to get that person
the best selling rice and the best tears. You might think you are not alone that the
North Carolina Real Estate Commission is on your team—you would be wrong in that
assumption. Their role is more like the referee. They are not there to favor any one
team but rather to make sure the game is played fair.

So now you start the process, with your Seller’s Sub-Agent, to buy the house. Your
agent, the Seller sub-agent, cannot tell you information about the seller’s situation that
may give you, the buyer, a strong negotiating position. Let’s say, they know the Seller
is willing to settle for $50,000 less than the asking price—your agent cannot tell you
this, because that is contrary to their fiduciary responsibility to the Seller to get then
the best price.

Now let’s step back to your initial visit to your agent and when given the option of
selection what team you chose to have the agent joined you on Team Buyer. Now the
agent is a Buyer’s Agent and you are their Client not their Customer. In making this
choice the agent now owes fiduciary responsibility to their client—You. This
responsibility also extends to your Buyer’s Agent Broker-in-Charge. The playing field is
now more level.

You may know all this, what I don’t know is why buyer would not have the agent be their
Buyer’s Agent. It’s a mystery!