Written By:
Bill Gallagher, Owner/President
Superior School of Real Estate
bgallagher@superiorschoolnc.com
Read the following article on “Tips In Working With Agents” and “3 Frequently Asked Questions”.
The Charlotte Observer, on Monday, October 1st, 2007, published an article giving buyers six “Tips On Working With An Agent”. I want you to be prepared when buyers might ask you some specific questions generated from this information. Also, please be sure to read the Frequently Asked Questions section to get answers to three of the most frequently asked questions related to agency.
Tips On Working With An Agent
- Be Choosy About Your Agent
Interview several agents to find out who will serve you best, says Charlotte buyer’s agent Julie Tuggle. A buyer’s agent is contractually obligated to represent your interests, not the seller’s. A dual agent can also represent your interests, but if you choose a house listed by that agency, your agent might be beholden to the seller’s interests. Ask what the agent’s policy is for those in-house listings. - How Is Your Agent Paid?
Sellers typically pay a commission of up to 6 percent, which is usually split between the buyer’s agency and the seller’s agency. Some home sellers also offer bonuses on particular homes. If your agency is receiving a bonus, you are paying more for a house. Ask your agent about these bonuses. When would the agent notify you that a bonus is available? Will it be shared with you? - Get It In Writing
Before you start looking at homes with an agent, establish your relationship in writing, says Charlotte buyer’s agent Kristen Haynes. If your agent makes specific promises about commissions or bonus payments from sellers, make sure they are included in your agreement. - Find Out How Much You Can Afford
Get preapproved for a mortgage from three independent sources, and stick to that price limit. A good agent can explain the latest mortgage financing programs, but buyers also should get a “Good Faith Estimate” from each lender they’re considering. That estimate includes mortgage rates, closing costs, property taxes, insurance and other fees. - Do Your Own Work
Don’t rely solely on your agent to present you with available homes. Drive through neighborhoods you like and scout real estate ads and online listings. Then go to your agent with houses you want to see. Don’t allow your agent to talk you into spending more than you’re comfortable with. - Get It In Writing – Part 2
Before closing, get a copy of the HUD settlement statement, says Haynes. This document, which is often available the day before or the morning of closing, details all costs being paid by the buyer and seller. The agent’s compensation is listed at the top of the second page. Make sure your agent is getting paid the amount you discussed, and that there are no unexpected charges for you.
3 Frequently Asked Questions
- Q. In NC, can a buyer unilaterally terminate a sales contract?A. Yes
- Q. In NC, if a buyer terminates a sales contract and the seller decides not to return the earnest money deposit, what is the firm (escrow agent) holding the earnest money required to do?A. If there is a dispute between the seller and buyer over the return or forfeiture of an earnest money deposit, the firm is required to hold the money until the courts decide or the parties agree in writing. Also, under GS 93A-12, the firm can send a notice to all parties involved stating that after 90 days of the notice being delivered, the firm may turn the earnest money deposit over to the clerk of court in the county where the property is located.
- Q. If the buyer terminates the sales contact and if the seller does not agree to return the earnest money deposit to the buyer, can the seller put their property back on the market and sell it to another purchaser?A. Yes. Termination of a sales contract and release of earnest money are two separate issues. Termination is unilateral.
