Buyer Representation
A buyer agent is obligated to represent only your interests as described in a written agreement, not the interests of the seller. If your buyer agent is a member of the Wilmington Regional Association of Realtors he/she has access to every listing in the Wilmington Multiple Listing Service. The advantages of having such representation is that one person learns your needs, helps you screen all properties, arranges all showings, helps you negotiate the offer, arranges all of your inspections and attends the closing.
Because the concept of buyer agency is relatively new in North Carolina, many buyers are unsure of how much this service might cost them. Another reservation comes from wanting to make sure an agent is competent, trustworthy and committed to your goals before you enter into an agreement.
While any agent actively licensed in North Carolina who is a member of the Wilmington Regional Association of REALTORS can act as your buyer agent, the National Association of REALTORS has provided an easy way for buyers to recognize agents who have been specifically trained in buyer representation. If they have the ABR (Accredited Buyer Representative) designation beside their name you know they have completed a certain number of buyer agent transactions and passed the NAR exam. This is a minimum threshold.
Other factors to consider when selecting a buyer agent are: the number of years in the business (experience), the number of years lived in Wilmington (knowledge of Wilmington), the types of professional designations (degree of training), whether he/she has an e-mail address and web site (computer expertise).
Still, there has to be a sense of trust and rapport even if most of the above considerations are in place. The best buyer agents are good listeners, clear communicators, skilled negotiators, pay attention to details and help their clients stay focused on their needs.
In order to have an agent represent you as your buyer agent it is required that you enter into a written agreement called the Exclusive Buyer Agency Agreement. There are certain elements that should always be included. The duration of the agreement can be just for one showing, one day, a weekend, a month … you and the agent can make that decision. The length of the agreement is not as important as the ease with which you can end it.
I always include a clause that allows both buyer and agent to end the agreement immediately upon notification by fax, e-mail, voice message or written notice. The rational for a quick and easy cancellation is that trust and respect are what keep the agreement together. When the relationship is no longer satisfactory for either party it should be ended.
Buyer agents are independent contractors and negotiate their own fees, however, the most common method of payment in the Wilmington area is for the listing company (employed by the seller) to split the commission with the selling company and its buyer agent. Simply stated, the buyer customarily does not pay the buyer agent for this service, the listing company does.
For your information, any property in the MLS can vary in the amount of the commission fee, as well as how the fee is split between companies and under what conditions a bonus might be offered. The important thing to remember is to ask the agent to clearly explain how he/she is paid for services, and then make sure it is written into the agreement.
Your Needs & Wants List
The sooner buyers can distinguish what they must have in their next home and what they would like to have, the faster the process can move ahead. Another way to separate the needs from the wants is to ask which things, if missing, would be reasons to reject the house or neighborhood. Those things are your needs and they will be used to search out all of the properties worth considering while the wants will be used to narrow down the list to a manageable size.
A useful exercise is for each person involved in the buying process to make a list of his/her needs, wants, and dreams. Compare and combine each person's list until everyone agrees on the most important things. The agent will use this information when setting up criteria for searching the database for your property. Do not be surprised if the list changes while you are looking at different properties. Each property will reveal at least one thing that you either want or do not want in the property that you eventually purchase.
Beginning with Neighborhoods
A good way to become familiar with the area is to have your buyer agent take you on an orientation tour of neighborhoods in your price range as well as show you the important landmarks and service areas. Many people find there is no better way to discover a place than to spend time in your car with a map getting lost and finding your way again. Just keep in mind that you do not have to see the entire city to discover a great place to live.
If you can give your buyer agent the name of several neighborhoods that you find interesting, he/she can show you others that rival those settings. Another method that works is to focus on the houses that fit within your budget and evaluate the neighborhoods as you tour.
You can become cyber oriented to some of Wilmington's neighborhoods on www.neighborhoodfind.com before you ever arrive. You can also get a good sense of Wilmington's neighborhoods by visiting www.insiders.com/wilmington.
How to Search
The search for your new home should be as fun and exciting as your first scavenger hunt. You are the expert on your needs, lifestyle and tastes and your buyer agent knows the neighborhoods, service areas, housing inventory, financing resources, etc. Together you will exchange your banks of information through observations and questions so that your goal of finding the right house in the right neighborhood is ultimately accomplished.
More and more buyers are getting a head start by researching the area via the Internet (like you are doing). For traditional buyers the search begins with the initial conversation with your agent when you describe what you think you are looking for. Once your buyer agent understands your needs they become the criteria used for computer searches through all of the homes in the Multiple Listing Service. The initial search could retrieve a hundred or more properties. Your buyer agent can narrow the list by looking at each property report marking those that have some of the "wants" on your list and are in the types of neighborhoods you favor.
Now it is time for you to review the property reports and pictures indicating which properties you would like to tour and which can be eliminated. Many buyers go through the local real estate magazines and the Saturday real estate section marking properties that interest them.
Buyer agents will sometimes announce what they are searching for at their weekly sales meetings or e-mail or fax their criteria to agents in other companies. Eventually, the buyers and agent realize that there are two to five properties that meet the needs and many of the wants, but just one has the emotional impact to prompt the offer. Once that decision is made, the search shifts to making an offer.
If you have any further questions at all, feel free to contact me.
Bob Jamieson, Broker
CRS, ABR, GRI
Intracoastal Realty Corporation
1900 Eastwood Road at Lumina Station
Wilmington, North Carolina 28403
Toll Free 877.505.5272
Business 910.232.1893
Fax 910.397.2825email bob@bobjamieson.com
web www.bobjamieson.com