Serving Home Buyers In Greenville, Winterville, Farmville, Ayden and Surrounding Areas in Pitt County, NC

BuyerAsst LLC, Realtors® © 2009 All Rights Reserved.  

Member Pitt Greenville Association or Realtors® MLS

Real Estate Agents can represent their clients (and earn a commission) in 3 ways

 

1. Sellers Agent - The agent lists the sellers property on the MLS, and represents the sellers interests

2. Buyers Agent - The agent assists the buyer throughout the homebuying process, and represents the buyers interests

3. Dual Agent - The agent represents both buyer and seller in the same transaction

 

    When a seller “lists” their home with a Realtor®, they spell out in the “listing agreement” the compensation they offer to pay their agent, “the listing agent.” And the compensation they agree to offer a “cooperating (buyers) agent” for bringing a buyer to the table. This is called “Broker Reciprocity” and  effectively puts every Realtor® to work locating a buyer to purchase sellers property  These commissions are a contractual obligation for the seller, and are non-negotiable,  see excerpt below . . .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Simple enough! But here comes the curve ball . . . If you don’t have your own agent, the “sellers agent” by default is credited with “bringing you to the table,” and gets to keep “both” commissions. This is great payday for the sellers agent, but it puts the you in the position of having no representation, or in a “dual agency” position where the agent must represent the interests of you, and the seller at the same time (and we contend it can’t be done!). Dual agency is still legal in NC, but it creates a definite conflict of interest for the agent, and puts you at a disadvantage since you have no real advocate to proactively negotiate on his behalf.  When you call the number on the ad, yard sign, or talk to the agent at the open house directly, you are talking to the sellers agent, who is not your friend and must protect the sellers interests to your determent.

 

This is why we (correctly) say, the seller is paying for you to retain your own representation, whether you choose to take advantage of it or not.

 

Excerpt from the  EXCLUSIVE RIGHT TO SELL LISTING AGREEMENT (View full agreement here)  

 

 

8. FIRM’S COMPENSATION. Seller agrees to pay Firm a total fee of _____________ % of the gross sales price of the Property, OR ___________________________________________________________ ________________________________________, which shall include the amount of any compensation paid by Firm as set forth in paragraph 9 below to any other real estate firm, including individual agents and sole proprietors (“Cooperating Real Estate Firm”). Such fee shall be deemed earned under any of the following circumstances: (a) If a ready, willing and able buyer is procured by Firm, a Cooperating Real Estate Firm, the Seller, or anyone else during the Term of this Agreement at the price and on the terms set forth herein, or at any price and upon any terms acceptable to the Seller;

 

9. COOPERATION WITH/COMPENSATION TO OTHER FIRMS. Firm has advised Seller of Firm‟s company policies regarding cooperation and the amount(s) of any compensation that will be offered to other brokers, including but not limited to, seller subagents, buyer agents or both, brokers who do or do not participate in a listing service and brokers who are or are not REALTORS®. Seller authorizes Firm to (Check ALL applicable authorizations):

q Cooperate with subagents representing the Seller and offer them the following compensation:___________% of the gross sales price or $__________________; and/or,

q Cooperate with buyer agents representing the buyer and offer them the following compensation:___________ % of the gross sales price or $_________________; and/or,

q Cooperate with and compensate other Cooperating Real Estate Firms according to the Firm‟s attached policy.

 

Firm will promptly notify Seller if compensation offered to a Cooperating Real Estate Firm is different from that set forth above. Agents with Cooperating Real Estate Firms must orally disclose the nature of their relationship with a buyer (subagent or buyer agent) to Firm at the time of initial contact with Firm, and confirm that relationship in writing no later than the time an offer to purchase is submitted for the Seller‟s consideration. Seller should be careful about disclosing confidential information because agents representing buyers must disclose all relevant information to their clients.