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Columbia Real Estate Update

6/12/2007 - Do you need a buyer agent?

Do you need a buyer agent when purchasing a home?  ABSOLUTELY, unless you want to run the risk of MAJOR cost and potential problems.  How long would you retain a lawyer to represent you, and come to find out he's also representing the other party in the case?  Let me explain how a similar scenario can occur in  real estate transactions.

Today, most home buyers are using the Internet to search for their next home.  In fact, 87% use the Internet before they contact a Realtor.  Most buyers buy into the myth that they can save money by purchasing their home through the seller's listing agent, or the builder's on site agent. 

The seller's agent, by law, has fiduciary responsibilities to their client.  When the buyer makes a purchase from the seller's listing agent, they lose all fiduciary buyer representation.  One agent can't offer  fiduciary duties to both parties, only the seller will have fiduciary representation.  You will have NO fiduciary representation.  

In all real estate transactions, the seller or builder pays all commissions to both the listing agent AND the buyers' agent.  The buyer pays NOTHING for the fiduciary protection received when represented by a buyer agent.  The commission fee is established when the property is listed with the seller's agent, or placed on the market by the builder's agent.

Why is this important to you the home buyer?  The fiduciary duties and the protection it offers cost you nothing when you have the representation of a buyer's agent.

The S. C. Real Estate Practice Act offers the seller and buyer, individually, fiduciary duties including....Loyalty, Obedience, Disclosure, Confidentiality, Reasonable care & diligence, and Accounting.

A buyer would be doing themselves an injustice if they didn't contact a buyer agent to protect their best interests when purchasing a home.  I assure you the seller will have representation to protect their best interests.  It's okay to contact a seller's agent, or a builder's on site agent. Tell them up front that you have a buyer's agent representing you, or you can contact me, and I will get the information requested.  My fiduciary responsibility is to protect you, the buyer, starting with finding you a home, negotiating the offer, walking you through inspections, and finally closing the transaction.  I hope this answers any questions you may have about agency representation.


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