When I moved to NC in 1979 we were going to buy our first house. A friend recommended a real estate agent and we started looking. He was really nice and knew all about Chapel Hill. Our agent showed us lots of houses and we decided to buy a townhouse and then build a home in a couple of years. What we didn't know and I didn't find out for a couple of years later when I took my real estate license class was that he wasn't really our agent at all but instead, represented the seller. He was obligated by law to get the seller the best price and terms. For a while I felt really bad that maybe we had over paid for our townhouse.

I wasn´t alone thinking that "my agent" represented me. In 1983 the Federal Trade Commission published a study that reported that 72% of homebuyers thought that the real estate agent represented them not the seller. In reaction to the report the National Association of Realtors worked with Realtor boards across the country to provide disclosure of agency to consumers. It took about ten years for buyer agency to become a standard practice in NC.

The NC Real Estate Commission requires that all licensees provide an agency brochure "Working with Real Estate Agents" that explains agency at first substantial contact and that we explain agency at that time. We have to be able to prove that we have done this so the brochure has a section for buyers and sellers to sign that they received it and that agency was explained.

 So, the first time we meet don´t be surprised when I pull out the brochure, go over it with you and ask for a signature. I will ask you if you want me to be your buyer´s agent. Buyer agency doesn´t have anything to do with commission. It is customary in our area for the seller to pay the commission by agreement through the MLS. Our agency relationship can be by verbal agreement until the time of an offer. At that time the Real Estate Commission requires it to be in writing. I will usually ask you to enter into the agreement after we have seen a few homes and we both feel we want to work together. This protects me so I can be sure I will be paid for the work I do with you when you buy a house. I only get paid when you purchase a home  so I need to make sure that my commitment to you is rewarded with a paycheck when I find you a home.

Agency can be complicated when an agent in my office  is the listing agent for a home that I show you and may seem even more so when we look at my own listings. When you visit I will go over this with you but the agency brochure "Working with Real Estate Agents"  is very good. Look it over and please email me with any questions.