. . . . . . . . . . . . . . . . . . . . . . . . . . Chris DeLoach . . . 843-270-1272 . . . . . . . . . . . . . . . . . . . . . . . .

I am an ABR. That means that I specialize in helping buyers and have received additional training and experience to ensure I do a good job doing that. In South Carolina, you have a choice - you can have your own Accredited Buyers Representative 

working for you.

As a buyer, what are your choices? You can choose to:

1. work alone with no representation

2. hire your own agent (recommended)

3. let the seller's agent* represent you or assist you 

 * If you work with a seller's agent, the relationship can be set us so that agent is either a duel agent, designated agent, or the sole representative of the seller (in which case he or she can help you with some administrative activities but still represents the interests of the seller ONLY). Call me if you have questions about how these relationships function (843-270-1272).

"Sellers' agents and dual agents do not and cannot by law give a buyer the same degree of loyalty as an agent who acts on behalf of a buyer. Sellers' agents owe their allegiance to the seller. Dual agency invites a conflict of interest. A buyer who relies on the seller's agent or on dual agency does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer". The Oklahoma Supreme Court

"If your agent isn't a Buyer (Agent) Broker - he works for the seller"  U.S. News & World Report

"Most agents who show you homes don't represent your interest. They work for the seller, and their objective is to sell the house at the highest possible price." USA Today

"Exclusive  agencies are the best. They remove any conflict of interests, which is the main reason for considering a buyer broker in the first place."

Kiplinger's Changing Times

"Always remember that a real estate agent does not work for you, but for the seller. If you want an agent on your side, get a buyer broker."

Readers Digest

"Unlike the traditional agent who looks out for the seller, a buyer broker acts as your advocate, helping you find the home you want and then negotiating the lowest possible price. The best buyer brokers are so-called exclusive agents - that is they represent only buyers, never sellers. "Buyers average a 5% savings when represented by a buyer's agent rather than a sales agent."

Money Magazine

"A buyer's broker . . . works for you. He or she is bound to keep your confidence and negotiate with the seller for the lowest price" Jane Bryant Quinn

To protect themselves, buyers can retain their own exclusive representative, called a buyer broker . . . Your local agent may offer such services, but a buyer’s broker who also works as a seller's broker can sometimes end up on both sides of the deal. Business Week Magazine

Buyers: If you want representation, work with a buyer's broker. They are legally obligated to represent your interests in negotiations with the seller.

The Consumer Federation of America

Groups such as the Consumer Federation of America and AARP recommend using buyer's brokers. Smart Money

To protect themselves, buyers can retain their own exclusive representative, called a buyer broker . . . Your local agent may offer such services, but a buyer’s broker who also works as a seller's broker can sometimes end up on both sides of the deal. Business Week Magazine

Is it possible for you to find a home on your own without using a buyers agent?

Of course it is. With the access available by the generosity of local MLS systems, the general public can now get much of the information available to  agents online with the click of the button. Once you locate a home online, there is nothing to prevent you from going out to see it.

So why should you have your own agent? 

The problem here becomes clear when you consider the agency relationship between the seller and his or her agent. To understand the problem, simply ask yourself, " who is this agent representing?" .

Consider for a moment contacting the listing agent off of a sign in someone's yard. The listing agent will be happy to meet you at the property to show you the home. During the time they are meeting with you, they may ask you some questions to get to know you better. They may ask you about your employment situation and your family, your interests in the area, what you like and what you do not like about the home, whether or not you have been preapproved for a loan, and other details that might be helpful in understanding your readiness and ability to purchase.

Unfortunately for you, some of this information can be very valuable to the other side in a negotiating situation. Should you later decide to purchase the home, any information that you revealed to that agent that may be beneficial to the seller must be revealed to the seller. the listing agent does not have a choice. That's right. Anything you tell that agent can work against you when it comes time to purchase the home. They have no duty of confidentiality to you and actually have a duty to reveal everything they know about you to their client.

The agent that has the home listed is duty bound to represent the seller. That means they are also a duty-bound to ensure that the seller receives the best possible price for the home and gives up the fewest concessions. In other words, the listing agent is duty bound to work against your best interests if they are in conflict with the interests of the seller!

While you should expect the listing agent to be helpful and honest to you, that agent is not in a position to look out for your best interests. Contrary to this, your own buyers agent works specifically for you, looking out for your interests.

What you need to know about "Procuring Cause"

Should you expect the listing agent to be fair and honest?

Yes. There are duties that the listing agent owes you as the buyer even if representing the seller. Honesty and fair dealing are among those duties. However, important information that may be very valuable in formulating your offer or in determining whether or not you wish to move forward may be withheld if that information works against the interests of the seller.

For example, the listing agent is not allowed to tell you the reason that the home is for sale unless the seller specifically authorizes revealing that information.  The selling agent is not allowed to help you determine the concessions that the seller may be willing to make (such as the degree with which they may assist with closing costs, whether or not they are willing to throw in any appliances, how flexible they are on closing dates, and other such related information).

The listing agent is not in a position to help you determine the market value of the home through a comparable market analysis or CMA. It would make no sense, if the listing agent is trying to get the highest price for their seller, to assist you in determining the market value of the home.

Will hiring my own buyers agent add to the expense of purchasing the home?

That is very unlikely. Your buyers agent agrees in advance to receive compensation through the compensation that is offered to them on the MLS.

That is, the MLS systems (effectively a contract among broker-members) specifically states how much the listing agent is willing to share his or her commission with a buyers agent. The total commission that the listing agent has already negotiated with their seller does not change. When the home is closed, the listing agent typically shares around half of the commission with the buyer's agent.

If the listing agent were fortunate enough to represent both the buyer and the seller in a transaction, the listing agent will receive the entire commission (unless the listing agreement allowed for a reduced commission for "double dipping"- not very likely). This "double" commission also occurs if the buyer has no representation at all. Usually, there is no advantage for the buyer in terms of commission paid if the listing agent is also the selling agent.

One misunderstanding that many buyers express when shopping for a home that is new construction is that they believe that builders will sell the home to them for less if they do not have their own representation. This is generally not true. The reason is that builders are very dependent upon the local real estate community to provide them with most of their sales.

Most builders face stiff competition from many other builders within the same community and do not want to take actions that might alienate agents in their community. Reducing the sales price of a home when not bringing an agent would have the long-term effect of encouraging homebuyers to avoid using agents. Plus, it will have the effect of discouraging agents from taking their clients to that builder. Since 80% of new home sales come from agents who bring clients, builders would be making a poor marketing decision to allow for any change in the sales price should the buyer arrived without representation. My experience has been that many builders actually encourage unrepresented buyers to go adding get their own representation.

Caution: the listing agent may offer you representation.

Can an agent represent both you and the seller in South Carolina? If so, is this a good idea?

There are situations where you might meet with a listing agent and they may offer you representation. There is a way that that agent can represent both you and the seller in a transaction.  One way is called designated agency any other way is called dual agency. In both cases, the agent is permitted to represent both parties. In order to do this, both parties must agree to allow this dual representation and they must sign an agreement which states that they understand that the ability of the agent to represent them in an advocacy role has now been significantly reduced or eliminated.  In this situation, the agent cannot reveal to either party any information that may be contrary to the best interests of the other party. Also, they can not offer advice that may be counter to the interests of either party. Hummm.

Of course, this is a situation where it's difficult, maybe impossible, to avoid a conflict of interest. In my opinion, this type of representation should not be permitted and we do not practice this type of representation in our company.  If you find yourself in a position to consider this type of representation, suggest serious caution. In a sense, when this happens, the agent is reduced to an administrative assistant to both parties and is removed from the advocacy position for either party. It make no sense and it is a terrible idea.

In my opinion, the only beneficiary here is the fortunate agent who now received both sides of the commission.

Having your own agent in the purchase of a home is similar to having your own attorney during a civil trial.

The attorney for the opposing party must look out for the best interests of their client although typically courteous and polite to the opposing party, observing general rules of ethical behavior. A party with an attorney has the advantage of the training and experience of their attorney in arguing for their case. It would not be advisable for you to go to court without your own representation although it is perfectly legal to do so. It would also be a very strange situation to have an attorney representing both parties during a dispute. In fact it is not permitted as attorneys recognize the unavoidable conflict of interest when attempting to represent the interests of both parties.

Looking out for you

 Your buyers agent goes to bat for you. But before doing so, he will spend time learning about your needs and wants - an important step in the process. Once you have found the home that is perfect for you, your agent can develop a comparable market analysis or CMA which is intended to reveal what price similar properties in the area have been listed for and have sold for in recent months. Your agent can provide advice to you about what to offer and about what sorts of concessions you may receive from the seller. Any information that your agent has gleaned through conversations observation and experience will be provided to you for your own evaluation. Your agent will work to formulate a plan for giving you the best home at the best price under the best terms.

Helping you during the negotiation process

Once the plan is developed, your buyers agent will negotiate directly for you through the agent for the seller. This third-party negotiation is a powerful tool and one of the most important reasons you should have your own agent. Not only will your buyers agent negotiate for the best terms, but many buyers agents automatically bring with them a certain amount of strength to the table through their reputations within the local real estate community. That is a feature of using an experienced buyers agent that is frequently overlooked by buyers.

Helping you during closing

After a deal has been struck between you and the seller, agents on both sides will work together to bring the deal to a successful closing. This portion of the sales process can be complex and stressful so having someone assist you can be a very big help. Events that occur between contract signing and closing include inspections, negotiation for repairs, re-inspections, liaison with attorneys and with lenders,frequent communication with buyers and sellers and more. Often unexpected issues arise that an experienced agent can help you move through effectively.

Finally, once you have reached the closing table, your buyer's agent will be there with you in case anything unusual come up.

Establishing a buyers agency relationship

In order to establish a working relationship with an agent in South Carolina, a standard form is filled out. If you are a seller of property, you will sign a listing agreement with your agent. If you're a buyer of property and want your own representation, you will sign a buyers agency agreement. In either case the basic purpose of the document is to establish a working relationship where everyone understands the responsibilities of clients and agents.