In real estate, there are a few rules that buyers should be aware of but most are not. Not knowing and following these rules could compromise your future negotiations, weaken your position, and put you at risk if you've signed a buyers agency agreement.
1. Never discuss personal matters with anyone except for your priest/rabbi/minister, your lawyer, and real estate agent.
This is number one because this is the most commonly violated portion of the real estate transaction. Let me first address buyers who have not hired a buyer's agent. When a buyer discusses personal matters such as their desire to move, financial situation, reasons for moving, etc with a real estate agent they haven't hired, that information could come back to haunt them if that agent is on the other side of the transaction. This is very common, especially in small towns or with areas with a dominate real estate agent. They could be representing the seller on the next home you're looking to buy and the information they might be sharing is what you offered up at a prior meeting. The best solution is to keep it to plesantries.
2. Never venture to an open house without your buyer's agent.
What most buyers do not understand is that the agent in the open house or sales model does not represent you. They may be very nice in the way they address you to give you that impression but they represent the seller. In North Carolina, if you do not have an agreement with that agent in writing, they represent the seller whether their name or company is on the sign or not. Therefore, any information that you share can be used against you in any transactions with that agent.
There are exceptions to this rule. I do not require my buyer clients to sign a buyers agency agreement right away because I would never sign a buyers agreement right away. I do, however, point out that there are benefits to having one and have the buyer sign the agency disclosure. If you have the same agreement with your agent, that's fine but in 99% of cases, the agent represents the seller.
3. Never venture to a new home sales model without your buyers agent in tow.
New home sales agents are real estate agents too and they represent the builder, not you. Therefore, if you want all the advantages of having an agent on your side, bring them with you. Venturing to one without your agent essentially cuts them out of the transaction. Depending on your buyers agent, their brokerage may choose to sue you for the commission owed and not paid by the builder at that point.
You can view a copy of the North Carolina Agency Disclosure by clicking here and the South Carolina one here. Both explain the role of agents in the transaction.
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