While attending an HOA meeting the other night I listened to a few of my neighbors complaints and concerns about how the neighborhood wasn't progressing the way the salesman said it would. Promises of better amenities, streetlights, sidewalks, house colors, basketball hoops, parking, length of driveways and increased HOA fees were all discussed. Almost every person who expressed a concern mentioned the words "that's what the agent told us" or "we were never told". Many didn't understand the covenants and restrictions that were presented to them prior to closing.
Another truth is many of those, if not the majority, bought thier new home directly from the site agent without the help of a buyer's agent. I don't know if they thought that they would be saving money or possibly these folks were naive in thinking the site agent was working for them and not the builder. Whatever the case may be, most or all of these complaints and concerns would have been handled prior to the closing had they been represented by a Buyer's agent.
In South Carolina, Agency Dislosure is mandatory for all Real Estate agents. Agency Disclosure as oulined in the brochure is confusing to most buyers, sellers and quite a few agents. It is one of the most important documents you will need to read and understand. It lays out the duties and responsibilities of both the agent and the customer/client. This relationship is extremely important.
To reduce the brochure to its simplest terms; As a customer anything you tell an agent/salesman is not confidential and can be used against you during negotiations. You remain a customer until you form an agency. The agent remains the representative of the seller or builder. The agent looks out for the sellers best interest.
As a client (you have signed an Agency Agreement) the agent HAS to hold all information confidential unless you authorize him to disclose that information. Everything the agent does is in your best interest.
If the agent is working for the seller (site agent) and he wants to represent you, this is called Dual Agency. In a dual agency situation the agent MUST request permission from you in writing and disclose to you the name of the other party. All site agents do this, most folks just don't realize the importance of the action.
If these folks at the meeting the other night had had a Buyers Agent when they were looking to move into a new home subdivision their questions more then likely would have been answered prior to the purchase. They would have been better informed, paid less for the house or received more upgrades through their agent's negotiating skills.
Bottom line. It doesn't cost you anything to bring an agent with you to a new neighborhood or invite one back with you when you are ready to buy. Be represented by someone who is looking out for only your best interests. A Buyer's Agent.
Greg Flanagan is A Realtor with Exit Realty. He specializes in the Berkeley county communities in and around the Cainhoy, Wando SC area. He can be reached at 843-818-8867 or www.FlanaganHomeTeam.com
Comments(0)