Posted by: Roby Robertson | July 25, 2008

Lake Norman Real Estate, An Honest Discussion

Lake Norman Buyers and Sellers, Let’s Talk

I have had numerous conversations and phone calls recently from buyers and sellers in the Lake Norman Market.  Interestingly, from the statistic on this blog, I can also see what people are searching for via search engines. Actually two of the items below came directly from a questions asked on a search engine multiple times. 

Here is a short list of some of the things I am seeing and hearing.

  1. How much do I pay my buyers agent.
  2. Should I offer buyer concessions and and in what form.
  3. Should I offer an agent bonus if they sell my house.
  4. I want to find a waterfront home to steal (not literally).
  5. Can I find a waterfront lot on Lake Norman with a prime view for under 200K
  6. Why should I sign a buyer agency agreement

Have you ever found yourself asking those questions or maybe someone has asked you for an answer.  Well here is the opinion of YOUR Lake Norman agent.  🙂

Buyers do not pay the buyers agent unless there are prior arrangements.  Buyer agents work for you and are paid from proceeds paid by the seller. It is different for commercial real estate but that is another discussion.  The quick answer is this.  Hire yourself a buyers agent. They work for you for free and will protect you in every way that they can. 

Offering to help buyers with closing costs is a more complex answer.  As in many things, it depends on personal issues and circumstances.  It may depend on price range.  You may not expect a buyer of a 500,000 an up home to need a couple thousand dollars at closing…but you never know.  However, by offering these concessions you potentially open yourself up to a whole new set of buyers.  Ask your agent for his/ her opinion and see if they can show you statistics to how this helps.  Also, a lender would have to approve this as part of the settlement and amounts may very because of lender requirements.

Should I offer an agent bonus to the agent that gets the home sold.  I have real mixed emotions on this one, however I lean very heavily towards No.  If I have a client looking for a 4 bedroom home and a home with 3 bedrooms is available but is offering a bonus, do you think I will show that house to my buyers.  Absolutely NOT!  In other words, it does not automatically drive more traffic to your home.  I believe this is a last resort thing and I very rarely advise my clients to consider it.  Note: All Buyers agents are required to disclose to our clients the offer of a bonus.  I have heard, but not personally experienced, that disputes have arisen between agents and clients over these funds.  There is an alternative way to incent agents.  I would be happy to discuss this with you.

Here is the short answer to Find me a waterfornt to steal.  Not on Lake Norman.  To clarify, you can find a good deal.  You can find a seller that is really willing to negotiate.  You need a buyers agent that is patient and willing to go through the process with you.  I am willing to do this but I am honest.  If your trying to find a home at 80-85% of asking price you’re most likely barking up the wrong tree.  Sellers on Lake Norman know the market will come back and they are not going to give their homes or land away.  I want to reiterate, you can find a good deal in this market, but you’re most likely not going to steal a waterfront home!

Can I find a waterfront lot with a view for under 200K.  In short NO.  Not even 300K.  If your Interested, let me show you what I mean.

Why should I sign a buyer agent agreement.  Again the short answer is because you should.  We basically work for you for free and we do all the hard work for you.  You can sign this agreement for as short a period as you want, for looking at just one home or for just one weekend.  The agreement is very flexible.   If you end up with an agent you just can’t work with, tell them to let you out of the agreement.  They should. You are not necessarily going to get a better deal just using the listing agent.  The listing agent represents the seller.  Dual agency means they represent both sides.  Can one person represent both sides fairly and evenly?

For assistance with these an other Lake Norman Real Estate matters please contact your Lake Norman agent at 704 451 7051.

Common Myths about working with Lake Norman and Charlotte Real Estate Agents

Be The First To See Lake Norman Hot New Listings as soon as they become available.

What would my Lake Norman Home Sell For?

See Also:

Lake Norman Sellers, Another Opinion on Seller Concessions

Lake Norman Buyers and Sellers,Know your closing costs

Roby Robertson

 

Saving My Clients Thousands

Broker/Owner

 

Real Living In Style
Davidson NC

 

roby.robertson@realliving.com

 

Ph: 704 451 7051
Fax: 704 892 9766

Committed to Saving My Clients Thousands When Buying and Selling Real Estate

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