After five years of sizzling growth, U.S. home price appreciation is showing signs of cooling.

Pending home sales — a leading market indicator — are down from a year ago, according to the National Association of Realtors.  In many of the nation's hottest markets, brokers also are reporting a growing gap between sellers' asking prices and what purchasers are willing to pay.

For prospective home buyers, the market shift provides a chance to remaster an old negotiating tactic: the art of the lowball offer.  Strategies for securing a below-market price vary by locality. In any region, however, experts say bargain-hunting buyers can close favorable deals by applying a few basic principles, and by always using an Exclusive Buyer's Broker to help them negotiate the best possible price.

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When someone decides it is time to sell their home, they interview several Realtors from different companies to determine which one is best for them. They want someone who will represent them and someone they feel will do an effective job at marketing their home.

However, when someone decides to buy a home, they usually end up with their Realtor through sheer accident. Why don’t homebuyers search for a Realtor the same way that homesellers do?

Instead, homebuyers usually end up with a Realtor as a result of answering an advertisement. The advertisement will give a brief summary of a home available for sale along with the price, but it says nothing at all about the Realtor. 

So…does it really make a difference?

Listing Agents and Selling Agents

You see, there are two "sides" to every sale.  The listing side and the selling side.  Most deals have an agent representing each side, so there are generally two agents involved   The seller's side is represented by the listing agent.  The buyer's side is represented by the selling agent (sometimes known as the buyer's agent).

Agents can deal with both buyers and sellers, but the majority tend to focus their efforts on one or the other.  Some even exclusively handle either buyers or sellers.

So what should you do?

We simply recommend that you take as much care to hire a real estate agent as you would for any other professional.   Ask questions.  Ask about education, experience, and focus.

After all, buying your next house is probably the biggest purchase you've ever made in your life.  Does it make more sense to find your agent by accident…or by design?  Look for an agent who will represent ONLY your best interest in the transaction!

A real estate agent is considered to be a fiduciary. Some other examples of fiduciaries are trustees, executors, and guardians.  (People who protect other people.)

As a fiduciary, a real estate broker is held by law to owe specific duties to his/her principal (their client - the person who they are representing), in addition to the duties or obligations set forth in a listing agreement, buyer representation agreement, or other contract of employment. Subagents of the broker also owe the same fiduciary duties to the broker's principal.   (Subagents would be all of the agents who work for the same company.) 

It is definitely to your advantage to be working with an agent who always owes these duties to you.

Learn more about these responsibilities to you…

 Most real estate agents in Columbia represent only the seller's best interest when showing property to unrepresented home buyers! The seller agent's job is to obtain the "highest price possible" for their seller.

Columbia area buyers now have a choice. Once homebuyers understand buyer brokerage, they realize that it doesn't make any sense for buyers to look for a home with a seller's agent.  As a homebuyer, you need to understand why you should avoid Dual Agency at all times.

Real estate licensees in South Carolina are required to provide a Mandatory Agency Disclosure at their first meeting with home buyers to discuss a specific property.  This form enables home buyers to make an informed choice about the type of agent they choose to work with in their home search.

The buyer agent's job is to obtain the best price and terms for the buyer client. Exclusive buyer agents are loyal only to the buyer! We represent the buyers only, never the sellers.

Will an exclusive buyer agent cost you more?
NO! The commission does not change. Find out why.