When my family and I moved to Greensboro in 2020, I was referred to a real estate agent through my relocation assistant. She worked for a major brokerage and after a few transactions, I grew to know, like, and trust her. From 2020 to 2022, she successfully helped me with four different deals including one I got out of during DD. All was smooth until the last one, which had red flags I continued to run through.
The inspection was not as informative as it could have been. It didn’t reveal prior infestation damage because some areas were inaccessible due to the owner’s belongings. After finally getting access (after closing), I discovered floor damage that should have been identified. Now, don’t get me wrong—I did accept the inspection report and signed the offer to purchase. But looking back, I can’t help but wonder why my agent didn’t advocate to ensure the property was clear for a proper inspection.
What still haunts me with this deal was the amount of due diligence and earnest money I put down. My agent explained that the seller was elderly and needed the funds to move out on time, which made sense to me. I ended up putting down 4.35% of the purchase price, a big step up from my previous deals, where I put down between 0.60% and 1.10%. I lost $1,500 on one of those deals but didn’t mind because I found a better property and walked away.
So why didn’t I walk away from this one? Despite the red flags—like the inferior kitchen renovations, an inspection report that didn’t tell the whole story, and a seller who tried to take the appliances that were contracted to convey —I was pot committed. I put enough into the deal that I wanted to see it through and skewed by judgement. My agent did manage to get the appliances back, but the whole situation felt off, and I trudged forward.
There was a difference in agency: in all my previous transactions, the seller was represented by a different brokerage. But in this last deal, my agent’s brokerage represented both me and the seller. At the time, I didn’t realize how much that could impact my agent’s ability to advocate for me. The NC Working with Real Estate Agents Disclosure describes agency relationships, and I’m sure I signed it without fully grasping how it might affect me.
Lesson learned! Moving forward, I’ll make sure I have a buyer’s agent in future deals. I am also fortunate to have purchased a marginal deal in a good market and will be ok in the end. The real loss in in opportunity cost from what I could have found.
Have others had similar experiences with buyer’s agency vs. dual agency? Was this the catalyst needed to find new representation or obtain your broker license?
