Charlotte Real Estate Market adjusts

Charlotte real estate agents saw their numbers drop by 20% from 11,704 to 9,374 between 12-15-07 and 12-15-10 due to the declining activity. And here’s an even more significant trend: 52% (4,870), of the agents that were still in business on 12-15-10 were affiliated with an office that numbered 19 or fewer agents, and 45% (4,242), were affiliated with an office of 10 or fewer agents*. The reason this statistic is significant because in the present economy, agents are more likely to leave the larger national franchise offices, where they must forfeit more of their commission dollars, to start up their own broker-owner firm or join a smaller locally-owned firm where they can keep more of their sales commission.

During the same period, more Charlotte real estate buyers were seeking
exclusive buyer representation. A large firm or franchise can offer exclusive representation services to buyers, but if the buyer wants to purchase a home listed by their buyer agent’s firm, the buyer must agree to sign a dual-agency agreement, which allows the firm to legally represent both the buyer and the seller on the same property. Most of the agents who advertise on public MLS services like Zillow and Trulia are listing agents who work with buyers and whose company policies permit the practice of dual agency on in-house listings.

This opens up a big marketing opportunity for brokers who are affiliated with firms that have 10 or fewer agents to establish for themselves a policy against the practice of dual agency. But why would a broker want to do that?

Here’s why: The potential revenue gain that a broker can generate by providing guaranteed
exclusive representation to prospective buyer-clients should be more than offset by the opportunity cost of referring those buyers who decide to purchase an in-house listing another buyer’s agent outside their own firm for exclusive representation.This departure from the traditional real estate paradigm is due less from buyers contacting home sellers directly using Zillow or Trulia than it is from agents who can offer a unique competitive advantage by eliminating the risk of dual agency compromising the negotiating position of their own buyer-clients.

About jptuggle

My name is Julie Tuggle, broker/owner of Carolina Buyer's Agent in Charlotte, NC. After four years working for a traditional broker, I saw the need for a firm that would represent buyers best interests only on any home for sale in the Charlotte area, including For-Sale-By-Owner homes, so I opened Carolina Buyer's Agent in 1998. Carolina Buyer's Agent specializes in buyer representation only, giving buyers the negotiating advantage throughout the home purchase process. We're one of the only real estate firms in the Charlotte area that doesn't take listings or represent sellers, so you'll never have to worry about the risk of "dual or designated agency" - the conflict of interest that exists when your agent's company is also representing the best interests of the seller on the home you want to buy.

Visit our web site, , for more information about working with an exclusive buyer agent when you're ready to start thinking about purchasing a home. From there, you can search for MLS-listed homes and for-sale-by-owner homes, too. We'll also explain the legal difference between a dual agent and an exclusive buyer's agent so you can make the right decision on one of the most important investments you'll ever own. Search for Charlotte real estate including for-sale-by-owner homes, and find Charlotte school and community information at . I'm a non-smoker and my hobbies are tennis, gardening and of course, investing in real estate!