Buyer: Realtor Differences Across the Country

Real Estate across the country does have commonalities from state to state. However, there are some major differences that most buyers, especially out of state buyers need to be aware of. As with anything, the changing economic climate may change the way Realtors operate in Georgia and elsewhere but for now here are some general differences that I have found.

1. Buyer's Agent Fees Are Free in Almost All Cases in Georgia.
   
   Georgia has a wealth of inventory. Typically 95% of all homes sold are listed with a broker. Of the 5% that sell (a higher percentage starts off as FSBO then listed) their home going For Sale By Owner, most offer a buyer agent commission. Making it easy to bring a Realtor in to help with the transaction.
   
2. New York Realtors have it easy.
   
   New York Realtors typically are marketing and sales people. Most of the New Yorkers that I have met see Realtors as "middlemen." In New York, Attorneys help coordinate paperwork, closing dates and timing dates such as the inspection. In addition, New York attorneys work closely with the Loan Officer. In Georgia, your Realtor is the closest thing you'll have to an Attorney. It's always recommended that you consult with an attorney, but your Realtor will coordinate and fascilitate your closing. This makes it doubly important to pick the RIGHT Realtor.
   
3. You're Fired!
   
   In other states it's relatively difficult to "fire" your Real Estate Agent if you are under contract with them. In Georgia, it only takes a certified letter plus any contingencies put in. For example, some times when taking a listing if there is a need to withdraw early, an agent may require a removal fee. These fees are typically under $500.
   
4. Are you an Earnest Buyer ?
   
   In other states earnest money could be called a binder or even a down payment. In addition, in many cases the earnest money could be non-refundable or even held up in escrow for months at a time. In Georgia, earnest money holds the home for you while you get your financing together. Earnest Money is basically a forced gift certificate that you get to use on your home. If you buy the home you get a credit back, if you don't buy the home you could lose your earnest money. Your Realtor will advise you on how you can leave yourself vulnerable to losing the Earnest Money. In most cases you will have options to keep your earnest money if you follow closely to the guidelines. As a final note on earnest money, earnest money is considered ligquidated damages. So in the event that you leave too little earnest money a prospective seller may forego trying to collect the money and pursue legal action to collect more.
   
5. Who has your back ?
   
   In most states if you have not signed a buyer brokerage agreement then the agent you are with represents the seller. This gives the seller an almost unfair advantage of having 2 agents working for them to get top dollar. In Georgia, this is still true however, if no Buyer Brokerage is signed the Agent can remain neutral. In addition, if you do not have a "buyer's agent" then you can ask for one to be designated for you. Again, without a Buyer Brokerage signed you leave yourself unprotected by the agent's experience and knowledge.