Another North Fork, Long Island Real Estate Rant…
November 28th, 2007 category: Real Estate Philosophy
It’s time for another North Fork, Long Island, New York real estate RANT.
Having recently worked with several buyers seeking property in the area, we were asked what “EXCLUSIVE” meant on the signs that are present here.
To those REALTORS who put the “exclusive” riders up, please do not tell me that it’s to differentiate yourself from an “open” listing- that’s RIDICULOUS, and a game abandoned by New York real estate companies YEARS AGO. Hence, the confusion facing agents from outside the eastern end of Long Island.
We have to explain it to the buyer looking at your listing. Know what? It’s ANNOYING.
Prospective buyer: ” I’ve noticed that many of the signs have EXCLUSIVE on them. What does that mean?”
Real estate agent: “Yes, it’s a practice done out here to offer the listing company the opportunity to pick up both ends, meaning the commission without sharing, in the event that someone happens to drive by the listing.
It’s a very bad plan for the seller, because in the “old” days, meaning thirty plus years ago in most parts of the country, real estate agents realized the importance of cooperation and full exposure- it’s detrimental to any seller to eliminate any buyer by making things confusing. Clearly, some still don’t GET IT.”
When I contacted MLS (MULTIPLE LISTING) about this practice, they had NO IDEA what I was talking about, because exclusive riders disappeared a long time ago elsewhere on Long Island, and everywhere else. They agreed that it is an odd practice, and requested photos- if an agent is a member of theMLS, cooperation with other agents is AGREED TO, making exclusive signs unnecessary.
Another annoyance is the use of the MLS as a method to gain exposure, but with an unwillingness to pay a “buyers agent”. SELLERS: if you’ve agreed to this, rethink it. When we tell buyers that your house doesn’t offer buyers the ability to view the home with a buyers agent, the comment from buyers is often, “WHAT’S WRONG WITH THE HOUSE?”
Because buyer agency is common everywhere, it seems, but on the North Fork, that’s tough to answer. If they want to view the property despite concerns brought about by the decision to eliminate smart buyers that want their own representation, we’ll show it. Most times, though, the buyer will take a pass. The decision to eliminate buyer agency with your property eliminates good buyers. Was this explained to you?
The real estate system has needed a balance on the North Fork, as buyers for YEARS have received the questionable status of being represented by the selling agent. This hasn’t prevented offers from being submitted; in fact, that aspect hasn’t changed.
The difference is that, when one real estate agent represents the seller, and the other the buyer, the transaction has a much better shot at concluding with fairness- to BOTH the seller and the buyer. When a buyer is represented by the SELLING agent, it makes accepting offers imbalanced, and puts the seller in a position that might create compromise: two interested parties; one represented, one not (there is no representation for the buyer whatsoever if they do not have a buyers agency agreement. You’ll never see the offer from the represented buyer. YOUR SELLING AGENT CLEARLY DOES NOT COMPREHEND FIDUCIARY if you have been encouraged to eliminate buyers represented by real estate agents. If it was solely your decision, as a seller, it might be worth re-considering.
And really, aren’t buyers correct to assume that there might be a problem with the property? Why SHOULDN’T buyers have the same ability to choose to be represented by a real estate agent, so that their interests are handled with the same diligence that the sellers interests are?
A buyers agent will establish that the value is in line before showing the property; a buyers agent will accompany the buyer for the inspection in order to determine a reasonable outcome (remember: at this point, the buyer wants the house); a buyers agent will make certain that the buyer is ABLE to make the purchase.
Why eliminate BUYERS IN A BUYERS MARKET, either by playing weird exclusive sign rider games, or insisting that all parties to the transaction represent the seller only? Buyers today are simply too smart for that.
These shenanigans have been present both here, and in the Hamptons, forever…but times are changing.
Put your home on the market, including all possible buyers and their representation, and don’t create doubt by permitting an “exclusive” rider on the house. It causes issues that YOU don’t see, BUT WE DO.
6 Responses to “Another North Fork, Long Island Real Estate Rant…”
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November 29th, 2007 at 12:15 pm
Laurie - What nonsense the Realtors in North Fork dish out to their sellers who agree to such a marketing plan, which is really not a marketing plan at all. Buyers in the Long Island area should have the option (Options Realty, of course) of a buyers agent and should expect to be able to see every home available.
Will these agents who offer Exclusive properties accept an offer from you with your buyer paying your commission or do they just not show them?
November 29th, 2007 at 1:59 pm
They would likely accept an offer with the buyer paying commission, but the mls indicates no buyer agency commission- how ridiculous is this for sellers? Appalling, really, but it’s still happening here. I’m tired of explaining the games!
December 15th, 2007 at 7:29 am
Having sold in Nassau County for ten years and having delt with LIBOR, here’s the thing. Here in Westchester County they say that the MLS is a cooperation between brokers and for the most part compensation is paid to buyer’s brokers, not a problem, completely different mindset. Years ago when buyers brokerage came and the listing was not on MLS, but “Exclusive” by law we could just call the sellers up (believe I still have the letter from the Department of State about this. Also when they say exclusive - they are referring to the Exclusive Right or Exclusive Agency listings that sellers sign and deliberately confusing the pubic.
December 31st, 2007 at 12:14 pm
Thanks, Miriam- it seems SO SIMPLE: don’t eliminate buyers, and don’t complicate your presentation of a home with a rider that isn’t accurate. I appreciate the perspective-
March 22nd, 2008 at 1:17 pm
What BS! Realtors in North Fork use richer real estate marketing plans. How does this effect the total outcome of the sales process?
March 22nd, 2008 at 3:43 pm
REP: the outcome for sellers is unknown- if showings are limited, they aren’t getting the exposure offered under the fiduciary requirement of the selling agent. I am not certain what you mean by “richer real estate marketing plans”.