Buyer Agency on The North Fork of Long Island

February 1st, 2008 category: Buyers, Real Estate Philosophy

BUYER AGENCY ON THE NORTH FORK OF LONG ISLAND: DON’T LEAVE HOME WITHOUT IT!

We have posted for your review a disclosure that you will be required to acknowledge when you choose to work with a real estate agent/Realtor in the state of New York.� Please see previous blog.

At Options Realty, we offer as company policy two choices:� have us represent you as a buyer, or have us represent you as a seller, or in the event of our own internal listing, on behalf of the seller. If you care for a listing that we offer, we will offer only SELLER AGENCY representation- meaning that you’d be wise to obtain your own buyer broker to look out for your best interests. Dual agency, to us, is a very bad plan, and it undermines the integrity that we’d like to see all parties exit the transaction with, including ourselves. Many local companies do not feel as we do; that choice belongs to them. We operate on our own level of integrity, not local practice.

FREQUENTLY ASKED QUESTIONS ABOUT BUYER REPRESENTATION:

“Who pays the commission?” is a common question. Know that, if a home is presented in the MLSLI (Multi List of Long Island) the seller has indicated payment to the cooperating broker. It’s in the PRICE of the home. So- the reality is, as a buyer offering full price for a house, you pay it (from our perspective), but the listing agent compensates Options Realty OUT of the advertised fee. Offering less than full price does not negate the agreement of the seller- it simply means that they will net less due to a lower accepted offer.

“Do I have to sign a buyer agency contract in order to be represented?”- the answer is NO. The contract, if you sign it, stipulates that your will be responsible for “x” amount for the payment to your buyer agent if they locate a property that works within your parameters. At Options Realty, we choose to represent those that demonstrate a loyalty to us that matches our own loyalty to our buyer. The contract will be offered for your review; if you would prefer not to sign it, we will continue to represent you in any purchase that occurs, assuming that the relationship is working for you.

“Will I get a better price if I just call the person on the sign?” This is dangerous territory for you. What you will be relying on is that the agent on the sign, despite agreeing to represent the seller, will provide you with the “best possible price”- clearly, a HUGE CONFLICT OF INTEREST for both you and the seller. In fact, that person on the sign has likely promised the “best possible price” to the seller- it doesn’t work both ways, because it can’t. A real estate purchase is two sided: thae selling side, and the buying side. Each should have their own representation, with a promise to them alone and separately to provide the integrity needed for each to look out for the best interests of each.

“What do I do if I’ve already contacted the listing agent on the sign?” Not to worry. If you have not presented an offer that has culminated into a signed contract, simply let them know that you will be represented by a buyers agent (keep in mind their fiduciary to the seller at this point- if you encounter a problem with them, ignore it).


“What if the person on the sign tells me that they don’t offer compensation for a buyers agent?” Again, IGNORE IT. It is illegal to deny entry into a property when a buyer is represented. It is considered discriminatory to you, the buyer. While some sellers might offer “0″ to a buyers agent, payment of the fee will be presented in the offer, for the seller to decide with respect to compensation. Sellers in the MLSLI are already offering payment to cooperating brokers; it is highly unlikely that they would decline a contract based on agency representation (they are going to spend the money either way, via their listing agent).

Just as we take the notion of representing you with full fiduciary as a buyer, we also consider fiduciary a non-negotiable aspect of representing the seller. This is why, with our own listings, we encourage you to locate your own representation- and NOT within our own company. The conflict that arises here is obvious- the only way for either sellers or buyers of homes on the North Fork of Long Island to achieve fairness in the transaction, in our opinion, is to have clearly defined lines of representation.

Call us if you are seeking BUYER AGENCY on the North Fork of Long Island. It’s long overdue, and we are certain of the benefits that it will offer you. Our buyer agency is available in Riverhead, Jamesport, East Jamesport, Calverton, Baiting Hollow, Aquebogue, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, and Orient Point, New York.

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