How DARE You Waste My Gas!!!!!

July 18th, 2008 category: Buyers, Real Estate News

I read something today in which a buyer wondered if they would have the ability, after viewing a house with a listing agent, to get their own representation for the purchase.

A response from some in the real estate contingent brought up “procuring cause”, “ethics to the agent”, and wasted time and gas on the part of the agent, at the behest of the buyer.

Additionally, there were responses indicating that, without fail, the listing agents ALWAYS ask of buyers if they “have a Realtor”, or if they’re “working with anyone.”

For consumers, THAT’S NOT SPECIFIC ENOUGH. At least in New York, and a number of other states that permit dual agency- not by a long shot.

The question isn’t “are you working with someone.” If a real estate agent has made it to the appointment with the buyer, the conversation should go more like this:

(after niceties): “I am obligated by law to disclose to you that I, and all in my firm, are working at this point for the seller in this transaction- this home is represented by xyz firm. What that means is that it is my responsibility to watch out for the interests of the SELLER. Anything that you share with me, if it advances the end result for the seller, will be shared with them.

If you would like to move forward with an offer at any time, it might be possible to offer you a dual agency situation, in which I can facilitate the transaction. I am available to do that at your discretion, subject to seller approval. Just initial here- the one that reads: enter into this agency with caution.

In the event that you’d like your own representation, it will not be possible if you make the purchase through our firm, however that option is available to you under buyer agency.”

Sometimes, as happened to us, a buyer will say, “I like the house, and don’t need a Realtor. I’m offering x amount, and if your seller won’t take it, I’m not taking the house.” In this case, we represented the seller only, advocating for the seller only.

Sometimes, too, a blank stare with silence will follow your explanation. This is not good, because it means that despite looking at potentially numerous houses, they have not once had the required NYDOS disclosure explained to them.

When I worked on site for a builder, I routinely asked customers that came in if they “had a Realtor”. I did this because I wanted to protect the real estate agent that had likely taken the prospects to numerous places, and I wanted to see them get paid- often, trips to a model home were impromptu. Consumers didn’t “get it.”

The NYDOS “spiel” is not about real estate agents getting paid. It’s about following a law enacted to protect consumers that are entitled to a fair transaction out of the gate. They are entitled to “get it”.

If you are a consumer seeking to purchase a home, and the real estate agent that you’ve selected has collected any information from you without having the NYDOS disclosure explained and signed by you at your first “substantive” contact (read: ANY info collected from you), it would behoove you to request it.

The exception to this requirement (in New York) is a home that is a fourplex or more.

If you are a Realtor meeting a prospective customer at a home listed by you or your company in a dual agency state, do NOT complain about the gas and time unless the person with whom you are showing your listing has reviewed (to full comprehension) the agency disclosure.

For a link to industry comments, click here.

The Content here and The Photos here are: Copyright 2008 Options Realty!

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This entry was posted on Friday, July 18th, 2008 at 12:38 am and is filed under Buyers, Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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