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Archive for July, 2008

An Update on Buyer Agency in New York

July 3rd, 2008 category: Buyers, Real Estate PhilosophyNo Comments »

As buyer agency becomes more common in New York, myths and misunderstandings abound.

A consumer misunderstanding involves seller perception. While the term “buyers agent” might strike fear in the heart of a seller accustomed to both parties working with a buyer on behalf of the seller, it’s actually clarification for both parties in the transaction that tends to afford the process an ethical and smooth conclusion.

Working on behalf of a buyer does not eliminate required “fairness to the seller” intrinsic to all transactions.

The idea is NOT to create issues for the seller, or offers without merit. Rather, it is to clearly define the parameters of a fair price, fair terms, and in all likelihood, required pricing commensurate with value that will ultimately be determined by an appraiser.

Another myth that appears to be perpetuated by some Realtors on Long Island is that a buyer agency contract is required in order for a buyer to obtain representation. Realtors on Long Island tend to concern themselves with a “liability” issue which, so far, I’m simply not seeing as an issue at all. It is no different than liability present when Realtors represent (with fiduciary) a seller.

Confused, many agents feel that a contract guarantees THE BROKER payment, eliminating the possibility of a buyer locating a property after a Realtor has presented properties to a buyer. Indeed, it is from our view a “hostage” situation.

Our philosophy is that if we haven’t established the necessary trust between ourselves and a buyer, we haven’t established the right to compensation. While some might consider this perception risky, we have found that buyers with loyalty earned by us are more than willing to keep us as their agent, irrespective of the possibility of a property located without our involvement (i.e., open house, fsbo , etc.).

In the event that a buyer does locate and consummate a transaction despite our involvement, we are inclined to look to ourselves for the problem- surely, had we operated with an acceptable level of integrity and trust, we would be included in the transaction.

Another problem with a signed agreement from the buyer (outside of the NYDOS disclosure) is that there are many Long Island Realtors that intentionally, or out of ignorance, either counsel sellers to discourage buyer agency compensation (but include, in the price of the house, a fee to be paid to an agent that brings a buyer, representing the seller), or don’t alert sellers that this compensation is not included in their listing agreement.

For this reason, holding a buyer hostage via a contract that may well require payment out of the pocket of the buyer is a violation of the fundamental practice of buyer agency on Long Island, and the accompanying fiduciary incumbent upon the Realtor- causing an unnecessary expense is a violation of fiduciary, and therefore unacceptable.

If we can’t convey to the listing agent and seller that payment is to come out of the proceeds included in the price of the house via a fee that OUR BUYER is paying in the price of the house, we aren’t doing our job. Period.

Until listing agents reduce their fee to include ONLY the listing “side” (typically, a total seller fee is 6%, with 3% going to the buyer’s agent) it is incumbent upon all of those seeking to represent buyers to comprehend FIDUCIARY to the buyer through a full understanding of what the buyer is paying in the price of the house for representation.

It is appalling to imagine that a buyer’s agent would require payment from a buyer, knowing that the fee for the buyer is IN THE PRICE OF THE PROPERTY, AS WELL.

Long Island is tricky. Were it like most areas that are full of seasoned and competent Realtors accustomed to buyer agency as the only way to conduct real estate, there would be no concern that a buyer would be compensating their agent once through the listing fee in the house, and again out of pocket to the agent. It simply isn’t a problem in many areas, as ALL listings fully anticipate, and offer payment to, a buyer’s agent in the MLS system.

Until this is true in New York, and specifically on Long Island, it is dicey, and unacceptable to demand a contract from a buyer seeking representation.

We don’t do things the way that Long Island “does things”, because it has been far too unethical in our opinion, for BOTH parties in the transaction. The resultant disdain that most consumers have toward the real estate industry in general on Long Island is a deserved assumption.

Working to become an integral part of a fair transaction does not seem an unreasonable request on the part of consumers. Hey, it has to start somewhere.

If you are seeking a property on the North Fork of Long Island, or would like a review of our consumer friendly rates to list your home with the utmost care, please contact us. We are happy to answer any questions that you may have. Our goal is your goal- a transaction that is clear, defined, and puts integrity ahead of self-gain.

photos: iStockPhoto

Classic Car Show - Cutchogue Lions Club

July 2nd, 2008 category: People and PlacesNo Comments »

I’m going to repost this, since it is sure to be a big turnout.

The 38th annual event will take place on Sunday, July 6th.

Hosted by the Cutchogue Lions Club, the location will be

at the Capital One Bank Operations Center on the Main Rd. (rt. 25) in Mattituck.

Enjoy the movie from a previous show!

http://www.youtube.com/watch?v=IG34JqxD4f4

The Cutchogue Lions Club will be hosting a HUGE LOCAL EVENT, the Classic Car Show.

ccs

For car lovers all over Long Island, this event brings the best of the best, and offers classic car lovers the opportunity to appreciate the work and dedication present with Classic Car Restoration.

The event will take place on Sunday, July 6th. Please visit the above site for additional details/directions- it’s certain to be a fun day for all.

Denise and Greg say, “Hope to see you there!”

Options Realty: Proudly serving the North Fork of Long Island.

North Fork, Long Island Real Estate Market Update- June 2008

July 1st, 2008 category: East End LI Foreclosures, Real Estate NewsNo Comments »

The following market update includes properties put under contract on the North Fork of Long Island through June 30th. Please note that the pricing is asking price, not sold price.

SINGLE FAMILY HOMES

AQUEBOGUE: 4 U/C; $59k (mobile home), $449k, $449k, $599k

BAITING HOLLOW: 2 U/C; $165K*, $379,9K

CALVERTON: 1 U/C; $368,8K

CUTCHOGUE: 4 U/C; $404,9K (BANK OWNED), $475K, $799K, $498.5K

EAST MARION: 1 U/C; 599K

ORIENT: 1 U/C; 769.5K

GREENPORT: 1 U/C; $480K

JAMESPORT: 3 U/C; $295K, $880K, $1,250M

LAUREL: 2 U/C; $449K, $449K

MATTITUCK: 6 U/C; $310K*, $449K, $450K, $699K, $975K, $539k

RIVERHEAD: 9 U/C; $36K (MOBILE HOME), $117K* (MOBILE HOME), $299K, $319K, $349K, $419K, $559k, $649,9K; $675K

SOUTHOLD: 3 U/C; $375K, $449,9K, $2.9M

TOTAL UNDER CONTRACT THROUGH JUNE 30TH: 37

CONDOMINIUM/ CO-OP SALES ON THE NORTH FORK OF LONG ISLAND JUNE 1 - JUNE 30

BAITING HOLLOW- THE BLUFFS: 1 U/C; $299K

THE KNOLLS: 1 U/C; $359K

CALVERTON- FOXWOOD VILLAGE: 1 U/C $169K

WINDCREST EAST: 1 U/C $619K

RIVERHEAD- WILLOW PONDS: 1 U/C $440K

SOUTHOLD- COLONIAL VILLAGE: 1 U/C $279,7K

TOTAL UNDER CONTRACT THROUGH JUNE 30TH: 6

All figures, while deemed reliable, are obtained through the mlsli (multi list service of Long Island).

FOR THE MONTH OF JUNE, THE FOLLOWING LIS PENDEN FIGURES WERE PROVIDED BY THE REAL ESTATE REPORT: FOR THE NORTH AND SOUTH FORKS OF LONG ISLAND, THROUGH JUNE 20TH, 31 BANK ACTIONS (LIS PENDENS) WERE RECORDED.

*INDICATES CLOSED PRICING