North fork, Long Island Buyer Agency

November 18th, 2011 category: Buyers

Bug Light phsoto 1 PICNIK It’s been very interesting watching the evolution of buyer agency emerge on the East end of Long island- North fork real estate.

It’s a very simple concept, yet hard to get a grip on when the home selling/buying process has had Realtors from different companies both representing the best interest of the seller for a very long time.

Buyers, while likely treated in a perfectly professional manner, have been unable to obtain deeper “truths” needed to make one of the larger investments they may undertake. It isn’t that they have been lied to, it’s that buyers haven’t been provided, throughout the process, all information gathered that represents their best interest.

Home buyers need to know that their home of choice is in line with market value, with truthful presentation. While a Realtor representing the seller may well offer comparables, the legal requirement of a buyers agent involves providing information that is in the best interest of the buyer, period. Perhaps deeper digging. Ditto, as the transaction progresses, elements of the sale that require further negotiation. With “as is” such a dicey NY arrangement, having someone responsible for the best interest of each party to the transaction creates balance. Closest to the participants are often the Realtors.

What a buyers agent is required to provide to a home seller is “fairness” in NY. Fairness might include deterring a buyer from requesting items accepted at the inspection, but seeking a discount for the same items later in the process, “just because”. “Fairness” is subjective, but if both seller and buyer take their written obligations seriously, both buyers agents and sellers agents can reinforce the importance of a “deal” throughout the process. Handshakes were great at one time, but now is not that time. If something detrimental occurs in the transaction to either home buyers or sellers, both are represented to address issues.

To listing agents becoming acquainted with buyer agency, the upheaval isn’t minor- it’s like losing a partner when cooperation involves a buyers agent. Relationships develop over a common cause when both Realtors represent the seller only.

After some time, when closings happen just as they have in the past, minus one selling side Realtor knowing perhaps what they shouldn’t about a home buyer, and the process continues with reasonable people on both sides of the transaction, the occasional kinks will work themselves out, as comprehension becomes ingrained.

A listing agent with fiduciary to the seller must provide all offers (unless directed otherwise by the seller), and must encourage any situation in which the home seller benefits without detriment. For sellers, this is likely no more than an acceptable offer with good terms, and it’s probable that they don’t care that the cooperating broker represents the buyer- “Just get me a good offer!’. A good, well documented offer.

Most sellers are not aware that buyer agency is the only offering that effectively limits seller/listing company liability for the acts of the cooperating broker. Not a bad way to spend the designated part of the fee offered to cooperating brokers.

The buyer agency contract is a contract of choice, not a requirement, for Realtors electing to represent home buyers in New York. Listing agents should be aware that what transpires in the way of a contract is between the buyers agent, and the buyer- and there is no obligation for a buyers agent to provide the seller/listing company with anything beyond an agency disclosure providing the buyer agency status.

The agency disclosure can be provided to the selling side without buyer information- its purpose is to alert the selling side that the buyer has representation, and with whom. This is particularly good information for a seller who is present for showings to have, and is required of Realtors representing buyers in NY.

Just as the listing agreement remains beyond the reach of the cooperating broker, NY buyer agency contracts, if used, are beyond the reach of the listing company. Two fiduciaries doing their jobs separately for a good end result.

Important to keep in mind, is that the very buyers who might benefit through a buyer agency transaction will one day, be sellers expecting the same level of competence and trust. A home buyer who regards his/her first transaction as one in which they were provided with the benefit of trust afforded in buyer agency on the first go around, might expect their first selling experience to have the same level of integrity.

Win (seller) Win (buyer) Win (listing broker) Win (buyers agent).

**this above is not legal advice. I am not a lawyer.

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This entry was posted on Friday, November 18th, 2011 at 2:38 pm and is filed under Buyers. 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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