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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A question that seems to come up now and then, most often from a home buyer, is “how do real estate agents get paid?”….

Nationally, and in New York, it is typical for the real estate agents fee to be paid by the seller.  When a seller sits down to establish a price with their listing company, comparable properties sold are pulled and compared, and the seller and their Realtor determine a price. The price arrived at includes the real estate fee to be paid by the seller to the listing company.

Also discussed is the amount of the total fee paid by the seller to the listing company that will be offered to cooperating brokers- those bringing a buyer.

So, the total purchase price of a home typically includes the real estate fee for both the listing agent, and the selling agent.

This method has become standard largely due to the understanding on the part of home sellers that limiting out-of-pocket costs for buyers is an effective way to increase the percentage of buyers able to purchase their home. Closing costs, lawyer fees, and miscellaneous expenses are out of pocket expenses for buyers; that the fee can be financed is an advantage to sellers.

The fee is paid when the property closes.

It can be argued that while the seller is providing the check at closing, the buyer of the property is also paying the fee- if it’s included in the purchase price, they are either financing the fee, or including it in a cash offer.

If you are a buyer seeking buyer agency, the majority of listings in New York pay your buyers agent. While there are less evolved companies that lack understanding regarding buyer agency, your Realtor will let you know if a property does not include the fee.

As a buyer, just as you might request that a seller pay a percent toward closing costs, it is also possible to request of a seller that they provide the fee for your buyers agent, in situations where you are dealing with a listing that does not provide payment to a buyer’s agent.

Unless agreed to in writing beforehand, Realtors are paid when- and only when- the property closes.

Types of cooperative fees paid in New York:

Sellers agent: while still popular in areas of the Hamptons, most areas have abandoned this compensation for a cooperating Realtor bringing a buyer, because per New York State, the seller can be held liable for any intentional misrepresentations made by the selling agent.

Brokers agent: in use, this allows the cooperating broker with a buyer to work for the listing company, representing the seller, while bringing the buyer. Liability for misrepresentation on the part of the selling agent falls to the listing company.

Buyers agent: in use, this allows the buyer to have representation, and eliminates vicarious liability for both the seller, and the listing company.

For buyers seeking representation, it’s important to understand the agency offerings. For sellers, the same applies. It is the responsibility of the listing company for the seller to clarify each offering, and the buyers agent to make clear the distinction for a buyer.

A real estate transaction is a meeting of the minds between a seller and a buyer, with Realtors working to bring the two together. Real estate transactions have always had and will always have, opposing agendas from a seller perspective, and a buyer perspective, yet as long as sellers are willing to offer compensation to a buyers agent, and buyers are willing to provide a realistic price for a home, the result is the same.

For sellers: understand the agency offerings that you are deducting at closing from your net proceeds, and insist on exposure that will provide your home with cooperating brokers- every offer counts, and an MLS is viewed by all MLSLI Realtors seeking homes for their buyers.

To view the required New York agency disclosure, click here. The disclosure also covers dual agency, which may occur when a buyer views a property listed by the selling agent’s brokerage.

To view east end of Long Island (Hamptons, North fork) homes for sale on the Multiple Listing service of Long Island, click here.

To view east end reo/foreclosure homes for sale, click here.

With fiduciary to the seller.

I am not talking about a buyer that might call on a sign, and engage with the listing company (although I have wondered, being out of touch here, if the “double end” is re-emerging in areas that used to have a savvy buyer who understood the obvious pitfalls of this move).

What is perplexing to me is the Realtor who elects to engage a buyer, and represent the seller with ALL properties shown, irrespective of the agency providing the listing- in other words, the clear choice of the Realtor to take buyers around, and disclose that they will be representing the SELLER on any choice made by the buyer- no exceptions. Elective SUB AGENCY.

This has me constantly wondering. I guess I wonder because the simplicity of entering into a MAJOR purchase alongside a buyer would kick off the good angel/bad angel sitting on  shoulders, and (with the presence of buyer agency- no contract neccessary) eliminate the choice that I will engage a buyers time, their confidence and their most important purchase…while required by LAW (NY agency law) to take any indicators that benefit the seller, and share that info IMMEDIATELY with the seller…as required by NY state agency laws.

Sub agency, where it exists, is a detriment to both buyers and sellers (vicarious liability)- yet, there you have it- it’s not dead yet.

Odd, with a fiduciary requirement to the seller, that a listing company would even offer payment for sub agency to a cooperating broker. 

I must be missing something, and am fine with enlightenment- but when engaging buyers, there is something really FUN and comfortable with ease and trust, which is offered with buyer agency in New York, and in many, many places.

Honesty/integrity/disclosure/confidentiality with the home buying person that PAYS me (yes, yes, the seller cuts the check, but the FEE is in the price of the house) seemed so natural in my old state, and anything else is just, well…UNNATURAL.

THERE MUST BE A WAY TO GET THE WORD OUT TO NEW YORK BUYERS THAT “THEIR” TIME HAS COME… I wonder how everywhere else got their buyers and sellers CLEAR.

I like happy transactions…with buyers that felt happily covered, and sellers who reached their own goal of a sale…home is a big deal.

Recent buyers, when buyer agency was explained, responded that they simply didn’t believe that a Realtor that would take up their own time finding the best home, and a buyers time finding the best home, would engage in sub agency.

To search available homes for sale on the North Fork / East End Long Island or condos on the North Fork of Long Island, click “north fork homes”, enter your area of interest and any parameters, and click “go”- properties for sale include Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, Orient Point, Westhampton Beach, Hampton Bays, Flanders, Southampton, Sag Harbor, East Hampton, Montauk, NY.

With an increase in East End (North Fork, Hamptons, Long Island) foreclosure / bank owned / reo homes for sale, we thought an insight into the process might assist those buyers seeking to purchase a bank owned home.

Unlike a traditional sale, REO homes have requirements of prospective buyers that, if understood prior to making an offer, might expedite the process, increasing the odds of actually presenting the offer that is accepted.

Once a foreclosure/bank owned home is located, an offer needs to be decided upon. Offers should be based on a buyers perceived value of the property, irrespective of the asking price. Some REO’s are priced in such a way as to garner immediate (and multiple) offers. It’s important for buyers to be aware that when such a competitive bidding process begins, providing the bank with the required prerequisites will save time, and increase success.

Buyers paying cash need to be prepared, at the time of the offer, to provide proof of funds to the bank. This proof can come in a few different forms. The most common appears to be bank statements. This provides a very clear picture to the seller that the buyer is capable of making the cash purchase, with funds available the day of the offer. Consult your lawyer for the best method of providing a seller with proof of funds.

If a buyer is seeking financing in order to obtain the property, check the wording on the listing. Some sellers require that all buyers engage in a prequalification with the lender chosen by the seller, often the bank who owns the property. This prequalification needs to accompany the offer. The absence of a prequalification letter can result in an offer being delayed for submission, so having it handy is imperitive.

Most banks require that offers be provided on state approved forms. On Long Island, the state approved sales agreement can be found on the MLSLI site. It is a form that provides for the offer price, amount down, buyers attorney and real estate agent, estimated closing date, and other pertinent information that will permit a seller to clearly see what the offer encompasses.

The key to getting an offer accepted is readiness. REO / bank owned / foreclosure homes for sale on the east end of Long Island, while not plentiful, generate interest. Some are in good condition, some less so.

Once your offer has been accepted by the bank, there is an addendum generated that is called an “as is” addendum. This addendum stipulates some of the “as is” terms of the agreement, and should be reviewed by the buyer with their attorney, so that full comprehension of the expectations are clarified. As is means AS IS. For some buyers, the addendum is not acceptable; for others, the terms of the “as is” are acceptable. The “as is” addendum will have a time frame attached- typically, two – three business days to review/return to the listing agent.

Important to note with all aspects of an reo / foreclosure / bank owned purchase is that the timelines set forth by the seller are most often not negotiable, and any deviation creates the real possibility that the offer will be returned, with the next highest offer replacing it. Bank owned purchases, while not warm and fuzzy, are clear. Adhering to the time frame should be viewed as non negotiable.

Within the three day window afforded from receipt of the “as is” addendum to the date of its required return provides an opportunity for buyers seeking an inspection to have that performed.
While it would be ideal to engage in such an inspection prior to receipt of an “as is”, there is no certainty, absent the addendum, that the offer submitted hasn’t been outdone by a higher offer. Such a decision rests with both the buyer, and the listing company- the listing company will be aware of any limitations imposed by the seller regarding an inspection.

Once the “as is” addendum has been signed, the seller will generate a contract to be provided to the buyers attorney for review. The date expected for the return of the signed contract is typically 3-5 business days, depending on the seller. Once again, the time frame needs to be adhered to.
Once the contract has been returned signed, and is accepted by the seller, the process becomes one of waiting for a closing date to be provided.

The above suggestions are just that- suggestions. This is not to be construed as legal advice, as I am not a lawyer. Consulting a lawyer on all things related to a foreclosure is recommended.

To view East End REOs (Hampton, North Fork foreclosure / bank owned homes for sale), click here.
If a bank owned home isn’t your preference, you can view all East End homes listed on MLSLI here.

We arrive…we are warmly greeted by you, the seller, and we proceed with the tour.

Having operated for many years in an area where the presence of a seller was not normal practice, and strongly discouraged, it seems worthy of exploring this phenomenon.

Pro: for you, the seller, you are aware of the people looking through your property; you see us, and while you generally keep a distance, your presence is known. It’s your house, and you provide a very real reminder of that.

The problem with this scenario is that the whole basis for looking is for the buyer to find their home- while you may have created a lovely space, the reminder that, “it’s mine” is magnified when you are within earshot of each comment, whether good or bad. While that may not seem problematic on the surface, it can be a problem- particularly if the buyers have found a home that they like.

Buying a home is a stressful endeavor, and making a commitment to making it “mine” is often an anxious process, particularly in an uncertain market. When a seller is present, our visit is not going to be prolonged. There is a sense of intrusion that is unavoidable.

Here’s an example of what can happen when you are NOT present: when looking at a home recently, it was clear that the size of the yard was not in line with expectations. Because we had a commitment to view the home, we proceeded anyway.

Once inside, the layout was very workable, and we took our time seeking out those things that elicited positive dialogue- there was little not to like. Despite a number of positive elements, the yard remained an issue- low maintenance was the objective, and this yard was enormous.

As we stopped back into the kitchen to chat, thinking ahead and discussing several other homes that were scheduled, it was noted that the size of the kitchen was pretty wonderful. While I spoke with the wife, the husband was looking out the back window. Between the trees, he noticed that there was a neighbor with a ride on lawnmower taking care of the grass. He walked out onto the deck, as we continued to chat in the kitchen, and the next thing we knew, he was talking with the neighbor. Who better to provide management of a large yard than the neighbor, who was making it look a whole lot less negative to all of us?

Here is the thing: had you been there as a seller, that obligatory, “in and out” underlying urgency would have stopped us from wandering into the kitchen and settling there for a few moments.
When a property isn’t “perfect” (and rare is the house without an issue), time needs to be taken to work through those issues. Better in the house, right there, than in a car on the way to the next candidate.

I’m not sure how it is that this practice in certain areas of Long Island became normal. It just isn’t done in most places, and the reason is simple: you are opening your home for the purpose of allowing it to “belong” to someone else, just as you havelikely discovered your own new place to live.
Isn’t that the objective?

Another problem with an insistence to be present is that your listing agent is not likely to appear in your place, should you be too busy to show your home to buyers. Once on a buyers list, and then scratched off, another attempt to show it might not happen- there are too many homes on the market to go through scheduling issues with sellers. Having the listing agent present is often equally off putting to buyers- they generally prefer to get a feel for the way they’d live in the home, and have no interest in being “sold” by a stranger when first viewing a home. If they have questions, it’s our job to get answers from your listing agent, and we’re happy to do it.

First, a buyer needs to feel “right” in your home.

A lock box on the house is essential. A key on the premises for entry is a very basic requirement, so that you don’t miss out on potential showings (it only takes one) and create difficulty for buyers seeking to view your home. Any impediment to the meeting of the right buyer, to the right home, should be avoided. If your key is located in an office miles away, instead of on the property, you might just miss a showing- logistics come into play when setting up showings for a buyer with a time frame..

Cooperating Realtors bringing buyers understand the importance of taking good care of your home, and we are well aware that leaving your home in the condition in which it was found (doors locked, lights off, if requested) is important- antagonizing a prospective seller is simply not on the agenda. If a Realtor accompanied buyer wants your home, it is understood that good will from the onset is essential.

Removing items of value is common sense, and should be done in the event of all showings- accompanied by the seller, listing agent or cooperating Realtor- doesn’t matter.

So, what is it about parts of Long Island that engage in this odd practice of the seller being present for home showings? While I am quite certain that rare issues arise, the vast majority of showings without the seller or listing agent, are without issue (as evidence of it being standard procedure just about everywhere else)- so I must be missing something.

We are fortunate to offer someone a truly captivating summer experience, located in Flanders, NY.

This lovingly maintained cottage offers a wonderful opportunity to leave bustle behind, embracing instead a lovely garden patio, with carefully located flowers and shade trees offering privacy, peace, and tranquility.

The bedroom offers sliding doors open to the garden, providing a light, bright retreat.

The bath has been completely updated with charming detail.

An eat in kitchen is open to a cozy living room.

To view this adorable cottage, please call Options Realty at 631-765-6221. This is a wonderful alternative to condo living- a low maintenance back yard, large garage with workspace, and in ground sprinklers offer benefits of convenience for those not yet ready to share walls, but seeking to simplify their space.

Priced at just $215,000., this 1 bedroom 1 bath single family retreat is beckoning.

Searching properties has never been easier, right from your phone, anywhere, any time!

To search homes for sale on the North fork of Long Island, and the Hamptons, click here- or, use your phone!

Above, garden pictures from last year…with this weather, I’m outside hurrying up the now bare garden, anxiously checking on what’s popping up…

Like a growing number of east end real estate sites, Options Realty has signed up for a home search feed that includes all participating members of our local MLS.

Using the feed, once you get the hang of it, is simple. Just be sure to indicate your preferences prior to your search. Looking for condos? Click on “north fork condos”, and read through the choices, beginning with “condo”- when you seek a specific location/town, click on the town, then the “add” tab in the middle. At the bottom, you can narrow further by clicking on “55 and over”, along with other criteria.

The search for single family properties is equally simple: just click on your town(s) of interest (if there is more than one, click each, and hit “add” so that it appears in the second column to the right) and continue with further narrowing down- price point, etc. If you want to view all homes on the North fork of Long Island, no criteria is needed- just click “go” at the bottom.

If your search is simply for bank owned or REO homes on the east end of Long Island, click on the “foreclosure” tab at the top, and you’ll be brought to the same page, but lead directly to bank owned. Because the offerings are limited, simply clicking on “go” without narrowing down will bring you to all bank owned properties on both the North fork, and in the Hamptons.

You can save your preferences; sign up for auto updates (which will deliver your properties of interest directly to your mail), or just check in now and then to see what’s what! Auto updates permit you to have new listings in your area of interest automatically sent to you.

The MLSLI provides this convenient search option, along with any of the participating brokers on the east end of Long Island seeking to maximize their seller’s exposure. This convenient feature permits a sellers property to appear on all participating broker websites, whether that company is the listing company or not.

Happy searching!

In Suffolk County, New York the FHA loan limit is $729,750. While that remains intact, some changes have been made with other policies. One of those is the amount of seller concession permitted (it’s been reduced); the other is the amount that FHA will require for their mortgage insurance premium (MIP).

Changes can be found by clicking here, along with links to other questions that you might have regarding an FHA loan.

With many North fork and Hamptons properties falling into the FHA range, those with credit scores below 600, or limited funds for a down payment might want to check out the HUD site above.

If you have any questions, we’re happy to help.

Details on the tax credit can be found on the IRS website, or just click here.

Added to the initial tax credit opportunity is a credit for any homebuyer meeting the stated criteria- it is no longer an offering limited to the first time buyer.

Check it out; the credit, along with low, low interest rates, make for a compelling opportunity to explore a home purchase on the North fork or East end of Long Island- pricing in the Hamptons has dropped along with the North fork, creating some interesting possibilities.

For a recent update on how to file for your credit, click here.

For additional info, call us- we’re happy to help!

Start your search by clicking on the “homes” tab- you will be gaining access to MLSLI property listings on the North fork and in the Hamptons. With an increased number of homes for sale on the east end, the choices are better than ever!

If you are looking for a home or bank owned foreclosure for sale on the North Fork / East End / Hamptons of Long Island, please fill out the form below.

To search available homes for sale on the North Fork / East End Long Island or condos on the North Fork of Long Island, click “north fork homes”, enter your area of interest and any parameters, and click “go”- properties for sale include Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, Orient Point, Westhampton Beach, Hampton Bays, Flanders, Southampton, Sag Harbor, East Hampton, Montauk, NY.