North Fork, Long Island, NY Real Estate Blog OptionsRealty.com

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De-Niggling

May 26th, 2009 category: Buyers, Real Estate Philosophy, SellersNo Comments »

Click on the image below to link to the original post at Active Rain.

While many areas don’t permit dual agency and sub agency, some areas do, and it’s widely used, and perfectly legal in NY.

For some Realtors, this tradition of “neutrality” comes naturally, and there will be (always) strong defense that “I can do it- my deals always work out fine.”

While I believe that most deals work out “fine” (as in, close), what I don’t believe is that the interaction with consumers is not without some “niggling”- that uneasy tweak- throughout the transaction. Who wouldn’t be scared on a tightrope (presuming that full disclosure has been offered, with a full understanding of agency laws)? Even the New York Department of State offers the verbiage, “enter this agency with caution” to consumers.

How to eliminate the “tweak” might be to explain to buyers, when they view a property, that you represent the seller (at that juncture) but that as buyers, they have available to them buyer agency.

This is required stuff anyway; just eliminating the niggles.

If, as might occur (at least, it does out our way) the buyer says, “I hate Realtors, and I don’t want one”, then it’s possible to put in writing that you represent the seller ONLY- and that as a buyer, he/she has no representation. That eliminates a “niggle” in a big way- make absolutely certain that their lawyer has reviewed the agency agreement and signs off. Have your own provide verbiage.

If, as a buyer, they respond to the full agency explanation (each agency reviewed) with a desire to get their own Realtor/fiduciary, so what? More opinionated: GREAT!

If, as a listing agent, your list price is without commission paid, it could truly be considered the seller’s expense in its entirety. Absent that, if it’s in the listed price, the buyer is picking it up- in a diplomatic effort, they are paying 1/2. Some argue that sellers pay it all; some insist that the buyer pays it all. It’s math- I lean toward the latter (but was never good at math).

Going with the theory that a buyer is paying 1/2, frankly, I don’t like to see money wasted, and anything short of representation is wasted money on their part in a dual agency situation. They’ll figure it out; why not unearth it for them, with a 30 year financial commitment looming? It seems the respectful thing to do.

We received a really nice email from a client recently (operating under buyer agency) and it occurred to me, as I reviewed dialogue back and forth, that much of what was shared leaned in their favor, so would have been unacceptable under any other agency. Likewise, the seller of the property was receiving equally competent representation from their own agent.

What seems apparent is that full commitment to ONE party offers a whole lot more in way of job satisfaction than a tightrope walk- an opportunity to invest ourselves FULLY in the transaction on behalf of our clients. It’s makes the job fun. It engenders loyalty from our buyers/sellers. At the end of the day, we did everything we could think of, much as if it were our own purchase. No froo froo- just facts.

A thought: dual agency elevates the “deal” to a level above the participants.

It may be that I don’t like money as much as I like my job with clients. No customers.

Ditto the selling side- there’s something about finishing a transaction as if it were your own sale that makes this job more rewarding. But then, like I said, I am happy to PAY to stay off of a tightrope.

Some states have eliminated the fiduciary verbiage; that will probably be an eventuality in NY. Until then, it’s really a matter of self-policing our own motivations with dual agency, and our own willingness to leave fiduciary by the wayside.

I hate heights, so that abandonment just doesn’t work.

To get more specific local North Fork or East End & Hamptons real estate information, fill out the form below with your questions/comments. We know how to find properties coming on the market, and available. If you’re looking for a foreclosure on any part of Long Island, we’ll help you find it.

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.

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“Junk” Fee, Or Legit in a Home Sale?

May 16th, 2009 category: Real Estate News, Real Estate PhilosophyNo Comments »

While “administrative fees” are a relatively new addition to a real estate transaction, the following article calls into question the legality of such fees.

Historically, the commission agreed to between a seller and buyer included the administrative aspects of a purchase, and there was no addition for miscellaneous (and vague) fees tacked on by the broker.

With most transactions handled by lawyers, there is little in the way of “admin” fees that would seem to apply in a NY real estate transaction; the paperwork is not handled by real estate firms on the east end the way that it is in other states. Even in states that handle these aspects, “administration” fees were not present until the last few years.

Not all companies charge them, and it may turn out that such a fee has been deemed illegal.

If you’re seeking to buy or sell a home on the East end/North fork of Long Island, and this fee is introduced, it might be wise to question it- additional fees in real estate aren’t an arbitrary decision, as the courts have recently decided.

As consumers, awareness is everything in real estate!

To get more specific local North Fork or East End & Hamptons real estate information, fill out the form below with your questions/comments. We know how to find properties coming on the market, and available. If you’re a qualified buyer looking for a foreclosure on any part of Long Island, we’ll help you find it.

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.

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Buyer Agency North Fork and East End, Long Island, NY

May 6th, 2009 category: Buyers, Real Estate News, Real Estate PhilosophyNo Comments »

When you’re out looking at houses, know your real estate agent. Don’t just “like” them…like them because they represent your best interest- then, like them for any number of other good reasons.

In any real estate transaction, there are two parties involved; one, seeking to sell a house for the “best possible price”, and one seeking to buy that house for the “best possible price.” In this equation, you have the seller (and their Realtor), and a buyer.

As a buyer, how you enter the transaction- and with whom- will directly determine if you truly are getting the “best possible price.”

Because of many, many instances in which home buyers felt “duped” by their real estate agent after discovering that, in fact, they represented the seller in the transaction,NYDOS now requires a disclosure form, so that the position is crystal clear at first substantive contact.

If the real estate agent with whom you are seeking properties has not provided you with this, and checked the buyer agency box, you are not maximizing your buying power.

While it’s absolutely certain that buyers have access to many sites with statistics, homes for sale, homes closed, and other important data, having your offer facilitated by a Realtor either representing the seller, or waiving fiduciary to you, makes no sense.

“But I can find everything I need online, and know what to offer.”

It’s irrefutable that data is readily available. While data tells the story, and offers a solid set of guidelines, it can no longer be argued that data also provides a “future” glimpse into what we might expect over the course of the next few years- or months.

The market has changed so rapidly, and with such force, that having someone that would prefer to err on the side of caution (as opposed to abandonment) on your behalf is an intangible unappreciated until a property is located.

Rather than having a cheerleader encouraging abandonment and a hurry-or-it’ll be gone mentality, discussion with someone who has provided fiduciary in writing offers a more grounded experience- all facts, not just positive facts.

“But that’s what my lawyer is for.”

Lawyers aren’t involved, as a rule, in the appropriation of your property of choice in the earliest stages. Rather, their fiduciary dictates (this is not legal advice, just opinion) that the transaction itself have representation on your behalf. By the time they’re watching out for your “best interests”, the property itself has you involved. That’s not early enough for fiduciary to kick in.

“But I’ll get a better price if I go right to the listing company.”

This is likely the biggest error that can be made on the part of a home buyer. From the moment you enter into negotiations with the listing agent, who in turn goes directly to the seller, you’re being set up to fail.

While you might be a superb negotiator, able to navigate appropriate pricing, etc., it would be contrary to the home seller for their Realtor to advise you to do certain things, such as offer a lower amount; offer a lower deposit; request funds toward finance costs; include in your conversation with your lawyer potential contingencies in your favor- the list lasts for as long as the transaction lasts, as things come up.

Even though your negotiating powers might be exceptional, if you aren’t covered after the contract itself, you could find yourself at a closing with two real estate agents and a seller requesting additional funds for items that, were you covered earlier, would have been resolved. Nickles and dimes, or much more.

We had a recent closing in which the seller had not replaced the refrigerator, as promised- it was suggested at closing by the listing company that the buyer split the cost. Ridiculous, but it happens, and our buyer’s position was bolstered by an “even” representation. Ridiculous things can happen, right up until closing.

The experience is better overall if sellers and buyers feel adequately protected, to the best ability of the chosen Realtor(s), from start to finish. Closings are no place for negotiation, but it happens too frequently to ignore- before, as expected, during, not as expected, and at closing.

Our buyer would have had a distinct sense of unease had we, at the closing, been less vocal about him NOT paying an amount that was simply unacceptable (which was ANY amount). We would have felt less comfortable about being as vocal about the inequity had we “represented” the seller. He might have felt outnumbered with two advocates of just “getting the deal done” at his expense.

Being “fair” to a buyer (as required) is too subjective; the fiduciary verbiage required in New York makes clear that the interest of the buyer come before the interest of the seller, OR their agent, at all times, under buyer agency. The seller likely has the same “fiduciary” verbiage with their listing company, and as a result, the listing company, or an agent representing the seller, cannot by law offer fiduciary to the buyer.

Buying a home with an agent representing the seller makes no $ense. The price is just the first step. Level the playing field- as a home buyer, you deserve it, whether the home is a resale, bank owned, or new home. Buyer agency goes well beyond the presence of commission.

A copy of the disclosure form is here. If you are looking at houses with a Realtor and have not received it, request it immediately, and look for the “buyer agency” box to be checked. Without it, your Realtor is likely working for the seller, not you.

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Condos for Sale North Fork / East End, Long Island

April 20th, 2009 category: Buyers, Real Estate PhilosophyNo Comments »

Below, please find an update on condos, both 55 and better, and family condominiums. Included are estimates for taxes and HOA dues, subject to verification.

BAITING HOLLOW, NY CONDOS FOR SALE:

The Knolls:
Pricing between $299k-$479k
Common Charges: $257.-$335/mo
Taxes: $3879.-$4811

The Bluffs:
Pricing between $364.5k-$439k
Common Charges: $326./mo
Taxes: $5501-$5603

Golf Villas:
Pricing: $435.9k
Common Charges: $430./mo
Taxes: $4609.

CALVERTON, NY CONDOS FOR SALE:

Calverton Hills:
Pricing: $129k-$204,9k
Common Charges: $200-$275/mo
Taxes: $2045-$2093

Foxwood Village:
Pricing: $145k-$360k
Common Charges: $443
Taxes: $2212-$6097

Windcrest East
Pricing: $545k-$559k
Common Charges:$300.
Taxes: $5043-$5780

EAST MARION, NY CONDOS FOR SALE:

Cleaves Point
Pricing: $799k
Common Charges:$575
Taxes: $3069

GREENPORT, NY CONDOS FOR SALE:

Driftwood Cove
Pricing: $179k-$229k
Common Charges:$303-$400
Taxes: $n/a

Pheasant Run
Pricing: $395k
Common Charges: $350
Taxes: $3300

JAMESPORT, NY CONDOS FOR SALE:

Maidstone Landing
Pricing: $659k-$1.275m
Common Charges: $495.-$535
Taxes: $6000.-$7500.

RIVERHEAD, NY CONDOS FOR SALE:

Willow Ponds
Pricing: $269k-$479k
Common Charges: $273-$291
Taxes: $4129-$5032

Mill Pond
Pricing: $282k-$299k
Common Charges: $210
Taxes: $2574

Saddle Lakes
Pricing: $349k-$575k
Common Charges: $282-$290
Taxes: $3834-$4071

Stoneleigh Woods
Pricing: $365k-$375k
Common Charges: $263
Taxes: $4250-$4550

Sunken Ponds
Pricing: $369k-$419k
Common Charges: $290-$300
Taxes: $3413-$5400

The Highlands
Pricing: $574.9k
Common Charges: $394
Taxes: $10,112

SOUTHOLD, NY CONDOS FOR SALE

Colonial Village (co-op)
Pricing: $187,8k-$277,650
Common Charges: $355
Taxes: $150-$170

Founders Village
Pricing: $349k-current offerings are all at this price point, per MLSLI
Common Charges: $240
Taxes: $2570

The Cove
Pricing: $869k
Common Charges: $425
Taxes: $3300

CLICK HERE TO VIEW CONDOS ON THE NORTH FORK.

If you are thinking about retiring on the North Fork of Long Island, there are many possibilities!

If you are thinking about selling your condo on the North Fork of Long Island, we have buyers looking.

Call today to get updates on availability, pricing, or to ask any questions- we’re happy to help.

*all info obtained from MLSLI, and subject to change. While deemed reliable, information is subject to confirmation.

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Blogger Tells it Like it Feels with Credit Card Companies

April 11th, 2009 category: People and Places, Real Estate News, Real Estate PhilosophyNo Comments »

Frustrated with the shenanigans of credit card companies seeking to raise your rate? We loved this blog, but be aware that it’s pretty blunt, before clicking!

Today’s post comes to us from an Active Rain participant in Melbourne, Fla., Laraine Shape. Her post titled, Bank of America can Just Kiss My Ass raised a laugh.

To get the whole “Poop” [pun intended], Click Here to read Laraine’s entire post on Active Rain.

Thanks for visiting Options Realty. Feel free to sign up below.

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East End, Long Island Real Estate…in 2006.

April 5th, 2009 category: Real Estate PhilosophyNo Comments »

http://www.nytimes.com/2006/04/23/nyregion/nyregionspecial2/23lijour.html

While downward pricing in homes under contract presents uncertainty, the upside is demonstrated in the article above. It’s interesting to revisit the downside of the “up” market- and if there’s a silver lining, perhaps it includes the notion that the younger contingent on Long Island will have the ability to remain here!

While I don’t speak for many, knowing that my own daughter would have the opportunity to live on Long Island, should she so choose, surely offers many parents an opportunity to rethink the “bubble”, and it’s ramifications.

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Buyer Agency on the North Fork & East End of Long Island

January 10th, 2009 category: Buyers, Real Estate News, Real Estate Philosophy, SellersNo Comments »

Teamwork on the North Fork If you purchased your last home without the assistance of a buyers agent (an agent hired by you to diligently monitor your best interests in a home purchase), here are some things to consider NEXT time around:

1. How long has the home been on the market?

We’re noticing that on occasion, a home that’s been on the market for an extended period of time is allowed to expire, and then re-entered by the listing company as a “new” listing a few days after the expiration. Tracking this is simple, if you have access to the history of the property, either through public records, or your own real estate agent digging for property history. The listing agent is unable to offer this insight; they represent the seller.

2. What is the history of the individual listing agent with respect to pricing?

Some listing real estate agents often have a listed/sold differential in excess of 15-20%- the property is initially overpriced, then dropped in fairly short order. Knowing the methods of the specific listing real estate salesperson on your property of interest provides insight that is of immeasurable value; if the typical effort includes overpricing, and then whacking off huge sums to reach market value, better to know this beforehand, in order to present an offer that coincides with both market value, and seller expectation. A buyers agent should seek out this info for you before an offer is considered. An agent representing the seller will NOT OFFER information detrimental to their seller, and we understand/respect that obligation.

3. What are the anticipated values in a declining market that should guide the offer of a property of interest?

In a market that is a “moving target”, it’s very important to review local trends. With a closing occurring 30- 90 days after a purchase, common sense based on historical data would suggest that things “can’t change THAT much”- not so in todays market. While there is no clear cut answer, a buyers agent can work with you to establish what the trends indicate, so that you don’t face a closing in which your property of interest runs into appraisal issues. While highly inexact in this market, a buyers agent is able to work from a “cautious, in the best interest of the buyer” angle, rather than a “get the seller the best price possible” angle required of the listing company (and any real estate agent that hasn’t committed to serving the buyers interest FIRST and foremost).

4. Who pays the buyers agent?

As with the typical transaction, payment to Options Realty buyer agency agreements are paid by the seller upon closing (although because the cost of real estate fees is included in the purchase price- it can be argued that commissions are paid by the buyer, as well, just paid out by the seller). The seller, if they are a listing company that utilizes the MLSLI, will stipulate the fee paid (just as has been historically done under all other agencies). While there are a handful of companies that indicate non-payment for buyer agency, it’s our job to “collect” from the listing company- as a buyer, you can either avoid properties in which the listing company indicates payment only for seller representation (not recommended) or we’ll establish UP FRONT for you any issues created by a listing company not well versed on the value of buyer agency. MOST REAL ESTATE COMPANIES on the North Fork of Long Island today COUNSEL SELLERS TO PAY THE FEE TO A BUYERS AGENT, so the likelihood of any issue is greatly diminished. A good thing for sellers.

North fork homebuyers (and likely, New York homebuyers overall) have discovered over time that their interests have been ignored in favor of both real estate agents (listing and selling) representing the seller.

As a result, there is a knowledge level gained by prospective home buyers that often creates the certainty that having someone in their corner is an unnecessary endeavor- they can “represent” themselves- real estate agents are simply a conduit.

In the current real estate market, sellers, buyers and real estate agents are playing with a new deck of cards, and the hand dealt is not always a “winner”- elements outside of the real estate industry control are wreaking havoc.

Viewing buyer agency/seller representation as a simple acknowledgement that in fact, two sides exist in ALL transactions is simply common sense, to the benefit of both parties.

If you’ve sold a home in the past, and wondered WHO your real estate agent “really” worked for, or bought a home and wondered the same thing, you’re likely clear about one thing: IT’S BEEN AS CLEAR AS MUD.

At Options Realty, we seek to provide clarity for ALL parties in a transaction- fiduciary to our primary client (whether it’s a seller or a buyer) with fairness offered to the second party in a transaction, including encouragement for both parties to have full fiduciary from their participating real estate company. Two represented parties = one transaction of integrity for ALL.

It’s our job to permit you to clearly see where we stand, so that the choices that you make MAKE SENSE to YOU.

Options Realty. Defining Lines, Providing Clarity.

To check out all available properties 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, and Orient Point, NY.

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EXCLUSIVES on East End, Long Island Real Estate

November 18th, 2008 category: Real Estate News, Real Estate PhilosophyNo Comments »

I recently read an interesting article in Hamptons real estate that can be found here.

Any person selling real estate outside of the east end of Long Island knows something: the word EXCLUSIVE in real estate, when used outside of a listing agreement permitting a company to list a house, and offer cooperation to all participating brokers, is a BAD WORD.

“Exclusive” used to mean that an agency would finagle a seller into using only the real estate salespeople and brokers IN THAT OFFICE in order to sell a house. That the listing company would limit exposure by “EXCLUSION” was clearly bad for sellers.

“EXCLUSIVE” in real estate jargon was eliminated in the majority of the united states 20 plus years ago, when multi-list information became the “norm” for exposure, and accepting and encouraging a cooperative broker to provide a good buyer for a seller became the expectation of Realtors. The “good guys” got RID of “EXCLUSIVE”.

More offers from more sources provided more “net” potential for the seller, so the Realtor community, bound by a membership requirement to cooperate*, accepted this additional exposure, understanding that it merged quite nicely with the state mandated “fiduciary” relationship that listing brokers pledged to home sellers.

HERE’S THE ODDITY: Also part of an east end attic mentality is the notion of an “open listing.” When I first arrived on the North fork of Long Island in 2002, I’d see a yard with three real estate signs on it. HUH????

An “open listing” is now called a FSBO, or for sale by owner, everywhere but on the east end. The majority of FSBO’S are willing to offer cooperation to a broker that might provide a buyer; the difference is, there isn’t a listing agreement, there is a selling agent fee (likely half of what an “open listing” seller might unknowingly offer).

Recently, I offered a blog, predicated on a real consumer of east end real estate, that can be found here. The comments exceed in quality the post itself. Open listings went away for a reason.

In conclusion: if you read the article found in the Independent, the verbiage could have been adjusted to fit this decade of positive changes:

Replace the word EXCLUSIVE with listing, or LISTED property.

Replace the words “OPEN LISTING” with FSBO, (offering a co-broke that reflects a fee one half of the norm, because they will be paying commission to a selling agent only- not a listing agent).

One last odd phenomenon has been that of “co” exclusives. A new one for an experienced outsider. As a listing broker, this practice would concern me because “co” doesn’t exist- it’s a non-existent agency relationship with the seller of a home. I’d wonder, at the end, if I’d be paid- or, if I should, not having been granted a legal definition of a “co”, “tri” or “quad” exclusive. Nonexistent.

While you’re at it? Remove the “exclusive” sign riders located on properties listed with full cooperation on the mlsli. It’s inappropriate, and misleading in this decade of seeking the best for both sellers and buyers- a “MUST SEE INSIDE”, or “BEAUTIFUL HOME” sign rider would serve both consumers better.

Just an opinion on east end, long island real estate challenges from a newer person who loves the “antiquity” out here- when it’s an amazing vintage lamp, or perhaps a fabulous old bracelet.

*COOPERATION IS THE DECISION OF THE SELLER/owner OF THE HOME. If a seller has had an issue with a particular real estate company, they are permitted to instruct their listing company to eliminate that company(ies).

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I Bought this House- Now, Who is Going to Pay for the Pool?

September 3rd, 2008 category: Real Estate News, Real Estate Philosophy2 Comments »

Perhaps it’s because I’m a partner in a real estate company; perhaps it’s because I relocated.

Either way, the practice of a real estate agent showing our listings under “seller agency” has created issues. We just don’t permit it, and our sellers know why. Permission from them case by case.

“I’ve been selling real estate here for fifteen years, and THAT’S THE WAY WE DO THINGS!” was one response from a very successful local agent wanting to bring buyers to the listing.

In an effort to quickly and (hopefully) efficiently dispel the notion that changes are for the purpose of rocking a boat, the following scenario occurred with a recent showing:

A brand new agent enthusiastically presented our listing to her buyers. Mentioning that the front yard was huge, the response to her buyer’s query about the possibility of a pool in the front yard was met with, “SURE! There’s plenty of room!”.

Coming in as a sub-agent (or, with a buyer having the “seller agency” box neatly checked on the NYDOS disclosure- same thing) creates this problem for our seller (owed fiduciary, per NYS).

New York State added to the menu of offerings “BROKER AGENCY”. While somewhat difficult to decipher, it does include the following :” THE BUYER AND SELLER THEREFORE DO NOT HAVE VICARIOUS LIABILITY

FOR THE ACTS OF THE BROKERS AGENT”. Good for our seller.

Problematic for ourselves, as owners of a real estate company, is the last line in that agency agreement:

“THE LISTING AGENT OR BUYERS AGENT DO PROVIDE DIRECTION AND INSTRUCTION TO THE BROKERS AGENT AND THEREFORE THE LISTING AGENT OR BUYERS AGENT WILL HAVE LIABILITY FOR THE ACTS OF THE BROKERS AGENT”.

I REALLY don’t want to pay for a pool that was represented. Under either of the above scenarios, the possibility exists that either our seller, or ourselves, will be out with shovels after closing.

Bring your buyers- please. That we want to sell the house is in evidence with the integrity that we’ll bring to the table, respecting both you, and your buyers. But, let’s start the process accepting our respective responsibilities, for which your buyer is paying part of the fee that our seller is offering.

Keeping our seller “off the hook” with respect to inadvertent misrepresentations is what we agreed to do for them when we listed the house.

I’ve never been good at digging holes, and I don’t want to learn this late in the real estate game- besides, the cute shoes that the selling agent was wearing would be ruined, when I pick her up at 1 a.m and hand her a shovel! * after dark- the town will not accept this front yard pool, due to setback requirements.

To see industry comments on this blog post, please visit Active Rain Real Estate Network.

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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.