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.

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.

Whether it’s a cursory (and cursing) glance at the envelope containing investment balances, or simply a peek at recent home sales figures, few are immune from the downturn- but the bright side is that a choice to take control is always available!

The North fork/east end of Long Island, NY offers many opportunities to spend time (and little money) on quality endeavors, from bird watching groups, to walking groups, to library groups- there is much in the way of choice. A friend recently joined a Scrabble group, and I found myself getting reacquainted with the game (who knew za was a word)?

When things settle back into an environment of positive financial momentum (and they will, as surely as cycles exist) perhaps the re-emergence of more simple endeavors (and saving endeavors) will remain a part of the landscape for all of us.

For now, frequenting local businesses in support of their sustenance when we do find ourselves with the need to spend (need, with an occasional want) provides a great way to give back, while we learn how to live sensibly.

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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.

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.

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.

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.

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.

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.

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.

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, NY.

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.

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.

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, and Orient Point, NY.

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.