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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.

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).

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.

Can You Say, “BUSTED”??

June 23rd, 2008 category: East End LI Foreclosures, Real Estate News, Real Estate PhilosophyNo Comments »

As a Southold, New York local, it was with interest that I observed the closure of several mortgage brokers- here one day, gone the next.

Having viewed the mortgage debacle as it roared through the little area known as the North Fork, it is with great pleasure (having seen the ravaged remains of those who bought into fraudulent loan practices that were ill explained to borrowers) to see that the Feds are FINALLY demonstrating the clout that had appeared missing during the “boom” years.

Evidently, according to the following article, those consumers taken by the banks (that are now taking their homes) will get the pleasure of viewing a white collar line-up.

Do you suppose that we’ll get to see mug shots? I hope so.

photo: Lance Kidwell – stock.xchng

55+ Retirement Community? Try 70+ Wants a Home, Not a “home”

April 19th, 2008 category: Real Estate Philosophy2 Comments »

Options Scrabble Recently, Sean and I (I’m Laurie) had back-to-back visits from our mothers, who both happen to be in their 70’s. As very different people, they bring MUCH to the ” what the he*% am I supposed to do now” dilemma facing so many pre baby boomers (pre-booms)- people in their 70’s, incredibly healthy- with most beginning the thought process in their 40’s, the future is always in the present.

Except that perhaps healthy 70-somethings have a lesson to impart.

They’re our mothers; of course this assessment is notwithstanding the ongoing-I-remember-when-I-was-six underscore- but overall, the primary objective is their own (with ours coinciding) happiness.

I should state: I am a real estate agent in NY who enjoyed success in a “55+ Community” with a builder focused on lifestyle, which resulted in a two year experience in which to engage hundreds of thinkers in this sensitive part of life.

AND, OUR MOTHERS DESCENDED, ON BACK-TO-BACK VISITS. Within a few days of one another.

Rosemary M. Stark w/ Oliver the Bull Dog Rosemary arrived, having completed an odyssey in Hawaii that culminated (after seven years) into a move of “open-mindedness”- the east coast makes sense, as the grandchildren line the east coast. With much experience in a head chef capacity, Rosemary visited a training institute with whom she’d been an active participant years earlier, with the subject being sophisticated health food (which I don’t like, but Sean does). A “thought” destination, if you will- a place of comfort, to cook and eat health food with other enthusiasts, after visits with the family. Relaxing with like-thinking enthusiasts in a bucolic setting, particularly soothing during a life change.

The result of this time of solstice (after visiting family) was to accept an offer, provided by a couple visiting this health food culinary place in the woods, for Rosemary to bring her incredible cooking expertise in order to assist this couple in their US Virgin Islands home with the benefit of her participation, all expenses and pay. Did I mention the US Virgin Islands? I guess the tropics work for her- she sounds ecstatic about the opportunity. So much for “Retirement”!

She leaves Saturday, That’s TODAY!

Sean & Judy Judy visited in the week following Rosemary. She is in equal contemplation. Her story (she and Rosemary are very close in age) involves an inexplicable health complication that made Judy a lacrosse coach one day, and a patient experiencing seizures one day later. A few years later, to the astonishment of the medical field – Columbia Presbyterian Hospital in NYC, she is no longer a “patient”. She has returned to decision maker.

The problem with a brain issue is that just as it perplexes doctors with the magnitude of potential diagnoses, so it does to family, in the same overwhelmingly unclear way. A “HOME”, decided Judy, was best- meals provided, hospital nearby, unload the house, and calm the kids.

Except that, through the course of Judy’s recovery, all initial day-to-day minimum standards required of a person “of a certain age”, returned to her in astonishing, almost enhanced, completeness- cured.

Having been diagnosed with little clarity, her choice at the time of concern initiated a purchase relative to the situation. It’s not that situation anymore, and being one of only a few mobile individuals at “home” is disheartening for an active adult. Judy has outgrown her “retirement home”, and is seeking to return to a bit more in the way of personal choice, which for her is an environment of bike riding, walking, and shopping.

Greenport Harbor April 2008 Rosemary is going to the US Virgin Islands, and at the conclusion of that adventure, we will continue to remain on her radar.

Judy will locate a house that has her current basics: access to the water, and personality. Or, a cool condo near the beach.

MANY people are seeking the condo route, and there are numerous opportunities for retirement condos on the North Fork. Our favorites include Windcrest East, Sunken Ponds, Mill Pond, Founders Village, and Silver Village, (among others).

Downsizing, as opposed to leaving yard work for others, also offers amazing opportunities on the North Fork of Long Island. There is a small home in the mid-400’s in a quiet neighborhood offering a rear second story deck overlooking woods, with little to maintenance in the front yard- small, and easy.

Sometimes, it takes looking at properties in order to make that decision.

We’d love to help.

For info on condominiums, fill out the info below for a report.

CONTACT FORM

For info on downsize properties, fill out the info below for a report.

CONTACT FORM

For info on both, call us between 8-8 daily, at 631-727-2227.

If you are considering selling a condo in Riverhead, we are opening a website soon: Riverheadcondos.com, showcasing only condominiums in Riverhead and Calverton. For additional info, email or call for updates on the site.

The MLS on the North Fork of Long Island

April 17th, 2008 category: Real Estate News, Real Estate PhilosophyNo Comments »

The Internet What is the MLS (MULTI LIST SERVICE), and what does it offer you, the seller of a home on the North Fork of Long Island?

The Multiple Listing Service of Long Island (MLSli) is a service that provides sellers with the opportunity to “share” their property with all MLSli Realtor participants. It is an elective service, meaning that real estate companies can utilize it to expand the reach of your property to all participating agents, or they can decline the service.

There are costs associated with joining the system, and brokers pay fees to join, as well as monthly fees to maintain the service. The price is small, relative to the exposure: the MLSli, and it’s partner site, Realtor.com, have higher site visits by a large margin than any New York real estate brokerage.*

The advantage for LISTING BROKERS is that they know that they are enlisting the help of ALL Long Island Realtors, not just the group in their office, creating a huge advantage for sellers. Knowing that an important Realtor/buyer venue is part of the marketing plan can make the difference between a house that sells, and one that sits.

quote3 In addition to reaching local buyers, the MLSli reaches all Long Island buyers, and national buyers. Realtor.com is a national reach, with buyers able to access North Fork properties from anywhere in the country, with photos and details. A great combination- the local MLS and Realtor.com.

When you list your home, your listing agent will likely mention that you will be on the MLSli. You will both decide, with this exposure, what amount, out of the total fee charged by the listing company, you would like to pay a “cooperating broker”. This amount is published in the MLSli for Realtors to view. reach your audience

The MLSli is often a first stop for real estate agents seeking properties for buyers, and it is possible to email listings, offer MLSli updates, and provide market updates for buyers seeking properties (yours?). For sellers, information regarding sold properties is available in order to correctly price your home relative to market conditions. Daily updates are provided to Realtors, offering them a chance to share both new and existing listings with their buying client/customer. That’s the important part, to the real estate contingent.

While some areas (NYC, the Hamptons) are fighting the inevitable by not viewing real estate as a fully cooperative effort, many sellers are demanding this service due to the huge Internet presence afforded. I’d have to agree. It’s less about “why”, and a whole lot more about “why NOT”? Until a better venue comes along, it’s got the largest reach for sellers, and current info for both Realtors and buyers.

To view MLSli properties, click on the “homes” button, and enter your parameters. To view properties listed on Realtor.com, go to www.realtor.com, and enter the area that has captured your interest.

If you have any questions, please call us at: 631-727-2227 daily, 8-8.

*per stats from Alexa rankings

image “Concert crowd”: Copyright: Milan Klusacek & iStockphoto

Southold town beach

Buying Power on the North Fork

March 26th, 2008 category: Buyers, East End LI Foreclosures, Real Estate PhilosophyNo Comments »

Options Realty Red Man Recently, we’ve received several inquiries from people interested in vacation/second/retirement homes on the North Fork of Long Island, New York.

While the majority of people are in the early stages, there is confusion- take the plunge, or wait?

Statistics are offering a clear indication that we are in a buyer-friendly market. As buyers, you control the market- a welcomed change from the days of frantic bidding wars, and disappointment.

Do buyers truly understand the power that they wield? I don’t think so- at least, not in New York.

And certainly, not on the North Fork. Here’s why:

The North Fork is a “last bastion” of seller-friendly real estate agents (one in which both agents operate on behalf of the seller, leaving the buyer unrepresented). While many are willing to go “out on a limb” in order to represent buyers with a broker agency capacity, few are willing to offer fiduciary (and the accompanying “liability”) to the current MVP- the BUYER. Quote 1

Buyers have been forced to participate in the buying process in a two-on-one game- with both real estate agents representing the best interests of the seller. That this creates vicarious liability (not good) for sellers has gone unnoticed- or is simply misunderstood.

The resounding word used by local agents that eschew buyer agency is “liability”. Hmmm. Fear of a buyer suing an agent for violating the required fiduciary spelled out in a BUYER AGENCY AGREEMENT.

The question that I would pose is: WHAT IS TO FEAR? The notion that there is more to fear from the buyer (as opposed to the seller) is confounding to a company with buyer agency experience. Taking the same cautious steps and performing due diligence is what we are PAID FOR.

Anything contrary to what has been represented by a seller is something that a buyer is entitled to, irrespective of agency- inherent fairness is a requirement of representation for both parties. A buyer is also entitled, as the “boss”, to make an offer commensurate with their comfort level- and with the input of a Realtor that provides a comprehensive view of market conditions as a basis for that offer.

Options Realty Buyer Bridge Buyers, until very recently, have been unable to secure a real estate representative that is “on their side“- and make no mistake- there are very defined lines.

Proponents of buyer agency are not the enemy of sellers. To the contrary, buyers with representation are better informed, and are working within parameters that are still set by the seller- they are simply represented. This commitment on the part of a buyers agent does, indeed, remove vicarious liability for the seller- liability falls to the buyers agent.

A real estate agent comfortable with the information provided to their buyer is as immune from legal ramifications as the agent representing the seller is- it’s all about providing ethical service, and achieving the “best possible price” for the buyer. Again: buyers control the market right now. If sellers want to sell, representation is moot. Offers are the name of the game.

Quote 2 PROSPECTIVE BUYERS OF HOMES ON THE NORTH FORK: You deserve- no- are ENTITLED to representation from a real estate agent that has the goal of your “best possible price” at the forefront. No games; no nonsense- just ethical, focused representation.

Call us to explore your buyer agency opportunity. Experienced with buyer agency, we view “liability” as a non-issue. I’d rather participate in a “fair” transaction than one in which a buyer is making an offer based on the input of real estate agents that have promised the seller the “best possible price.”

And that, folks, is what happens with every transaction that does not include buyer representation.

Before You Buy or Sell a Home on The North Fork of Long Island

March 17th, 2008 category: Buyers, Real Estate News, Real Estate Philosophy, SellersNo Comments »

Before you buy or sell a home in New York, you might want to read the article The practice of Sub-Agency is Dead. For Gosh Sakes, Let’s Bury It!
by Avery Yarbrough located here.

While we strive to provide updated market information, the above article does a better job than many others of explaining the practice of agency relationships, as presented to consumers in New York. If your listing agent is offering compensation for a “sub” agent, vicarious liability is present in the purchase. Something to think about.

Read the article Vicarious Liability
From James Kimmons here.

If you are considering a home on the North Fork of Long Island, check this out before you list your home, or purchase a home. Engaging in “dual agency” is a bad plan; better for all simply to have your real estate agent represent you, and allow the buyer’s agent to have their own representation (for whom you carry no vicarious liability).

We operate with the knowledge, having practiced Real Estate in other areas of the country, that is offered in the above article. Long Island, New York is one of only a few areas having difficulty with a transition that took place in many areas over ten years ago- don’t be behind the times!

images: Tory Byrne – stock.xchng.com

Appraisals Change on Long Island New York?

March 8th, 2008 category: East End LI Foreclosures, Real Estate News, Real Estate Philosophy6 Comments »

The following article by Patrick Rucker-ReutersUK, found here, is a good thing for consumers in New York.

“The two largest sources of U.S. mortgage financing agreed on Monday to sponsor a new home appraisal watchdog to prevent inflated home values.”

It’s rather surprising that it’s taken this long to comprehend the obvious: that appraisers connected with banks might have an ethical dilemma to self determine. Under-appraise, and impact the loan for the buyers bank (jeopardizing the purchase agreement); over-appraise, and all is well. Until market conditions change.

While the initiation of this new law in NY appears to be largely the result of those that received over appraisals in a market that seemed limitless with the respect to increases, having this law in effect in a downswing would appear to be equally beneficial to buyers and sellers of real estate in New York.

An independent appraisal in a down market will prevent overly cautious lenders from using “their own” to make judgements that will impact the price in the lenders favor. This market is subjective, and consumers don’t need banks to establish “value”- particularly if that value has, attached to it, a huge self created “sting” due to loans provided that made little sense to the consumer and are now impacting lending institutions negatively.

Separating market value and lending companies, in hindsight, seems so, well…COMMON SENSE.

For sellers today, while “declining market status” in Suffolk County, New York, will surely impact an appraisal, there is nothing “right” about assuming that a badly burned lender (and it’s fleet of connected appraisers) will not make it worse by having their own agenda present. That agenda, by the nature of the market, is likely (opinion) err on the side of caution, irrespective of the impact on sellers and buyers.

An independent appraiser, who has no future benefits with a lender via additional business, will have the ability to appraise a property without bias (or pressure in either direction). Sellers will sell at market value; buyers will buy at market value. Now, if we can just find a consistent measure of price in an inconsistent market…

Eliminating the connection of appraisers with lending institutions eliminates a major relationship that should never have existed in the first place. Good for New York.

Buyer Agency on The North Fork of Long Island

February 1st, 2008 category: Buyers, Real Estate PhilosophyNo Comments »

BUYER AGENCY ON THE NORTH FORK OF LONG ISLAND: DON’T LEAVE HOME WITHOUT IT!

We have posted for your review a disclosure that you will be required to acknowledge when you choose to work with a real estate agent/Realtor in the state of New York.� Please see previous blog.

At Options Realty, we offer as company policy two choices:� have us represent you as a buyer, or have us represent you as a seller, or in the event of our own internal listing, on behalf of the seller. If you care for a listing that we offer, we will offer only SELLER AGENCY representation- meaning that you’d be wise to obtain your own buyer broker to look out for your best interests. Dual agency, to us, is a very bad plan, and it undermines the integrity that we’d like to see all parties exit the transaction with, including ourselves. Many local companies do not feel as we do; that choice belongs to them. We operate on our own level of integrity, not local practice.

FREQUENTLY ASKED QUESTIONS ABOUT BUYER REPRESENTATION:

“Who pays the commission?” is a common question. Know that, if a home is presented in the MLSLI (Multi List of Long Island) the seller has indicated payment to the cooperating broker. It’s in the PRICE of the home. So- the reality is, as a buyer offering full price for a house, you pay it (from our perspective), but the listing agent compensates Options Realty OUT of the advertised fee. Offering less than full price does not negate the agreement of the seller- it simply means that they will net less due to a lower accepted offer.

“Do I have to sign a buyer agency contract in order to be represented?”- the answer is NO. The contract, if you sign it, stipulates that your will be responsible for “x” amount for the payment to your buyer agent if they locate a property that works within your parameters. At Options Realty, we choose to represent those that demonstrate a loyalty to us that matches our own loyalty to our buyer. The contract will be offered for your review; if you would prefer not to sign it, we will continue to represent you in any purchase that occurs, assuming that the relationship is working for you.

“Will I get a better price if I just call the person on the sign?” This is dangerous territory for you. What you will be relying on is that the agent on the sign, despite agreeing to represent the seller, will provide you with the “best possible price”- clearly, a HUGE CONFLICT OF INTEREST for both you and the seller. In fact, that person on the sign has likely promised the “best possible price” to the seller- it doesn’t work both ways, because it can’t. A real estate purchase is two sided: thae selling side, and the buying side. Each should have their own representation, with a promise to them alone and separately to provide the integrity needed for each to look out for the best interests of each.

“What do I do if I’ve already contacted the listing agent on the sign?” Not to worry. If you have not presented an offer that has culminated into a signed contract, simply let them know that you will be represented by a buyers agent (keep in mind their fiduciary to the seller at this point- if you encounter a problem with them, ignore it).

“What if the person on the sign tells me that they don’t offer compensation for a buyers agent?” Again, IGNORE IT. It is illegal to deny entry into a property when a buyer is represented. It is considered discriminatory to you, the buyer. While some sellers might offer “0″ to a buyers agent, payment of the fee will be presented in the offer, for the seller to decide with respect to compensation. Sellers in the MLSLI are already offering payment to cooperating brokers; it is highly unlikely that they would decline a contract based on agency representation (they are going to spend the money either way, via their listing agent).

Just as we take the notion of representing you with full fiduciary as a buyer, we also consider fiduciary a non-negotiable aspect of representing the seller. This is why, with our own listings, we encourage you to locate your own representation- and NOT within our own company. The conflict that arises here is obvious- the only way for either sellers or buyers of homes on the North Fork of Long Island to achieve fairness in the transaction, in our opinion, is to have clearly defined lines of representation.

Call us if you are seeking BUYER AGENCY on the North Fork of Long Island. It’s long overdue, and we are certain of the benefits that it will offer you. Our buyer agency is available in Riverhead, Jamesport, East Jamesport, Calverton, Baiting Hollow, Aquebogue, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, and Orient Point, New York.

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