Buyer's Agent question for RE's here

[kevink1955]

I know we have 2 or 3 RE agents here, can you tell me when this "Buyers Agent" thing took hold on LI. From what I have read here the buyers agents commission comes from the selling agent and disputes are settled by MLS, is this correct.

Now the big question, has sellers agent commissions gone up to cover the cut taken by the buyers agent and if so how much.

My son was recently looking for a home on LI and the 2 agent thing blew me away, last home I purchased 11 years ago was found by me and I contacted the sellers agent directly. Can you still do it that way?

[tom230]

I don't believe it's ethical for the former listing agent to put in an offer as a buyer's agent on his former listing. He has intimate knowledge of the owners fiscal situation as well as price points etc., this compromises the sellers position. As for him being due a sell side commsiision, that should have been addressed in the (expired) listing agreement which provides a time period (filled in by the realtor, normally 180 days) for which he would be due commission for any potential buyers he had produced.

Commissions are negotiable but have drifted downward rather than upward. The purpose of the buyers agent is to provide protection and advice from a real estate profesional who is representing the buyer. You can still use the seller's agent if you wanted, but they work for the seller. With a buyers agent you can discuss strategy, bids etc. and he is working for you. There should be no cost to the buyer when using a buyers agent, even though some agents will try. Buyers agents should be a tremendous resource and value to home buyers, use them.

[supercatnyc]

[b][quote=tom) "I don't believe it's ethical for the former listing agent to put in an offer as a buyer's agent on his former listing. He has intimate knowledge of the owners fiscal situation as well as price points etc., this compromises the sellers position".[/B]

Tom/Elke:

What are your thoughts on the above REA's thoughts about situation this per the above post?

Thanks

Supercat

[TomMoser]

[quote=supercatnyc;19596654][b]

Originally Posted by tom) "I don't believe it's ethical for the former listing agent to put in an offer as a buyer's agent on his former listing. He has intimate knowledge of the owners fiscal situation as well as price points etc., this compromises the sellers position".[/B

Tom/Elke:

What are your thoughts on the above REA's thoughts about situation this per the above post?

Thanks

Supercat

That is why we stated that full disclosure must be made to both parties. This would give the seller the right not to accept an offer presented by his former agent.

[TomMoser]

Originally Posted by kevink1955

I know we have 2 or 3 RE agents here, can you tell me when this "Buyers Agent" thing took hold on LI. From what I have read here the buyers agents commission comes from the selling agent and disputes are settled by MLS, is this correct.

Now the big question, has sellers agent commissions gone up to cover the cut taken by the buyers agent and if so how much.

My son was recently looking for a home on LI and the 2 agent thing blew me away, last home I purchased 11 years ago was found by me and I contacted the sellers agent directly. Can you still do it that way?

Interestingly, Buyer Agency on Long Island first surfaced during the hot market of the mid 2000's. Homes were selling fast and many agents were taking listings as "office exclusives" which means that they did not have to share them with everyone else on MLS. However, if an agent is working as a Buyer's Agent the selling agent is required by NYS law to allow them into the property.

Then, a couple of years ago, two things happened: Buyer's became more valuable then sellers, so it was in agent's best interest to concentrate on that side of the market. Also, the NYS Agency Disclosure Form was revised and much more understandable by buyers. As buyers came to understand the difference they wanted buyer agency.

Buyer agent commissions are normally paid by the seller. Commissions have, from what I can see, not changed since the popualarity of buyer agency took hold.

Yes, you can still contact the seller's agent directly, but why would you want to? It's not going to cost you any more to have a professional protect your interests.

[kevink1955]

Thanks Tom

I guess I just missed the start of the buyers agent when I purchased in 1999.

It just confused me as I had never heard of it before and did not understand how it was no cost to the buyer.

It's a tough market out there now, and you and the other agents help us all understand it.

Thanks again

[Elke Mariotti]

Originally Posted by kevink1955

It just confused me as I had never heard of it before and did not understand how it was no cost to the buyer.

It's a tough market out there now, and you and the other agents help us all understand it.

Thanks again

Interestingly, Long Island is lagging behind in this and other RE areas. In most parts of the U.S., Buyer Agency is, and has been for quite some time, the norm; here it's still an uphill battle, but it's ever so slowly gaining popularity as buyers begin to understand the benefit to them.