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What's weird about NY is the apparent conflict of interest inherent in buyer's agency. The buyer's agent has an ethical responsibility to honor the contract and represent the buyer's best interest. However the agent still gets their commission from the house sale, so it is in their personal best interest to have the price be higher. We used a buyer's agent but considered her like a seller's agent, and that the agency agreement was just a piece of paper.
When you offer on a house it shouldn't really matter to you if there are 12 other "offers" on the house. You should still offer around what you think the house is worth.
And for the person who was upset about buyers wanting you to vacate in a month? That is normal in other parts of the country.
But the point is we are talking about HERE. Where I am buying it takes 2 weeks minimum to 4 weeks max to close, but again that is not here so it is irrelevant.
What's weird about NY is the apparent conflict of interest inherent in buyer's agency. The buyer's agent has an ethical responsibility to honor the contract and represent the buyer's best interest. However the agent still gets their commission from the house sale, so it is in their personal best interest to have the price be higher. We used a buyer's agent but considered her like a seller's agent, and that the agency agreement was just a piece of paper.
When you offer on a house it shouldn't really matter to you if there are 12 other "offers" on the house. You should still offer around what you think the house is worth.
And for the person who was upset about buyers wanting you to vacate in a month? That is normal in other parts of the country.
Very good point! I have had a very "queasy" feeling about my current buyers broker arrangement...after all, they are ALL sellers agents by nature -- and we all know what that means...LOL So, we like to look at it as we have uncovered a "mole" within our operation here, and we treat him as a sort of "double-agent" in that we trust him about 50% of the time - - and think he is talking out of the side of his mouth the other 50%.
And totally agree with the "other offers thing". Best thing to do is to do your own comps (its all on Redfin, Mynassau property, market reports, etc) visit the house at an open house, take a look at any others right around it that may also be for sale. Then couch the offer in those facts. If they dont agree, then they are probably (As Tom Moser says above) either a) delusional or b)greedy. Move on.
And totally agree with the "other offers thing". Best thing to do is to do your own comps (its all on Redfin, My Nassau property, market reports, etc) visit the house at an open house, take a look at any others right around it that may also be for sale. Then couch the offer in those facts. If they don't agree, then they are probably (As Tom Moser says above) either a) delusional or b)greedy. Move on.
I am certain that you are sharp to this but many take the mynassauproperty as the bible. Allow me to give others a concrete example of why it is wrong.
My parents home has 3/4 front and full rear dormer, full bath with double sink upstairs, plus a florida room on the main floor. My home has a 9 x 10 breakfast nook. one dog house dormer and full bath dormer. The original house is identical and only 21 homes apart. That house although no longer my parents is valued at $73,000 less than mine. There is a 450 square foot difference in the homes.
When I sat down with the assessor in his office and we pulled up both houses here is his response when I asked how my house could be that much higher in the mynassauproperty records. Since these two homes are nothing alike they can't be used as comps and IF your parents homes is incorrect it will catch up eventually!!!!
I am certain that you are sharp to this but many take the mynassauproperty as the bible. Allow me to give others a concrete example of why it is wrong.
My parents home has 3/4 front and full rear dormer, full bath with double sink upstairs, plus a florida room on the main floor. My home has a 9 x 10 breakfast nook. one dog house dormer and full bath dormer. The original house is identical and only 21 homes apart. That house although no longer my parents is valued at $73,000 less than mine. There is a 450 square foot difference in the homes.
When I sat down with the assessor in his office and we pulled up both houses here is his response when I asked how my house could be that much higher in the mynassauproperty records. Since these two homes are nothing alike they can't be used as comps and IF your parents homes is incorrect it will catch up eventually!!!!
As I mentioned to Tom Moser on a previous post, the Comp game goes both ways. If you are a buyer, then you obviously should only be using comp/market information that is in your favor. So...if the info on mynassau (or any other site) supports the rationale for your offer - - then use it. If it runs contrary to your offer, lose it.
What's weird about NY is the apparent conflict of interest inherent in buyer's agency. The buyer's agent has an ethical responsibility to honor the contract and represent the buyer's best interest. However the agent still gets their commission from the house sale, so it is in their personal best interest to have the price be higher. We used a buyer's agent but considered her like a seller's agent, and that the agency agreement was just a piece of paper.
When you offer on a house it shouldn't really matter to you if there are 12 other "offers" on the house. You should still offer around what you think the house is worth.
And for the person who was upset about buyers wanting you to vacate in a month? That is normal in other parts of the country.
The approximately 1% of the sales price that most agents end up with is hardly an incentive to try to get you to pay a higher price. After all, that only amounts to $100 per $10,000 in sales price. Yes, a buyers agent gets paid on commission, so if you don't buy at all, he has wasted his time and money. In an ideal world, a buyers agent would get paid by his client, the buyer, and receive either a flat fee or based upon performance (getting them the house they want at a specified price or below). However, very few buyers are willing to do this. They want the best of both worlds. They want to use the services of a buyers agent without being responsible for paying him. And that sets up the "inherent" conflict to which you refer.
Keep in mind that under NYS law, all real estate fees are negotiable. You can negotiate any fee arrangement that you want with your agent. Often, these creative fee arrangements end up more benefitial to both the agent and the client.
The approximately 1% of the sales price that most agents end up with is hardly an incentive to try to get you to pay a higher price. After all, that only amounts to $100 per $10,000 in sales price. Yes, a buyers agent gets paid on commission, so if you don't buy at all, he has wasted his time and money. In an ideal world, a buyers agent would get paid by his client, the buyer, and receive either a flat fee or based upon performance (getting them the house they want at a specified price or below). However, very few buyers are willing to do this. They want the best of both worlds. They want to use the services of a buyers agent without being responsible for paying him. And that sets up the "inherent" conflict to which you refer.
Keep in mind that under NYS law, all real estate fees are negotiable. You can negotiate any fee arrangement that you want with your agent. Often, these creative fee arrangements end up more benefitial to both the agent and the client.
Yes...this is quite true. In the manhattan "luxury" market where prices are in the multi-millions, a 3 million swing in a list-to-sale is a big thing commission-wise, but on LI, the difference between a buyers broker commission on a List-to-sale is not that much - - they would much rather get the money and run.
As a Realtor, I want to apologize for the misfortunes of some of you guys on here. I think it's like all professions, you have those that care and those that don't. An earlier poster hit the nail on the head, my business is referral-based and if I don't do right by my customers, I know I won't earn anymore business. I use the same home inspector I used for my home (a thorough Mike Holmes-style inspector). It's unfortunate that many of you dealt with bad agents, but please don't rake the entire profession over the coals. There are a few of us who actually care about satisfying our clients' demands. Best of luck to all of you in all of your endeavors.
I make the following statement by upfront saying that it is a broad generalization, not meant to insult anyone but IMHO something that I see as a possible part of the problem for the public in terms of agents/brokers..
There are many full time agents and brokers and my comments are not directed to them. As I have often stated, I am not a real estate agent, broker or anything to do with RE, other than an avid watcher of the markets in general.
I note there are many, many part time agents (due to any reason, child care, elder care, personal preference). I am not looking to start a firestorm of controversy here with my statement, however, I would never use an agent that only does this job part time. Especially in this economy, problems with permits, appraisal, lenders, I would only want a full time person to work with me.
When I sought an agent, that is a question that I asked. I also asked a surgeon,how many procedures he did before me and who opened and closed. If I am trusting you to help me find a house or tp sell a house, I want to know that.
I am sure there are part timers that are better than some full timers, just like some teachers are better than others. But I personally would want someone who is in the business full time working for me. I believe that as a full time job your exposure to problems, solutions, inventory etc is far greater than the person who is only a part timer.
Real Estate agents are of the same ilk as Used Car salesman.
That's because both professions can be entered so easily. It's important to select a real estate professional with the same care and diligence as a contractor, lawyer, etc.
Those real estate professionals that have long experience/knowledge of LI and spend time matching your criteria to listings will be well worth their commission. But if you're taken to homes that obviously don't match your criteria then you'll know within a day or two with them if they'll be helpful.
You just have to be clear and realistic about your expectations/criteria. You also have to be flexible and open to the possibility you're off-you-rocker about what you want at the price you're hoping to spend.
I agree with both of the above posts. I would no more use a part time agent then I would a part time dentist. And, it is way to easy to get into this business. You would be amazed at how many agents drop out each year because they don't want to pay the approximately $600 in LIBOR dues. I would love to see them go to $6000 per year as that would shake out those people who are not serious about our business.
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