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I've read that in the past, there were only Seller's Broker and all buyers were unrepresented and had to no choice but to work directly with the Seller's Broker.
Can someone tell me when Buyer's Broker began? I read on Wiki it started in the early 90's?
Early 1990's was when it became recognized, but before that some agents were acting in the capacity as a buyer's agent, but were technically subagents and not acting in the best interests of the sellers.
I'm going on memory here... I believe there was a highly visible lawsuit in Michigan or Minnesota in the early 90's. At issue was the point that all real estate licensees represented the sellers interests in a real estate transaction. The buyer was frequently unaware of this fact. As a result of this lawsuit, more and more states started requiring real estate licensees to disclose their representation or agency on first contact. Agency law has evolved over time and each state has a slightly different take on how it is implemented. Agency is working on behalf of a client.
In most places it is legally possible for the real estate licensee to facilitate a transaction without representing the interests, or being the agent, of the seller or the buyer. A buyers broker or licensed real estate sales person may or may not be representing the buyers interests. In many states an agency relationship does not exist without a signed written agreement. In others the agency relationship can be implied because of the actions or statements of the licensee.
A buyer has an idea of what they're willing to pay for the property. Isn't it still a selling broker's interest to make BOTH parties happy? Of course, it's in their interest to sell it at the highest price. But in today's market, at the end of the day I would think a seller's broker just wants to make their commission and move on to the next sale.
I'm just skeptical on the idea of using a buyers broker. I feel like they indirectly work with the seller's agent in getting the price to a high middle ground, but not necessarily favoring buyers interest in the getting a deal. Their guidance is really to create a perception for the buyer, so they'll be less resistant.
Sorry to sound cynical. You've got to be paranoid when you're making a big purchase.
A buyer has an idea of what they're willing to pay for the property. Isn't it still a selling broker's interest to make BOTH parties happy? Of course, it's in their interest to sell it at the highest price. But in today's market, at the end of the day I would think a seller's broker just wants to make their commission and move on to the next sale.
I'm just skeptical on the idea of using a buyers broker. I feel like they indirectly work with the seller's agent in getting the price to a high middle ground, but not necessarily favoring buyers interest in the getting a deal. Their guidance is really to create a perception for the buyer, so they'll be less resistant.
Sorry to sound cynical. You've got to be paranoid when you're making a big purchase.
You may want to read the posts in the thread started by NYCgirl610 as most of them address the importance of having a buyer agent when one is inexperienced with the home buying process. Are you two related? I have no dog in this fight as I'm not in your area. When you use a Buyer Rep that person is obligated to look out for your best interests and get the best deal for you. The seller's agent is looking out for the seller. You sound inexperienced with the process. With this, it is a definite disadvantage for you not to have your own Representative.
I guess it depends on whether you think the agent you hired to work for you is ethical. Yes there are agents that are only focused on closing the deal and don't do right by their clients. Most agents really aren't like that.
I understand your concern, but real estate is a business and referrals are a cheap way to get new business. Unless you are a dunce, it makes no business sense not to have excellent customer service.
Real estate is highly competitive world and there are some agents that get giddy at the thought of getting a great deal on a property for a client because "winning" the negotiation is fun. You sound like you might want a more aggressive agent. Read some real estate blogs for local NY agents and find one that has strong ethics and a more aggressive style.
A buyer has an idea of what they're willing to pay for the property. Isn't it still a selling broker's interest to make BOTH parties happy? Of course, it's in their interest to sell it at the highest price. But in today's market, at the end of the day I would think a seller's broker just wants to make their commission and move on to the next sale.
I'm just skeptical on the idea of using a buyers broker. I feel like they indirectly work with the seller's agent in getting the price to a high middle ground, but not necessarily favoring buyers interest in the getting a deal. Their guidance is really to create a perception for the buyer, so they'll be less resistant.
Sorry to sound cynical. You've got to be paranoid when you're making a big purchase.
Hi,
Okay.. yes. .the sellers agent wants to sell THAT house.. and your agent wants to sell you A house.. see the difference? If you don't buy that one he/she will move on to the one that you DO buy for the right price. They are not there to get you the house at bottom basement prices they are their to make sure you get the house within market value that is in the best terms /price for you.
When you list a property an agent shows you comps and whatis on the market along with yours.. the seller than draws the conclusion of where they price the houes, based on information from and guidance from the sellers agent. . at the end of the day the agent has to list the house at whatever the homeowner wants to list it for. Obviousyl every homeowner wants to get the most for their home..
With a Buyer Broker te agent does the same thing. but with you. They basically give you all the information.. tell you what has sold in homes similar most recently. You are given the information to make the BEST decision for you.. so you will put in your offer according to what the comps are..
Now.. the other added benefit is that the buyers agent will present that offer to the sellers and present your offer by backing it up with data and informatin..
So say a home is asking $350. You like it, but last week one around th block very similar to yours closed at $315.. maybe that one had something a little different from yours that would add slightly more value like the kitchne was updated in the last year, but the one you're buying is not quite as updated (or atleast not recenlty) and you decide that e most YOu would apy for that home is say is $305.. but you want to put in an offer at $290 .. because you dont' want to buy at the top of the price you would pay for it.. The agent will present the offer and defend your intial offer of $290 by pointing out why you felt this one was slightly less thanthe other..
Homeowners will most likey not take a first offer.. unless, of course, it is really close to their top number.. and will most likely counter.. if the homeonwer insists they wnat closer to their asking.. then just don't buy it.. your agent will move on with you to another one.. because she knows if you paid close toaskig you'd overpay.. thats her/his job.
A buyer has an idea of what they're willing to pay for the property. Isn't it still a selling broker's interest to make BOTH parties happy? Of course, it's in their interest to sell it at the highest price. But in today's market, at the end of the day I would think a seller's broker just wants to make their commission and move on to the next sale.
I'm just skeptical on the idea of using a buyers broker. I feel like they indirectly work with the seller's agent in getting the price to a high middle ground, but not necessarily favoring buyers interest in the getting a deal. Their guidance is really to create a perception for the buyer, so they'll be less resistant.
Sorry to sound cynical. You've got to be paranoid when you're making a big purchase.
are you suggesting you could do a better job negotiating on your own behalf? I'm not saying you can't, I'm just trying to see the flip side of having a buyers broker... in other words why not?
Please understand that the seller and their representation (their agent) KNOW the comps and have already agreed to a commission structure. the sellers agent is well aware that if you show up at their door they can keep all the commission.
Now, for this purpose, let us assume that is 3%. Let's say the house is listed for 250k. If you buy it for that, your agent's firm will earn $7500, to be split with the agent however they have determined. Now, according to the coms and based on negotiation, you get the house for 235k, the agency earns $7050. in a 50/50 split... the agent would lose approx $250 dollars. Now if I do a really good job for you, you may a) refer me to friends and relatives and b) use me to sell your house. Is it really worth it for me to sell my sell for a couple of hundred dollars over what I can earn in the long haul?
Shelly,
I don't know if I can do a better job negotiating.
But it seems like buyers have been negotiating on their own before the early 90s, so I feel people (brokers) are hyping the fear for first time homebuyers to use a buyers broker.
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