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Old 04-12-2008, 06:21 AM
 
146 posts, read 802,634 times
Reputation: 94

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If I've already found a few houses that I like, should I still consider hiring a broker to represent me as a buyer?

1) How does the broker get paid?
2) Can a broker rep me if I've already visited an open house w/o him or her?
3) What would the true advantages/protections be?

Your help is appreciated!
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Old 04-12-2008, 07:03 AM
 
6 posts, read 23,836 times
Reputation: 10
If I've already found a few houses that I like, should I still consider hiring a broker to represent me as a buyer?

1) How does the broker get paid?

A broker gets paid at the closing. The only way you may be obligated to pay a broker is if you have a buyer's broker representing you. Otherwise, the owners of the houses pay their broker at the closing. And if the owners are selling "for sale by owner" style, there is no broker at all.

2) Can a broker rep me if I've already visited an open house w/o him or her?
No, not on that particular house. Once you've seen the house at an open house, the owner's broker does not owe any broker you hire thereafter a commission split. However, if you had gone into the open house and said to the owner's broker that you were working with a broker, then the owner's broker may be obligated to split commission, depending upon the owner's broker's agreement with the owner.

3) What would the true advantages/protections be?
The advantage of a broker is to find a decent house in a decent area. He or she makes the appointments, guides you through the houses and should be able to answer or find the answers to your questions about the house and/or the community.

I am an attorney. I can answer any more questions you may have. Moderator cut: phone no

Last edited by Keeper; 04-16-2008 at 03:31 PM.. Reason: soliciting not allowed
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Old 04-12-2008, 07:12 AM
 
27 posts, read 132,776 times
Reputation: 15
I did it w/o a broker....I even got a sellers concession and had better negotiating power as the seller agent would get more moolah ( in some cases) if he worked my deal out...

A broker cannot rep. you if you already did a open house w/o him/her.
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Old 04-15-2008, 09:25 AM
 
Location: East Northport
3,351 posts, read 9,051,617 times
Reputation: 1330
Quote:
Originally Posted by CharlesEsq.;3436092
2) [I
Can a broker rep me if I've already visited an open house w/o him or her?[/i]
No, not on that particular house. Once you've seen the house at an open house, the owner's broker does not owe any broker you hire thereafter a commission split. However, if you had gone into the open house and said to the owner's broker that you were working with a broker, then the owner's broker may be obligated to split commission, depending upon the owner's broker's agreement with the owner.
Actually, just attending an open house does not give the listing agent exclusive rights over you as a buyer. According to MLS rules, it is the agent that is the "procuring cause" of the sale that is entitled to the commission. So, if you attend an open house, leave without making an offer, and then another agent "sells" the home to you, he might be the one who gets the commission. I admit, this can be a cause of great dispute when this happens and many agents end up in arbitration over it.

By the way, CharlesEsq, welcome aboard. I've noticed your recent posts and you give accurate advice. It's good to have a real estate attorney on this forum.
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Old 04-15-2008, 03:04 PM
 
220 posts, read 1,042,896 times
Reputation: 84
Quote:
Originally Posted by TomMoser View Post
Actually, just attending an open house does not give the listing agent exclusive rights over you as a buyer. According to MLS rules, it is the agent that is the "procuring cause" of the sale that is entitled to the commission. So, if you attend an open house, leave without making an offer, and then another agent "sells" the home to you, he might be the one who gets the commission. I admit, this can be a cause of great dispute when this happens and many agents end up in arbitration over it.
Often at open houses the broker will ask people to sign something saying that he is the seller's broker only. I'd assumed this meant that he is the seller's broker but that I could also hire a buyer's broker, or a different broker, if I wanted. What you wrote seems to indicate I'm wrong. Am I? Should buyers not sign these at open houses if they may want to work with a different broker? It feels unsteady to be tied in to the person who is sitting in a home I just happen to walk in to.
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Old 04-15-2008, 03:47 PM
 
Location: East Northport
3,351 posts, read 9,051,617 times
Reputation: 1330
Quote:
Originally Posted by Jennifer06 View Post
Often at open houses the broker will ask people to sign something saying that he is the seller's broker only. I'd assumed this meant that he is the seller's broker but that I could also hire a buyer's broker, or a different broker, if I wanted. What you wrote seems to indicate I'm wrong. Am I? Should buyers not sign these at open houses if they may want to work with a different broker? It feels unsteady to be tied in to the person who is sitting in a home I just happen to walk in to.
You may be talking about a NYS Agency Disclosure Form. This simply is to inform you that the broker works for the seller, not for you. You are free to work with any broker you wish unless you sign an "Exclusive Right to Represent Agreement".
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Old 04-16-2008, 08:46 AM
 
231 posts, read 900,878 times
Reputation: 134
I went to an open house and "signed in" - gave my name, e-mail, address, and phone number. I told the RE that I wasn't working with anyone just looking around at houses - I plan on buying in the next year . She showed me around the house and said - is it ok if I send you e-mails of homes in this area in your price range that I think you might like. I said yes - she has done this a few times. She recently set me up with a Listingbook account - to manage homes that interest me. With this service I get daily messages from her (I assume it is computer driven) showing - price drops, new listings, etc...

I only met this woman once, never signed anything (except a "sign in" sheet, never spoke with her on the phone, etc...

Does this in anyway give this RE "exclusive rights over me" as a buyer?
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Old 04-16-2008, 09:13 AM
 
Location: Huntington, NY
889 posts, read 2,275,446 times
Reputation: 207
no, not at all. She's just hoping she gets your future business....and if you're a nice person and she sends you a house that you end up wanting to see...hopefully you will call her since you know of the house because of her
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Old 04-16-2008, 01:37 PM
 
6 posts, read 16,923 times
Reputation: 17
Quote:
Originally Posted by CharlesEsq. View Post
If I've already found a few houses that I like, should I still consider hiring a broker to represent me as a buyer?

1) How does the broker get paid?

A broker gets paid at the closing. The only way you may be obligated to pay a broker is if you have a buyer's broker representing you. Otherwise, the owners of the houses pay their broker at the closing. And if the owners are selling "for sale by owner" style, there is no broker at all.

2) Can a broker rep me if I've already visited an open house w/o him or her?
No, not on that particular house. Once you've seen the house at an open house, the owner's broker does not owe any broker you hire thereafter a commission split. However, if you had gone into the open house and said to the owner's broker that you were working with a broker, then the owner's broker may be obligated to split commission, depending upon the owner's broker's agreement with the owner.

3) What would the true advantages/protections be?
The advantage of a broker is to find a decent house in a decent area. He or she makes the appointments, guides you through the houses and should be able to answer or find the answers to your questions about the house and/or the community.

I am an attorney. I can answer any more questions you may have
You can have a buyers broker represent you and be paid by the seller only if you close. If you know the house that you want the broker would agree because it is very easy money. The sellers broker would split the commission 50/50 instead of keeping it all. However, if you really want the sale to close, I would just go to the seller's broker. Even though they represent the seller, they REALLY want to close the deal if they know they are getting full pop (commission). Just be sure not to tell them anything confidential, they only owe you fair and honest dealing, while they owe the client confidentiality in all matters. Just drive a hard bargain without giving up too much information, and most of them will push their client to take any reasonable deal. Slightly unethical on their part, true, but with real estate sales slowing, it is only human nature. If you are confident and smart, bargaining strongly with an agent who wants full commission that only gets it if the deal closes can yield tangible results.

Last edited by Keeper; 04-16-2008 at 03:33 PM.. Reason: removed deleted portion of quote
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