NYC - Buyers Beware

• As a buyer, have you ever went to view a property and thought that your real estate agent was working for you? 
• As a buyer, have you ever bought a house and thought that the agent whom you were working with was for you?
• Have you ever signed an agreement with an agent when buying a property? 

If you answered yes to the top two questions, then you were grossly misinformed.  If you answered no to the last question - then the fact of the matter is - the agent was NOT working for you, they were working for the seller all the time, you just were not aware of it and that is wrong. 

Buyer brokerages in NYC are almost null in void.  I do not know of any TRUE buyer broker firms.  What I mean by TRUE buyer broker firms is that the agent and their cooperating firm has NO listings.  That is the only true way that the agent is a true buyer broker.

Why is this such a big deal?  Well, most buyers are under the impression that the agent was representing them and not the seller, which is untrue.  In my honest opinion, all buyers should sign an agreement, even if it is just for one showing of a house, because you are taking all the question of who is working for who.  You know because you have a buyer broker agreement signed between you and your agent. 

Agency disclosures can always turn a room full of Realtors into a heated argument.  Most don't even know what the real facts are.  But, now the DOS have adjusted some of the rules on the playing field.  They are instituting new disclosure forms that are to be filled out at FIRST INITIAL CONTACT OF A BUYER AND AGENT.  If you do not get this form to fill out, explaining who works for who - then you are not informed. 

The Real Deal published an article regarding the Buyer Brokers and how "Playing both sides needs approval ".  The article highlights a lawsuit that took place and they buyer who sued the agent and lost.  The buyer loss because in the NYC real estate market, without a buyer broker agreement - it is "buyer beware". 

How do I get a buyer broker?  If you go into a real estate firm and ask to sign an agreement then you become the client and that agent is working for you.  On this agreement it should state the terms, the property involved and if there are any payment terms.  The agreement should also state a date of start and a date of finish. 

I am curious to know why buyers here in NY are against or are afraid to sign an agreement like a buyer broker?  If the agent does not fulfill his/her duties of finding you the home for a certain price that you are willing to pay and you don't buy a home from that agent - then you owe nothing.  If, in fact you do buy a home from your buyer agent - then you would pay the commission, hopefully from the purchase of the house.   

So my question to the buyers would be: (Its ok to email me directly - some people are shy to post a comment). 

1. As a buyer - Would you feel comfortable to sign a buyer broker agreement?  Why or why not?
2. As a buyer - Do you feel that you could get better "deals" with a buyer broker?
3. As a buyer - Do you think that you will request a buyer broker agreement?

Comments

[Jonathan Dalton]

> Buyer brokerages in NYC are almost null in void. I do not know of any TRUE buyer broker firms. What I mean by TRUE buyer broker firms is that the agent and their cooperating firm has NO listings. That is the only true way that the agent is a true buyer broker.

So are you saying that an agent can't truly represent a buyer unless they're an Exclusive Buyers Agent? I'd hope not ... that is one of the NAEBA's greatest myths, that only they can help a buyer and that they are more pure than the rest of us.

[Christine]

Jonathon - Yes, In Queens, NY to have an agent work as your buyer agent - then the agency disclosure has to state that that agent is working for the buyer. With every customer that walks into my office or an open house the customer has to be made aware that we work for the seller as a sub agent.

[Bethany Marten]

Hi Christine,

I am impressed by your Blog, however I am surprised that you are unaware of the existence of my company, Home Buyers Resource Center. We have been Exclusively representing buyers who wish to purchase in Queens and Long Island since 1990. Our company does not take any listings. There have been numerous articles published in the NY Times and Newsday that have described our services and how we protect our buyer clients. Our buyers are always clients and never customers. We strive to protect and promote their best interests at all times. That is what a true exclusive buyer's agent does. Please feel free to take a look at our website www.homebuyerscenter.com and you can see that we are the real deal!

[Christine]

Hi Bethany - How very interesting. Not because you are actively working as buyer agents, but because I have never heard of you guys. How long have you guys been in business and where are youguys located? What do you have your clients sign and how long are your agreements? Are you getting paid by the buyer or out of cooperating commissions being offered? What happens if a seller wants you to sell their property - what is proper procedure for your company? I am going to head over by your site today and snoop. Thanks for stopping by.

[Bethany Marten]

Hi Christine,

I've been in business since 1990 and our corporate office is located in Baldwin, NY, however our agents have their own home offices in Queens, Nassau and Suffolk counties. Our buyers sign an exclusive buyer representation agreement for whatever time frame they wish to contract w/us for. We are typically paid out of the cooperating commission. If a seller wants us to sell their property we refer the listing to a listing brokerage company. You can ask me any questions directly by e-mailing me @ [email protected]. I hope you liked my web site and found it user friendly.