If you are looking to buy a home, you have a choice in getting help. By working with a buyer’s broker, you are engaging a professional licensed person to be fully on YOUR team. Unless you specifically contract with an agent to represent you, his or her loyalty (and pay check) comes from the owners of the homes you are being shown.
In New York State, you are legally entitled to chose a real estate agent to represent you – even one whose firm also represents sellers. Central New York’s Buyer Broker is a division of Eagle River Realty whose agents have extensive expertise in representing buyers. We can work with you initially on-line to formalize the relationship and research the homes and properties that specifically fit your criteria and needs. We can then advise you on prices, taxes, advantages and disadvantages. We will also work with you regarding financing, inspections, and the best choices for people to work with. And, because we pride ourselves on our reputation and word-of-mouth for referrals, your satisfaction is our livelihood.
Give us a call or send an e-mail and we can start the process to finding you a new home, farm or land.
In summary, then, we will
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show you all the available homes that meet your criteria, not just those on the MLS; |
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give you our opinion on what's wrong with a house, as well as what's right |
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give you our opinion on what a house is worth, not just the asking price |
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research the house (and the seller) and give the results to you only |
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help you find the best home inspector, mortgage broker, and attorney |
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help you negotiate for the best (lowest) price and the best terms |
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never reveal to the seller any information you discussed in confidence.
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The Birth of Buyer Agency
For many years, real estate was practiced in such a manner that agency relationships were only extended to sellers. Any real estate agent who brought a buyer to the table was actually working as a sub-agent to the seller. This all began changing in the 1980s, when buyer agency started gaining momentum in residential transactions. Today, agency laws still vary from state to state. But even if you live in a state that recognizes buyer agency, you can’t assume that you will automatically receive fiduciary responsibilities from the agent you’re working with as a potential homebuyer.
That's why it's vitally important to talk to the agent or broker early in your working relationship about his/her agency status. You may also want to consult your state association of REALTORS® to gain a better understanding about agency laws in your particular state, or contact the agency charged with regulating real estate professionals in your state, often referred to as the state real estate commission.
Details vary from one state to another, and each brokerage has its own contract terms within these broader guidelines. But for purposes of illustration, this table outlines how your status may affect the level of service to which you are entitled:
Are you a buyer-customer or a buyer-client?
Services will vary, depending on your agency status* |
If you are a CUSTOMER
(no agency relationship),
an agent will: |
If you are a CLIENT
(agency relationship),
your agent will: |
| Maintain loyalty to the seller’s need |
Pay full attention to your needs |
| Tell the seller all that they know about you |
Tell you all that they know about the seller |
| Keep information about the seller confidential |
Keep information about you confidential |
| Focus on the seller-client’s property |
Focus on choices that satisfy your needs |
| Provide just the material facts |
Provide material facts as well as professional advice |
| Only provide price information that supports the seller’s listing price |
Provide price counseling based on comparable properties and their professional insights |
| Protect the seller |
Protect and guide you |
| Negotiate on behalf of the seller |
Negotiate on your behalf |
| Attempt to solve problems to the seller’s advantage and satisfaction |
Attempt to solve problems to your advantage and satisfaction |
| * This chart is for general illustration purposes only. Agency laws vary by state; and specific terms of individual agency contracts will vary from one agent to another. |
You may not know if you’re a customer or a client.
Depending on the laws in your state, you may find yourself working with someone who is actually negotiating for the seller, not you the buyer. The best way to be certain your interests are being considered and protected is to sign a buyer agency agreement with a trained buyer’s rep, which clearly establishes client-level services and spells out what services you can depend upon.
What about dual agency?
In some cases, it will become necessary for your real estate professional to deviate from the single agency model. For example, a buyer-client may become interested in a house that also happens to be offered for sale by a seller-client of their buyer’s rep, or by the same brokerage firm. How can a buyer’s rep, in this instance, maintain complete loyalty to their buyer if he or she also owes complete loyalty to the seller?
Obviously, they can’t. But, depending on the real estate license laws in your state, and your status with the brokerage firm, the manner in which this situation is handled will vary. To get concrete answers, you should read and discuss the brokerage services disclosure statement, which should reflect your state’s agency law. If your agent hasn’t supplied a disclosure statement, you should ask for it. It spells out the different categories of agency services they provide and how they address dual agency.
Almost all states require disclosure of dual agency and often require that a buyer’s rep (or his or her brokerage firm) only act as a dual agent with the written consent of all parties to the transaction. In such a situation, the brokerage agrees to endeavor to be impartial between both parties and will not represent the interest of either party to the exclusion or detriment of the other party. Neither will they share the confidential information of one party with the other party. This is how brokerage firms and their agents strive to create win-win situations for everyone involved. |
