Home Buying in Queens>Question Details

Geir, Home Buyer in Astoria, OR

Buyers agent or not

Asked by Geir, Astoria, OR Wed Jun 4, 2008

My family is in the marked to buy an apartment in the Kew Gardens Hills, NY area. We have been looking for apartments on the net and found a few interesting. But after reading several forums online, I see people discuss if they need a buyers agent or not. This is the first time I am buying so I have some question regarding this. Do I pay, do the agents split or how does it work? What’s the advantage and disadvantages by using this service?
Hopefully someone can help me out with this.

Thank you

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11
Usually, the fee is covered by the seller. There is absolutely NO disadvantage and the right agent can be a lifesaver - so YES get a buyers agent. If you need a referral to someone good - tell me what areas you're considering, and I will be happy to refer you to someone in those areas who specializes in relocations. vchrisner@kw.com
1 vote Thank Flag Link Mon Sep 1, 2008
Real Estate Agents are paid at closing. The commission is determined by the agreement signed between the Seller and the Listing Agent. Some agents have additional charges for sellers & buyers, but most will work for the commission specified in the Exclusive Right To Sell Agreement.
The Listing Agent represents the Seller. The Buyer's Agent represents the Buyer.
In the 1990's consumer advocacy groups demanded that the buyer be given the same right of representation as the seller of real estate. That resulted in the creation of Exclusive Buyer's Agency Agreement.
This is a right all buyers now have. The advantage is that you have professional representation to promote and protect your interests, just like the sellers. This service includes helping you find the best financing, the best house for your money, the best terms, assuring that all contracts are filled out correctly conforming to all local, state and federal laws, all documents are delivered to the appropriate place/person in a timely fashion, all offers and counter offers are presented in a timely fashion, all deadlines are met, inspections are done within the time limit, repairs made as agreed in the Resolution of Unacceptable Conditions, all receipts are sent to title company well before closing, mortgage lender appraisal and final approval done on time, HUD-1 Final Settlement Statement correct and on time, and various and assundry other services provided that save you time and money and assure a legally binding contract and recorded deed.
1 vote Thank Flag Link Mon Sep 1, 2008
Geir,
A buyer broker specializes in representing buyers...The (agent and/or broker) is usually paid half of the commission that the seller pays. There are different ways to be represented and this will need to be disclosed by an agency agreement at the beginning of your agreeing to use this person, if it's:( a one-to-four family dwelling used or occupied, or intended to be used or occupied, wholly or partly) but not if it's unimproved real property upon which such dwellings are to be constructed or (ii) condominium or cooperative apartments in a building containing more than four units. Check out these links for info: http://www.dos.state.ny.us/lcns/realest.html#disclosure http://www.dos.state.ny.us/lcns/realestate/1736.htm
A buyer broker will also often ask you to sign something agreeing that if you or members of your family buy a home that the agent shows you, that they are entitled to the commission or an amount equal to the commission, if you should later buy the home they showed you first through another agent.
Having a dedicated buyer's agent can help you as they will be focused on helping you find a home of your dreams and means; also they can be helpful in negotiating.
Good luck! Jolie
Web Reference: http://joliemuss.com
1 vote Thank Flag Link Mon Sep 1, 2008
Hi Geir, the advantage to having a buyer's agent is that you will have that agent on YOUR side, rather than both agents on the seller's side. You will be able to confide in your agent without that agent having a duty to relay anything to you tell them to the seller's agent. Your agent will also be able to do comps for you, and answer such questions as "why are they moving" "what did they pay for the house" and "what do you think it's worth." Regarding payment, you will have to interview agents for that information. Some take whatever amount the listing agent is offering, some have a minimum percentage they charge. You will have to ask them what their fee is and how they are paid. Good luck in finding a wonderful home!
1 vote Thank Flag Link Mon Sep 1, 2008
Geir,

If you hire a buyers agent - an agent that represents you - they charge their fee into the transaction. If the agent you're working with tries to tell you that you have to pay them "whatever is left over" outside of what the listing agent is offering - fire them and move on.

The commission is built into the deal - period. You make an offer and the SELLER determines whether or not to accept the deal. Period.
1 vote Thank Flag Link Mon Sep 1, 2008
Geir,

For a good overview of buyer agent advantages, checkout the web reference to this answer.

Regards,

Jeffrey
Web Reference: http://www.naeba.com
1 vote Thank Flag Link Wed Jun 4, 2008
>>>>The buyer is ALWAYS paying the commission; it is built into the asking price. >>>>


Thank you Gail for being upfront & honest...


: ^)
1 vote Thank Flag Link Wed Jun 4, 2008
A buyer's agent's commission almost always is paid out of the proceeds that a buyer pays to the seller at closing. There are times when the listing agreement between the listing broker and seller specifies an amount to be paid to a buyer's agent that is less than what a buyer has agreed to pay the agent he/she/they have hired. What is done about the diference needs to be negotiated through the offer and acceptance process between the buyer and seller. A good buyer's agent will discuss the various possibilities at the time you sign the buyer agency agreement.

The advantage of using a buyer's agent is that you are getting representation. Listing agents work for sellers and do not owe you loyalty or confidentiality. By having your own agent, to represent you, you have someone who does research and negotiates for you, advises you on pricing and making offers on properties, can make referals to other professionals such as inspectors, lawyers and lenders who will work in your best interests, and keeps your negotiating strategy and financial information confidential.
Web Reference: http://herndoneagleton.com
1 vote Thank Flag Link Wed Jun 4, 2008
Daniel,

Thank you for an excellent and honest post ... it's quite refreshing.



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0 votes Thank Flag Link Thu Sep 4, 2008
I have to be honest, and I am sure I will get flack for this, but I dont think that a buyers agent is necessarily helpful, nor necessary in many cases. The caveat here is that you need to know the houses/properties that you want to purchase. If thats the case then the buyers agent, apart from perhaps being present at an inspection or showing up to the closing, doesn't really bring a whole lot to the deal. Negotiating can be done by you, or even your attorney, and YOU ARE paying for the buyers agent commission (usually thousands of dollars) as its built into the price. Again, with the closings I have been involved in, having a buyers agent hasnt really been worth the thousands of dollars that you pay them. Again, just my two cents.
0 votes Thank Flag Link Thu Sep 4, 2008
The buyer is ALWAYS paying the commission; it is built into the asking price.

The commission is set by the listing agent and is generally "shared" to some extent with the agent who sells the house..

The listing agent represents the seller. So, who will represent you?

When you sign a buyer representation, it will include an obligation to pay the commission if the agent does not collect from the listing agent. Make sure your agent presents all offers "contingent" upon whatever commission you have decided upon with your agent. This will help insure she collects from the proceeds at the closing table.

I hope this helps.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Wed Jun 4, 2008
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