Home Buying in Philadelphia>Question Details

Carrie, Both Buyer and Seller in Philadelphia, PA

Can someone please explain this buyer agent thing to me please and why any buyer would want to do it?

Asked by Carrie, Philadelphia, PA Mon Nov 24, 2008

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Great question Carrie.

I am very passionate about buyer agency.

To give you just a short history of how buyer agency came about, many years ago when sellers listed their homes, they hired their Realtor to list and represent their best interests but the buyers didn't have anyone to represent their best interests.

In 1988 this changed when buyer agency was created. Today, a buyer has the same opportunity to hire a Realtor to represent their interests as sellers and it levels the playing ground.

A buyer can hire a buyer agent by simply signing what is called a Buyer Broker Agreement. All of the buyer terms are explained within the agreement which includes how the buyer agent will be paid and by whom. Typically when a seller lists their home they have already decided how much they will be paying their Realtor and the buyer agent. So, the buyer agent typically gets paid out of the fee the seller agreed to pay when they listed their home. On rare occassions, the buyer agent COULD be paid by the buyer if the home is a For Sale By Owner and the owner refuses to pay your buyer agent. No matter what, before you sign the Buyer Broker Agreement all of that will be decided by the buyer and agent.

I recently wrote a blog on buyer agency. Feel free to read it at http://www.reneeporsia.com

With all of the benefits that come along with buyer agency why wouldn't any buyer want representation?

I hope this helps or at least gives you more insight into buyer agency but PLEASE feel free to contact me with anymore questions you may have.

One more thing, there are many Realtors who do not themselves understand fully what buyer agency is or what their role is as well as what a consumer is if the buyer refuses to sign a Buyer Broker Agreement. If a buyer does not sign or hire a buyer agent, the agent's loyalties are to the seller NOT the buyer. For more information check out http://www.rebac.net (different states may have different rules)

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee
3 votes Thank Flag Link Mon Nov 24, 2008
Hi Carrie, let's put it this way...you wouldn't go to court and expect the opposing party to represent you as well would you?

Buyer agency grew out of the need for buyers to have equal representation in real estate transactions. Previously agents only worked in the best interest of the seller. A seller's agent negotiates for their client, holds their information in confidence, and so on. Buyers need the same professional services

Usually the commission paid to a buyers agent is paid for by the seller, but buyers can elect to pay their agent for their services as well.
-Dale Archdekin
Web Reference: http://www.liveinphilly.net
6 votes Thank Flag Link Mon Nov 24, 2008
Thank you to all of the Realtors who answerd my question. I think I get it now. Asher my question was meant for Realtors not home buyers who do not know anything about real estate. Go buy your house and go away! To Renee, Jolie, and Harrison thanks for your answers. This Asher is a moron! He should be reported to Trulia for being a nut case!
4 votes Thank Flag Link Tue Nov 25, 2008
A Buyer needs separate representation to make sure his/her needs are met in a contract to purchase. This would be separate from the agent who listed a particular house you might be interested in. To have representation by a buyer's agent means that you will have your best interests taken care of. If it were the agent who had a listing you wanted to purchase, they would be also taking care of their other client's interest-the seller. Possibly, your situation could be used against you in this way. Not with a buyers agent. And the plus? You don't pay your agent's commission. That is paid by the seller at the closing of the property.
You are MUCH SAFER having your OWN REPRESENTATION - someone who will fight for you and protect you as well in the transaction.
4 votes Thank Flag Link Mon Nov 24, 2008
the short and sweetanswer is that a Buyer Agent represents YOU and can work to get you the best deal. A sub agent technacialy is working for the Seller There is a link on my website that explain it in more detail.
Web Reference: http://www.patzollo.com
3 votes Thank Flag Link Mon Nov 24, 2008
Carrie, I'm so glad you were able to find what you needed. There are people like Asher who prefer to buy and sell real estate without using a professional representative. Many attorneys who have been practicing law for only a few years try their hand at buying their first house without using a realtor. By the time they are ready to buy their second home, they realize that a realtor is well worth the commission charged for attending to all of the details and protecting the buyer's best interests.

When I meet people, like Asher, who know everything I find it easier to just smile and nod as I recall these words by Robert Frost:
"You are educated when you have the ability to listen to almost anything without losing your temper or self-confidence."
Web Reference: http://www.mariatmorton.com
2 votes Thank Flag Link Tue Nov 25, 2008
Fact:
In NY State, you cannot "simply take a course from some fly by night company and an exam to get (your) license" as stated by Asher.

Requirements dictated by the Dept. Of State require a real estate course to be approved and regulated by the Dept. of State, with minimum hours to be spent on different aspects of real estate including, but not limited to Fair Housing laws, Ethics, Real estate law and many other topics very important to the process.

The exam is administered again, by the Department of State. There are also minimum requirements for continuing education every 2 years, with new fair housing and ethics classes to be included in these minimums. This is a very heavily regulated and monitored industry, as opposed to what he is asking you to believe.

Regulations DO vary state by state, but a licensed salesperson or broker may only practice in the state in which they are licensed.

As for using a real estate attorney for your whole transaction, the number of problems with that course of action is too large to discuss in detail, just beginning with the fact that they do not know the market in a given area and cannot properly advise you on pricing, inspections needed, etc. They know law. Black and white. They do not eat/breathe the market, following trends and checking hotsheets on an hourly basis.

What an attorney is doing by refunding you the commission is essentially a "kickback", which is illegal in NYS. They may be able to work it another way to circumnavigate the law, but that is much more unethical than honoring a listing fee as stated in a listing contract.

Daniel, just to clarify:
I am not meaning to nitpick here, but I want to be sure a buyer is not mislead regarding dual agency when dealing with a seller's agent. It is not always in the capacity of a dual agent. If that IS the case, the agent then becomes basically a conduit for information, passing info from one party to the other, and helping them get through the process smoothly. A dual agent must not harm EITHER party's negotiating position, treating both fairly.

On the other hand, a buyer may be dealing with a seller's agent who is just that.. a seller's agent, who has only fiduciary responsibilities to the seller. In a case like this, if a buyer says to them "I would happily pay $150K for this house but only want to offer $140K.", the agent then has a responsibility to tell that to the seller, thus harming the buyers negotiating position.

There is a big difference between dual agency and seller agency that buyers should be knowledgeable about.
2 votes Thank Flag Link Tue Nov 25, 2008
Asher,

I don't mind telling you what points are untrue that you posted within this thread. You state: "The fact of the matter is, real estate agents have no educational requirements. " FACT: Asher is that like any profession, Realtors are required to take MANY courses as well as CONTINUING EDUCUATION courses to keep their license current as well as ETHICS courses.

Then you state: "The listing agent has offered a buyer's agent half of their commissions to bring a buyer. If no buyer's agent exists, 3% of the sales price (the typical buyer's agent commission) is on the table for you to negotiate off the sale price of the house." FACT: Asher is that it's not the listing agent who offers anyone anything. It's the seller who sets the fee for service to both their agent as well as a "buyer's" agent. If no buyer agent existed the fee for service that the seller agreed to pay his/her agent is NOT negotiable to a buyer. Again, the seller is paying their agent to WORK for them to protect their best interests and get their home sold. They are not paying the buyer anything.

It seems to me that you like to lump all Realtors into one big ball of stupid and I find that to be quite offensive and rude. I consider myself to be extremely educated, smart, ethical, honest, loyal and wise to.

Were you able to take a look at the REBAC site yet?

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office
http://www.reneeporsia.com
Web Reference: http://www.rebac.net
2 votes Thank Flag Link Tue Nov 25, 2008
Asher,

I just had to make a comment to you and to any other "non" Realtor who likes to answer questions that are asked of real estate "professionals." Before you make anymore comments that are untrue, you should really visit the REBAC website. Then you can come back and comment. http://www.rebac.net is the website that explains what exactly buyer agency is and means to both a buyer and a Realtor.

You obviously had a bad experience with a Realtor at some point in your life or something else happened because you are quite hostile towards Realtors in general. Not all Realtors are unethical and I'd like to believe that all are not but there are always a few bad apples in the bunch. That is to be found in every profession. It seems to me that you like to come on Trulia and bash Realtors calling us trolls who are just looking for clients. Please do not lump all Realtors into your issues you have with Realtors. I myself work very hard to answer questions for consumers and I am very ethical and honest with all of my clients.

Take two seconds of your day and go to the REBAC website and read about it. There is a difference between being just a "customer" and being a "client."

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100
http://www.reneeporsia.com
Web Reference: http://www.rebac.net
2 votes Thank Flag Link Tue Nov 25, 2008
Vicky,
I bet you'd change your own oil if it saved you 18K. I know I will. Good Luck
2 votes Thank Flag Link Mon Nov 24, 2008
You got some great answers here. Even I learned things.

Good going realtors!

http://www.MoveSmarter.com
2 votes Thank Flag Link Mon Nov 24, 2008
Asher,

I do not have to answer to you. Everything that you say is absolutely insane. You happen to think that you are the center of every Realtor's world when in fact, you are not.

You need to back off and stop calling me a liar and making false statements about my professional reputation. If you keep on making those false statments about me on this public board, I will contact my attorney as well as Trulia and take whatever action I have to against you for slandering me.
1 vote Thank Flag Link Tue Nov 25, 2008
Hi Jolie,

I just had to laugh when I read Asher's ridiculous statement "We made sure she would not make more than her share of the commission and may even have to refund some money to the seller to bring this transaction to a close."
1 vote Thank Flag Link Tue Nov 25, 2008
I am so happy that I decide who I would like to work with.
1 vote Thank Flag Link Tue Nov 25, 2008
Carrie,
Once again in response to Asher Smith,If you look at my post you will see that I have quoted NY State Law (and here is a link: http://www.dos.state.ny.us/lcns/lawbooks/re-law.html ) I am not lying and have no reason to lie! What I've said is based on my previous experience as both a consumer/buyer and as an agent and broker! The agent and/orbroker who is licensed under a broker(brokerage) has no absolutely no authority to adjust their commission, as the listing belongs to the brokerage company! If you read my post again you will see what I am talking about and that I am saying that it's much more likely that a buyer- broker will be able to reduce the buyer side commission if allowed by the main broker and (by the law in their state) A small company such as my own is in a better position to make the deal go through if necessary and I have myself taken less commission, in the past in Arizona as the buyer-agent so that the the buyer was able to get the home he wanted but the seller agent did not help at all, as a matter of fact they never presented the offer! I myself have gripes with the way some agents, do business such as not presenting all offers or advertising or posting on the web & the mls expired or sold listings or mis-leading listings and am constantly reporting such to Trulia and elsewhere..Please look to yourself before you call someone a liar! (What you describe using an attorney as your broker and having them give you back the commission does not sound like it would be allowed in New York and since most lawyers charge $200 an hour and up for even phone calls, it sounds like it could wind up costing you more! Maybe things are different in Califonia?)
Happy Thanksgiving all!
Web Reference: http://joliemuss.com
1 vote Thank Flag Link Tue Nov 25, 2008
The agency relationship in real estate means that the agent has a fiduciary responsibility to their client. Wouldn't you want a professional to represent your interests who has a LEGAL responsibility to you?? Instead of gross generalizations, focus on what you're trying to accomplish and the most effective way to get you there.
1 vote Thank Flag Link Tue Nov 25, 2008
At some point along the way, as Asher Smith (Home Buyer - Orange) handles his own real estate transactions he will most likely make a big mistake, costing him a tremendous amount of time and/or money, that could have been avoided by having an honest, ethical, hardworking real estate agent to handle the process. All I can say is...Good Luck Asher.

To clarify: I have read that many below have described the buyer's agent as receiving a commission from the listing agent for "bringing a buyer". It's much more than that, just ask one of my "buyer" clients. The job starts well before finding the right home for a buyer and it does NOT end once they purchase that house. All of my "buyer" clients have stated that my commission was well deserved or that I was under paid.

http://activerain.com/blogs/briantsmith
1 vote Thank Flag Link Tue Nov 25, 2008
Carrie ... Mr. Smith is not a Realtor agent, does not have correct information, and is not telling you TRUTH about services that Realtors provide ... for both their buyer and sellers clients.

If you want more information, please call or email me. With our best wishes to you and your family.

Harrison K. Long, Realtor agent and broker, Coldwell Banker Previews, Irvine, CA

For the best seller property search web site check out
1 vote Thank Flag Link Tue Nov 25, 2008
Carrie ... You present an interesting question about Realtor agents for buyers and what you can expect them to do for you.

I am disappointed that another commenter has presented you with such negative and misinformation about Realtor agents and their qualifications. Most Realtors that I know and work with are highly professional and have significant education and experience. In additioan to being a Realtor and broker, I am also a lawyer licensed by the California State Bar for more than thirty years.

All Realtors are members of the National Association of Realtors and subscribe to the Code of Ethics for Realtors. We are very careful about this and challeng each other to know more about obligations of Realtors in terms of education and how to treat others and clients.

When we represent a buyer and get involved in a transaction, we work with the every day ... and sometimes morning, noon and night ... on a personal basis until the contract is fulfilled and escrow is closed. We are dedicated to success for the benefit of our clients, and it shows with good results.

Real estate is much more than find a listing and sending it to the client. Call us or email us at HKLong@cox.net, and I will provide a lengthy outline of exactly what we do for our clients. Being truthful and careful to protect the interest of our clients is our highest priority.

Harrison K. Long, Realtor agent and broker, Coldwell Banker Previews

For The Best Home and Property Search site check out
1 vote Thank Flag Link Mon Nov 24, 2008
Carrie,

You have started a very passionate discussion. I would strongly recommend reading Renee's posts.

Basically, a buyers agent is your quarterback. Do you want a rookie or a Brett Favre to navigate you down the field to score ? Or another analogy - when you have surgery done do you want the experienced doctor or the one in med school. Or if you are getting divorced, when you want your husbands attorney to represent you ?

The states added buyer agency for a reason - it benefits the consumer.

So in Pennsylvania, you can have your own agent as a buyer, have the listing agent but a dual agent or do it on your own. The point being why would you when the seller pays the real estate commission ? Also, would one perform surgery on themself ?

Hope that helps : )

Bottom line, when you purchase a property, get a strong buyers agent !!!! : ) That way, you will have your own representation... your own quarterback, your own doctor... I think you get the point !
1 vote Thank Flag Link Mon Nov 24, 2008
I am sorry but I just had to laugh after reading the "non-Realtor's" answer. Especially this:" there is no educational or liscence differene between a listing agent (the one with the sign in the yard for sale) and the buyers agent, (the one driving you around looking for houses)" Mr. or Ms. non-Realtor, please refrain from giving advice or making statements about issues that you so clearly know nothing about. Perhaps you should take 5 minutes to go read about buyer agency and perhaps you may learn something.

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com
Web Reference: http://www.rebac.net
1 vote Thank Flag Link Mon Nov 24, 2008
NonRealtor, our common nay sayer here, is correct... you are the only one bringing money. In some ways this means you're paying. However, the seller is the one contracting for the brokerage fees, so he is the one contractually obligated. In the vast majority of cases, agents are involved - for need or convenience - and paid accordingly. There's no financial benefit to you of not having an agent.

As for the benefit of having your own agent... everybody said everything perfectly. So, here's all I can add:
I feel guilty when a buyer buys from me directly and doesn't have an agent. Only my clients really know how much of a benefit they're getting. I can only show comps that support the price - not ones that don't. I can't tell you things that you maybe should know (except where the law requires disclosure). Anything you say can and will be held against you in the art of negotiation, without reading your miranda rights. I am skilled at not knowing that you have given away something that will be to our benefit. I know it sounds mean, but I am an artful negotiator... and that is why my clients hire me. On this site, if you read through things... you'll see question upon question upon question, all good guestions - often posed by people who think they don't need an agent. Sometimes we can answer the questions, sometimes we can't because we don't have enough information, and that stage of the game, the buyer must consult an attorney usually. More importantly, on sites like this we are not held accountable for the advise that we give you... if you're taking advise on the most important transaction of your life (at least one of), then don't you want that person to be working in your best interest and accountable if they say the wrong things? I sure would.

Before I was an agent, we bought a house from a builder without an agent. I have been wondering for the last 15 years how different it would have been had we had an agent. My neighbors all got better deals than us, even though the builder rep told us we were getting an additional incentive because we didn't have an agent. Not to mention, it was an excrutiating process.

The truth is, you may never know what advantages your agent brings to you... but the right agent brings many. When I got my license was when I was able to see the transaction so differently. It opened my eyes. You may not believe me... you may not understand... but, truly, get an agent. Just trust me.

I haven't gone into it, and I won't, but the real question is... why WOULDN'T you have an agent? I honestly would like to know what your concerns are. Maybe in understanding what hesitancies you have, we can help you put the pieces together. There really is no down side.

I don't change my own oil. I probably could, but I don't. I don't do my own major home repairs. I could probably do some, but I don't. I don't cut my own hair - I've tried, it didn't work well. We don't usually do surgery on ourselves - doesn't sound too smart. As I've gotten older and more mature, I've realized there are just some things you should hire someone to do - like save you money - especially when you usually don't pay anything extra for it. I now hire my financial planner and tax advisor. Why? Even if I do pay out of my pocket, they truly do save me money... even after the expense.

Best of luck to you.
1 vote Thank Flag Link Mon Nov 24, 2008
real estate agents are like divorce attorneys, highly paid, except nicer!

there is no educational or liscence differene between a listing agent (the one with the sign in the yard for sale) and the buyers agent, (the one driving you around looking for houses)

each agent, like attorneys, represent their respected client.

The home seller agrees to pay the listing agent a lump sum commission, usually 6% for which he will split with the buyers agent if that agent can bring a customer to buy the house

should you the buyer use the agent representing the seller?, yes you can, its called a dual agency, but ask yourself,....would you use the sale attorney representing the other side of a divorce??? best to use your own agent!
1 vote Thank Flag Link Mon Nov 24, 2008
Who do think pays for the buyer/seller agents? Since you're the only one buying (bringing the money), you pay all of them. Wait to buy, prices are still declining. Good Luck
1 vote Thank Flag Link Mon Nov 24, 2008
Up until the 1990's, all realtors represented the seller in real estate transactions. In the 1990's, Consumer Advocacy groups demanded that the buyer of real estate be given the same rights of representation afforded to sellers of real estate. As a result of lobbying by consumer advocacy groups, the Buyer's Agency Agreement was formulated.

The seller of real property enters into an Exclusive Seller's Agency Agreement with a Realtor. This agent is known as the Listing Agent or Seller's Agent. The Listing Agent represents the Seller and acts in the seller's best interests.

A Buyer may choose to be represented by entering into an Exclusive Buyer's Agency with a Realtor. The Buyer's Agent then represents that Buyer and acts in the buyers best interests.

A Buyer may choose to be unrepresented. There is a place in the real estate contract to indicate that the buyer has chosen to be unrepresented.

For more information about Buyer's Agency, please read the section under Buyers on my website.
Web Reference: http://www.MariaSellsKC.com
1 vote Thank Flag Link Mon Nov 24, 2008
Asher,

I really don't have to say anything to "discredit" anything you said. You did that all by yourself.

Do me a favor and please do not make anymore references on this board that I am a liar or that I mislead consumers and most of all never again say that I agree with anything that you write.
0 votes Thank Flag Link Tue Nov 25, 2008
His remarks are just a joke. Jolie you shouldn't try to reason with him. He's right and all of us are wrong. Save your breath. I can't stop laughing at everything he wrote. It's hysterical.
0 votes Thank Flag Link Tue Nov 25, 2008
I don't need luck when I have intelligence and education on my side. You should wish the listing agent luck.
0 votes Thank Flag Link Tue Nov 25, 2008
Asher,
Best of luck to you! Let us know how it works out!
Web Reference: http://joliemuss.com
0 votes Thank Flag Link Tue Nov 25, 2008
Jolie,

My lawyer and I are well aware of all the aspects involved in closing a real estate transaction. If we wanted your expertise, we'd pay you $24,000 for it.
0 votes Thank Flag Link Tue Nov 25, 2008
Asher,
Have you gone to contract yet or is it still on the market? How about the inspection?
What has this home appraised for?
0 votes Thank Flag Link Tue Nov 25, 2008
So Renee has no valid rebuttal to my actual facts about her profession.

I am very happy I get to decide to only work with educated professionals.
0 votes Thank Flag Link Tue Nov 25, 2008
My wife and I invested numerous weekends searching internet listings, driving to homes, and calling listing agents to show us homes. All of which was accomplished without an agent. We also used websites such as Zillow and Redfin to search the MLS and research comparables to determine how much we would be offering. The list price was over 15% higher than our offer. But considering the amount of time on the market and the actual value of the home (as determined by us), we feel we made a good offer. The seller obviously agreed, since we have entered into negotiations. It should be noted that when the listing agent originally showed us this property, she offered to write up an offer for "free" , thinking we were too stupid to know she would be making double commissions for doing so. We made sure she would not make more than her share of the commission and may even have to refund some money to the seller to bring this transaction to a close. All of these things were accomplished without the "help" of a real estate agent, saving us tens of thousands of dollars.
0 votes Thank Flag Link Tue Nov 25, 2008
Asher,
Just out of curiousity.. How much time did you invest in finding your home, making appointments and checking comparables and how much was your home originally listed for that you are buying for $800,000?
0 votes Thank Flag Link Tue Nov 25, 2008
"FACT: Asher is that like any profession, Realtors are required to take MANY courses as well as CONTINUING EDUCUATION courses to keep their license current as well as ETHICS courses. "

ACTUAL FACT: real estate agents are not required by law to have any kind of college (or even high school education.) Unlike all other professional occupations that agents like to compare themselves to. They are therefore not "professionals" at all; as a legal "professional" must possess a professional accredited degree. Where is your professional degree from Renee?

"FACT: Asher is that it's not the listing agent who offers anyone anything. It's the seller who sets the fee for service to both their agent as well as a "buyer's" agent. If no buyer agent existed the fee for service that the seller agreed to pay his/her agent is NOT negotiable to a buyer. Again, the seller is paying their agent to WORK for them to protect their best interests and get their home sold. They are not paying the buyer anything."

ACTUAL FACT: Renee is either blatantly lying, or ignorant to how thing work in her own profession. The fact of the matter is, the seller has agreed to a set commission for the listing agent when the agreement is signed to list the house. This commission could be anything but is usually 5-6% of the sale price. The listing agent can now offer a co-broker commission to an agent that brings a buyer. Again, this could be anything, but is usually half of the total commission or 2.5-3%. It is these commissions that ultimately end up on the negotiating table when buyer and seller are close (but not quite together) on price. A very common practice is for agents on both sides of the deal to give up portions of their commissions in order to close a deal. Do you actually deny this happens Renee?

Brian Smith has the typical smug attitude of real estate agents. They all believe that if you do not use their "services" you will make mistakes. They believe they are worth every penny of the 6% commission they receive for very little work, or are even (gasp) underpaid for such "services." My current transaction will have a sale price of close to $800,000. Which means that an agent like Brian will stand to make around $24,000 for maybe 8-10 hours of paperwork. My licensed attorney will do the same work for me for $240 an hour, or $2400. So ask yourself, "Do I want an uneducated agent doing the same work for 10 times as much as an educated attorney? Is Brian really underpaid? Has Brian been ripping off his clients?"
0 votes Thank Flag Link Tue Nov 25, 2008
Harrison,

Please point out a single point I have made that is untrue; backed up with actual data.
0 votes Thank Flag Link Tue Nov 25, 2008
Carrie,
I have to answer Asher Smith here..First of all what makes you think a selling agent is going to make their commission part of the negotiation? Not likely! First of all if you are dealing directly with the selling agent/broker they are the only person party to the negotiation..they are obliged to bring all offers to the seller (but in my experience many don't and sometimes the buyer broker has to do something) in addition they are not obliged to tell the seller "the buyer is saying I should reduce my commission as part of their offer!) As they "own" the listing and (the agreed upon at signing) full commission if you (who is demanding they lower their commission) doesn't buy the home they are counting on that someone else will!! Also the brokerage has invested a lot of money advertising & marketing the property (and usually gets half of either the seller's commission or both) so the head broker/manager (who has the final say!) never allows the commission to be reduced either! You actually have a better chance getting a break from the buyer's broker who can give you closing gift.
Web Reference: http://joliemuss.com
0 votes Thank Flag Link Tue Nov 25, 2008
Carrie,
You would be smart to consider the people you are asking this advice from. I posted a similar question on this site only to find the majority of answers from real estate agents telling me lies like the ones they are telling you. First of all, buyer's agents are paid from the proceeds of the sale which originate from you, the buyer. Agents want you to believe that they are being paid by the seller to get you to use their services. They are lying. The listing agent has offered a buyer's agent half of their commissions to bring a buyer. If no buyer's agent exists, 3% of the sales price (the typical buyer's agent commission) is on the table for you to negotiate off the sale price of the house. Companies like Redfin will negotiate a sale for you and refund 2% of the sale back to you. Another lie agents like to tell is that they provide a service as valuable as other educated professionals like lawyers and doctors. You should know that no education is required for real estate agents and the majority of them have never even gone to college. yet they compare their services to those offered by lawyers and doctors. The truth is, the navigation of a real estate transaction is a fairly simple process. Agents on this site like to perpetuate the myth that it is complicated in order to scam the public into thinking they cannot close a deal without an agent. This is not the case, as numerous intelligent buyers have done just that. The way the agents on this site blatantly lie to you should tell you about the ethics of real estate agents.
0 votes Thank Flag Link Mon Nov 24, 2008
Carrie,
The buyer agent / broker works for you and will look for and show you homes that meet your needs (that may be listed by many different brokereges also they can protect your interest, by keeping your info confidential and help you negotiate the best price and more..
In New York an agency form is not required for coops or condos \according to NYS Real estate law :§443 f. “Residential real property” means real property improved by a one-to-four family dwelling used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons, but shall not refer to (i) 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.
here is their definition of a seller's agent and a buyer's agent:
SELLER'S AGENT
A seller's agent is an agent who is engaged by a seller to represent the seller's interests. The seller's agent does this by securing a buyer for the seller's home at a price and on terms acceptable to the seller. A seller's agent has, without limitation, the following fiduciary duties to the seller: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. A seller's agent does not represent the interests of the buyer. The obligations of a seller's agent are also subject to any specific provisions set forth in an agreement between the agent and the seller. In dealings with the buyer, a seller's agent should (a) exercise reasonable skill and care in performance of the agent's duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the value or desirability of property, except as otherwise provided by law.

BUYER'S AGENT
A buyer's agent is an agent who is engaged by a buyer to represent the buyer's interests. The buyer's agent does this by negotiating the purchase of a home at a price and on terms acceptable to the buyer. A buyer's agent has, without limitation, the following fiduciary duties to the buyer: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. A buyer's agent does not represent the interests of the seller. The obligations of a buyer's agent are also subject to any specific provisions set forth in an agreement between the agent and the buyer. In dealings with the seller, a buyer's agent should (a) exercise reasonable skill and care in performance of the agent's duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the buyer's ability and/or willingness to perform a contract to acquire seller's property that are not inconsistent with the agent's fiduciary duties to the buyer.
I hope this helps!
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0 votes Thank Flag Link Mon Nov 24, 2008
In a nutshell, the Seller has contracted a real estate professional in the marketing and negotiating of their property. Wouldn't you expect to be represented by a knowledgeable professional as well who is working on your behalf as your advocate?
Web Reference: http://PhillyandBeyond.com
0 votes Thank Flag Link Mon Nov 24, 2008
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