Home Buying in 07112>Question Details

Diva, Home Buyer in 07112

Is it a good idea to purchase an exclusive sale property, where the realtor wants no other realtor to be involved?

Asked by Diva, 07112 Tue Jan 26, 2010

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Hi Diva
I agree with John..........there is no reason not to buy this home if you love it, and the price works for you. You can make an offer, and negotiate it just like with any sale. You can ask for comps to help derermine if the home is well priced or not.

Even though we don't recommend that sellers go this route, on rare occasions, some sellers just don't want the exposure offered by the MLS. They are private, and just don't want a bunch of agents marching through.They feel the listing broker can do the job, and get the word out there.

Apparently in this case it worked....you found it and are interested!

If anything, this can possibly work in your favor.... if the home is desireable, there will be less competition or chance of multiple offers.

Good luck!
4 votes Thank Flag Link Tue Jan 26, 2010
"Yes John - I sat around all day and thought that one up. WOW! I hit a nerve. "

You did not hit a nerve at all, You just look not informed and an alarmist. I did see that you are not an agent, you are some kind of a "stager" so I guess, yes, you did just make this up. I seriously doubt that you have any justification to state something like that.

I would like to know of any instance that you may know of that any attorney would jeopardize their career to keep a relationship with a Realtor over a $1000 transaction.

And No, do bring in inspectors and any other practice into this, you said attorneys. Attorneys can be a tough bunch.... but to mislead the people buying houses with unfounded information with your "thoughts" is wrong.

Is that better Trulia?
3 votes Thank Flag Link Sat Jan 30, 2010
Thanks Steve,

Glad you pointed that out. Now it's my tangent time.

@ Debbie: Even though attorneys are not mandatory, but recommended in our area, in my 7+ years as a Realtor, I have actually had ONE client who wanted to save a buck use a title company and their "consulting" attorney as closing agents to represent them in a transaction rather than a real estate attorney. It was a nightmare. The attorney was on retainer,and only in the office once a week, barely did anything but review the contract and make 1 change (which my client requested), was hard to reach via phone (sometimes 3-4 days for a reply), never followed up on anything, and the "title" person kept trying to play attorney for my clients when they had legal questions and they couldn't get in touch with the attorney .
How people don't use attorneys is beyond me. It's your biggest investment, why wouldn't you want the proper legal advise and representation from the get go. Especially in these times of fall through contracts (do I get my deposit back?...is the buyer/seller in breach?..), delayed mortgage commitments, (who does the time of the essence letters?), late deposits, unreasonable repair requests, unreasonable sellers, I think an attorney is an essential part of keeping it all together and representing their clients thoroughly and properly.
3 votes Thank Flag Link Wed Jan 27, 2010
Lisa................NJ doesn't have a "designated agent" designation, so that's not a possibility.

In NJ, any agent in the office or company showing a company listing is called a "disclosed dual agent"........pure and simple. We work as dual agents all the time. Even if Diva asks another agent in the offcie to handle the negotiations, they are still bound by the dual agency rules.

I know you meant well, but offering advice when it is a state specific issue can confuse the consumer more than help them.

So, no, Diva - you cannot ask to have a disignated agent represent you. It's not a problem, though, as dual agency is alive and well in NJ.

Best wishes..........
3 votes Thank Flag Link Tue Jan 26, 2010
Wait a minute...

"I'd suggest you hire an attorney of YOUR choice (not the Realtor's) to maintain honesty and integrity and protect your interests in the transaction. "

Are you suggesting that an Attorney at Law would compromise their practice to do a $1,000 deal with a Realtor and NOT protect the interest that said attorney would be hired to protect? That said referred attorney would break the law to keep that Realtor relationship alive?

Where in the world did that thought process come from? Do people sit around and dream this stuff up?

Sometimes people think too much.
2 votes Thank Flag Link Wed Jan 27, 2010
Hi Barbara.............just to reassure you, and Diva........ the choice of an attorney is ultimately made by the client, not the realtor..

Agents in my company simply offer a list of qualified local attorneys as an accommodation.....not a directive.
As a rule............I , and most agents I know, never just offer 1 name....for anything/

Buyers, especially first time buyers, often have no idea where to find an attorney. There is no danger in considering an attorney from the list recommended by the agent. You seemed to imply there might be.

We provide a LIST of local attorneys who have shown their knowledge and competency in handling real estate trransactions. The buyer (or seller) is free to call any or all of the attorneys on the list, and then make their selection.
Certainly, they are free to come up with their own list of names, too.

My only interest is making sure they are properly and efficiently represented.

We also offer a list of home inspectors...and any other vendors a buyer or seller might need.......again, this is an accommodation.......................I even have been known to suggest restaurants or hairdressers if asked.
2 votes Thank Flag Link Wed Jan 27, 2010
Steve, thanks for clarifying this for others outside of our state..

However, as further clarification, whether one is in northern or southern NJ, we are all bound by the statewide 3 day attorney review period. Whether one elects to work with their own attorney (which is common in northern NJ) is up to them. Otherwise, as Mary pointed out, they can work through the title company's attorney or representative.

In addition....regardless of where you are in the state, we are all bound by the inclusion of Opinion 26, and having it included as part of all contracts. Opinion 26, for those who don't know, prohibits realtors from giving legal advice, and recommends that all parties be represented by legal counsel.

Diva.....didn't mean to go off on tangents here................just know that you if you love this house, by all means you are free to buy it through the listing agent. Just make sure you have all the necessary information available ahead of tiem.

And...........since you are located here in Northern New Jersey.............be sure to have a real estate attorney represent you right from the start !!

If you need any names or recommendations, please feel free to reachout to me!

Best wishes.......
Debbie Rose
Prudential NJ Properties
email: Debbie.Rose@PrudentialNewJersey.com
2 votes Thank Flag Link Wed Jan 27, 2010
It's a good idea to purchase the property you want at the best price you can negotiate, regardless of who the agents are.
2 votes Thank Flag Link Wed Jan 27, 2010
Maybe I missed it being mentioned here, but it sounds to me like Diva has a situation where she is buying an uncirculated listing, where the SELLER is only allowing the listing agency to market and sell the home. (do we all remember how all of Foxtons listings started out like that so only they could sell their 3% commission listings?).

NJ also allows "dual agency " where the listing agent/agency represents both buyer and seller equally as long as it's explained and disclosed at the initial meeting to the buyer and seller alike.

Diva, as long as you trust the listing agent, got a good CMA from him/her as to what the proper selling price should be, and have an attorney representing you during the process, you should have no problems. It's becomes the same process as if there were a listing (sellers) agent and a separate buyers agent from another company.
2 votes Thank Flag Link Tue Jan 26, 2010
No Pam, you're not getting it................in NJ ALL buyers and sellers with OR without an agent use attorneys.....it is not mandatory, per se, but in 25 years I have never had anyone represent themselves. We even have consumers sign a statement (referred to as Opinion 26) which tells them we cannot give legal advice, and it is recommended that they seek legal counsel- 99.99% do. This is an "attorney" state....representation by an agent has NO bearing on whether one should use an attorney or not.

Lynn...dual agency is alive and well in NJ....why answer , or worse yet, give advice when you have no idea what is customary or usual in that particular state.

Laura..thanks..............can you sense my frustration? :)

Poor Diva....she.asked one fairly simple quesiton.....basically has had it answered......and has also wound up getting advice that is incorrect and will only serve to confuse her further.

Diva - if your head isn't spinning by now....sit down and speak with the agent...he or she will calmly explain the whole process as it works in New jersey. What is done in other states has no relevance.

Good luck!
2 votes Thank Flag Link Tue Jan 26, 2010
Pam - NJ is an attorney state........we start with contracts that the agents draw up.....then .we have a "3 day attorney review" period in which the attorneys for both sides get to change the contracts in any way they want. Everything is reviewed by them.

During that time period, either party can get out of the deal with no reason given. Home inspections then take place,, usuallly within approximately 10 days following the completion of the attorney review.

Diva...get names of attorneys in advance, so that you will be prepared if you want to proceed with the home purchase.

Good luck!
2 votes Thank Flag Link Tue Jan 26, 2010
Hi Diva,

As I did not mention before and as it seems you are doing, due diligence is key to any transaction. You do your homework as well as having a Realtor help you come to a conclusion.

"Risk" is a funny word, is there a "risk" to buying a exclusive listing? No, probably not. In this day and age in home sales with the world being so PC and everything posted on and about everything in the world.. I doubt there is much "risk" involved. Do your due diligence and it will take the any thoughts of "risk" out of your mind. Ask for the comps, do your homework, get an attorney, have a home inspection.. just like any other home buying transaction where these keys are put into place to protect you and your investment.

Contiue to be smart as you are doing, Ask questions, that is all anyone can do.
2 votes Thank Flag Link Tue Jan 26, 2010
Hi Diva,

Usually, it is not that "the realtor wants no other Realtor to be involved" but a request by the seller that has faith in the company that has the listing to market and sell the property.

Why would it not be a good idea? The house will sell either way, you should have an attorney as well as the seller, so both of the parties will be afforded the opportunity to be represented. The selling agent in this situation facilitates te transaction. No problem.
2 votes Thank Flag Link Tue Jan 26, 2010
Well, in that case.

I am not bound to please thee with my answer.
1 vote Thank Flag Link Sun Jan 31, 2010
Yes Madam Debbie - you are correct! Act III, Scene II
And... if I may - I shall accept your "higher level" comment as a compliment.
Thank you!
1 vote Thank Flag Link Sun Jan 31, 2010
Shakespeare..................Hamlet ?

Well..........At least this thread has been elevated to a higher level!
1 vote Thank Flag Link Sun Jan 31, 2010
many good answers here. It doesnt matter "what the realtor wants" it may be that they are reducing their fees to the seller in exchange for keeping the listing as exclusive. It isnt common but is done more often than we likely realise (since it wouldnt be in MLS) Only advice I would add it to get a good attorney, inspection company and mortgage person (preferably without ties to the agent/agency involved)
1 vote Thank Flag Link Wed Jan 27, 2010
Go to John's answer, the first one here and Debbie's. He and Debbie from Livingston are NJ REALTORS and are giving you the best advice, IMHO.

Laura Giannotta
Keller Williams Realty Atlantic Shore
1 vote Thank Flag Link Tue Jan 26, 2010
Would some other agent help me out with this, I file this under seller naivete or agent greed. How else can you describe it? Why wouldn't a seller want to market their home to the world instead of one agent?
Web Reference: http://www.daveheck.com
1 vote Thank Flag Link Tue Jan 26, 2010
Hi Diva, I'd award Matt with the best, most succinct on on-topic answer:
"It's a good idea to purchase the property you want at the best price you can negotiate, regardless of who the agents are."

....I agree.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Search the MLS at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Fri Feb 5, 2010
Stop Debbie, your killing me. LOL!
0 votes Thank Flag Link Mon Feb 1, 2010
The gentleman doth protest too much, methinks.
0 votes Thank Flag Link Sun Jan 31, 2010
Yes John - I sat around all day and thought that one up.
WOW! I hit a nerve.
IMHO I believe it's in a Buyer's best interest to choose his/her own representatives...
and not use attorneys, inspectors and mortgage reps who have a relationship or an allegiance to the R.E.agent who refers business on a regular basis. That's all.
0 votes Thank Flag Link Wed Jan 27, 2010
Diva- If ...The Price is Right.
"Come on Down!"

I'd suggest you hire an attorney of YOUR choice (not the Realtor's) to maintain honesty and integrity and protect your interests in the transaction.
Good Luck!
Web Reference: http://www.321advantage.com
0 votes Thank Flag Link Wed Jan 27, 2010
There are some really great comments here. I've given the thumbs up on some of them. I don't want to go off on a tangent but just to clarify one statement that Debbie made about attorneys ... in my experience North Jersey buyers and sellers use an attorney on "all" transactions. In South Jersey we love to have an attorney involved on both sides, but it is far less common. (Thought they may help any outside readers).
Web Reference: http://njmortgageblog.com
0 votes Thank Flag Link Wed Jan 27, 2010
Diva,

Keep in mind that if you cancel during Attorney Review, the written notice from come from your attorney. It's not valid coming from you or your agent. So line it up a real estate attorney in advance and have them review the contract as soon as you get it.

Hopefully you won't have any need to cancel, and all the details will fall into place for you.

Good Luck,
Barbara Smith ABR, GRI
Weichert Realtors
cell/text: 609-980-7593
email: BarbSmith321@comcast.net
Web Reference: http://BarbSellsSJ.com
0 votes Thank Flag Link Tue Jan 26, 2010
Given the excellent advise here to your question perhaps you should ask the agent the reason to request no other realtors and what he/she may recommend for you to best protect your interest in the transaction. With the helpful information posted to your question you should be able to get a better feel for the situation at hand.
0 votes Thank Flag Link Tue Jan 26, 2010
Like John has already said - sometimes it is the Seller that requests only the company that has the home listed be the company to show and sell it. Sometimes homeowners sell their home that way just for security reasons. It doesn't mean there is something wrong, or hidden, about the house.

What it does mean is that you will not have exclusive representation I recommend in this situation you ask for a "designated agent" to represent you. A "designated agent" will be able to help you through the process and help keep confidential certain information you may not want the seller to know.

Good luck!
0 votes Thank Flag Link Tue Jan 26, 2010
There is a risk to buying an exclusive property, in that it has not been fully exposed to the market so it is hard to determine what the true demand for the property is. Of course, an appraisal will be ordered, but that is more for the bank's protection than for the buyer. If the realtor is willing to give you other comparable sales that justify the value you are paying, then you can feel more at ease.
0 votes Thank Flag Link Tue Jan 26, 2010
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