My prior post addressed general issues previously discussed on the thread. Thank you for allowing me to borrow your thread for general discussion. Now, please allow me to specifically respond to your situation.
As a broker-owner for several years in multiple states, I stand firm on a policy that we deliver all offers I writing. The absence of a written document makes it difficult to know what was represented to the seller through their listing agent. Even if the BA (buyer agent) did something that hurt you, it becomes difficult to prove.
Most listing agents are quite skeptical about verbal offers. Once in a while, as a listing agent, I do get verbal offers via the phone, when they are very low. The reluctance of the buyer agent (BA) to formalize the offer in writing is an immediate signal that the BA believes the offer has little chance of acceptance. Even it that is not the case, itâ€™s the position that is implanted. In many cases, a verbal only offer will put the buyer at a disadvantage. Without knowing the details of your circumstance, I will not attest to that as fact. I once had a buyer deliver an all cash offer verbally, and it was real, and it closed. But, I was skepticalâ€¦until I spoke w/ his accountant and attorney. What if I would have dismissed that buyer? The fact is, a seller or listing agent might not take verbal offers seriously.
Our office is very near the Colts Neck/Tinton Falls border. I am loosely part of the horsey set, meaning I ride and stable horses. Although, I have been â€œhorselessâ€ for a few months now, I have spent many years engulfed in everything Colts Neck. I know this market, the streets, and many of the agents here.
There is a part of me that believers in preserving some â€œold schoolâ€ real estate practices when it comes to the role of the BA. Today, few BAâ€™s present offers in person. I ask for the opportunity to present in person, when feasible. Many times a seller will decline. Some listing agents encourage their sellers to meet with the BA; others discourage it. This can help bring about a meeting of the minds. The listing agent is always present. The BA is often better able to grasp issues that divide the buyer and seller in this meeting, and potentially bring about a meeting of the minds.
My discussion in the prior post describes the fact that BAâ€™s can negotiate a representation and compensation agreement directly with a buyer. We do execute Buyer Agency Agreements with many of our buyers, but it is not necessary to do so in order to work with us. It is rare that a buyer pay us, directly, or through the seller proceeds as a concession. since we are generally paid in full through co-op offered via MLS, or negotiated agreements directly with the seller when there is no listing agent (FSBOs.) I would be happy to discuss this with you privately, but choose to limit fee discussions in a public atmosphere.
Earlier today, I wrote a post on Trulia in response to an inquiry about a relo from NY to Howell. Some of that info is relevant to Colts Neck. Hereâ€™s the link:
Here is my advice for you:
Choose an agent who is committed to fully representing you as a buyer. Directly ask why that agent is a good choice as your representative and how they will represent you. Are they good negotiators? Can they provide you meaningful answers and advice? Do they know what they are doing? Understand dual agency and what will happen if you identify a property of interest that is listed by your BAâ€™s firm. Choose an agent who can help you with a relocation from NY to the area of NJ that interests you. Have your offer prepared in writing. Choose an agent who will present offers in person, if possible.
Buyer agency agreements offer much good for buyers. Make sure that yours is easily cancelable if you enter one if the agent fails to perform. Buyer agency agreements can be a very good thing for you. And, no entering a buyer agency agreement does not mean that you have to pay anything. Have your prospective BA review with you how he/she will be compensated and what, if any, your financial responsibility is to the BA.
If you remain interested in the same property, and it is still available, the agent who previously represented you may, or may not have a claim to compensation, even if you secure a new agent. You have the right to return to the BA who delivered the verbal and continue to work with that agent. If you choose to have a different BA represent you in pursuit of this same property, fully disclose all this information so it can be handled smoothly. You have the right to choose your BA.
Deborah Madey - Broker
Peninsula Realty Group
732 530-6350 Direct
732 530-7755 Front Desk