Open House Realtors / Buyers Agent Question

DH and I recently started going to open houses. We don't have a buyers agent because we didn't get pre approved yet.

Two of the realtors from open houses have started sending me listings and offered to take us to house showings.

One realtor was very nice but I feel like we might want to put an offer in on that house when we start seriously looking. If we happen to want to put an offer in on that house I would want a buyers agent to work with me to get the best price. So I feel like maybe we should find another agent to work with. (She isn't the listing agent, her boss is, she was just running the open house).

The other realtor (from a different open house) was nice as well and she is also a CBR, is that something very good to have to have in a buyers agent?

Or should I find a buyers agent on our own?

Sorry for the long post, we are very new to this and want to make sure we are making the right decisions.

Open House Realtors / Buyers Agent Question

definitely get an agent on your own. awhile ago i was going to buy a co-op and didn't get my own agent. i thought the sellers agent was so sweet. once it came to negotiating, it was a nightmare. she was obviously not on my side and they ended up walking. save yourself the stress and get an agent. i recommend Beth Lowe!

Re: Open House Realtors / Buyers Agent Question

It's fine to go to open houses to get a feel for what you like in houses. But once you get more serious, it's really best to have your own representation. Without a buyer's agent, you have to realize that any agent showing you a house is working on the seller's behalf, and is trying to get the seller as much $$ as possible. In a bidding war or negotiating down the line, you really want to be represented.

Open House Realtors / Buyers Agent Question

Removed because I was told my information was incorrect.

Message edited 3/13/2014 2:08:18 PM.

Re: Open House Realtors / Buyers Agent Question

Re: Open House Realtors / Buyers Agent Question

I would def get an agent on your own, thats what we plan to do..for starters, when you are at open houses and list the buyers agent name on a sign-in sheet, the realtor takes you more seriously. DH and I have encountered many open houses where we came in, told the realtor we disnt have an agent, and they basically ignored us and let us walk around the house/property un-escorted..its great for us because we know right away we can cross that agent off our list when we start interviewing them as a potential listing agent....Unfortunately for us, it looks like we will not be listing this year as we just got our appraisal report back and our house was appraised at only $500 more than whats listed on the Nassau County Assessment web site, plus a house 2 blocks from us that is identical in size and layout is already on the market for $15k less than what we planned to list ours as..,

Re: Open House Realtors / Buyers Agent Question

Open House Realtors / Buyers Agent Question

Oh ok, I guess I was incorrect. Christine, is that only true if you sign an agreement? Because that was the way my agent had explained it to me, but I never signed an agreement. That was a few years ago, but I actually met with another agent last week about something else and she explained it that way as well.

Re: Open House Realtors / Buyers Agent Question

Re: Open House Realtors / Buyers Agent Question

You guys are kind of correct --

From a legal standpoint, what determines whether an agent is working for the buyer as a buyer's agent or working as a broker's agent (with the buyer, but for the seller), is the NY State Agency Disclosure form.

Every agent you come into substantive contact with is supposed to have you sign this and disclose who they are representing. (There are options to be checked.) The default is usually the "representing the seller" as a "broker's agent" option, but there is the "representing the buyer" as a "buyer's agent" option.

As a technical matter, if the "buyer's agent" option is checked, the agent is working for you as a buyer's agent, whether or not any agreement is signed.

As a practical matter, most agents want you to sign an exclusive representation agreement (saying that if you buy a house during x period ,you will be through the agent) before they will agree to represent you as a buyer's agent. There's a lot more liability and responsibility as a buyer's agent, so most agents want the assurance of loyalty in return. It's kind of the same way that when a seller lists their house, they sign an exclusive agreement with their listing agent. They don't expect the listing agent to work on their sale, market the house, etc. while they are also running around with other listing agents. So yes, signing an agreement will be required by most agents in order to get them to be your buyer's agent. BUT that is up to the individual agent's practices; an agent can work as a buyer's agent without having a contract with that buyer.

But I know some agents who are scared of doing buyer's agency. They don't feel confident enough in their skills or experienced enough to do it, so they shy away from it and don't even present the option.

As far as compensation - again, it's up to the individual agent (and important to read any contract you sign!). Most of the time, the listing offers out compensation to both a buyer's agent and a broker's agent, and it's usually the same amount (because again, seller's not really going to care!). Most buyer's agents will accept what is being offered as compensation. If someone is working as a buyer's agent, they can try to negotiate more commission and roll it into the offer OR they can ask the buyer to pay them additional compensation. There's no one-size fits all way to do it or set fee, just the same way there's no one set fee when hiring a listing agent (some agents may charge 5%, some may charge 6%, etc.).

But I would not shy away from having a buyer's agent because you think you will have to pay more. Most of the time, that's not the case. My buyer clients don't pay me anything. And I have some of the best sales, and best relationships, with buyers who have hired me to be their agent. It's a more intuitive way to work, and I feel like I can do so much more for them than I would if I were working for the seller's best interest.

Hope this helps clear things up, because it's confusing, and in most of the country, it's much easier (if you work with the buyer, you represent the buyer!). Of course, we make it more complex than it needs to be here on LI and surrounding areas!

Re: Open House Realtors / Buyers Agent Question

I personally only work with buyers as a buyers agent

I do not ask for additional compensation other then what is in the listing- technically the sellers agent is paying the buyers agent to bring the buyer

I can't imagine trying to rely on the sellers agent to walk you thru the process as a first time home buyer there is so much more to it then finding a house- that's where my real job begins