It seems a no brain-er: when you are buying real estate you should have a broker who works for you, not for the seller.
Yet, in our area, most deals are done with real estate agents all working for the sellers. And buyers are left in the cold, working with sellers agents. In my experience, consumers are not clearly aware of the important ramifications of the fact they are working with a sellers agent when they make what often is one of the most important purchases in a life time.
It has happened so often to me, while working as a sellers agent, that a customer would say “I know you work for the seller, but could you tell me….”. Clearly indicating they do not comprehend the consequences of agency law in New York, no matter how many times explained. And it makes sense given the human relationship and friendship that follows spending time with people.
When people are kidnapped or taken hostage, it is described that many times, a much more friendly relationship forms between captor and captive than one would expect. And when a buyer drives around with a real estate agent, a feeling of trust and friendship ensues that completely belies the true nature of the relationship between buyers and sellers agents. How could this person who is so nice, knowledgeable and professional do something bad to you?
Fact is, this agent for the seller is bound by law and protect the sellers interests, and to say it in plain English: sell the house to you, the buyer, at the highest price he can get from you. And this agent is not telling you “buyer beware” as would behoove you, instead is a well trained sales professional presenting homes to you in the best possible light. As long as he is not lying to you, and remains “fair” in his dealing with you.
So you would be better of with a knowledgeable agent who works for you as the buyer. Now, who is going to pay the commission? That seller’s agent is not charging me at all driving me around, no?
The true answer is that the sellers agent is not working for free: and since all money to buy a house typically comes from the buyer: most real estate agent’s commissions are paid out of the proceeds at the closing table. So the Buyer in effect is paying the commission for the agent who is doing the seller’s work…
If you would like to be represented by a buyers agent when you buy a house, it is important to clarify what your mutual expectations are. And to put these expectations in writing is the best way to ensure that in the future there will not be any misunderstandings. That agreement in writing is the Buyers Agency agreement.
If you still ahve any questions, or remarks, let me know!
