2010 Jul 12th

Are You Really Sure You’re Not Working With an Agent?

Misguided Buyers  confused

I had an interesting conversation with some Hoboken condo buyers the other day.  They were not customers of mine but were buying in Hoboken and for other reasons we got to chatting.  They were in contract for a condo in Hoboken in a building with which I am extremely familiar.  I asked them who their agent was and they replied “oh, we aren’t using an agent“.  They had seen the property on the internet and called the listing agent directly.  They viewed the property with the listing agent, made an offer through the listing agent and negotiated the sales price with the listing agent.  But they were convinced that they weren’t using an agent.

A few days later I was on a listing appointment with sellers who were in contact for a new contruction condo in Hoboken.  Similarly, they told me that they weren’t using an agent for their condo purchase.  They had gone to the sales office, viewed the property and made their offer through the sales office.  Yet they also believed they were “not using an agent”.

When you, as a buyer, deal directly with the listing agent or the sales office to purchase a property, that listing agent, know it or not, IS YOUR AGENT.  The listing agent loves when this happens because he or she gets both sides of the deal and makes double the commission.  Right there – if buyers realize this single fact – they could avoid making their first mistake.  If I were a buyer negotiating an offer directly through the listing agent one of the first things I would ask for during my price negotiations is that the listing agent cut his or her commission.

The first couple went on to tell me about some specifics the listing agent told them about the building.  Many of them were simply not true.  For example, the listing agent actually told the buyers that they could build a deck on the roof.  He failed to mention anything about needing to get a building permit and possibly a zoning variance from Hoboken City Hall.  Or that City Hall almost never grants them anymore.  Clearly, the listing agent was either simply ignorant or would say just about anything to get the property sold, especially to his own buyers ($$$).

Hoboken Buyers Need a Wake Up Call!wake up call

The listing agent works for and is an agent of the seller. He has a fiduciary relationship to the seller.  There are many states that have made it illegal for the same agent to be on both sides of a deal because it is viewed as a conflict of interest.  New Jersey is not (yet) one of those states.  New Jersey does have rules that require the agency relationships to be disclosed to the consumer in writing.  (As a lawyer, I can tell you that the “Consumer Information Statement” disclosure form typically used by agents is one of the worst written legal documents I’ve ever seen.)  Yet how many of these agents actually understand and can explain what it means to be a “dual agent”?  So what is a buyer to do?

Any time a buyer sees a property on line, or at an open house, or in an advertisement of any type, chances are that property is in the multiple listing system.  That means that you can view the property with the agent of your choosing and let them work on your behalf while the listing agent works on the seller’s behalf.  That is the whole point of the multiple listing idea.  Any agent can sell any property.  Even if you are looking at, say, Toll Brothers properties at Hudson Tea, Harborside, or Maxwell Place.  Before you go, find an agent you like, trust, and wish to work with and bring them with you to the sales office!  Or if it’s a spur of the moment visit, walk into the sales office and state “I have my own agent but she is not with me today – if I look at your properties will you allow him or her to represent me?”.  If the answer is no, walk out.  Come back later with your own agent.

The same holds true when visiting an open house. When you enter the property and you’re asked to sign in, let the  hosting agent know that you are working with your own agent.  Should you decide you’re interested in the property, you’ll be able to move forward with your own agent at your side.  If you don’t care, and you do work with the listing agent, be aware that anything that you tell that listing agent must be disclosed to the buyer.  That is part of the fiduciary duty the listing agent has to the seller.  During price negotiations, if you say “let’s start at $475,000 and see what the seller says before we go up to $500,000″, the listing agent must tell that information to the seller!  Forwarned is forearmed.

FacebookTwitterGoogle+Share
  1. Vivian

    In our recent dealings, we were working with a buyer’s agent but the listing agent on the property we were looking at was discouraging of our offer(s) as he was trying to sell it to one of his clients.

  2. Jack

    “makes DOUBLE THE COMMISSION” Really? So if the commission on a listing is 6% the agent gets 12%? LOL
    As you know the commission is set at the time of listing and if you can find a way to “double” it I, and probably NJAR would love to know about it.

  3. Lori Turoff

    If that is the case, and you don’t say how you know that, your agent should have been present when the listing agent presented the offer to the sellers.

  4. Lori Turoff

    @Jack – you clearly don’t understand. On a property paying 6% commission the listing agent would only get 3% and the buyer’s agent 3%. So 3% times 2 = 6%. Yes, double.

  5. Jack

    I understand that you made a mistake and you are afraid to admit it.
    It is misleading to say otherwise and there is enough misinformation out there.
    When you go on listing presentations and clients ask what the commission is , what do you tell them?
    The proper way to phrase it is that the agent makes the full commission not “double” the commission.

  6. Lori Turoff

    Not quite. I’m sure anyone else reading the post understood the point. If you didn’t and still don’t I’ll say “double the usual commission”. When I go on listing appointments I make it extremely clear to my sellers that the full commission is divided evenly between the listing brokerage and the brokerage that brings the buyers. If you’ve ever seen a listing agreement, it is very clearly disclosed. There are agencies in town who do not split the commission evenly but keep more than half for themselves. I wonder how clearly that is explained to the seller.

  7. shortsequalmarket

    Of course seeking out a buying agent, unless you are sure of their motive does not solve the problems you listed. Personally I only trust most realtors as far as I can throw them. No offense Lori, but seeing how the NAR has been saying it is a great time to buy for 5 years, not really a warm fuzzy feeling on them representing me.

    The safest bet, especially for condos in a small area. Rent first and get to know the area. Walk by the places. Learn as much as you can. It is not 2004-05 you have plenty of time.

  8. Lori Turoff

    Doesn’t solve the problem? Why not?

  9. Jack

    This is getting truly sophomoric. Let’s get one thing clear. THE COMMISSION IS SET. NO ONE CAN DOUBLE THE COMMISSION WITHOUT THE SELLER’S APPROVAL,regardless of the number of cartwheels or flips they perform. (Though there may be exceptions for those agents that can part the Hudson and walk to Manhattan…maybe.)

  10. whynot

    5%?

    shortsequalmarket – stay on topic. by the way, you give all of us a warm and fuzzy feeling. maybe one day you’ll spread so much venom (a/k/a your opinion) that someone will actually beleive you. in other words, stop being so upset that nobody will sell you a place at below market value. wait!! you’ve said prices have been getting lower for 6 months. too bad for you (and me, as a buyer), that there’s been no movement! sorry! :)

  11. whynot

    and, yes, before you ask, we’re out in real world actually LOOKING at properties – not on a cumputer screen! :) :) :(

  12. shortsequalmarket

    oh poor whynot who does not even understand what defines a “large” apt in Hoboken is upset. So sorry.

    Lori, it does not solve the problem because many buying realtors do not understand the issues you raised. Also at the end of the day they get paid by the seller, so they may choose to not do things in the best interest of their client.

    I understand both market prices, market direction, and long term intrinsic value. I understand when there is greater than a 10 month supply of homes on the market the market is in surplus and falling prices are likely the next step. Sorry you do not understand.

  13. JDS

    Is there any agents out there doing the rebate thing to potential home purchasers? This was recently passed as law.

    I know the whole if there was a “6%” commission (are sellers really still paying this much??), the sellers agent would get half, as would the buyers agent. But with the rebating thing now, why would one bother with a buyers agent if they can just tell the sellers agent to rebate them 3% back? Just curious from an agents point of view and how this is changing things out in NJ.

  14. Lori

    JDS – The law allowing rebates passed but the regulations governing the practice have not yet been issued by the NY Real Estate Commission. the rebate model brokerages (RedFin, Condo Domain) have not yet opened in Hoboken although there are plans. If you look at their websites, you will learn that the entire home buying process is handled differently by these brokerages. There is a new realty office on 5th between Wash & Bloom that was supposed to be a rebate broker but they don’t seem to be open for business. If and when these companies do enter the market they may indeed change the playing field but that’s not happened yet.

    Shorts – if the realtor you’re working with does not undertand the issues I raise you ought to find a better realtor. We do NOT get paid by the seller. The commission is paid to the listing agency from the proceeds of the sale. The listing agency then compensates the buyer’s agency the agreed upon amount. I have no idea what you’re talking about by “not choosing to do things in the best interest of the client”. If an agent is working with a buyer and doesn’t do things in the interest of the buyer in addition to there possibly being an ethical violation, how do you expect the deal to happen? No deal, no dollars.

  15. Lori Turoff

    Come on “Jack” – you’re an agent at Liberty. If you truly don’t understand the point, maybe this isn’t the right industry for you.

  16. leafgreen99

    I’ve read this blog for almost two years and it wasn’t brain surgery to infer that the 6% Lori referred to was going to be split by the two sides. Picking at semantics isn’t getting anyone anywhere.

  17. stan

    I figured Jack was a disgruntled agent. Mad Lori has a successful forum, you could just see it in his posts.

    Talk about picking flysh*t out of pepper with the double commision ramblings

  18. Andy

    Leaf, completely agree. Drama for the sake of Drama by Jack is poor advertising for his agency. Scratch that name off the list of potential realtors.

  19. L&S

    Lori – Forget Jack, his arguements are “sophomoric”. Had asked you this question earlier but it probably got lost in the posts. Why are real estate commisions not on a sliding scale relative to the value of the house. Eg 6% on $1mn is a lot more then 6% on $200k and am not sure the agent does 5x the amnt of work to get the house sold?

  20. Lori Turoff

    L&S – commissions, by law in NJ, are negotiable. It is up to the seller and the listing agent to agree on an rate. The amount of work it takes to get a property sold has much less to do with the absolute value of the property than it does with how under or over priced the property may be. I’d rather sell a well-priced $200,000 condo that actually sells than an overpriced $5mil. mansion that doesn’t.

  21. whynot

    Mr. Angry (a/k/a shortsequalmarket), please speak english. what does this mean:

    “oh poor whynot who does not even understand what defines a “large” apt in Hoboken is upset. So sorry.”

    ?!?

    😉

  22. Betty

    Thanks Lori for explaining this topic. I am a realtor in Monmouth county following your blog for my own education of this area in case I decide to purchase here. I grew up here but everything has changed radically since I moved away. You do a good job educating the public and I hope your effort is rewarded.

  23. Charlie

    Lori-you’re 100% wrong. A disclosed dual agent doesn’t have a fiduciary responsibility to the buyer or the seller and cannot reveal information that will provide any advantage to one party over the other.

    Have you ever read the disclosed agency forms? You really should…..

    Even if a buyer views a property at an open house, they must sign a disclosed consent to dual agency form and the sellers must sign one as well before an offer can be submitted.

    You’re making the realtors who give me a good portion of my business look like they’re trying to hoodwink good and honest people.

    Please get your information straight.

  24. lori

    Charlie even if technically you may be correct, I’m not sure I agree with you. In the 7 years I’ve been selling real estate I’ve never seen a deal where the same agent had his or her buyer and seller sign disclosed dual agency forms, nevertheless when the same brokerage firm was on both sides and anyone signed a dual disclosed agency form. Most brokerages simply don’t do it. That may not be the rule but that is the practice. They buyer is typically informed verbally. The seller consents to dual agency on the listing agreement. I don’t believe it should be done that way nor do I agree with the whole principal of dual agency. I’m not sure what you mean by ‘the realtors who give me a good portion of my business’. What business are you in?

  25. Andy

    Can I just make a comment, why are all the brokers in town so righteous? Its like being in middle school. Charlie, you should pick up the phone and email lori offline. Posting a rebuttle makes you look sophomoric further reinforcing my view posted above about your agency. As the boss you should set the example for your agents.

  26. Charlie

    Your feeding buyers, and sellers for that matter, incorrect information. Any real estate office that allows their agents to be disclosed dual agents without informing the buyer and seller is doing everyone in the transaction a disservice.

    Whether it’s stated or not, a dual agent has a fiduciary responsibility to NEITHER party in the transaction.

  27. Lori Turoff

    Lots goes on in real estate that is a disservice to the public. It is not a very transparent industry. See, e.g., the mortgage crisis.

  28. leafgreen99

    LOL!

  29. L&S

    Charlie, Jack – assume you all are real estate agents. Why are you posting on this blog. Leave us alone please. Frankly its more fun with out realtors (except Lori) as people with different perspectives post their
    thoughts.

    Andy – How did you know that Charlie is Jack’s boss?

  30. Charlie

    First, I’d like to say that I’m not a real estate agent. I’m a local attorney that does a lot of local real estate deals.

    And who is Jack?

    Based on what I see here, it seems that Lori makes herself a “friend of the people” by villifying all of the other agents in town.

  31. carl

    No… Lori is the only agent who is upfront with people. Now I know some people want to keep the market as opaque as possible(sellers) but this blog provides much needed transparency

  32. Chuck

    You are the one who seems to be doing the vilifying, Charlie. Did one of the realtors who gives you all That business complain to you?

  33. shortsequalmarket

    I did not say the realtor I use or may choose to use is not disclosing information. However, I do not live in a utopia where I can believe that an agent I may has my best interest at heart. After all the commission come from the sale proceeds, which comes out of the sellers pocket. Since it is based a percent of sale price that will lead to many skirting the “fiduciary” responsibilities (if they have any) to the buyer. In fact it means the buying agent’s finacial goal is aligned with the seller not the buyer and until commission are a fixed amount that fact will not change.

  34. lori

    This really wasn’t a post about agency relationships. It’s a very muddled, misunderstood topic among agents, brokers and the public alike and probably deserves its own post. Yet since “Charlie” brings it up – here is the real question:

    – In Hoboken buyers rarely enter into buyer’s agency agreements. So the realtor working with a buyer is considered not an “agent” but a “transaction broker”. Of course, legally, if a party holds him or herself out to be an agent (by doing things like giving advice and counsel) they could be construed to be on in law but that’s also another discussion. So if Bob the realtor works for Century 21 and he takes Billy the buyer to see property A – a Coldwell Banker listing, Bob is a transaction broker with regard to Billy. Without Billy & Bob ever entering into a written, signed buyers agency agreement, what happens when Bob takes Billy to see a Century 21 listing? Does Bob automatically become a Billy’s agent or is Bob still a transaction broker? If he is still just a transaction broker, what does it take to actually become a “dual agent”? Merely showing your own agencies’ listings? Or is it necessary for Bob to truly become Billy’s agent first? If Bob is still just a transaction broker, there is no dual agency. Bob is a seller’s agent for the seller and a transaction broker for Billy. Then wouldn’t it be true that Bob DOES owe a fiduciary relationship to the seller of the Century 21 property because of the fact that Bob works for Century 21 and ALL Century 21 agents are agents of the agency’s sellers and therefore fiduciaries of the seller? If not, that would mean that merely by showing one of his own company’s listings to Billy, at some unidentified point (showing the property, making an offer for Billy, upon the end of attorney review???) Bob magically transforms into a buyer’s agent of Billy and is no longer a seller’s agent of the Century 21 seller all without anything in writing.

  35. Laki

    Putting all the legal mumbo jumbo aside, i agree with shortsequalmarket. Everyone who stands to gain a % of the deal is at least somewhat biased. Naturally, the middlemen would want to maximize the price of a transaction but not push it too high to a level that would reduce the likelihood of a transaction occurring in the first place.

    Mathematically speaking, it is an optimization problem for the agents and brokers. A very similar issues arise in the broker/dealer world of finance. I can have a broker-dealer who is working as my agent and has a fiduciary responsibility to me, but in virtually all instances, he’s looking out for himself first and then maybe for me second. If he can rip me off – in most cases he will.

    Whether you’re a buyer or seller, never assume that a middleman is looking out for you (even if they’re very good people, and even if they happen to be looking out for you, and even if the law says they should). You’ll be better off that way. Most people are naturally looking out for themselves first, especially if there is money to be made.

  36. Craig

    Lori isn’t villifying anyone. She’s just telling it like it is with nothing in it for herself, which is why we all come here to learn. Agency relationships are all very confusing – and it is exactly why I chose a close personal friend as my agent. She was technically a transaction broker because no buyer’s agency agreement was signed. However, her fiduciary relationship to me was nevertheless present by way of our personal relationship.

    I also avoided using a local attorney based in Hoboken, and Charlie has underscored why that was a good idea. It’s unwise for your real estate lawyer or inspector to be too familiar with either the seller’s or buyer’s agents and/or be referred by the agents to you for obvious reasons.

  37. Charlie

    I appreciate all of your comments. Some are valid, some are not. A blog is an open forum to post opinions and share ideas.

    The real estate industry is opaque, but only so because people need to open their eyes and ask questions.

    Your mistaken if you think Lori does this out of the goodness of heart.

    Be real people…this is a business blog….to generate business..not a happy go lucky look what I did today in my garden blog.

  38. TS

    Charlie,

    Quite honestly, this is the most ridiculous comment I’ve read on this board: “The real estate industry is opaque, but only so because people need to open their eyes and ask questions.”

    So please tell me why it is that MLS data – prior sales and such – is not readily available to the general public? Why is it that my agent gets to decide what to pull up as previous comparable sales? Why all the information-hiding?

    Thankfully strides are being made toward easing the access to public tax/sales records, but this is not due to the NAR, but in spite of it.

  39. stan

    We all realize Lori’s blog is designed to get her name out there. Guess what, its working. She started a forum to pass ideas and information around. If that generates business, which I imagine it does, good for her.

    Charlie, u sound like you are upset that the brokers that feed you business didn’t come up with the idea first.

  40. lori

    Wow – I give Charlie the benefit of my legal analysis – yes, I’m a lawyer too Charlie and my credentials are pretty stellar – and his answer is “people need to open their eyes”. That does say it all. Anyone who reads this regularly know I do very very very little self promotion here, I don’t advertise my listings or my services. I really do believe that my hard work and time spent to give the consumer the info that they so clearly want and should have will be rewarded based on good will created. I have no shame in that at all. You have no idea the obstacles I have to constantly overcome because there are people in this industry who would much rather that info not be dispersed or available. Look at the NAR suit agains the “VARs” (virtual offices like Trulia & Zillow). They needed the Justice Dept. to settle the case. I will make very effort to keep doing what I do and wish other realtors out there would join the bandwagon rather than wishing things were like they were back in the days when the listings were, literally, in big books and you had to go into the brokerage office to find out what was even for sale. Thank goodness for the internet!

  41. Agent1

    Agent here and new poster. I visit this site from time to time to see some comical arguments. Unfortunately some people get disrespectful, but hey…it’s a blog and freedom of speech typically goes if you open yourself up to a blog with comments allowed. I guess the good thing is that Lori doesn’t hide from “sophomoric” bashers. First off, I agree with Lori on the dual agency issue entirely. As far as a “blog” goes, let’s face it…In real estate, we are self promoters and independents. We have to do what we can to promote ourselves and no matter how popular or “stellar” one may be, no matter how you spin it, a blog is a promotion, directly or indirectly. Deep down, we all know it.

    As an agent, we may not post listings on blogs, but we give opinions and those opinions capture an audience. If someone likes what they read, your phone might right with new business. WINNER!

  42. lori

    Agent1 thanks for your contribution. I wonder, though, why you say agents may not post listings on blogs. That is not true. Here is just one example (http://njrealestatewire.com/) but I can cite, literally, thousands of agent blogs with listings. In fact, that is the rule – not the exception. I specifically choose not to post my listings. I have an agent website for that purpose, HobokensBestHomes.com. My decision to keep this blog informative rather than commercial as much as possible was a deliberate one, not made because of any sort of prohibitions.

  43. Agent1

    Sorry, I may have worded it wrong. When I said “may not”, I didn’t mean they aren’t allowed to. I should have said “might not”.

  44. L&S

    Fact 1. – The buyers and sellers agent only care about closing the deal, it is the same way a investment banker wants to close the deal, or salesperson, trader etc etc. Nothing wrong with it. They present facts and opinions and you need to make a decision and live with it. Hopefully you did you due diligence prior to selecting an agent.

    Fact 2. I know 2 agents in Hoboken, the one i worked with before and you Lori. So whether you like it or not your blog is advertisement and it gets your name out. Nothing wrong with that, it is a competitive biz and this blog give you a edge so take advantage of it.

  45. Jim

    After reading all this I come to think that all Realtors are out for themselves. Lori, you’re a Realtor. What makes you different? If you trash talk your industry then maybe we should take your point and do away with brokerage as whole. Wouldn’t this include you Lori.

  46. JustBrowsing

    What do you dovfor a living Jim? Unless you’re a priest I bet You and your employer arebout for yourselves too. Isn’t that sort of the whole idea behind capitalism?

  47. Agent1

    All realtors are out for themselves?? Yep, the morals of good people choosing to be realtors are out for themselves. Jim, if I were reading this later in the day, I’d ask for how long you’ve been drinking. Your post proves your inexperience.

  48. Craig

    Unbelievable – Lori does all this work on this blog to provide transparency in the real estate industry to the masses and what does she get for her efforts? Comments from haters (primarily from others in her industry ironically). There has been abolutely no self-promotion on this blog since I’ve been reading it. Everyone here knows what Lori does and if they want her services they can come find her, but she does not solicit business here. It’s precisely for that reason that while I may not always agree with Lori, I always respect her opinion nonetheless. You have to respect someone who provides a service with no expectation of anything in return. I think Lori has certainly earned the goodwill she seeks.

  49. whynot

    Craig – grow up! “Lori does all this work on this blog to provide transparency in the real estate industry to the masses…..” I’m going to yack! Watch out!! :(

  50. Andy

    My final piece for the week on this thread, Lori does an amazing job posting this information. Its the best source of data I have seen and gives me a much better view of the Hoboken market than a Zillow or Trulia. Reading this blog for over a year now I have come to respect Lori’s opinions and trust her as a realtor even though we have never done business. I think most of the complaints are from other realtors in Hoboken who were used to throwing only a few comps at prospective buyers and sellers and hoping they would make a deal. Now that this site is getting traffic and people are more informed its requiring that the local realtors do alot more legwork to secure a deal and I’m sure its rubbing people the wrong way. My personal experience in Hoboken backs up this assessment as I’ve met realtors who will bend the truth to suit their whims and hope the buyer is dumb enough not to fact check. You can argue ethics but unfortunately many Realtors in Hoboken are the bottom of the barrel. The honest ethical realtor is the exception not the rule in Hoboken. And the industry does nothing to try to clean up this image and actually works to make it seem that much more shady. I’m actually quite surprised that with the housing bubble no one thought to put some government regulations around the NAR.

  51. Gilbe

    Speaking of transparency, can someone answer this question: Why would a realtor, on behalf of a seller, negotiate a credit instead of a price reduction. In other words (for example) counter to a purchase offer with: pay the list price and at closing you’ll get a 20K credit? Does this appear to anyone else that the realtor is putting his interests ahead of the seller’s? Isn’t it better for the seller to show less profit on the property?

  52. Lori

    Gilbe – Whether to issue a credit to a buyer rather than lower the purchase price is always the seller’s decision – not the realtors (just to be clear). I don’t see how it affects the realtor’s interest in any way. Most of the deals with a credit were more in the range of 2k, not 20k. They are often for things like replacement of old countertops with granite, or installing a washer/dryer, or a year’s parking, or prepayment of a special assessment. It’s commonly done as a way to overcome the objection buyers are likely to have to a particular fault with the property. I think psychologically it may have more impact to say “we will give you the money to replace the old counters that we know are not very attractive” than to leave the old counters, say nothing, and simply lower the asking price. Once the parties start negotiating over price, the credit is often dropped. So it’s real affect is more an advertising/marketing one than financial. The only other type credit I’ve seen is when the seller offers to pay tbe buyer’s closing costs. This is done because after coming up with the cash for the downpayment, the buyer simply may not have any cash left to pay to close.

    As for the realtor’s interest I don’t see how it would even matter other than it might help get the property sold. The credits I’ve seen are not in the 20k range but more like 2k. The difference in commission to the realtor is less than $25. I know of no realtor who is basing pricing advice on the cost of a pizza dinner. A significantly larger credit may very will raise other issues with the lender.

    As for the seller showing profit, it probably doesn’t matter if it’s the sellers primary residence because he or she will take advantage of the capital gains exclusion if they purchase a new home.

  53. Gilbe

    Thanks Lori – I see what your saying and, in the 2-3K scenario it makes perfect sense and keeps the dialog moving. Perhaps, as mortgages get harder to come by, clever realtors are finding another use for a “credit” and upping the ante? In my case, which IS 20K – 1200 worth of commission (or 600/600) not a fortune, but more like a new computer than a mere pizza dinner and a commission amount worth salvaging. (Also is enough to impact comps) Additionally, it may be the sellers decision, but it would have to be the realtor’s suggestion, wouldn’t it? Please understand, I’m not a person that falls into the “I hate realtors” catagory. I’m simply trying to continue a negotiation without undue suspicion.

  54. Lori

    Gilbe – As I said, when the “sales price” on the HUD differs from the real sales price there may be issues so you should talk to your attorney and your lender. (This was an issue when people were borrowing more than the purchase amount and using the excess to cover their closing costs.) It not only affects the comps but also the appraisals. PS – why would the realtor have to suggest it? The seller can think of these things on his own, no?

    Also – the realtor gets paid on the sales price LESS THE CREDIT. No benefit to us at all!

  55. Gilbe

    I felt better after the first post. What is it with realtors? They don’t get commission on the credit? So, the pizza analogy wasn’t even relevent, yet it was offered as an explanation. In that case, wouldn’t the proper initial response have been, ‘they are paid on the sales price LESS THE CREDIT?’ So which is it really, the realtor gets nothing or the realtor gets enough money to buy a pizza dinner (generally.)

    As far as the seller thinking of offering a credit themselves, why would they? They don’t work in real estate? A layman wouldn’t necessarily know what estopple means. A layman wouldn’t necessarily know how to read lab results on a blood test. That is why advisors are hired. Not every seller or buyer has been busy playing tidly winks with real estate for the past decade.

    Maybe I’m lucky in this transaction and, at least, my realtor is honest – or is honest realtor a complete non sequitur?

  56. Lori

    A little harsh Glibe. I was just trying to answer your question. And I wanted to confirm w my broker that we are paid on the sales price less the credit before I posted that.

    The buyers I have dealt with are quite saavy and well informed. Why wouldn’t they be able to come up with an idea like having the seller pay for rental parking for a year? That doesn’t require any special expertise. Just common sense.

  57. Gilbe

    Sorry Lori – purchasing is stressful

  58. Lori

    Apology accepted. Good luck.

  59. V

    If you work with a listing agent directly (or they serve as the dual agent), is it common for them to offer to reduce their commission in Hoboken to get the deal done? It would seem logical to me. If I was a broker, I would be happy to take 4% and get the deal done without a buyside broker, if it works for the seller. I am still better off as the broker (by 1%) and the seller is saving 2% and getting a deal done.

  60. Ralf

    I think buyers do better when dealing direct with the seller’s Agent for the double commission reason. If a seller’s agent is looking at double the commission, they will try harder to solidify the deal. I’ve whitnessed this down in Georgia, suspect it is the same here in Hoboken. 6% of $390,000 sure beats 3% of $400,000. And yes, to V’s point, if you deal directly with the seller’s agent you might be able to get that agent to drop thier commission to 4%, better than 3% for the broker.

Leave a Reply

Copyright © 2008 Hoboken Real Estate News     Login     Sitemap