A Buyer’s Broker, by contrast, would be obligated to keep the
purchaser’s motivations and bottom-line in confidence. This is
because the relationship between buyer and broker is a Client relationship,
and not a Customer relationship. In other words, the Buyer’s Broker is
working for the Buyer.
Buyer’s Brokerage, while not yet common on Long Island, is being
championed by a coalition of Consumer Watchdog groups, knowledgeable
purchasers, the New York Department of State, and the Federal Trade
Commission.
The National Association of Realtors is currently running a television
advertisement that assumes the widespread acceptance of Buyer’s
Brokerage. The TV ad shows a father and son sitting on a porch and
discussing the son’s intention of buying his first home. Just as Dad
tells his son to “get a good Realtor,� a jumbo jet flies extremely low
over the house (must be Long Beach!). The assumption is that the Realtor
would be working for the buyer, but so far in our market this is rarely the
case.
For The Home Owner
Finally, any current homeowner involved in the purchase of a new home
should insist on using a Buyer’s Broker. A conflict of interest will exist if
a homeowner begins the process of buying a new home and then hires the
same “selling agent� to list their current house, thus putting the
consumer in the position of both customer and client to the same broker.
This arrangement is frowned upon by the New York Department of State
(which oversees Agency Law), although it is technically legal if strict
guidelines are followed.
The consumer will better protect his or her own interests by actively
choosing a Certified Buyer’s Representative (CBR) as their
personal real estate consultant.
BUYER'S BROKERAGE part two
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Terry Woods is a former Real Estate professional.
These articles are for informational purposes only.
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