Homebuyers Decide How Their Agent Will Represent Them!

New York State law states that upon first substantive contact, anyone considering buying a house must be given an Agency Disclosure Form, which indicates their relationship with their real estate professional. Without getting overly technical, the choice is between being treated as a customer versus enjoying a client relationship. In this case, the first substantive language refers to the first time any actual give and take, or questions and answers are involved, etc.

For many years on Long Island, nearly every buyer was treated as a customer, and the agent represented the seller (or broker). Therefore, the agent's allegiance, loyalty, and confidentiality went to the homeowner. In other parts of the country, most buyers obtain their own personal representation in the form of a Buyer's Agent or Buyer Representative. When this occurs, the agent serves the buyer as a client, and owes him the allegiance, loyalty and confidentiality. Agents and clients agree to some sort of Buyer Representative Agreement, which spells out the exact terms, including compensation, services provided, length of agreement, and geographic area represented.

Some buyers voice concerns about the compensation issue, however, in the vast majority of cases, the fees or commission come out of the transaction, in the same manner and degree as in the customer scenario. There are specific details, limitations, and items that one should understand, and a thorough discussion with a trusted real estate professional or attorney (who specializes in real estate) is advised.

Which would you prefer, for your agent to represent the seller, or for he or she to represent you and fully negotiate on your behalf and extensively have the ability to advise you? Understand your agency rights before hiring your real estate professional, ask questions, listen, and proceed in the manner that makes you feel most comfortable, and that you feel is in your best interest.