The Day – Buyer brokerage looks to get the best deal for those purchasing a home – Connecticut

 Published March 04. 2016 12:01AM  By Quincy Clayton Sponsored by: Eastern Connecticut Association of REALTORS®.

Buyer brokerage is one of the fastest growing real estate specialties because more and more homebuyers want the services of an agent who owes full fiduciary responsibilities, duties, and loyalty to the real estate buyer. The buyer’s agent works for the buyer-client and has the buyer’s best interests in mind. In fact, Connecticut law requires all buyers to sign a buyer representation agreement with a real estate agent before that agent can show them properties listed by other brokers.

The National Association of REALTORS®‘ (NAR) 2014 Profile of Home Buyers and Sellers found that 88 percent of all buyers in purchased their home through a real estate agent or broker. Just as a seller’s agent is hired to obtain the price and sale terms sought by the seller, a buyer’s representative is hired to get the best possible price and terms for the buyer. In buyer representation, a real estate professional is paid to represent the buyer in a real estate transaction. The buyer’s representative and the buyer negotiate the fee for service. The buyer representation agreement sets forth how the buyer’s representative will be compensated. Compensation for the buyer’s broker is paid by the listing broker, the seller, or by the buyer directly. The fee is negotiable.

NAR recommends that consumers entering into a buyer representation agreement consent to the terms of compensation and sign a written agreement based on these terms before they start to view properties. The agreement should spell out the responsibilities of both parties throughout the real estate transaction. Buyer representation goes beyond just negotiating prices for homes. A buyer’s representative might negotiate with the seller for a smaller deposit, for all closing costs to be paid by the seller, or for other contract terms more favorable to the buyer.

Buyer brokerage assistance may include helping the buyer obtain third party assistance, such as legal counsel to review proposed contracts, or an inspector to conduct a structural inspection of the property. A buyer’s representative is loyal to the buyer’s interest. Clearly, the service and expertise provided by a buyer’s representative are what the home buying public wants and values. Buyer representation services begin with needs assessment, leading to a search for the right property and continuing to negotiations for the best price and terms, right through to completion of the transaction and beyond.

Visit our web site at easternctrealtors.com or our blog at ecarvoice.com to learn more. Quincy Clayton is president and state director at the Eastern Connecticut Association of REALTORS®.

Source: The Day – Buyer brokerage looks to get the best deal for those purchasing a home – News from southeastern Connecticut

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The 3 Types of Buyer-Broker Contracts | realtor.com®

 

The 3 Types of Buyer-Broker Contracts By Craig Donofrio | Apr 7, 2015

Buying a home comes with a lot of responsibilities: You need to figure out the right community, the right size of house, the location, and especially the price. You have to negotiate with sellers and real estate agents. To cut down on the time it takes to do this, you might want to hire a real estate broker, otherwise known as a buyer’s broker, to represent you and help you find a home. The broker usually has an agent to help him or her with this task.

If you want to get a buyer’s broker, you’ll want to know about the three most common buyer-broker contracts and what they entail. The basics To avoid problems, the buyer and broker enter into a contract defining the legal relationship. This contract explains the duties and responsibilities of the parties and sets out exactly what services the broker will provide.

There are several types of buyer’s broker real estate agreements representing the nature of the relationship between the buyer and the broker. These contracts can generally be provided by the broker in preprinted “fill-in-the-blank” forms adapted to the laws of the particular state. Nonexclusive not-for-compensation contracts  This type of contract describes the broker’s duties and obligations to the home buyer, generally to be performed by the broker’s agent. It also outlines the relationship between the agent and the broker and the buyer’s responsibilities.

This contract specifies there is no compensation to be paid to the broker. Other common components include that the buyer can retain more than one brokerage and either party can revoke the contract at any time. Nonexclusive right-to-represent contracts This arrangement defines the broker’s responsibilities to the buyer, the relationship between the broker and the agent, and the buyer’s obligations. It provides for compensation to be paid to the broker if the broker proposes the house the buyer decides to buy or otherwise represents the buyer. If another party pays a commission to the broker, this obligation is removed. Additionally, the buyer is typically able to buy a home through another broker as long as that home was not proposed by the previous broker.

Usually these agreements may not be revoked except for specified reasons. Exclusive right-to-represent contracts This is the most common contract between home buyers and brokers. This agreement outlines the obligations of the broker, the broker-agent relationship, and the responsibilities of the buyer.

What distinguishes this contract is the buyer may not retain more than one broker to assist him or her. It sets forth the commission amount to be paid to the broker, which is owed even if the buyer finds the house herself or another broker does so. But if another party pays the broker the commission, the buyer doesn’t have to. In comparison to nonexclusive contracts, which are usually for one or two months, exclusive agreements might run from several months to a year and generally cannot be revoked except for specified reasons.

Making the choice The key elements of the agreement are broker exclusivity, contract duration, compensation, and the description of the type of home the buyer is seeking. There is no “correct” answer for every buyer, so you should compare options. Speak with friends, family members, and professionals who are familiar with the process, and consult different brokers to see what they offer and whom you feel most comfortable working with.

Updated from an earlier version by Moshe Pollock Craig Donofrio covers home finance and all things real estate for realtor.com. His work has been featured in outlets such as The Street, MSN, and Yahoo News. Follow @CJDonofrio

Source: The 3 Types of Buyer-Broker Contracts | realtor.com®

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Steve Schappert Gets Screen Call From BBC (The Learning Channel)

August 2005

 tlcSteve Schappert of Buyer’s Trust Real Estate will be headed to Manhattan on Monday to Meet with producer Mike Wechsler for a new reality TV Show Wechsler is putting together for the BBC called, “Real Estate Road Trip”. For the first time in America, you can have the opportunity to try out a house before you buy it. You tell us what you’re looking for in a new house, and we will match you up with three different properties. Then you get to choose to spend the night in one of the properties to see if it is a good fit for you and your family – and if you want to purchase the house.

Kathleen Chiras of Skyforinc., a national referral service, confirms she has been speaking to the casting director for about a month in an email to Schappert. Chiras says, “Good luck, Steve! Yes, I ‘ve been talking with the casting producer there for about a month. Let’s hope they pick an EBA! KC “. Tom Early President of The Buyer’s Real Estate Brokerage and President of the National Association of Exclusive Buyer Agents had this to say, “Fantastic, keep me informed. I too sent them a bio but have not heard from them. Tom “

Schappert said, “I had no idea about the show but on Friday I received a phone call from Mike Wechsler of BBC Production in Manhattan. They are doing a reality TV show about home buying. I was interviewed, over the phone by Mike, he asked for a picture so, I gave him my website for Buyers Trust. he said he would get back to me. He called back one minute later and asked me to come to Manhattan for a screen call on Monday at 11. “

“I really appreciate the opportunity regardless of whether I am chosen or not. This will be a great PR piece for Exclusive Buyer Agents everywhere! Schappert and Wechsler also talked briefly about Schappert’s new zero energy mixed use building in New Milford.”

Schappert made 2 trips to the BBC offices in Manhattan for the initial interview and then for an actual screening.  Schappert was interviewed on camera by Erin Cox, and was told that he had the best stories.

Golden Nugget Las Vegas

Golden Nugget Las Vegas (Photo credit: Wikipedia)

The BBC did not finance the show back in 2005 and now that Schappert is reentering the industry with a great deal more experience and stories to tell, he hopes to get another chance.

In 2007 Schappert was featured on NBC’s going Green and was asked by the National Association of Exclusive Buyer Agents to teach a 3 hour class on Green Building at the national convention at the Golden Nugget in Las Vegas.

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The Buyer’s Broker – Getting Started – The New York Times

The Buddy System, or the Buyer’s Broker Getting Started By SUSAN STELLIN SEPT. 15, 2011

 IN this do-it-yourself era of online real estate listings, it is easy to find out what is on the market, visit open houses and even research sales data to come up with a reasonable price to offer for a home. So why should a buyer bother using an agent? In a nutshell: to protect his or her interests in an expensive, often complex purchase that can become even more complicated by the labyrinthine co-op approval process in New York City. A buyer who relies on the seller’s agent to handle both sides of the deal may not hear about problems with the apartment or the building, or have a real advocate during contract negotiations.

“When you work with a buyer’s agent, their fiduciary responsibility is to you as a buyer,” said Walter Molony, a spokesman for the National Association of Realtors. The organization has helped establish state laws that require clearer disclosure to consumers about which party in the transaction an agent represents.  In New York, real estate agents must have clients sign a disclosure form that explains the difference between a seller’s agent, who provides undivided loyalty to the seller, and a buyer’s agent, who represents the buyer’s interests. A dual agent can represent the buyer and the seller, but both parties must consent to the arrangement and acknowledge that they are giving up the benefits of exclusive representation.

“Obviously if you’re representing a buyer and a seller in a transaction,” said Neil B. Garfinkel, the residential counsel to the Real Estate Board of New York, “you can’t have undivided loyalty.” A dual agent can maintain each party’s confidence, Mr. Garfinkel said — for instance, by not disclosing to the seller that the buyer just received a big bonus check, or by not telling the buyer that the sellers are divorcing and want a quick sale. But things get murky when it comes to negotiating a price or discussing a home’s flaws.

“Perhaps it’s a defect in the property or potential financial issues in the building,” said Gea Elika, the founder of Elika Associates, a real estate agency that works exclusively with buyers.

“Or maybe the resale potential is terrible. Buying a home is an emotional thing, so buyers may not see what’s wrong.” When the market was booming, it was sometimes difficult for buyers to find a broker to show them properties unless they had millions of dollars to spend. That is because properties were selling so fast that agents preferred working with sellers rather than buyers who might take months to make up their minds. But agents say that with listings taking longer to sell, there is generally more willingness to work with buyers.

Source: The Buyer’s Broker – Getting Started – The New York Times

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3 Tips for First-Time Home Buyers | TIME-MONEY

So you want to buy a home? Have you started looking on Trulia and Zillow for your dream place? Well, stop right now.


First-time home buyers: Do your research, and don’t rush into it. Here’s some advice from Ryan Serhant, host of Bravo’s Million Dollar Listing New York

“It’s so easy to find homes online,” says real estate broker Ryan Serhant, host of Bravo’s Million Dollar Listing New York. “[People] go out and start shopping based on what they think they want, when at the end of the day what you need—the home you’re going to buy—has nothing to do with what you think you want on day one.” He offers these three tips to first-time buyers:

Get pre-approved. Find out how much you can actually afford to spend.

Use a broker. Buyer’s brokers are paid for by the seller, so it’s no cost to you.

 

home buying tips

Over reaching can be hazardous to your health

Buy within your means. “The economy is in a funky place,” says Serhant. “Do not stretch yourself, because you never know what can happen.”
You’ve outgrown your current home and are ready to make some serious moves. Million Dollar Listing New York host Ryan Serhant has these three tips for how to do it.

 

Find a home you can grow into. Don’t look for a house that fits you today without thinking about how much you’ll like it in five or 10 years.

Focus on natural light. When it comes to resale, good natural light is the number one thing, statistically, people focus on. “If you have good light coming through, you will have a much better chance at selling than somebody who did not get a place with good light,” says Serhant.  VIA http://time.com/money/4095911/home-buyers-real-estate-tips/

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Buyer Representation

 If you want representation, work with a buyer broker.

They are legally obligated to represent your interests in any negotiations with sellers. Consumer Federation of America. Changes in Real Estate Agent Representation. P.4 http://www.consumerfed.org/pdfs/realestagn.pdf

Source: Buyers Agents, Buyer Brokers, Buying a Home

#BuyerRepresentation

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Money Magazine Says “You save big bucks by hiring a buyer broker”

“Confide to a traditional real estate broker that you’re prepared to bid as much as [$xxx,xxx] on a house, and the broker will tip off the seller. Tell a buyer-broker, and the seller will never know.  –Money Magazine. ‘You May Save Big Bucks by Hiring a Buyer-Broker.” June, 1996. http://slohomestore.com/support/articles/hireBuyerBroker.htm

Source: Buyers Agents, Buyer Brokers, Buying a Home

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(Buyer) brokers are obliged to get buyers the best deal possible

(Buyer) brokers are obliged to get buyers the best deal possible, they approach a house with a critical eye for apparent flaws. Bloomberg Businessweek. A personal shopper for your dream House. September 11,1995 http://www.businessweek.com/archives/1995/b3441130.arc.htm

Source: Buyers Agents, Buyer Brokers, Buying a Home

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Buyers Agents, Buyer Brokers, Buying a Home

“It is your responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an ‘exclusive buyer’s agent,’ who will be working for you.” U.S. Department of Housing & Urban Development, “Shopping for Your Home Loan: HUD’s Settlement Cost Booklet.” Rev. Dec 2009 P.6

Source: Buyers Agents, Buyer Brokers, Buying a Home

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