What Is a Buyer’s Agent? A Trusted Guide Who’ll Help You Find a Home
Ready to house hunt? It’s a jungle out there: Prepare for a flurry of paperwork, stampedes of buyers competing for the same digs, and other challenges before you get your hands on those house keys. We won’t lie: The process can be complex and stressful—especially if you are a first-time buyer. Having a real estate pro by your side can make all the difference. You might have heard of buyer’s agents, selling agents, listing agents, and so on. You’re a buyer, so what is a buyer’s agent? True to their name, buyer’s agents are ethically obligated to work in a buyer’s best interest. They help real estate buyers navigate the real estate market and can also save you tons of time on the road to your new home. Recently, the National Association of REALTORS® reached a settlement that went into effect on Aug. 17, 2024. The settlement includes several changes between the agent and buyer relationship that benefit homebuyers. Here’s how a real estate buyer’s agent can help you in your home search, and how to find the right one for you. Benefits of using a buyer’s agent “A buyer’s agent will guide you through the homebuying transaction and be at your disposal for any questions or concerns,” says Shane Wilcox, a real estate professional with Partners Trust. Here are some of the things a buyer’s agent can do: Find the right property After determining what the clients are looking for and what they can afford, the agent will schedule appointments to tour homes that fit the bill. The agent can also explain the pros and cons of various properties and neighborhoods to help buyers decide which home is right for them. Negotiate the offer The buyer’s agent will advise clients on an appropriate price to offer and present it to the seller’s agent. “Then they will negotiate on your behalf and write up the contracts for you,” says Matt Laricy, a real estate professional with Americorp Real Estate in Chicago. The agent’s experience in negotiating deals can save you money and help you avoid pitfalls like a fixer-upper that’s more trouble than it’s worth. Recommend other professionals A buyer’s agent should also be able to refer you to reliable mortgage brokers, real estate attorneys, home inspectors, movers, and other real estate professionals. This can also help expedite each step of the process and move you to a successful real estate sale all the faster. Help overcome setbacks If the home inspector’s report or appraisal uncovers new issues, a buyer’s agent can advise you on how to proceed with the transaction and act as a buffer between you and the sellers or their broker. If negotiations become heated or hostile, it’s extremely helpful to have an experienced professional keep calm and offer productive solutions. Buyer’s agent vs. listing agent: What’s the difference? Buyer’s agents are legally bound to help buyers, whereas listing agents—the real estate agent representing the home listing—have a fiduciary duty to the home seller. “That’s why it’s in your best interest as a buyer to get an agent who is there to represent you,” explains Alex Cortez, a real estate professional with Wailea Village Properties in Kihei, HI. “Think about it this way: If you were getting sued, would you hire the same attorney as the person suing you? Of course not. You need someone who will diligently fight for your interests and rights.” Let’s say, for instance, you walked up to the listing agent at an open house. You might gush about how you love the home and want to buy it. You may then unwittingly add that you will need to move soon—because you’re expecting your second child and need to decorate the nursery pronto or because the lease on your rental is up in a couple of months. A seller’s agent could then use this information against you by informing the sellers that your clock is ticking, so they shouldn’t budge too much on their asking price—if at all. Yet make this same confession to the buyer’s agent you’re working with. This professional would know to keep this information private from sellers (and their agents) so it can’t be used in negotiations. Some states, recognizing this problem, required a disclosure of dual agency when a broker represents both sides of a real estate transaction. In some states, dual agency is illegal. However, you may still not be comfortable after signing an agreement saying you know someone is a dual agent. You might want to hire an agent who is not representing the owner, and who is looking out for your best interests. How to find a buyer’s agent A good buyer’s agent can ease the path to homeownership, while a bad one can result in a bumpy ride. Here are some questions to ask to help you find the right one. “What neighborhoods do you specialize in?” Real estate requires local expertise, so you should find an agent who’s extremely familiar with the areas you’re interested in. “What’s your schedule and availability?” Committed part-time real estate agents can do a fine job, but if the house of your dreams pops up or you encounter last-minute closing snafus, you want an agent who is readily reachable. “How long have you been a real estate agent?” You ideally want someone with a couple of years of experience and a proven track record of selling homes. To find real estate agents in your area, head to realtor.com/realestateagents, where you can also read online reviews provided by past clients and learn more. The agent/buyer contract Once you agree to work with someone, you will have to sign a contract before touring a home in person or virtually, outlining the agent’s services and compensation (more on that next). However, you do not need a written agreement if you are simply interviewing an agent or talking at an open house. This contract also means that this person will be your sole representative and that you won’t work with other buyer’s agents.In general, the contract should outline the negotiated terms, detailing the services provided and their cost. According to the settlement for the NAR, the contract should also include these things before you sign it. 1. A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined. 2. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”). 3. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer. Who covers the buyer’s agent commission? In the past, sellers generally covered both buyer and seller’s agent fees. As of Aug. 17, buyers will be responsible for paying their agents a fee. Remember, your agent’s compensation is fully negotiable. While the seller may agree to compensate your agent, this offer cannot be shared on a multiple listing service (MLS)—local marketplaces used by both buyer brokers and listing brokers to share property information. As a buyer, you can still accept concessions from the seller, such as offers to cover your closing costs. When choosing a real estate agent, ask about their services and compensation to ensure you fully understand the process. #BuyersAgent #HomeBuyingTips #RealEstateExpert #HomeSearch #FindYourHome #RealEstateGuide #HomeBuyingJourney #FirstTimeHomeBuyer #DreamHome #HomeBuyingProcess #RealEstateAdvice #HouseHunting #StatenIslandRealEstate #SalmonRealEstate #RealEstateHelp
Effects of the Recent National Association of Realtors Ruling
NYC-based boutique law firm Pardalis & Nohavicka brings the latest legal updates from the world of real estate. Pardalis & Nohavicka handles an eclectic array of matters, representing individuals and business owners in civil litigation, criminal cases and business transactions, currently litigating and representing clients throughout the United States and around the world. The recent ruling involving the National Association of Realtors (NAR) is expected to have implications for real estate buyers, sellers and members of the Real Estate Board of New York (REBNY). Keep reading to find out what these groups can expect in the aftermath of this ruling. Background The NAR settlement stems from a 2019 lawsuit filed by a group of Missouri home-sellers alleging antitrust violations. In it, they claimed that the NAR’s practices inflated real estate commissions, particularly through rules requiring the listing of commission offers on Multiple Listing Services (MLSs). The plaintiffs argued that these practices incentivized buyer agents to favor properties with higher commissions, ultimately harming consumers. On March 15, 2024, NAR agreed to a settlement of $418 million and to the following provisions: Prohibit commission offers on MLSs: NAR must prohibit buyer agents from listing commissions on the MLS, thereby allowing consumers to negotiate commissions directly with agents. Require written agreements for buyer representation: Buyer agents will be required to enter into written agreements with clients before showing homes to ensure transparency about services and fees. Notably, sellers can still offer compensation off of MLSs, and buyer concessions for closing costs will continue to be allowed on MLSs. These changes went into effect on August 17, 2024. Notably, the settlement does not directly affect the amount that real estate agents earn in commissions, but instead focuses on transparency and consumer negotiation. Impact on REBNY Members Changes in Commission Practices: REBNY members — especially brokers and agents — will need to adapt their business practices. This includes updating contracts, disclosures, and marketing materials, while also reevaluating how they disclose commission arrangements and structure their services and fees. Increased Competition: The ruling may lead to heightened competition among brokers as buyers and sellers become more aware of commission structures and seek more cost-effective or transparent options. To stay competitive, REBNY members may need to distinguish themselves by offering better service, market knowledge or alternative commission models. Impact on Buyers & Sellers of Property in New York Greater Transparency in Commission Payments: The NAR ruling is expected to lead to greater transparency around real estate commissions. Specifically, buyers can expect clearer disclosures regarding who is responsible for paying the broker’s commission. Historically, sellers paid both the listing agent’s and the buyer’s agent’s commissions with buyers indirectly covering the cost through the sale price. However, going forward, there may be more upfront discussions about commissions, which could give buyers more leverage to negotiate these fees. Potential Reduction in Buyer Costs: With increased transparency, there will likely be downward pressure on commission rates, potentially leading to lower overall costs for buyers. Accordingly, as agents compete, buyers may benefit from reduced commissions. Potential Unintended Consequences: The increased ability to negotiate commissions could lead to more confusion and create additional friction in transactions. For example, before the ruling, commission structures typically followed standard practices, which allowed both parties to focus more on the overall sale price, rather than the specifics of the commission. Different Structure, Same Pricing Decisions: The NAR ruling may not have a material effect on New York’s real estate market, which could largely continue operating as it has been. Because real estate transactions are often complex, buyers and sellers typically rely on knowledgeable agents to guide them through the process. As a result, commissions may largely remain the same, whether paid by the buyer or seller. While the payment structure may change, these costs will still be factored into the final purchase price. At the same time, sellers will continue to focus on their net returns after deducting all costs, while buyers will focus on affordability and their own closing costs. Conclusions Overall, the NAR ruling is expected to encourage a more competitive housing market, resulting in a net benefit to the buyers. That said, the full effect of the settlement remains uncertain, and there is some skepticism about whether it will meaningfully reduce costs for homebuyers. About John Pak serves as the Real Estate Chair at the Law Offices of Pardalis & Nohavicka. He is a transactional attorney specializing in acquisitions, dispositions and leasing. A graduate of Brooklyn Law School, he received his BA in Political Science from New York University. Prior to joining PN Lawyers, John owned his own private law practice for 15 years and a title company for 6 years.
Why Staten Island is the Perfect Place to Buy Your Next Home
When it comes to real estate in New York City, many people immediately think of Manhattan’s high-rises or Brooklyn’s hip neighborhoods. But savvy buyers are increasingly turning their attention to Staten Island—and for good reason. Whether you're a first-time homebuyer or looking to upgrade, Staten Island offers unique advantages that make it the perfect place to invest in your next home. 1. Affordability Meets Space Compared to the other boroughs, Staten Island offers more bang for your buck. You can find homes with larger lots, extra bedrooms, and spacious yards—all at a price point that’s significantly more affordable than what you’d pay across the harbor. If you're searching for space without sacrificing your budget, Staten Island is the ideal option. 2. A Variety of Neighborhoods to Suit Your Lifestyle Staten Island boasts a wide range of neighborhoods, each with its own unique character and charm. From the suburban feel of Tottenville and Great Kills to the more urban, waterfront vibe of St. George, there’s truly something for everyone. Families: If you’re looking for a family-friendly environment, neighborhoods like Richmondtown and Westerleigh offer quiet streets, good schools, and a strong sense of community. Commuters: For those who need quick access to Manhattan, St. George offers excellent ferry connections and stunning views of the skyline. It's an up-and-coming neighborhood, with a growing number of condos and developments perfect for professionals. Nature Lovers: Staten Island has more parks than any other borough. Explore Greenbelt Park, enjoy the beaches along the South Shore, or take a relaxing stroll through Clove Lakes Park. 3. Staten Island's Growing Market The Staten Island real estate market has steadily grown, making it a prime spot for real estate investment. Whether you’re buying your forever home or looking for rental properties, the borough offers opportunities for both homeowners and investors. Demand for housing is increasing as more people recognize Staten Island as a great place to live, so investing now could pay off in the future. 4. A Strong Sense of Community What makes Staten Island stand out is its strong community feel. The borough is known for its friendly neighborhoods, local businesses, and vibrant cultural scenes. Many Staten Island residents have lived here for generations, contributing to its close-knit, family-oriented environment. From local events like the annual Staten Island Oktoberfest (which helps support veterans) to thriving local dining and shopping options, there’s a real sense of belonging here. 5. Potential for Seller Financing For buyers worried about traditional financing options, Staten Island’s real estate market often provides opportunities for seller financing. With this flexible financing arrangement, buyers can negotiate terms directly with the seller, potentially bypassing banks and saving on costs. It’s just another way Staten Island sets itself apart when it comes to making homeownership more accessible. Conclusion: Staten Island—Your Next Home With its affordability, spacious homes, diverse neighborhoods, and growing market, Staten Island is a hidden gem in the New York real estate market. If you're looking for expert guidance on buying or selling property, Christine DeHart at Salmon Real Estate can help you navigate the local market with ease.
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