I admit it, I love to help people. There are few things more satisfying to me than to help with a project, talk someone through a problem, or to work with a buyer to find and obtain the perfect property for their needs. Because of my passion for helping I find myself in difficult spots sometimes.
You see in becoming a real estate professional I went to classes and took tests to be licensed that I paid for. I pay yearly licensing and Realtor fees. I pay for my vehicle, my gas, my computer hardware and software, and many other expenses associated with being an independent contractor. I work almost every day, at odd hours, and sometimes have to make major sacrifices to be available to serve my customers and clients at the times they are available to search for that perfect place. I do not get a regular weekly paycheck for this. I only get paid after my buyers or sellers close on the property.
I will be happy to help you with a general question about real estate and love to discuss the market and my work. If however you ask me for an in-depth analysis for property you are considering purchasing you must understand that I can not put in the amount of time it takes to provide that type of service without any hope of payment for the time.
If you plan to buy a house from someone without the representation of a buyer's agent that is your choice. Please don't call me up and ask me to tell you what I think that house is worth in today's market. Using on-line programs to determine value can be risky as some of them use data that is not current and do not factor in actual condition of comparables. You can not determine value exclusively on the numbers. Location, quality, compulsion to sell, and others things factor in to placing a value on any single property. For sale by owner buyers, buyers who work with the listing agent, and those who buy property from relatives may find themselves in a difficult situation when attempting to arrange financing on a property that was over priced. Don't let yourself be caught in such a situation.
A buyers agent is often paid as part of the real estate transaction. Most houses listed on an MLS offer a compensation by the seller for the buyers agent. If the compensation offered is not enough to cover the normal fee of the agent or if the agent is helping you purchase a property that is not listed on the MLS they can negotiate to have the fee included in the offer.
My advise to those of you trying to go it alone is to think about it. My advice to those of you who expect me to provide in depth analysis without compensation is to think twice about how you would feel if someone expected you to perform your normal job without pay. My job is in providing information and support to those trying to purchase property and I will be happy to help you but I expect to be paid for those efforts.
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Paddy Pizappi, Associate Broker for Buyer Representation
RJ Smith Realty - A Real Estate Solutions Company
Serving the Greater Hudson Valley of New York
from Pine Bush, NY at the corner of Orange, Ulster, and Sullivan Counties
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Paddy I think most Realtors are people who love helping people... this is a customer relationship business, we are in peoples lives, upclose and personal in what we do. That makes it tough for us to keep it business-like all the time.
You are 100% correct, we should not do a shopping comparison for a buyer to determine a price on a property without the buyers intention to buy that house thru us. To me, that is representation, that is advising a buyer, and in Texas, UNTIL I HAVE A BUYERS REP with you I REPRESENT THE SELLER.
Yes once the line is crossed to representation I need to get compensation Gail. All I have is my knowledge and experience and that is worth a lot. Thanks for the comment
Paddy - very clearly and nicely stated, I have been trying to figure out how to wordsmith this myself.
You are right on target here. Well said, my friend.
Paddy, After learning what I have about Buyer's Agents (AND NYS Disclosure laws), I would absolutely NOT purchase a home without a buyer's agent. I am SO glad I'm on AR and got to learn so much and this is one thing I won't forget.
Paddy - very good post and explanation about our professions as Realtors. The general public does not understand how we are paid. This is well said, thanks!
Paddy, very well said. I love being a buyer's broker and love hunting for properties with my clients. :-)
Very well stated in a manner that is easily understood. Many folks don't understand how we earn our pay and some simply don't care.
I've never been a fan of Buyer's Agreements, but I'm considering using one. I, too, am getting tired of poviding free advice.
I always use my MLS Buyer's Brokerage agreement contract. If I can't convert a customer to a client I eventually leave them alone. Buyers who will not sign with you are buyers who are not loyal and usually have several agents taking them around at the same time. I lost a $6440 commission because a buyer went somewhere without me and when I wrote the offer on the home, the open house agent claimed it was her buyer although I had a written contract. So I now have to wait for the buyer to gather the additional funds to pay me because the seller is refusing to pay the advertised commission split to me and my firm. The Listing Agent is keeping both sides at closing. I thought it was more important to close on the property than squabble about commission splits because I do have a valid BBA contract and will be compensated by someone. I have to wait approximately 30-45 days after closing for the additional funds, so technically having that contract saved my commission. Delayed is always better than not receiving at all. Use the contract people... trust me.
LOVE IT, YOU SAID IT ALL
On Friday the 13th I showed a local attorney a home and he informed me that he had a bad experience with a Realtor in the past so he was not sure if he would stick with just one Realtor, he preferred to use several....An Attorney.....unless we educate the public and other professionals we will not garner the respect and compensation we deserve....I love your post.
Paddy is awesome, isn't she? I love this post. I was just carrying on about the very same thing a while back (LOL).
Paddy - You can't remind the public enough about our "ways of doing business." We often are paid for what we know, and not what we do!
Well done! I wanted to reblog it, but Florida has different "representation" laws. I'd need to make a few changes to one small section, but reblogging won't allow any changes =( Great post though!
I love your name! Who could forget your name? Great article!
Hi Mike, Thanks for the compliment. It is a hard concept to get across without sounding harsh.
Thank you Mel. I appreciate your comment
I am glad that this is something that clicks and makes sence to you Carole. Thanks.
Hi Sharon. The concept is difficult because most people who work at a firm are not independant contractors. We Realtors are a hybred of sorts not employees but working out of a broker office.
This one struck close to home Carolyn didn't it. Feel free to re-Blog or use on your site to explain it to potential clients.
Thanks Cameron. Many people don't understand.
It is something that I have had difficulty using myself my Arizona friend. I am working on becoming comfortable with it.
Why thank you Carolyn L. It is a wonder why the public doesn't get it when someone who works with us so closely as an attorney doesn't.
Of course the public is gaining assistance from our knowledge and experience Greg. They need to understand that we can't work for free.
Thank you Lisa. You can add a Florida statement to the top of a re-Blog if you want too. I have done that when there are issues that change from state to state.
I like your handle too Curt. Can't beat those double consonants can you?
Nicely put Paddy. It can be a difficult subject for Buyer's agents, but I think that you have made it easy to understand!
Thanks Sue J. Have a great Monday