Long Island Homebuyers ~ Buyer Representation = More Homes to Choose From

In the previous post in this series, Long Island Homebuyers ~ Buyer Representation vs. Dealing Directly with Listing Agents,   the advantages of buyer representation and the disadvantages of working directly with listing agents were discussed.  However, there was one aspect of the discussion that was reserved for this post, because it is extremely important for homebuyers to be aware of.

Did you know that when you choose to have a buyer's agent represent you in your home purchase, that you have the greatest selection of homes to choose from?  When you deal directly with listing agents, their main focus is to try and get you to purchase the home that they have listed.  Only after you have eliminated their listing, will they then discuss with you what your wants and needs are.  Even then, unless you work out buyer agent representation with them, they will be limited to showing you homes that appear on the Multiple Listing Service (MLS).

Please take a look at the home searches that a buyer's agent will use to help find you your ideal home:

Multiple Listing Service (MLS) - The majority of homes are placed onto the MLS, and these homes are available for all agents to show to their clients or customers.  However, even though this search can be used by either buyer's agents or seller's agents, there is still an advantage to using a buyer's agent to view homes listed on the MLS. 

There are remarks in the professional MLS that can only seen by REALTORS®.  Anything in the remarks section that doesn't appear in the consumer comments section, must be kept confidential by a seller's agent, whereas a buyer's agent is duty-bound to share any information with you that can give you leverage in your negotiations.

Exclusive Listings - On Long Island, homeowners may choose to be exclusively represented by one brokerage.  This means that only a seller's agent or broker from that particular brokerage can bring buyers to the home.  However, any buyer that is represented by a buyer's agent, must be allowed to view the home as well. 

As a homebuyer, you have two choices to see exclusive listings.  You can make individual appointments with someone from each brokerage that carries an exclusive listing, or you can work with a buyer's agent to seamlessly mix these homes into the home search.

Expired Listings - Just because a home didn't sell when it was listed, doesn't mean that the homeowners no longer wish to sell the home.  However, a seller's agent is not going to search these homes for buyers because there is no one to protect their fee if they do so.  This is a great place to do home searches, and this is one that would be difficult for any buyer to do on their own due to the limitations of the public MLS.

Buyers that are introduced to these homes come armed with the knowledge that the homeowner's wanted to sell, but were unable to.  They also will know the price at which the listing expired, the original list price, any price adjustments that were made and how long the home was on the market.  These are powerful tools to have in a negotiation.

For Sale By Owners (FSBO's) - Selling agents tend to view homes that are being sold privately as "off-limits."  First and foremost, there is no one obligated to protect their fees, but this is not the only reason that a selling agent would not show a FSBO home.  A selling agent is working with customers, and as such, has no client, whereas a buyer's agent is working with their buyers as clients. 

So what is the difference?  The difference is that buyer agents are not subject to the National Do Not Call Registry, but seller's agents are.  If a seller's agent calls a FSBO that is listed on the National Do Not Call Registry, and the mention of listing the home ever comes up, they would be in violation of Do Not Call, and subject to an $11,000 fine per incident.  It's plain to see why a seller's agent would not even want to make the call.

Non-listed Homes - How can a buyer's agent show you a home that isn't even on the market?  While a buyer's agent cannot just walk into any home, they certainly can make inquiries to homeowners about any home that you are interested in.  This could be for a specific home, or even for a general area.  Since buyers are clients of buyer agents, they can be marketed just like a listing agent markets a home.  This is something that seller's agents cannot do.

Using this approach may afford buyers the opportunity to see homes that are not currently listed, expired or being sold privately.  A homeowner that was thinking about selling may see that there are buyers interested in their home, and look at it as an opportunity to sell their home without having to go through the typical inconveniences that most homeowners must endure.  This works to the advantage of buyer clients as well, because they could end up finding a home and having no competing offers to deal with.

SUMMARY: 

Buyer clients have the greatest selection of homes to choose from during their home search, because it is their buyer agent's duty to find them the home that best fits their wants and needs.  Buyer customers are limited to the inventory of homes that appear on the MLS. 

Since buying a home is most likely the largest purchase that you will ever make, doesn't it make sense to exhaust all options to find the home that best fits your needs?  A buyer agent will help you do just that!

The home search is only part of the home buying process.  In the next part of the homebuyer series, you will learn how a receiving advice from a buyer's agent can help you buy the right home at the right price.