Real Estate has changed, it has changed a lot.  Some Brokers don't want to let go of the old way of doing business and want to keep what they consider out of area agents out of their areas still to this day.  A lot of this still has to do with the lack of disclosure to buyers.  Some agents want to keep the status quo, keep it the way it has always been.  But Buyer Brokerage and the Internet have changed the way we do business, a lot.  I believe that a lot of agents do NOT exlain buyer brokerage properly, some because they don't understand it themselves and some because they still want both side of that commission and if buyer agency were truly explained it would effect their bottom line. 

I have a blogging buddy by the name of Laurie who works on the North Shore of Long Island.  Laurie has moved from another state and is amazed at the way we do real estate in New York, perhaps amazed is the wrong word.  She wrote a wonderful post about disclosure of real estate agent roles that explains some of the issues and I recommend this post highly to anyone who hasn't seen it, here.

In the past Real Estate agents would stay in their areas, everyone represented the seller and the goal was to make the "double dip" meaning both sides of the commisson.  The disclosure to buyers that they could have their own agent looking out for their interests didn't have to be disclosed because it didn't exist.  Everyone represented the seller. 

Now, however lots and lots of agents work as buyer's agents and travel throughout the County of Westchester selling properties.  The agents are going with their buyers and helping the buyers find the best communities and properties.  The way the internet has changed this is that there is so much community and school information on the internet now buyers come knowing a lot before we begin. It is not the place of a real estate agent to discuss schools, demographics and in fact this is against the law.  The buyers need to research these areas on their own.  The fact that a brokers child went to a particular school is not a factor, schools are very subjective and buyers need to figure this out.

 In the past an agent would "refer" a buyer to any other community that the buyer might want to see and collect a 25% referral fee without doing the work.  There is a large network of agents who have nurtured these referral networks and want to protect them.

The very good news is that this is now changing and changing a lot.  A friend of mine sold a house in Rye and she is an agent in Bedford, a friend of mine working as a buyer's agent sold a house in Yorktown and her office is in White Plains.  Does she know the community?  Yes, she does.  I personally have lived in lots of communities throughout Westchester County and sell in those areas.  Sometimes a buyer's agent who doesn't live in a particular community comes with a fresh point of view.  A buyer's agent who goes to different communities with a buyer won't try to convince a buyer to buy in any particular community, the buyer can take their time and decide which community is best for them.  The old way an agent would want the buyer to buy in "their" community in order to earn the commission.  This "new" way an agent will be paid for their work no matter where the buyer buys - no pressure.

 

 

 

5 Comments on How Buyer Brokerage and the Internet Have Changed the Way We Do Business

The only thing in life that is constant is change and we are seeing that everyday. I still try to stick in my beloved Lexington but I am showing columbia as well.

07/19/2008 06:10 AM by Laura Jefferson..Lexington's Realtor (Asset Realty)


MB,

When I was licensed to New York I worked in Riverdale.

They are still practicing RE, like it done in the 80`s..

Strange...

07/19/2008 07:10 AM by Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission. (Florida List For Less Realty, Inc. Broker/Owner. )


Scott, I know there are pockets that are holding on for dear life.

07/19/2008 07:55 AM by Miriam Bernstein,Westchester County Real Estate (RE/MAX Prime Properties)


Miriam:  It appears that there are some areas where the practice of real estate is happening inside some sort of time-warp.  I have sold in three major markets in the US... Cleveland, Maryland/DC/Virginia and DFW... and have always taken my buyers... as their buyer's agent... wherever they wanted to go.  I made it my business to be familiar with the market in all of the four-county areas I served... so to hear that some Realtors and market areas are still so insular is somewhat of a purprise.  But... then again... this is just more proof that all real estate really is "local."  Great post... thanks for sharing.

07/19/2008 08:35 AM by Fort Worth Real Estate - - - Karen Anne Stone (RE/MAX Trinity)


Thanks for the mention, Miriam. Until buyers are aware that they've been shorted a full disclosure and take action against the perps real estate agents, things will remain the mess that they are for buyers. I'm sure in Westchester that the resistance to change is significant, but fortunately for those representing buyers, the law is on our side. With respect to going outside of a specific area, who cares (as a seller)? Another unneccessary bit of resistance on the part of local brokers. Talk about creating one's own problems. 

07/19/2008 09:02 AM by Options Realty


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Real Estate Agent: Miriam Bernstein,Westchester County Real Estate (RE/MAX Prime Properties)
Miriam Bernstein,Westchester County Real Estate
Scarsdale, NY
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RE/MAX Prime Properties

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