Buyer Brokerage in the Metro NY Area

By
Services for Real Estate Pros with ERA Top Service Realty, Inc.

I am born and raised in New York.  I grew up in the real estate business.  I know the ins and outs.  I love that we have attorneys in the Metro NY area.  I love this because I don't trust that many agents (this is the New Yorker in me) with legalities and finance.  I'm happy we finally are making the people in the mortgage industry get their licenses (this took way too long to occur).  I love the hustle and bustle of New York.

As a Director for the local board, Long Island Board of Realtors, I had to take a course that would discuss buyer brokerage.  This was so new to me and I loved it.  I never understood why agents would get so emotionally attached to working with buyers, just to be burned when they purchased through someone else.  I saw buyer brokerage as the answer I never knew was there and began incorporating it into my company's infrastructure.  Agents that used buyer brokerage ended up doubling their commissions, and why not?!?!  After all, you are taking this buyer to several houses before they make a decision, relating with them, coaching them, and managing the transaction.  In my world, you get paid what you're worth, and I was getting frustrated with what other companies were, and still are, offering to cooperating brokers. 

The catch????  In the Metro NY area, buyer brokerage is almost unheard of.  I find myself teaching brokers, managers, and agents from other companies what is buyer brokerage.  I even found myself recently having to have this discussion with the head of an MLS, not the head of the Long Island MLS.  Why is it that so many of the people in Brooklyn and Queens, my primary market areas, are against this.  Buyer Brokerage removes liability from the seller.  A buyer deserves the right to have representation.  The agent deserves to declare their own commission. 

The biggest problem I'm finding with buyer brokerage is the lack of knowledge of it in the Metro New York area.  The agents from other companies don't feel like we should get paid what we charge.  When we do a buyer brokerage, the commission is rolled into the purchase price.  When you really think about it, our commission is always included in the price, regardless of representation.  So, I don't understand what's the problem.  Obviously, since the listing agent is weak in stating their value, or is greedy and isn't offering an acceptable split, they will have a problem.  But, I am in this business to make a deal and am tired of dealing with greedy brokers and agents or people that lack skills in negotiation.

Am I the only one???  Do you feel it too??? 

This is a time when the buyer deserves representation!

Have a great day!
Melissa Gomez
VP of Operations
ERA Top Service Realty, Inc.
Melissa.Gomez@ERA.com
www.ERASuccess.com

 

One Real Estate Company... Five Great Locations!!

Comments (5)

Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

NY is an area in itself. It is a place deep in their customs and think sos when doing business. You have a job ahead of you.

May 13, 2009 02:23 AM
Tom Wilkins
Taro Systems, Inc - Grand Rapids, MI

Sounds like you know what you are talking about and what you want.  They probably veto this idea is because it is new and / or they are uneduacated on it.  May actually be beneficial for some.  Good luck to you.

If you are looking for listings, please check us out.  www.viewmylisting.com/homes-for-sale/ny If you are looking for ways of managing your office in one complete software package, please get your free system (once sold over a year ago for $6500) Seriously there are not strings on these offers.  What do you have to lose? www.progoldi2.com

Have a successful week.

Tom Wilkins

VP of Customer Relations

May 13, 2009 02:44 AM
J. Philip Faranda
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY - Briarcliff Manor, NY
Broker-Owner

Most of New York has adapted to it just fine, Melissa. LIBOR is absolutely behind the curve, unfortunately. I work in Queens as well as Westchester and it is like 2 different countries.

May 13, 2009 03:05 PM
Melissa Gomez
ERA Top Service Realty, Inc. - Queens Village, NY

J., you're right most of New York has adapted to it fine.  That's why I say the Metro NY area.  I do believe that LIBOR itself is fine and they fully support buyer brokerage.  That's why they make it mandatory for all directors to take courses in buyer brokerage.  It's the agents and brokers in Queens and Brooklyn that are having trouble with buyer brokerage, and I truly do wish they made it their mission to learn more about it.

Thank you for your input.

May 14, 2009 05:57 AM
Laurie Mindnich
Centennial, CO

Melissa, for some reason they've embraced "broker" agency, which makes absolutely no sense whatsoever- why would the LISTING company assume vicarious liability for the selling agent? Maybe that's the way to try to get the word out- eliminate sub/seller agency and broker agency, and use the agency that benefits everyone in the transaction.

May 14, 2009 09:32 AM