4 years ago

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Buyer Closing Cost Calculator for NYC: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/

How do you choose a real estate buyer’s agent? We'll demystify this topic in the following video. My name is Chris at Hauseit. Hauseit is the largest For Sale by Owner and Buyer Commission Rebate company in New York City, established in 2014.

The first criteria is to check whether your buyer's agent is a member of the main MLS system in your area. For example, if you're buying property in New York City or Manhattan, well you have to make sure that your buyer's agent is a member of the Real Estate Board of New York or REBNY. If he or she is not a member of the local MLS system well not only will he or she miss out on better data that is potentially available in the broker database but he or she may not be able to get the cooperation of listing agents to have listed the property in the MLS. Remember from a prior video that listing agents are not obligated to split commission with buyer's agents unless the pre-existing co-brokerage agreement is in place. Well, a co-brokerage agreement is typically in place by default if both members are a member of the same MLS.

Of course, another important consideration is if your buyer's agent is not a member of the main or local MLS in your area, he or she will not be able to secure a co-broke or essentially earn any money from working with you on a listing.

This brings us to another point. When choosing a real estate buyer's agent pick one will offer you a commission rebate. If he or she says that commission rebates are illegal then the first thing you should do is run. Of course, keep in mind, do check whether commission rebates are legal in your state first. In New York where Hauseit was founded and is currently based, well, commission rebates are legal as it is in over 40 states of the union.

Keep in mind though that many buyer's agents may simply be misinformed instead of malicious when they tell you that they don't know anything about commission rebates or they don't allow it. Furthermore, some larger firms may actually prohibit commission rebates or half corporate policies prohibiting commission rates below certain levels. Of course, we do want to point out that it’s important to work with a buyer's agent who will be discreet in giving you a rebate meaning that if a listing agent google's your buyer's agent the first thing he or she will not see is a website stating that commission rebates are their main business model, that they intend to disrupt the industry.

Obviously, this can be quite perplexing to a listing agent and perhaps even infuriating because remember the buyer's agent is essentially asking for half the listing agent's commission. So, this could be potentially troublesome and throw wrinkles into the process. Which is why if you work with a Hauseit affiliated buyer's agent you will avoid these issues because all of Hauseit's partner brokerages are traditional brokerage firms with good working relationships with other firms, with great reputations and who never openly discount their services. And because our partner brokerages are not out there to disrupt the industry, as a result you can expect a smoother process when working with listing agents.

The next topic to keep in my mind is exclusivity. Where your buyer's agent try to force you into some sort of an exclusive agreement. Keep in mind that exclusivity on the by-side is extremely rare in metropolises like New York City. This is primarily a supply and demand dynamic and a major city like New York City with high property values and less high commission rates, there are a large number of real estate agents. As we discussed in a previous video, there are 50,000 licensed real estate agents in New York City and only around 5,000 closed transactions per year. As you can imagine, the supply/demand dynamic means that buyers never have to agree to an exclusivity situation.

In fact, the only time is that exclusivity might be seen on the by-side is for unique foreign buyers who have a very close relationship with the buyer's agent on the ground for example here in New York City who runs around perhaps even films, does tours, and does lots of research for the foreign buyer. Well, in that case the buyer's agent may require some sort of exclusivity agreement and the buyer may agree to it because it might be reasonable to do so.

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Buyer Closing Cost Calculator for NYC: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
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Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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