Harvey Heit

Buyer Broker In Demand by Candace Taylor: http://shrinkalink.com/33224. From November 2009 Article In Real Deal (New York City Real Estate Publication).

In buyer’s market, brokers who represent buyers are taking on greater significance even in New York City which has almost always had a very strong sellers market. However in New York City and in particular the Downtown Brooklyn Market including Park Slope, Brooklyn Heights, Cobble Hill etc., the role of a Buyers Broker has it's own local idiosynchrasies.

The article points out that that "Buyer’s Broker* in New York City do not like to advertise as such. Part of reason for secrecy is the "little dirty secret" that in NYC there is no such thing technically as “Buyer’s Broker” where the buyer pays the broker’s fee. In Manhattan & certain prime areas of Brooklyn, the seller usually pays the commission of both the listing agent and the agent representing the buyers. Therefore these Buyers Brokers are still in reality seller’s brokers. (In the rest of this posting I will therefore refer to NYC Buyer's Brokers as BUYER'S REPRESENTATIVES (aka Buyers Reps)

Ms Taylor further points out that in today's buyers market, Real Estate Brokers in general are becoming more reluctant to to be booking as many exclusives in a market of “falling prices”. These days even if properties are priced correctly many “low ball” offers are coming in.

" The article on the other hand goes on to point out however that even today's Buyers Reps do not neccessarily have it easy. In fact they have to work harder for their commissions then ever before--" buyers are not particularly loyal to these Buyers Reps " unless they demonstrate that they as have info that the buyer’s cannot find through listing web sites or other brokers".

The main differences in the roles played Buyer Broker and Seller Reps, according to the article are that as a Seller's Broker "all you have to know is the building and the comparables Whereas to rep a buyer a Buyers’s Rep the broker needs to know about competitive properties and the advantages of buying one versus the other". A contradiction inherent in NYC Buyers Rep world is that obtaining the best price for the buyer is not always in the seller’s best interest.

Another advantage of have a Buyers Rep and also a characteristic a GREAT Buyers Rep is is the "ability of the brokerto bring off market listings back to life when no other property currently on the market seems to fit the particular buyer's criteria."

Probably the best thing for any broker in New York City to disclose her/his as a "Buyer's Rep" role would be to check off the "Brokers Agent" slot on the "New York State Disclosure Form (DOS 1736(Rev 3/08)). A Broker's Agent according to New York State has neither "a direct relationship with the Buyer or Seller but rather takes direction and has fiduciary duties to either the Listing Broker or Buyers Agent. This may seem very confusing but I will go into greater detail in further blog posts.