Pamela Bell

1. Only an "Exclusive Buyer Agent" can GUARANTEE to:

   • Represent only their Home Buyer.

   • Negotiate only on their Home Buyer's behalf.

   • Provide the true facts (good and bad) about a property their Home Buyer is considering including:

     • value,

     • market,

     • neighborhood conditions, and

     • obvious physical defects.

2. An "Exclusive Buyer Agent" can DO A BETTER JOB because:

   • "Exclusive Buyer Agents" have a legal and ethical obligation to put their Home Buyer's interests first.

   • "Listing and Seller's Agents" (or agents for a Builder or Developer) cannot tell a Home Buyer things that would be detrimental for the Home Buyer to know because they work for the Seller, Builder or Developer.

   • "Exclusive Buyer Agents" work to get their Home Buyer the:

     • "lowest price on the best terms for their Buyer".

   • "Seller's Agents" try to get their Seller the:

     • "highest price on the best terms for their Seller".

3. An "Exclusive Buyer Agent" OWES THEIR HOME BUYER DUTIES of:

   • Confidentiality - "Exclusive Buyer Agents" are prohibited from disclosing confidential information obtained from their Home Buyer to the Seller or his/her agent. Unlike a "Seller's Agent", "Exclusive Buyer Agents" can't and won't disclose to the Seller:

     • the real price their Home Buyer is willing to pay for a property,

     • the amount of mortgage their Home Buyer is actually qualified for,

     • how much cash their Home Buyer has to work with,

     • or, the level of their Home Buyer's motivation to buy a particular home.

   • Reasonable Skill and Care - "Exclusive Buyer Agents" are required to:

     • protect their Home Buyer from foreseeable risks,

     • recommend their Home Buyer obtain expert advice when their needs are outside the "Exclusive Buyer Agent's" scope of expertise.

   • Undivided Loyalty - "Exclusive Buyer Agents" are prohibited from advancing any interests that are adverse to their Home Buyer.

   • Obedience to Lawful Instructions - "Exclusive Buyer Agents" are required to:

     • act subject to their Home Buyer's continuous control, and

     • obtain and follow all lawful instructions from their Home Buyer.

   • Full Disclosure - "Exclusive Buyer Agents" are required to disclose to their Home Buyer all information available to them concerning a home purchase which might affect their Home Buyer's best interest. Unlike a "Seller's Agent", "Exclusive Buyer Agents" must and do disclose:

     • what they know about the Seller's motivation for selling,

     • the price the Seller paid for their home,

     • deferred maintenance or defects in the home,

     • price comparables for similar homes,

     • the listing history of the home,

     • potential problems in the neighborhood, etc.

4. "Exclusive Buyer Agents" are TRAINED TO HELP their clients:

   • Find and negotiate for the right real estate,

   • Evaluate alternative negotiating positions and options,

   • Recommend the choice of a qualified home inspector,

   • Recommend other professionals as needed.

5. "Exclusive Buyer Agents" are NOT TRAINED TO SELL their clients a property.

In my experience in real estate, I have found that Homebuyers are often led astray by well-meaning friends and relatives who tell them to go out and learn about the market before they get ready to buy a home -- Open Houses, New Construction, homes magazines. But, their friends and relatives don't tell them what are the implications of doing just that. They especially don't tell them what to do if they happen to find the perfect home when they are only out "just looking".

Unfortunately, most Home Buyers naively assume that they can talk to many different real estate agents without being obligated to any of them. However, when a Home Buyer speaks to a real estate agent at an Open House, calls an agent for information from a newspaper or internet ad, or asks an agent to show them a property, they are potentially making a big mistake if they don't intend to buy the home through that agent...who is most likely working for the Seller and not them.

The same is true if a Home Buyer ends up "just talking" with a developer's or a builder's sales people at the "model", or even to a "For Sale By Owner".

Basically, in New Jersey, if a Home Buyer visits a property with one agent and later decides that they need advice about the pros and cons of the property, market value/comps and/or help with preparing their offer, they can not just retain another agent to represent them (even one especially trained to work for Home Buyers like us). In New Jersey, under the current real estate law, Home Buyers do not always get to choose to have their own real estate agent for a particular property. Often times, their actions have already made the choice for them; and, they didn't even know it. The result is that they can forfeit their right to representation and often end up with an inexperienced, or part-time real estate agent who is actually working directly for the Seller, and not for them.

In an effort to educate Home Buyers, I have the following caution prominently displayed on the first page of my website:

Visit a condo, townhouse or one family home (like an OPEN HOUSE or a BUILDER's MODEL) without us, and we may not be able to help you buy that property.

In New Jersey, you usually have to buy a home using the agent who showed you that property (even though they likely work for the SELLER, and not for you, like we do as your exclusive buyer agent).

Still, many times prospective Home Buyers call me after they have been out looking at Open Houses on a Sunday afternoon and tell me:

"We just saw the house (or condo) we are considering buying. We want our own Buyer's Agent to advise and represent us. Can you help us buy it?"

Unfortunately, most times my answer has to be NO.

So how do they get me to answer YES?

A Home Buyer's best bet to avoid problems is to be upfront with each real estate agent, developer, builder, or "For Sale By Owner" they talk with.

And, most importantly they need to hire the best qualified buyer agent to represent them and help them find their new home before they even start "just looking around". Smart Home Buyers know they need to choose their agent BEFORE they choose their house, and not the other way around. If not, it most likely is too late for them to change agents...at least on that particular property they are interest in.

Below are some Tips I give Home Buyers to help them avoid problems with other real estate agents, developers or builders, and even "For Sale By Owner" properties:

1. Make sure you let them know you are working with your own Buyer's Agent.
   If a real estate agent or a developer or a builder doesn't ask you if you're working with your own agent, promptly volunteer that information. They are supposed to ask you this question but sometimes they don't: they forget, are afraid to hear the answer, become distracted. Set them straight immediately.

2. Have a signed buyer's agency agreement/contract with your own Buyer Agent.
   A Buyer's Agency agreement (also recommended by the New Jersey Real Estate Commission) clearly describes the relationship you can have with your Buyer Agent in New Jersey, how they are compensated and the duties of both you and your agent.

3. Make sure you go over and understand the New Jersey agency disclosure with your Buyer Agent.
   The New Jersey Consumer Information Statement describes the various relationships under which an agent can operate with you in New Jersey. Understand what your options are and what they mean in terms of getting 100% representation from your own agent.

4. Do not ask another agent to show you property.
   If you do, they become your agent for that property.

5. Do not directly call listing agents for information.
   If you do, they may become your agent for that property.

6. Follow good Open House protocol if you visit them unescorted.
   If you attend Open Houses without your own Buyer Agent, either hand your agent's business card to the agent hosting the Open House or sign the Open House guest book with your agent's name next to your own. Not only will this help protect you, the Open House agent won't try to corral you or pester you for your personal information.

Conditions Reports

Just wanted to let you all know that you can now follow my reporting on the market conditions for two of my major markets here on the Hudson River Gold Coast in New Jersey.

Just click the Realty Times MARKET Conditions Reports LOGO above to check out the latest in Jersey City and Hoboken real estate.

This is a typical initial question people ask me. "As my Buyer Agent, how do you get paid?"

Basically, as a Buyer Agent in NJ, I get paid the same way traditional real estate agents get paid.

When a home buyer purchases a property with my help in NJ, the real estate commission:

• is due and paid at the closing on home,

• is always included in the asking price for a listed property,

• averages between 5% and 6%. For example, when a Buyer purchases a condo for $400,000, 5% (or $20,000) of the purchase price is the total real estate commission,

• is typically paid 50% to the real estate office that listed the property and who works for the Seller (the Seller Agent) and 50% to the real estate office that brings and represents the Buyer (in my case, I am acting as my Buyer's Exclusive Buyer Agent).

• is a negotiable percentage between the Seller and their Agent at the time the Selling Agent lists the Seller's property for sale (and, as I said it typically ranges between 5% - 6%). However, it can be more, or less, or even include a bonus.

• and, is only 3% for a property I help a home buyer buy that is a "For Sale By Owner" property (a property which is not listed by any real estate agency and is sold directly by the Seller or Builder without the aid of a Seller Agent).

What I find most people do not understand is that they are going to pay the same total real estate commission using an agent who does not even work for them as they will pay if I help them purchase the same property. However, there is a big difference because as their Buyer's Agent I work exclusively for my Home Buyer's best interests. I never work for the Seller, a Builder or a Developer against my client.

Moreover, by negotiating the best price, terms and conditions for my client, as well as helping them find favorable financing rates, terms, and closing fees, then they may actually end up pay less working with me and yet getting full representation.

Just wanted to let my local Hudson County, New Jersey readers know that I have added some new technology to this BLOG and also to my websites.

Now if you want to search the For Sale Multiple Listings for all Hudson County (Bayonne, Jersey City, Hoboken, Secaucus, Weehawken, West New York) directly you can use the link below:

www.buyersadvisors.com/SearchHudsonCountyHomes.htm

This URL links directly to the Hudson County Multiple Listing System via a facility called IDX (Internet Data eXchange). This facility gives my Home Buyer's full access to Hudson County, NJ properties listed for sale.

If you use this web page to search for a new home, you can save your favorite searches, receive email updates when new properties come on the market which meet your criteria, and SAVE properties into your own personal property file.

I hope you find this new capability helpful.