Buyer's Edge Realty in the News
Home Buying
In the third quarter 2005, the median price of a single-family home in Westchester County was more than $700,000. That number increased from last year’s median price of just over $683,000. Homes sold for $1 million or more accounted for 25% of home sales in the third quarter 2005.
The housing market in Westchester has been strong for the last few years, but as part of a normal real estate cycle, buyer and listing activity have slowed. Despite that, Westchester still remains very desirable, with its close proximity to New York City and strong school systems.
Regardless of how the market shifts, it is extremely important for buyers to have protection when buying a home. Home buyers must keep in mind that they can have control of the buying process- without the process controlling them. However, it can be complicated. A home is often the biggest purchase in people’s lives, and any mistakes made during the home buying process can be costly.
Upping the ante for buyers, New York is a buyer beware state, where the home buyer is responsible for verifying information about a property and home, including taxes, square footage, heating costs, neighborhood issues and the structural integrity of the house. The law, which limits seller liability and legal recourse due to non-disclosure, means that if something should go wrong after the home purchase, the buyer is financially responsible.
Think about this: if your lawyer was representing you and the person on the other side of the case, a serious conflict of interest would present itself. When you are buying a home, would you want the agent representing the seller representing you, the buyer?
Many real estate agents assisting the homebuyer may work for the same company that is listing the home for sale. Thus, their allegiances typically promote the seller’s interests, not those of the buyer. Even in ordinary real estate relationships, agents showing another company’s listings still represent the sellers as ‘seller subagents.’
Today, homebuyers are able to take advantage of the services of exclusive buyer’s agencies (EBA), who work solely on behalf of buyers. By never accepting property listings for sale, exclusive buyer’s agents and their companies ensure that sellers are never represented and maintain 100% loyalty to buyers 100% of the time on any property. Exclusive buyer’s agencies are Realtor members and have the same access to the Multiple Listing Service (MLS) as any typical seller’s real estate company.
Though small, the ranks of EBAs is growing. Ten years ago, in 1995, the National Association of Exclusive Buyer’s Agents (NAEBA) had about 300 member offices. Today, there are about 700 NAEBA member companies nationwide. In 2004, the latest year for which data is available, about 20,000 homes were purchased via NAEBA members. That number is nearly triple the amount of homes purchased in 2000.
According to Tom Early, president of NAEBA, the increase can be attributed to “recognition of the consuming public,” he said. “Home buyers want representation and believe that they are getting it when, in reality, they are not.” Often, he added, when buyers realize that their interests are not truly being represented, they seek an advocate.
Though small, the ranks of EBAs is growing. Ten years ago, in 1995, the National Association of Exclusive Buyer’s Agents (NAEBA) had about 300 member offices. Today, there are about 700 NAEBA member companies nationwide. In 2004, the latest year for which data is available, about 20,000 homes were purchased via NAEBA members. That number is nearly triple the amount of homes purchased in 2000.
The legal duty of an exclusive buyer’s agent is to put the needs of the buyer client above anyone else in the transaction. This includes fully disclosing the drawbacks of any property of interest as well as any positive points. The EBA helps negotiate the most favorable price and terms for the buyer.
Additionally, an EBA is responsible for conducting intensive research on behalf of the buyer and for verifying information on any property of interest and disclosing any drawbacks regarding neighborhood, schools, zoning, and more. The EBA will recommend the best qualified inspectors, attorneys, and mortgage companies to help the buyer make an informed decision.
During the home buying process, an EBA protects homebuyers by keeping all personal information confidential when in the buyer’s interest to do so. Such information includes identity, income, occupation, financial status and buying motivations. The privacy of the data is important, since the seller could leverage it during the negotiation process. Additionally, the EBA will help the buyer negotiate the offer price on the home, including assessing the market conditions, identifying the seller’s motivation to sell, evaluating property conditions and analyzing comparable sales.
An exclusive buyer’s agency is typically compensated the same way as any ordinary real estate company. The fee is disbursed at the closing through the proceeds of sale.
When buying a home, real estate experts and attorneys utilize the services of an advocate who will not only negotiate on behalf of the home buyer, but who will also help the buyer decide whether or not the home is viable for purchase. There’s nothing to lose except potential headaches.
# # #
About Buyer's Edge Realty Buyer’s Edge Realty, based in Tarrytown, N.Y., is an exclusive buyer’s agency – a real estate company dedicated solely to representing Westchester County, NY home buyers. Buyer’s Edge Realty does not list properties for sale, ensuring that only the interests of buyers are fully represented - never sellers - on any property. Buyer’s Edge Realty is compensated like any real estate company - at the closing through the proceeds of the transaction - so there is usually no additional cost for their services. Please log onto www.buyersedgerealty.com, or call 914.332.7100 for more information.
| 
