Confused about Realtor representation

My husband and I have been looking for a house for almost a year. We never sought out a realtor because we just casually attended Open Houses on weekends, knowing we were not ready to purchase anything.

Fast forward roughly 50 Open Houses, and we came across a realtor who was very persistent with us. She never showed us (as in emailed) us anything new, but we just moved along and used her whenever we wanted to get into a house.

We came across a house that we LOVE, and asked her to schedule us a showing. We end up putting in an offer.

My husband and I aren't exactly pleased with the way things have been handled since the offer went in, but what irks us is that we come to find out the realtor says she works for the seller. How can this be? I thought she was working for *us*? Can someone please explain?

Re: Confused about Realtor representation

Was it her listing? BC if the house you made an offer on was in fact HER OWN listing then technically she is working for the seller ( I believe).

When we purchased my current home the agent who sold us the home, it was his listing so he worked on the seller's behalf not ours.


But we were aware of it ahead of time but at the time didnt really know what the benefits were of having a buyers agent. Now we are highly educated on this in that regard.

ETA: Unless you signed with her as a formal buyers agent then there are rules with that and I am sure Beth or Christine can help you further with the specifics of that.

Message edited 2/10/2012 1:40:33 PM.

Re: Confused about Realtor representation

this is why I personally ONLY works with buyers as clients

NYS does a terrible job of explaining the benefits of buyer agency

techincally- the only person that should be the sellers agent is the listing agent

another agent working "for the seller" should be a brokers agent

and then you have the buyers agent

it's so tricky and confusing- you can be buyers agent with out having a signed buyer broker agreement

I rarely make my clients sign one- I prefer the implied relationship and when you sign my disclourse I check off buyers agent

under NYS law when you have a "relationship" with the buyer- you are techincally a buyers agent-

I always like to have this conversation the 1st time I show people houses and I explain I work for them

once I show you houses once I consider us friends- that's just how I do business and therefore- I am a buyers agent

I hate that agents don't explain this and it causes so many problems

please feel free to FM me any questions you may have

and this is something buyers should be aware of....

the only time I would not be a buyers agent if I am showing you my own listing- and I make this clear over and over again that I represent the seller-

Re: Confused about Realtor representation

Until you sign a Buyers agreement with this agent they are technically working for the "seller".

Re: Confused about Realtor representation

Re: Confused about Realtor representation

Every agent is required to have any buyer they have substantive contact (first meeting, open house, etc.) with sign the NY State Agency Disclosure form, which explains the various of options for the relationship a buyer may have with a real estate agent. No agent should be showing you a house or even really discussing the specifics of a house with you before the agency disclosure is addressed. So don't be leery of agents who ask you to sign this form at an open house -- it's not a contract, but it's a disclosure for your protection/information as a consumer.

At the time the form is signed, the agent should explain the options to you -- Basically,

1. The agent can work with you as a customer and assist you with your search, but the seller is still their client. In this case, the agent must deal honestly and fairly with you, and can still be useful to you in showing you homes, getting information for you, etc., but they are still obligated to work in the best interest of the seller. In this case, the agent is more of an information-gatherer and liaison for the buyer, but not really an advocate for the buyer.

OR

2. You can choose to have the agent work for you as your buyer's agent, in which case YOU as the buyer are the agent's client, and the agent is working in your best interest. In this case, the agent is advocating for your interests throughout the process and is negotiating for you.

The issue is that many agents don't understand buyer agency, so they don't even really explain the option to the buyers they are working with. They just want to stick with option 1.

Also, because a buyer's agent is taking on more liability and arguably does more work for the buyer with option 2, many agents will want a buyer to sign an exclusive contract with them for a period of time before they will act as a buyer's agent.

But since the buyer is the one bringing the money to the table, it seems odd that they would be the party that often isn't represented. As a buyer, you always have a choice.

Hope this helps!

Re: Confused about Realtor representation

Also, what are the issues with the submission of the offer that have made you unhappy with how it's being handled? Maybe I can help/shed some light if it's typical or not.

Feel free to FM if you feel more comfortable.

Re: Confused about Realtor representation

THANK YOU everyone who replied. It has been very helpful. I guess now we know for next time, though, I really do *hope* this is our "forever home".

As far as problems with the agent about whom I was writing, she was very pushy and pressuring my husband and I into entering a situation that we were in no way comfortable with. Not only that, it just simply was not in our best interest. We have another property that we are selling (in another state) so I called that agent and she basically told us that any agent who is working for us should not be putting the pressure on us like that.

Thankfully, we did not move forward with the original terms of the offer, and got what we wanted in the end. Very confusing, I know. Thanks again!

Re: Confused about Realtor representation

that makes me so upset!

you are not buying a shirt from the gap! this is a house! no one should make you feel pressured!!

I hate hearing stories like this- it's agents like this that make good agents job so much harder!

glad it worked out!