Michael Daly, Principal Broker
Serving The Hamptons, Shelter Island and the North Fork
631 725 0554 (o) 631 525 6000 (m) www.beachamptons.com
After 10 years as a salesperson, broker, executive and owner in Hamptons real estate, I and my brokerage, True North Realty Associates have become an Exclusive Buyers Brokerage. True North will be working only with BUYERS seeking to purchase real estate in the Hamptons, Shelter Island and the North Fork. TNRA will not take listings and will not represent those selling their properties in this market.
WHY? We see the need for buyers, who are NOT BEING REPRESENTED in the current market, to have an advocate; someone who will accept the Fiduciary Responsibility to protect their interests in the real estate transaction. Someone willing to take the time to get to know you, the buyer, to find out what makes you tick, what truely fits your needs, both personal and financial and do the research necessary to build the business case for your purchase.
With all that is taking place in the financial markets; Bear Sterns, Lehman, AIG, Countywide – one thing that is becoming clear is the concept of “Moral Hazard” and we see the preponderance of Listing Agents pushing their own listings, showing customers (who, by the way, are NOT clients – clients get fiduciary) the properties that THEY want to sell them, not what the customer wants to see, as a true Moral Hazard, one that the industry is not yet willing to face head on. Interestingly enough, the name of our brokerage, True North, was inspired by Stephen Covey literature (Seven Habits, First Things First), where “true north principles” lead to decisions that are guided not merely by the “clock” of scheduling but by the “compass” of purpose and values.
In the following days and weeks, we will be adding posts, separately and as links below, explaining the nuances of Buyer Brokerage; how it works, from the “head” to the contract agreements to the commissions. One thing is for sure, it doesn’t cost any more or less to use a Buyers Broker. All the commission comes from the same place, the proceeds of the sale.
For those of you who I have represented as sellers over the last 10 years, I will be happy to assist you in finding the best suited listing agent for your property. We can do a thorough analysis of who has the best experience in your particular market and who would be the perfect fit for your needs.
Here’s an explanation of Buyer Agency from About.com in fairly easy to understand terms.
| Buyer Agency | |
Part 1: What is Buyer Agency?
Buyer agency is defined as a principal-agent relationship in which the broker is the agent for a buyer, with fiduciary responsibilities to the buyer. What does that mean? It means that as a buyer’s agent you are tied to the buyer, and that all of your loyalties are to the buyer.
Buyer agency is a relatively new concept for the real estate world. In the past, agents were Seller’s Agents, working for the person who signed a contract employing them to sell real estate. Over time that arrangement resulted in too many misunderstandings. A buyer working with a Seller’s Agent often regarded that person as his agent, and felt free to make confidential statements, not understanding they would be passed on to the seller.
Complaints were made to real estate commissions, and lawsuits were filed. As a result, many states now require us to explain agency status to the buyer. New York State requires that the buyer or seller is presented with a disclosure on the first substantive contact.
In today’s real estate world, you’ll find agents who work as Seller’s Agents and Buyer’s Agents, and in some areas you’ll see Dual Agents and Designated Agents. Here’s a simplified recap of those terms.
| Seller’s Agent | Your duty is to obtain the best deal for the seller. You are allowed to give the buyer only material facts about the property.A Seller’s Sub Agent is an agent from another office who is not working as a Buyer’s Agent. |
| Buyer’s Agent | Your duty is to obtain the best deal for the buyer. You may pass on any and all information you obtain about the seller or the property. |
| Dual Agent | You must be loyal to both parties. Dual agency occurs when a real estate agency owns a listing, and an agent from the office, working as a buyer’s representative, shows that listing. |
Here are subsequent posts with more info on the Buyer Agency subject as it pertains to the Hamptons market:
Why Work with a Buyer’s Broker?
Looking at a Transaction from the Buyers Side
Duties of a Real Estate Agent – Fiduciary
6 comments
September 20, 2008 at 11:12 am
Maggie Knowles
Michael – congratulations on your new business model and much success!
September 29, 2008 at 2:33 pm
Rich
Michael, I wish you the best and I totally understand the need for this type of broker. I’m just wondering if this crazy real estate environment out here will embrass this type of broker or not. I wondering if you have had resistance already or not. Best – Rich
September 29, 2008 at 2:51 pm
Michael Daly
Hey Rich,
I believe the agents and brokers in this market are much more resistent to change than the public is.
So far, response from the public has been positive – those who ‘get it” see
an opportunity to finally be represented in the real estate process. Mike
October 16, 2008 at 9:59 am
Joseph Ferrara.sellsius
Congratulations Michael. All the best to you.
October 16, 2008 at 10:02 am
CondoDomain & Other Real Estate Brokerages Growing Despite “Crisis”
[...] Michael Daly, a real estate broker and blogger in the idyllic Hamptons of Long Island has just announced the opening of True North Realty Associates, an Exclusive Buyer’s Brokerage. Hey Mike, didn’t you hear there’s a [...]
October 16, 2008 at 1:41 pm
Anthony Barba
It’s an inspiration to see you get right back into the ring. Ding. Ding.