What is Buyer Agency?

Most likely, unless you've bought real estate in other parts of the country, "Buyer Agency" is a new concept for you. Buyer Agency is common in the west and south, but is relatively new in the northeast.

Think of me as your own Personal Shopper for real estate, who can take you to virutally every "store" in the area to find you just the right place — and when you find it, I negotiate hard on your behalf to get it at the best price and terms for you. Best of all, my services don't cost you a penny extra (except in a very unique instance, see How I Get Paid, below).

Here are some answers to questions people often asking about Buyer Agency

1) Am I a "regular" real estate broker or something like a "buying service"?
I'm licensed by the State of New York as an "Associate Broker", and am affiliated with Catskills Buyer Agency, the only Exclusive Buyer Agency in Sullivan County, New York. I'm a member of the Sullivan County Board of Realtors and the Sullivan County Multiple Listing Service. As a Realtor, I can show and sell every property listed by other Realtors here in the county.

2) How do I get paid?
In most cases, I'm paid a portion of the sales commission offered by the seller. For example, if a seller lists their house with a 6% sales commission, a portion of that, say 3%, would go to the "selling agent" (me) at closing. The one exception is in the case of a "For Sale By Owner" (FSBO) house (where no commission is offered.) If I show you a FSBO (pronounced "fizz-bow") and you decide to buy it, we negotiate a net sales price with the seller and a fee is added to that net price to arrive at the gross sales price.

3) Is there a conflict of interest if I'm paid a straight percentage of the sales price?
At first glance, it would appear that if I'm paid a percentage of the sales price, that would motivate me to get you to pay the highest price possible for the house. But first, consider the money involved. A 3% commission on $10,000 (the difference between, say a $170,000 sales price and a $180,000 sales price) is $300, which, in the big picture, is bupkus! In the long run, I'm going to make a lot more money than that extra $300 if you're a happy client that refers other buyers to me.

In some parts of the country, Buyer Agents use very complicated compensation formulas — often with a flat fee plus a percentage of what they get you off the "asking price." Frankly, I think formulas like that, while appealing on the surface, are not in the buyer's interest. It offers a motivation to show you only houses that are overpriced, so the agent can appear like a star by negotiating a big price reduction. My goal is to get you the right house at a good price.

4) What are the benefits of working with a Buyers Agent versus a traditional seller's agent?

The obvious, of course, is that I represent, you, the Buyer, and not the Seller. But there are a number of other advantages.

5) Can I work with you as well as other agents?
Most of my clients work with me on an exclusive basis, with a written agreement between us. There are tremendous benefits to buyers to an exclusive relationship. However, I do work with some buyers on a more casual, non-exclusive basis. For more information on an exclusive versus non-exclusive relationship, see "Working Together."

I work with a limited number of clients at any given time, typically 8 to 10. I make a significant commitment to them to find them a house, and ask that, in return, they make a commitment to me. However, I do not ask that you make that commitment until we've spent time together and agree that there is a "fit" between us. Our first, and sometimes second, time out together is "on me", so I can get a good idea of what you're looking for, you get a better feel for the market, and we both can determine whether there's a basis for an ongoing relationship.

6) How do we start working together?
Send me an email about what you're looking for, or give me a call at 845-887-5855. If you've been searching real estate websites, send along the reference numbers of houses you've found that caught your fancy. Please include a general budget range — I certainly won't hold you to it, nor only focus on properties at the upper end of your range, but knowing what price range you're thinking of helps focus my efforts. If you send an email, please include a phone number, as I'll want to spend some time with you on the phone. Over the phone, I can get a much better sense of what you're looking for and what might work for you.

From there, I'll research listings and email some on to you to take a look at. We can discuss what you like and don't like, and I can give you my opinions on them.

The next step is for us to go out together to look at houses. Because available inventory in many categories is so limited, there may not be that many houses for sale to actually see, but a trip up is still important. Often, I spend much of that first trip doing 'drive bys' on houses that have recently sold or are in contract, so you can get an idea of the market, different price points, settings and styles.

At that point, we can discuss whether you want to retain me as your Buyer Agent, the specifics of an exclusive buyer agent relationship, and whether you prefer working with me on an exclusive or non-exclusive basis. See "Working Together."

7) Do I work with buyers looking for all types of real estate?
No. I realize I can't be a specialist in all segments of the market. Sullivan County is simply too large and the market too varied. If I covered everything, I'd end up not covering anything all that well. If I don't know a market segment well, I don't feel I can provide you with the guidance you need.

My core area of specialization is second homes in the mid to upper market range ($225,000+), including (but certainly not limited to) lakefront and riverfront properties. I regularly preview virutally every property in that range that comes on the market, with a keen eye towards those with second-home appeal. Of course, if your budget is at the low end of that range, say $225K to $250K, and a great house comes on the market at $175,000 — I'll definitely show it to you! My #1 priority is finding you the right house. My market focus isn't just about money; if investors came to me looking for multi-family property in the $1 million range, I wouldn't work with them --- it isn't my thing, and I can't adequately service them. But if you're searching for a primary home, or a house under $225,000, we can handle that, too. There are 3 of us who work together at Catskills Buyer Agency, and we specialize in different market segments. So if you're looking for a primary home or a house in the more affordbale range from $125,000 to $225,000, give me a call or drop me an email and I'll get you connected with Judy or Kathy.

There are a number of property types we don't handle at all:

Please give me a call if you're serious about finding a place in Sullivan County and you think that Buyer Agency would work for you.

Thanks,

David Knudsen
845-887-5855
email: davidk@beechwoods.net