There is a wonderful home that is newly for sail..... Haworth NJ. Below is an e-mail I have out about it. Open house this Sunday!!!

Hello everyone, I wanted to pass on details about a brand new home my girlfriend's father - owner of BG Builders in Haworth, NJ - just completed. His company specializes in the construction of large, family style Colonial homes. The house JUST went on the market this week! There is an open house THIS SUNDAY, May 18th, starting at noon umtil 3pm. If you are in the market for a new home or want to see it, please drop by. PLEASE forward this to anyone you may know in Bergen County, or anyone else who is in the market for a new home. I'd really appreciate it. Feel free to write me for details. Below is a link to the Real Estate Agent's listing and a description. The link has the full description as well as 10+ photos.

Real Estate Agent: Mimi Weisinger @ Friedberg Properties; 201-650-2767.
Home Address: Haworth, Bergen County, NJ. Near by towns: Tenafly, Cresskill, Englewood, Alpine, Closter


http://www.friedbergproperties.com/hybridlistings/detail.cfm…

*Gorgeous, brand new Colonial House. Cost: $1,350,000.
*9 Rooms; 5 Bedrooms; 4 Full bathrooms; 1 Half Bath;
*5,114 square feet including a large finished basement. The real estate listing lists square footage as less than this because it doesn't include the large basement.
*Huge Kitchen; Gas Fireplace in Master Bedroom; Fireplace in Living Room;
*Right next to Top local Schools, Parks, Tennis courts, Public Transportation; *Two Car Attached Garage. Garage Opener.
*External Finish: Stone Faces; Fabricated Stucco.
*Heat/Cool: Central Air; Gas; Hot Air; Radiant
*Lot: Corner Lot; Western View, near gorgeous lake. Less than a block away from a large field and park and walking distance to the public grammar school and high school.
*Misc: Central Vac; Security System; Sprinklers

Summary: This house has just been finished. Built by local Bergen County Construction Company BG Builders, this house is a dream home for the right couple or family. This home is a bargain considering the construction, location and amenities and will not stay on the market for long!

Thu May 15 2008, 07:45

Hi Todd. Using the same agent to represent both sides is a very gray area in many cases, because many people feel that they cannot possibly be well represented by the same realtor. If you express your wish to have your own agent rather than the seller's agent, that wish should be respected by any professional realtor. If you explain to your agent(buyer's agent) that you would like to compensate the seller's agent something for having been the first person to show the house to you, your agent should offer that agent a finder's fee and/or a referrral fee, which in my area, is typically 25%.

Tue May 13 2008, 16:02

Hi Todd,

If you would like to discuss the situation further, contact me via my profile or website. I do work in that area.

-Marc

Wed May 7 2008, 20:17

Talk with an attorney about the legal aspects of your buyer agency agreement. The agent who showed you the property has a good argument for being the procuring cause of sale. If so, and the agent establishes being the procuring cause, you may be obligated to pay your buyer's agent's commission.

If you really want the house, the right thing to do is to go through the agent who showed you the property. That agent is likely obligated to treat you with fairness and honesty by the law, and, if the agent is a REALTOR, by our code of ethics. Your primary disadvantage will be that the agent cannot recommend negotiating strategies, but you can ask for the information you need to make an informed decision.

Wed May 7 2008, 15:30

Thank you for your responses. We did discuss the disclosed dual agent situation with the listing agent who indicated that their agency will not enter into that type of agreement. The listing agent, however, did not indicate that referral outside of the company was a possiblity given what had already transpired. Given that, I'm not so sure that the refusal to enter into the agreement was for ethical reasons. They probably believe that we will move forward unrepresented.

I'm extremely suspicious of this situation and will walk away if we are not able to find a good buyer's agent in relatively short order. Any references for an experienced buyer's agent in the Hackensack area of Bergen County who can effectively work though this situation would be greatly appreciated.

Wed May 7 2008, 14:29

It's not a matter of trust. It's a matter of goals. The selling agency is trying to get the highest possible price for the home at the most favorable terms for the seller. A buyers agent is trying to get the lowest possible price at the most favorable terms for the buyer. Once dual agency is in effect, the buyer's agent can no longer do the job he was hired to do. The buyer is now cheated out of their representation. Honesty is not enough. A buyer expects ADVOCACY. Once an agent can no longer provide that, he is no longer of value to the buyer.

If I have a buyer and he wants to buy a listing within my agency, it is my ethical obligation to inform him that I can no longer act effectively as his buyer's agent. I may then refer him to an agent outside the company to write up the offer. It also usually involves a commission negotiation. I try to get half, or at least a referral fee. But I consider it the only ethical way to do business. A buyer has a right and expectation to vigorous advocacy on the part of his buyers agent. A disclosed dual agent cannot legally or ethically provide that to his client.

Is it unfair that I have to lose a portion of my commission because a buyer likes one of my company's listings? Yes, but that's too bad. Ethics are more important than a single commission.

Bottom line: If you cannot do the job right, and that means ADVOCATING for your client, you have to refer it to someone who will, or you are cheating your clients out of something they are paying for. A dual agent cannot legally advocate for his client. Therefore, referral outside the company is mandatory as far as I'm concerned.

-Marc

Wed May 7 2008, 13:31

I don't know why the previous people who have answered said it would be disadvantageous to have a disclosed dual agent; this is clearly one of the relationships we are allowed to have by state law, and as long as the contract stipulates that relationship, you are fine. I have been a disclosed dual agent for a number of deals every year, and always maintained ethical, confidential communications with each party. Because the listing agent showed you the house, you are his/her customer as defined by law and NJAR ethics. It's called procurring cause. If you go in again with a different buyers' agent, the offer would not be able to move forward until the buyers' agent comes to terms with the listing agent as to what portion of the commission is truly earned by that buyers' agent. Can this be overcome, sure...but you should not be afraid to put an offer in with the sellers' agent as long as the relationship is redefined to disclosed dual agent. After all, that's why we do public open houses, to gain buyers and try to sell the houses ourselves!

Wed May 7 2008, 13:00

Hi Todd,

Keep in mind that you have to give written permission for a dual agency. Since it is disadvantageous to you, you are free to refuse to consent to it.

In this market, where qualified buyers are at a premium, I can pretty much guarantee that the listing agency will not stand in your way. They will however want to negotiate a fair but reduced commission with your buyer's agent. If it were me, it would be somewhere South of a full commission but North of a referral fee. Although my time commitment to the deal would obviously be reduced, I would still want compensation for my time, professional counsel, negotiating skills, transaction management through closing, handling home inspection negotiations, handling the bank appraiser, etc.

However, none of this is your problem. Select a buyers agent, explain the situation, and then it is up to him or her to pursue an equitable negotiation with the listing broker.

-Marc

Wed May 7 2008, 11:57

Hi Todd,

It is a bit of a delicate situation. I understand that the listing agent showed you the home, in that scenario, he/she can only represent you one of two ways; as a transaction broker or as a disclosed dual agent.

You can get a buyers' agent to represent you in the transaction as you want, but who is going to pay the fee? Since the Listing agent (LA) introduces you to the property, he/she now has what is known as "procuring cause". You're not the first person with this issue, let me tell you what we've done in my office with similar experiences.

1) The first thing you have to do is select who your agent is going to be.
2) Now your agent can discuss with you how much, and how is he/she being paid.
My suggestion is that buyers agent (BA) should contact LA and try to work out the situation, maybe a referral agreement or something of that nature.
3) You should explain to your agent exactly what happened, if then he/she chooses to represent you, you should know that the other agent MUST go forward with the contract (required by law) and if accepted by the seller, proceed to closing.

At the closing, the LA will probably ask the attorney to hold the commission in escrow and then go thru arbitration or some type of mediation.

Bottom line, it is very possible that BA will not be paid.

Please feel free to call me if you want to a better explanation. Good Luck!

Wed May 7 2008, 11:39

Yes, it is possible. You need to explain to the agent you have been in contact with that you do not want dual agency under any circumstances, but you would like to make an offer using your own buyer's agent. It may be necessary for your buyers agent to negotiate a reduced commission split with the listing agency because they technically can claim procuring cause, meaning they were responsible for you finding out about the property in question. However, a good buyers agent will have no problem negotiating something that is fair to both agencies.

So, just explain that you do not want dual agency of ANY kind (including being reassigned to another agent within the same firm. It's still dual agency if both agents work for the same firm.). And proceed with your own agent. Do tell your buyers agent up front about the situation so they will be prepared for the necessary commission negotiation.

-Marc

Wed May 7 2008, 11:31