An Update on Buyer Agency in New York
Authored by: Laurie Mindnich
July 3rd, 2008 category: Buyers, Real Estate Philosophy
As buyer agency becomes more common in New York, myths and misunderstandings abound.
A consumer misunderstanding involves seller perception. While the term “buyers agent” might strike fear in the heart of a seller accustomed to both parties working with a buyer on behalf of the seller, it’s actually clarification for both parties in the transaction that tends to afford the process an ethical and smooth conclusion.
Working on behalf of a buyer does not eliminate required “fairness to the seller” intrinsic to all transactions.
The idea is NOT to create issues for the seller, or offers without merit. Rather, it is to clearly define the parameters of a fair price, fair terms, and in all likelihood, required pricing commensurate with value that will ultimately be determined by an appraiser.
Another myth that appears to be perpetuated by some Realtors on Long Island is that a buyer agency contract is required in order for a buyer to obtain representation. Realtors on Long Island tend to concern themselves with a “liability” issue which, so far, I’m simply not seeing as an issue at all. It is no different than liability present when Realtors represent (with fiduciary) a seller.
Confused, many agents feel that a contract guarantees THE BROKER payment, eliminating the possibility of a buyer locating a property after a Realtor has presented properties to a buyer. Indeed, it is from our view a “hostage” situation.
Our philosophy is that if we haven’t established the necessary trust between ourselves and a buyer, we haven’t established the right to compensation. While some might consider this perception risky, we have found that buyers with loyalty earned by us are more than willing to keep us as their agent, irrespective of the possibility of a property located without our involvement (i.e., open house, fsbo , etc.).
In the event that a buyer does locate and consummate a transaction despite our involvement, we are inclined to look to ourselves for the problem- surely, had we operated with an acceptable level of integrity and trust, we would be included in the transaction.
Another problem with a signed agreement from the buyer (outside of the NYDOS disclosure) is that there are many Long Island Realtors that intentionally, or out of ignorance, either counsel sellers to discourage buyer agency compensation (but include, in the price of the house, a fee to be paid to an agent that brings a buyer, representing the seller), or don’t alert sellers that this compensation is not included in their listing agreement.
For this reason, holding a buyer hostage via a contract that may well require payment out of the pocket of the buyer is a violation of the fundamental practice of buyer agency on Long Island, and the accompanying fiduciary incumbent upon the Realtor- causing an unnecessary expense is a violation of fiduciary, and therefore unacceptable.
If we can’t convey to the listing agent and seller that payment is to come out of the proceeds included in the price of the house via a fee that OUR BUYER is paying in the price of the house, we aren’t doing our job. Period.
Until listing agents reduce their fee to include ONLY the listing “side” (typically, a total seller fee is 6%, with 3% going to the buyer’s agent) it is incumbent upon all of those seeking to represent buyers to comprehend FIDUCIARY to the buyer through a full understanding of what the buyer is paying in the price of the house for representation.
It is appalling to imagine that a buyer’s agent would require payment from a buyer, knowing that the fee for the buyer is IN THE PRICE OF THE PROPERTY, AS WELL.
Long Island is tricky. Were it like most areas that are full of seasoned and competent Realtors accustomed to buyer agency as the only way to conduct real estate, there would be no concern that a buyer would be compensating their agent once through the listing fee in the house, and again out of pocket to the agent. It simply isn’t a problem in many areas, as ALL listings fully anticipate, and offer payment to, a buyer’s agent in the MLS system.
Until this is true in New York, and specifically on Long Island, it is dicey, and unacceptable to demand a contract from a buyer seeking representation.
We don’t do things the way that Long Island “does things”, because it has been far too unethical in our opinion, for BOTH parties in the transaction. The resultant disdain that most consumers have toward the real estate industry in general on Long Island is a deserved assumption.
Working to become an integral part of a fair transaction does not seem an unreasonable request on the part of consumers. Hey, it has to start somewhere.
If you are seeking a property on the North Fork of Long Island, or would like a review of our consumer friendly rates to list your home with the utmost care, please contact us. We are happy to answer any questions that you may have. Our goal is your goal- a transaction that is clear, defined, and puts integrity ahead of self-gain.
photos: iStockPhoto
Classic Car Show - Cutchogue Lions Club
Authored by: Sean Stark
July 2nd, 2008 category: People and Places
I’m going to repost this, since it is sure to be a big turnout.
The 38th annual event will take place on Sunday, July 6th.
Hosted by the Cutchogue Lions Club, the location will be
at the Capital One Bank Operations Center on the Main Rd. (rt. 25) in Mattituck.
Enjoy the movie from a previous show!
The Cutchogue Lions Club will be hosting a HUGE LOCAL EVENT, the Classic Car Show.
For car lovers all over Long Island, this event brings the best of the best, and offers classic car lovers the opportunity to appreciate the work and dedication present with Classic Car Restoration.
The event will take place on Sunday, July 6th. Please visit the above site for additional details/directions- it’s certain to be a fun day for all.
Denise and Greg say, “Hope to see you there!”
Options Realty: Proudly serving the North Fork of Long Island.
Photo: Denise & Greg - Copyright 2007 Options Realty
North Fork, Long Island Real Estate Market Update- June 2008
Authored by: Options Realty
July 1st, 2008 category: East End LI Foreclosures, Real Estate News
The following market update includes properties put under contract on the North Fork of Long Island through June 30th. Please note that the pricing is asking price, not sold price.
SINGLE FAMILY HOMES
AQUEBOGUE: 4 U/C; $59k (mobile home), $449k, $449k, $599k
BAITING HOLLOW: 2 U/C; $165K*, $379,9K
CALVERTON: 1 U/C; $368,8K
CUTCHOGUE: 4 U/C; $404,9K (BANK OWNED), $475K, $799K, $498.5K
EAST MARION: 1 U/C; 599K
ORIENT: 1 U/C; 769.5K
GREENPORT: 1 U/C; $480K
JAMESPORT: 3 U/C; $295K, $880K, $1,250M
LAUREL: 2 U/C; $449K, $449K
MATTITUCK: 6 U/C; $310K*, $449K, $450K, $699K, $975K, $539k
RIVERHEAD: 9 U/C; $36K (MOBILE HOME), $117K* (MOBILE HOME), $299K, $319K, $349K, $419K, $559k, $649,9K; $675K
SOUTHOLD: 3 U/C; $375K, $449,9K, $2.9M
TOTAL UNDER CONTRACT THROUGH JUNE 30TH: 37
CONDOMINIUM/ CO-OP SALES ON THE NORTH FORK OF LONG ISLAND JUNE 1 - JUNE 30
BAITING HOLLOW- THE BLUFFS: 1 U/C; $299K
THE KNOLLS: 1 U/C; $359K
CALVERTON- FOXWOOD VILLAGE: 1 U/C $169K
WINDCREST EAST: 1 U/C $619K
RIVERHEAD- WILLOW PONDS: 1 U/C $440K
SOUTHOLD- COLONIAL VILLAGE: 1 U/C $279,7K
TOTAL UNDER CONTRACT THROUGH JUNE 30TH: 6
All figures, while deemed reliable, are obtained through the mlsli (multi list service of Long Island).
FOR THE MONTH OF JUNE, THE FOLLOWING LIS PENDEN FIGURES WERE PROVIDED BY THE REAL ESTATE REPORT: FOR THE NORTH AND SOUTH FORKS OF LONG ISLAND, THROUGH JUNE 20TH, 31 BANK ACTIONS (LIS PENDENS) WERE RECORDED.
*INDICATES CLOSED PRICING
photos- Copyright 2008- Options Realty & stock.xchng
What’s A Grandma To Do?
Authored by: Laurie Mindnich
June 29th, 2008 category: Real Estate News
As a very recent member of the gramma “club”, I’ve been searching out activities for children (grandchildren) on the North Fork of Long Island.
Whether you live on the North Fork, simply vacation here, or are like many, considering retirement here, my new perspective on this area is full of possibilities. Quite frankly, short of owning a property in an amusement park, this is truly a spectacular place in which to enjoy the experiences offered to our beloved “little ones.”
As people who love sailing, Callie’s first visit (OK- she’ll need to be more than the day old that she currently is) will be to the Southold sailing club for kids. Learning to handle a boat, and all of the safety rules, will be imperative for her when she’s old enough to participate, and the Southold Yacht Club offers just such an experience.
The Southold Indian Museum, located on Main Bayview recently offered a “crafts for kids” afternoon, and often has events specifically tailored for the younger crowd. 631-765-5577. www.southoldindianmuseum.org will provide details.
Located immediately across the street is a fascinating building offering views of the stars- when events occur at the Custer Institute, parking gets crazy, so arrive early. For star gazers, this is a top notch experience for all ages. www.custerobservatory.org will provide you with scheduled events.
If the kids are a bit older, the water park located in Calverton called Splish Splash provides the “juice” that some kids crave- the website provides details at www.splishsplashlongisland.com. I hope, when Callie reaches an age that permits a trip to the park, that I’m still nimble enough to make it up (and down) that HUGE water slide!
This is a very small offering of activities for kids on the North Fork- the bustling farm stands, with offers of strawberry picking, roasted corn, and the occasional quartet fill many afternoons for our visitors. Once corn season is really here, you’ll find that the crowds are full of little faces, with butter dripping, enjoying the magic of the North Fork.
Really- as a Gramma now, living here is exactly the type of location that I relish sharing with my new little granddaughter- what a fantastic place to be!
Now, if I can just convince my daughter and her husband to MOVE HERE…
All Photos & Content Copyright 2008 - Options Realty
Can You Say, “BUSTED”??
Authored by: Laurie Mindnich
June 23rd, 2008 category: East End LI Foreclosures, Real Estate News, Real Estate Philosophy
As a Southold, New York local, it was with interest that I observed the closure of several mortgage brokers- here one day, gone the next.
Having viewed the mortgage debacle as it roared through the little area known as the North Fork, it is with great pleasure (having seen the ravaged remains of those who bought into fraudulent loan practices that were ill explained to borrowers) to see that the Feds are FINALLY demonstrating the clout that had appeared missing during the “boom” years.
Evidently, according to the following article, those consumers taken by the banks (that are now taking their homes) will get the pleasure of viewing a white collar line-up.
Do you suppose that we’ll get to see mug shots? I hope so.
photo: Lance Kidwell - stock.xchng
Love North Fork Antiques? Welcome to Nirvana!
Authored by: Laurie Mindnich
June 18th, 2008 category: People and Places
OK, the store isn’t called “nirvana”, but it could be for those of us that are enamored of items from days gone by.
The store being profiled is owned by David Markel, and is called Mel’s Antiques/Market Estate Liquidator.
Located in a barn like structure (with it’s own remarkable Southold history), Dave often liquidates estates, bringing the treasures to his own venue.
Dave is remarkable in that, as both an artist and thespian, he has that
“critical eye” affording him the ability to recognize antiques of value and quality. Despite this knowledge, the items found in his shop are not only reasonable, but often, STEALS!
If you enjoy tag sales on the North Fork of Long Island, some weekends find Dave hosting events. 
On Sundays, he is often found in his shop, with directionals advertising a tag sale. The items that he brings to his shop are displayed both outside and inside- a veritable treasure chest!
To request Dave’s input on a tag sale of your own, he can be reached at davidjmarkel123456@yahoo.com, or you can call him at 631-765-1973.
If you are planning a trip to the North Fork, Dave’s shop is located at the Landing- Hortons Lane just north of the North road/Horton’s Lane intersection, behind Eric’s cafe.
DON’T MISS THIS OPPORTUNITY- THERE ARE SOME REAL TREASURES TO BE FOUND!
The Arcade in Greenport Just Might Have It
Authored by: Laurie Mindnich
June 12th, 2008 category: North Fork Neighborhoods, People and Places
Profiled this week is a business in Greenport, New York celebrating it’s 80th year in operation.
The ARCADE is known to locals in the area as the “go-to” for just about anything (and more). According to Bob, who has owned the store for seven years, the philosophy of his buying department is to stock anything that a person might find useful. The result of this effort has provided the Arcade with a reputation for having it all- from candy to cotton sheets to candles- and everything in between.
In addition to school supplies, the Arcade offers yard flags, wind chimes, magnets, glasses, clothing, footwear, decorative arts, toys, kitchen appliances, towels, rugs, curtains, dog toys, beach necessities and anything else that might be more difficult to locate.
According to Bob, the most prominent visitors are the summer crowd- a longtime favorite shopping destination, the Arcade has a loyal following from seasonal visitors that call Greenport home.
I recall a similar “five and dime” when I was small, and it was a store that we relished visiting- for children, it’s a step back in time fondly recalled by parents.
These charming stores are becoming a rarity. “There are only a thousand or so remaining nationally”, states Bob, noting that the current climate of rising costs jeopardize the existence of this kind of unique retail offering.
Let’s hope that the Arcade enjoys another 80 years- and congratulations on such a significant birthday!
If you need it, they likely have it- visit the Arcade when you reach Greenport. The Arcade is located on Main street, with ample parking located behind the store.
Commit to Localism on The North Fork
Authored by: Options Realty
June 9th, 2008 category: East End LI Foreclosures, Real Estate News
For local businesses on the North Fork of Long Island, having a “bad season” is surmountable. A combination of elements, however, make it more important than ever to support local business on the North Fork.
Gas at over $4.00 a gallon, hasn’t been present. Worse things? Certainly. But this is a “new” thing.
For those business owners and their employees relying on the summer crowd to fill the halls (whether it be a farm stand, local clothing store, hardware store, art gallery, vineyard, liquor store, antique shop, among others) rising expenses threaten to impact the volume of visitors, in turn impacting employees and owners as living and operating costs escalate.
Some local homeowners, once secure, are experiencing the loss of their safety net- reasonable traveling expenses are compromised daily, home equity loss is evident, rising food costs evoke surprise at the checkout
Unlike the heady foreclosures visible in the Hamptons, the choice for most North Fork homeowners isn’t “this” or “that” house (first or second vacation retreat). Threatened is the ability to make a house payment along with escalating daily expenses, absent the availability of equity as a last resort.
For landscapers, painters, remodelers, handymen, and other service jobs, many local homeowners are cutting back, deciding to delay improvements until the market steadies. In all, a hit on the community as a whole- if you haven’t been affected with your home equity position, you’ve been horrified at the pump.
In a service/vacation community, as well as an artistic community, every “visitor” counts.
While the situation in numbers doesn’t compare to the real losers of the current economic crisis (California, Nevada, etc) it is surely dire for the individual North Fork homeowner dealing with the loss of a property.
We received our “lis pendens” list this week, as we do every week. According to the Real Estate Report, the total lis pendens for the east end (Hamptons and North Fork) totaled 83 in May.
Those are 83 situations that but for a huge turn of events both in real estate, and the general economy, will ultimately affect us all before it’s over, whether through knowing a friend encountering foreclosure, or having a neighbor lose a home that is now considered a “comp” (at a foreclosure price) for our own.
While “this, too, shall pass”, I’m making it a habit, without hesitation, to buy local at every possible opportunity- in all seasons.
How about you?
Committing to local business makes sense. Without local businesses, local flavor disappears.
photos: Copyright 2008 - iStockPhoto & OptionsRealty
The Cutchogue Lions Club - Classic Car Show
Authored by: Options Realty
June 8th, 2008 category: People and Places, Real Estate News
The Cutchogue Lions Club will be hosting a HUGE LOCAL EVENT, the Classic Car Show.
For car lovers all over Long Island, this event brings the best of the best, and offers classic car lovers the opportunity to appreciate the work and dedication present with Classic Car Restoration.
The event will take place on Sunday, July 6th. Please visit the above site for additional details/directions- it’s certain to be a fun day for all.
Denise and Greg say, “Hope to see you there!”
Options Realty: Proudly serving the North Fork of Long Island.
Photo: Denise & Greg - Copyright 2007 Options Realty
East End Foreclosures on Long Island
Authored by: Sean Stark
June 4th, 2008 category: East End LI Foreclosures, Real Estate News
By now you’ve likely come across this article from Tuesday’s Newsday.
“Foreclosures taking Hamptons by surprise”
photo Copyright: Lilli Day & iStockPhoto
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