What Real Estate Relationship is Right For You?

Do you get a better deal when buying a home through the listing agent?  As a listing agent, I cannot tell you how many calls I get from buyers who specifically choose NOT to work with a buyer's agent because they believe that they will get a better deal by working directly with the seller's agent.  This is typically not the case.  The commission is paid by the seller – it is a percentage of the contract price which is agreed upon and committed to via listing agreement before there is a purchase contract to discuss or negotiate.  A buyer – whether represented by a disclosed dual agent or a buyer's agent – should not bring commission into the equation when negotiating a purchase and should not assume that there is any benefit to them if they attempt to negotiate a contract directly with a listing agent. 

Before you disclose confidential information to a real estate agent, you should understand what type of business relationship you have with that agent. In New Jersey, there are four business relationships:

1. Seller's agents - A seller's agent WORKS ONLY FOR THE SELLER, they are required to provide reasonable care, undivided loyalty, confidentiality and full disclosure to their seller clients. Seller's agents often work with buyers, but do not represent the buyers if those buyers are considering a property listed by that agent (see below for the exception of Disclosed Dual Agency)
2. Buyer's agents - A buyer's agent WORKS ONLY FOR THE BUYER. A buyer's agent fiduciary responsibility is to the buyer; this includes reasonable care, undivided loyalty, confidentiality and full disclosure.
3. Disclosed dual agents - A disclosed dual agent WORKS FOR BOTH THE BUYER AND SELLER. This is most likely to occur when a buyer's agent shows his/her client a house that is being sold by that agent's firm. A real estate licensee working as a disclosed dual agent must carefully explain to each party that, in addition to working as their agent, their firm will also work as the agent for the other party. When working in this capacity, an agent cannot disclose things such as the highest price a buyer can afford to pay, the lowest price a seller will accept or the parties' motivation to buy or sell – unless expressly authorized to do so by either party. A disclosed dual agent will not be able to put one party's interests ahead of those of the other party and cannot advise or counsel either party on how to gain an advantage at the expense of the other party.
4. Transaction brokers and subagents are not customary in Basking Ridge and will not be explained in this article

It is possible – but rare – that a seller and their agent have agreed ahead of time on a reduced fee if the agent brings the buyer to the table, this will typically have little or no bearing no how a purchase contract is negotiated.

It is so much smarter to have a buyer's agent working for you before you find that perfect house – someone who understands what you are looking for, is aware of your financial position, knows the market and can negotiate the best deal possible with your best interest in mind.

The following properties in Basking Ridge have closed since the first of the year.  Only five of these listings were sold by the listing agent.

249 Mt Prospect Road – List price: $1,590,000, Sale price: $1,500,000

17 Clark Court – List price: $469,999, Sale price:  $450,000

185 English Place – List price: $249,900, Sale price:  $245,000

6 Baldwin Court – List price:  $334,900, Sale price:  $320,000

117 Cross Road – List price:  $565,000, Sale price:  $560,000

1 Brookfield Drive – List price:  $829,000, Sale price:  $776,700

4 Richmond Drive – List price: $675,000, Sale price:  $645,000

119 Alexandria Way – List price:   $264,900, Sale price:  $250,000

24 Fairbanks Lane – List price:  $450,000, Sale price:  $387,500

93 Alder Lane – List price:  $635,000, Sale price:  $597,000

193 Irving Place – List price:  $315,000, Sale price:  $299,999

14 Cedar Street – List price:  $649,000, Sale price:  $620,000

28 Fawn Lane – List price:  $1,450,000, Sale price:  $1,375,000

164 Liberty Corner Road  – List price:  $1,499,000, Sale price:  $1,385,000

32 Princeton Court – List price:  $695,000, Sale price: $650,000

115 S Alward Avenue – List price:   $719,000, Sale price:  $650,000

158 Morristown Road – List price: $645,000, Sale price:  $582,000

104 Darren Drive – List price:  $1,375,000, Sale price:  $1,275,000

3701 Balsam Way   – List price: $119,500, Sale price:  $120,500

47 Berkeley Circle – List price:  $899,900, Sale price:  $850,000 100

101 Countryside Drive – List price: $364,000, Sale price:  $358,000

61 Newell Drive   – List price:  $499,000, Sale price:  $475,000

57 Huntington Road – List price:  $719,000, Sale price:  $690,000

49 Spencer Road – List price:  $459,000, Sale price:  $442,000

3 Commonwealth Drive – List price: $244,900, Sale price:  $240,000

20 Granville Way – List price: $815,000, Sale price:  $807,000

19 Dayton Street – List price:  $339,900, Sale price:  $350,000

65 Vanderveer Drive – List price: $999,000, Sale price:  $987,000

125 Alexandria Way – List price: $249,900, Sale price:  $250,000

36 Cobble Lane – List price:  $865,000, Sale price:  $830,000

51 E Oak Street – List price:  $458,800, Sale price:  $445,000

55 Village Drive – List price: $395,000, Sale price:  $380,000

104 Tuxford Terrace – List price: $965,000, Sale price:  $948,000

18 Mayflower Drive  – List price: $518,000, Sale price:  $506,000

59 Sycamore Court – List price:  $340,000, Sale price:  $330,000

322 S Finley Avenue – List price: $1,299,900, Sale price:  $1,200,000

94 Potomac Drive – List price:   $215,000, Sale price:  $203,500

20 Princeton Court – List price: $699,999, Sale price:  $682,000

2602 Hemlock Place – List price: $299,900, Sale price:  $275,000

214 English Place – List price:  $239,000, Sale price:  $239,000

17 Baldwin Court – List price: $265,000, Sale price: $250,500

36 Dorchester Drive – List price: $482,625, Sale price: $269,250

10 Minuteman Court – List price: $514,900, Sale price: $500,000