I got an email the other day from a fellow Vet, Mitch K, who’s looking to buy in Babylon and read in Consumer Reports that he should use a buyer’s broker. Whew, that triggered flashbacks!
In the early 1990s, when the pioneer buyer’s brokers were staking out territories, mostly on the eastern and western seaboards, I mentored one of the first exclusive buyer’s brokers on Long Island. I was not a buyer’s broker myself, but was exploring this real estate model as I have explored others over the years.
Exclusive buyer’s brokers (EBB) don’t take listings from sellers, That has two major advantages (among others) for prospective buyers.
- An EBB has no listings to “push” and so can and will show you any and all homes on the market that meet your criteria, including foreclosures and FSBOs.
- Even more importantly, EBBs are NOT under contract to sellers, and so are free to tell you the faults as well as the features of each home you’re interested in, and to negotiate price on your behalf.
But for the Realtor®, there’s a serious downside to being an EBB. When you buy an MLS listed home, which is most of the homes sold on Long Island, the seller pays half the commission to the listing broker and half to the selling broker. By not taking listings, EBBs forgo half the potential commission from the get-go!
So Mitch, I’m not a buyer’s broker, but will show you first the homes in my own listings that meet your criteria. If you like one, you can buy through me or engage a buyer’s broker to make the deal. If I don’t have a listing that works for you, I’ll gladly sign on as your exclusive buyer’s broker.
I’ll go the extra mile for you, but I can’t do it on an empty stomach!