Buyer's agents

[Beachboy]

Any of you use a "Buyers agent" to buy your homes or property on the eastside? I'm trying to find out info on them, good ones, what they charge, etc,etc...

[John S. Rabi]

There is no such a thing as "Buyers Agent" since you are not represented by the agent, you are represented by the Brokerage Firm and if the firm has listings it represents both Buyers and Sellers.

There is just one company on the island that represents buyers only. Since it is a one person operation and claims to be an expert of both the Big Island and Maui, I would highly question its qualifications. ("Experts" know subdivisions within districts but there is no way to know the whole island, not to mention another island too!)

There are agents who earned the "ABR" (Accredited Buyer Representative) designation and those agents have much more knowledge about buyer representation than the others. Usually, there is no extra charge for being represented by such an agent and the company the agent works for, though some companies charge an extra retainer fee up front that they credit back to you at closing if you purchase something.

If an agent shows you a property that is listed by any agents of the same firm they represent the seller only, unless they get a Dual Agency Consent signed by both the Seller and you (the Buyer) prior to showing you the property. I personally believe such agreement should not be called "Dual Agency Consent" but "Limited Agency Consent" since a company can not fully represent both the Seller and Buyer equally.

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185

[Beachboy]

quote:

---

There is no such a thing as "Buyers Agent" since you are not represented by the agent, you are represented by the Brokerage Firm and if the firm has listings it represents both Buyers and Sellers.

There is just one company on the island that represents buyers only. Since it is a one person operation and claims to be an expert of both the Big Island and Maui, I would highly question its qualifications. ("Experts" know subdivisions within districts but there is no way to know the whole island, not to mention another island too!)

There are agents who earned the "ABR" (Accredited Buyer Representative) designation and those agents have much more knowledge about buyer representation than the others. Usually, there is no extra charge for being represented by such an agent and the company the agent works for, though some companies charge an extra retainer fee up front that they credit back to you at closing if you purchase something.

If an agent shows you a property that is listed by any agents of the same firm they represent the seller only, unless they get a Dual Agency Consent signed by both the Seller and you (the Buyer) prior to showing you the property. I personally believe such agreement should not be called "Dual Agency Consent" but "Limited Agency Consent" since a company can not fully represent both the Seller and Buyer equally.

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185

---

So isn't it hard to ask a Real Estate Agent for a CMA if he is ultimately working for the 'seller' of a listed home? Or do I just look for somebody who has the "ABR",logo next to their name?

[jdirgo]

If you're asking the listing agent to do the CMA, then they are working for the seller. I would hope that they would still be reputable and honest, but I have been disappointed in the past. You might want to review some of the prior posts about agents, etc. It is always best to have your own agent.

I don't think I have it in my signature on here, but just like John Rabi, I also have an ABR designation.

John Dirgo, RA, ABR, e-PRO
Island Trust Properties, LLC
808-987-9243 cell
http://www.hawaiirealproperty.com

[oink]

Can I play?

It would appear that Hawaii law allows an agent to represent the buyer with fiduciary duty only to that buyer. (The agent is of course actually a sub-agent of the broker he works for). A conflict arises when the seller of the property in question is also represented by the same broker. A disclosure is then required and a new agency relationship can develop in which the broker/agent is supposed to be neutral. It appears, in Hawaii, that the seller is still required to pay the selling broker a commission although he may not have represented him. Therefore the seller is paying the commission and the buyer is not paying a fee.

If you represent the seller you explain that the buyer is in effect paying the commission. If you represent the buyer you explain that the commission comes out of the sellers pocket

In some places (not Hawaii it appears) the seller is not obligated to pay a commission to the selling broker as he did not represent him. In those areas the buyer pays a fee directly to the buyers agent(broker)for his services.

Johns?

S. FL Islander to be

Edited by - oink on 11/02/2006 08:47:12

[jdirgo]

Sellers pay all the commissions (at least in Hawaii they do). Typically, the commission is split between the seller's broker and the buyer's broker. Occasionally, it will occur that both buyer and seller are represented by the same broker, either with two separate agents or the same agent. Either way, its still the seller paying the commissions. There can be cases where, under an Exclusive Buyer Representation Agreement, the buyer could have to pay a portion of the commissions for the purchase of a home with a discounted commission, I personally have never encountered that situation.

John Dirgo, RA, ABR, e-PRO
Island Trust Properties, LLC
808-987-9243 cell
http://www.hawaiirealproperty.com

[Les C]

Beachboy,

When we looked for and bought our place earlier this year, we were represented by Jessica Hall, Island Surf Realty (RE/MAX). The alphabet soup after her name reads, "R(B), ABR". She's based in Pahoa and covers the Puna District. She is pleasant, hard-working, focused, and tries to keep her workload at a level where she can devote a lot of time to your needs.

Beyond figuring out if they know their business, picking a realtor, to us, is a matter of finding out if their personality meshes with yours. You should feel that they are up front with you and know how to clearly communicate negative news as well as the positive. An akamai agent will also have an understanding of how buying decisions can play out between partners and will tailor their presentations accordingly. You can probably have a successful transaction with the help of an agent who doesn't have these other people skills, but you will heartily recommend one who does.

Jessica's number is 217-5860 - give her a call & tell her that Les & Mary referred you. No, we don't get any kickbacks for the recommendation; we like her, like what she did for us, and feel that she deserves the reference. As far as what she charges, she just got part of her realty's portion of the commission.

Seeing where this discussion is going, I should add that we were in the situation where the seller was represented by the same broker as we were, though by different agents. This was a RE/MAX broker with offices in Hilo and Pahoa. [These offices have since split into two different brokerages.] We were presented with a document to sign that explained how the representation worked; it emphasized that our agent represented us and the seller's agent represented the sellers, and the brokerage would remain neutral. We were alerted about this situation when we sold in CA, but, as I understand it, HI, unlike CA, doesn't have a Dual Agency Law (some clarification perhaps by the Johns?). Anyhow, we had our lawyer review the document and proceeded with her blessing.

Les

Edited by - Les C on 11/02/2006 09:34:53

Edited by - Les C on 11/02/2006 09:36:45

Edited by - Les C on 11/02/2006 09:43:54

[John S. Rabi]

There is no subagency in Hawaii. Dual agency is legal though there is a current movement to delete it from the books.
As to the "We were presented with a document to sign that explained how the representation worked; it emphasized that our agent represented us and the seller's agent represented the sellers, and the brokerage would remain neutral." I am surprised your attorney didn't pick up on that. It's not legal in Hawaii. The agents DO NOT represent you here, the Brokerage Firm does and it can not remain "neutral." (The representation is outlined in both the "Listing Agreement" for the Seller and the "DROA" for both the Buyer and Seller.) While I agree it is important to have good rapport with your agent, it's much more important that your agent educated and knowledgeable too, not just someone you happened to have a few beers at the pub last night.

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185

Edited by - John S. Rabi on 11/02/2006 14:27:26

[Les C]

So, John R., are you implying that it is not a good idea to be represented by an agent whose brokerage is listing the property? That, when push comes to shove, they really aren't legally bound to provide you with unbiased representation? Or, that this would not be possible given their pre-existing agreement to represent the seller?

Les

[oink]

http://www.hawaii.gov/dcca/areas/pvl/main/har/har_99-c.pdf
Pages 10, 11, and 12 might be of interest, or not.

S. FL Islander to be