Long Island Relocation>> Long Island Real Estate

In the last part of this series - Long Island Homebuyers ~ Buyer Representation - we started to address some concerns that Long Island homebuyers may have about buyer representation, including:  signing a contract, competing clients and dual agency.  All of those issues are important, but perhaps the biggest concern about buyer representation is the issue of compensation.

Most people believe that the brokers / agents are compensated by the seller, but this is not actually the case.  Although the seller is the one that agrees to have the compensation come out of the proceeds of the sale, the fact of the matter is that all of the broker fees come off of the top of the transaction.  One could argue that the buyers are the ones that are actually paying the fees, since they are the only ones that bring money to the closing table.  In reality, the whole issue of compensation really comes down to upfront, out-of-pocket expenses.

Let's explore some of the myths and realities about buyer agent compensation.

MYTH # 1:     "I will have to pay the buyer agent's fee out of my own pocket."

REALITY:      Since the buyers are the only ones that are bringing money to the closing table, the fee is already being paid by the buyers.  While it may appear that the sellers are paying the fee, the reality is that the buyers pay the fee and roll it into their mortgage.

Many homes on MLS actually offer the same compensation to both buyer agents and seller agents.  When this is not the case, the offer can be structured so that the fees come out of the proceeds of the sale.  The only real issue is negotiating this arrangement with the sellers, but it can be done during the presentation of the offer.

Ultimately, buyer agent compensation is normally negotiated into the offer price, treated as a closing cost to the seller, and incorporated into the buyer's mortgage.

MYTH # 2:     "If my agent is paid a percentage of the sales price, it is in their best interest to get me to pay the highest possible price."

REALITY:      It is the buyer agent's duty to negotiate on your behalf to try and help you obtain the home for the lowest possible price.  Failure to do so goes against the buyer agent's fiduciary duties, and could result in severe punishment.  Even if it weren't a punishable offense, the bottom line to the agent is negligible, and the risk of losing future referrals is bad business.  Please see below for a hypothetic example of compensation calculations.

• A buyer client is interested in a home with an asking price of $475,000.

• For the purposes of this example, let's say that the compensation to the buyer's agent is 3%.

• The buyer agent's CMA shows that comparable homes have sold for $450k, $460k and $470k.

• If the buyer client gets an offer of $450k accepted, the compensation to the buyer's agent would be $13,500 ($450k x 3%).

• If the buyer client gets an offer of $470k accepted, the compensation to the buyer's agent would be $14,100 ($470k x 3%).

• The net difference in compensation to the buyer's agent is ONLY $600.  This amount must be split with the broker of the buyer's agent.

The above example assumes that the buyer agent was compensated based on the percentage of the sales price.  While this is the most common method of compensation, it is certainly not the only one. 

In the next post in this series, we will explore all of the various methods that can be used to compensate a buyer's agent.

If you've read my blog, you may be aware that I do a series of weekly posts.  One of my newest series is about waterfront homes on Long Island.  By using long tail and writing about this subject on Active Rain, I was able to rise high enough in the Google rankings to be found by a writer for the real estate section of the New York Post.  He was doing a story about the types of waterfront homes that are available on Long Island beyond oceanfront homes.  It just so happens that I had written a post about this very subject only a few weeks earlier.

We played some phone tag, but ultimately, I was interviewed for the story about waterfront homes on Long Island.  The writer and I spoke at length about the kinds of homes that are available on the waterfront on Long Island, what types of people are buying these homes and what their motivation is.  Although only one paraphrased quote actually made it into the story, I was one of only two REALTORS® that was quoted.

The following story appeared in the Thursday section of the New York Post in their expanded real estate section, and is currently on the NYPost.com home page.

What's Up Dock?  Long Island Waterfront Isn't Just About The Ocean

If you need any proof that your blog is being read by non-Active Rain members, here is proof positive.  If you're interested in getting interviewed by the newspapers and other media, keep blogging on Active Rain.  The one thing that I will caution you about is that catchy titles won't necessarily achieve this goal.  Your title will need to have searchable key words so that you can be found.  In addition, you should make sure that your keywords appear in the post, and in your tags.

It didn't take long for me to be found.  It's all a matter of timing and Google positioning.  Without Active Rain, I most likely wouldn't have been found at all.  Thanks Active Rain!

This year marks the 100^th anniversary for Robert Moses State Park, and it is being celebrated this entire weekend with events at each field of the beach.  Coinciding with the celebration is the ribbon-cutting ceremony of the newly renovated facility building located at Field 3.  This $700,000 renovation is part of a larger $28 million revitalization of Long Island's state parks. 

This new facility building features expanded food concession, in addition to a larger beach shop and first aid center.  The bathrooms were completely renovated and redesigned to be more spacious and allow for a better flow of traffic through the changing areas; a new family bathroom was added as well.

Festivities surrounding the celebration of the 100^th anniversary include painting and photography displays, a children's art contest, children's entertainment and free ferry boat rides.  There will be a sandcastle contest at noon on Saturday, June 28^th on Field 3, and a treasure hunt / beach dig at noon on Sunday, June 28^th at Field 4.  The beach dig is being run by WBAB, in conjunction with Banana Boat.

A number of prizes will be given away, including concert tickets and a trip to the AVP Manhattan Beach Open (volleyball).  The trip includes roundtrip airfare, three night's hotel accommodations, $500 cash, and two tickets to the AVP event and Banana Boat Beach BBQ on September 19^th.

This should be a fun weekend for all at Robert Moses State Park.  Bring the family and come join in on the celebration!

 Long Island Waterfront Homes WEEKLY UPDATE:

There are a variety of waterfront homes to choose from on Long Island (ocean, sound, bay, river, canal, lake). 

This weekly post comes out each Friday, showing the new waterfront homes that came on the market on Long Island during the previous week.  Beyond this weekly list, you can find many other waterfront homes available as well. 

If you are interested in purchasing a waterfront home, please feel free to contact me, and I would be happy to do a search based on your specific search criteria (including the type of water that you are interested in). 

You can check back weekly for updates, or if you'd prefer, you can contact me and be put onto a list of people that receive this update via e-mail.  My contact information is listed at the bottom of the page.

If you have any questions about purchsing waterfront home, please feel free to post it in the comments section, or you can contact me directly via e-mail or phone. 

LONG ISLAND WATERFRONT NEWS AND EVENTS 

Long Island Waterfront Isn't Just About The Ocean - from the New York Post

Robert Moses State Park - 100th Anniversary Celebration - Sand castle contests, art displays, free ferry rides and more.  Bring the whole family and enjoy this landmark celebration.

Long Island Waterfront Homes (NEW On The Market - Week Ending 6/26/08)

SUFFOLK COUNTY

NASSAU COUNTY

Long Island New Construction Homes weekly update:

This weekly post shows the new construction listings that came out during the previous week.  The week is defined as Friday to Thursday.  This gives prospective homebuyers the opportunity to plan their weekend home viewings in advance.  

The new construction homes listed below came on the market between 6/20 - 6/26/08.  Beyond this list, there are many other new construction homes available as well.  If you are interested in purchasing new construction, please feel free to contact me, and I would be happy to do a search based on your specific search criteria. This information will be posted each Friday.  You can check back weekly, or if you'd prefer, you can contact me and be put onto a list of people that receive this update via e-mail.  My contact information is listed at the bottom of the page.

If you have any questions about purchsing a new construction home, please feel free to post it in the comments section, or you can contact me directly via e-mail or phone.  

NEW CONSTRUCTION HOME BUYING TIP OF THE WEEK:

Many buyers are under the impression that the list price is not negotiable when buying new construction.  This is not the case at all.  In fact, sometimes the builder must make a business decision to get the home sold so that the money tied up in the home can be used for future building.  Builders are not emotional about the home, whereas homeowners are more easily offended with lower offers.

Long Island New Construction Homes (NEW On The Market - Week Ending 6/26/08)

SUFFOLK COUNTY

NASSAU COUNTY

Long Island Bank Owned Homes - Weekly Update: 

The list of the bank owned homes that came on the market on Long Island during the previous week is updated weekly.  The week begins on Friday and ends on Thursday.  By using this schedule, it allows me to provide the updated information in time for buyers to plan their weekend home viewings. 

Many prospective buyers of bank owned homes have questions about the process.  If you are interested in purchasing a bank owned home, and have any questions about the process, please feel free to leave it in the comment section of this post, or you can contact me directly.

QUESTION OF THE WEEK:

QUESTION:  "Am I allowed to get the home inspected even though it is in "as-is" condition?"

ANSWER:  Yes, and you should.  While it's not likely that the bank is going to make any repairs, it will help you to know what needs to be done in the home, and how quickly it needs to be done. 

The bank owned homes listed at the bottom of this post came on the market between 6/20 - 6/26/08.  Beyond this list, there are a number of other bank owned homes available as well.  If you are interested in bank owned homes, please feel free to contact me, and I will do a search based on your specific search criteria. This information is posted on a weekly basis.  You can check back regularly, or if you'd prefer, you can contact me and be put onto a list of people that receive this update via e-mail.  My contact information is listed at the bottom of the page.

Long Island Bank Owned Homes (NEW On The Market - Week Ending 6/20/08)

You don't have to be a mortgage broker or mortgage banker to realize that there has been a major shift in mortgage lending.  Yes, there are still companies out their that claim that they can do sub-prime mortgages, and 100% financing, but the bottom line is that lending restrictions are tightening, and homebuyers must be pre-approved for today's market.  Programs are disappearing with regularity, and homebuyers cannot take for granted that the loan that was here today will still be here tomorrow.  We all need to adapt to this change, and play by the new rules that lenders are setting (whether we like them or not).

If you are a homebuyer, you should keep the following in mind:

• Your credit score matters throughout the entire loan application process.  Do NOT do anything that could bring your credit score down until you have closed on your home.  The most common mistake that people make is opening up new lines of credit after they have started the mortgage application process.  If you need proof that this can hurt your chances of getting a mortgage, please read Todd Clark's recent post, entitled "I really didn't want to make you cry, that isn't in my job description."

• If you are planning on using a co-borrower to help you qualify for a loan, you must make sure that your co-borrower follows the same rules, and keeps their credit clean.  Before making an application with a co-borrower, make sure that they have no outstanding judgments against them.  If they have co-signed for another loan that is in default, this will need to be cleared up before applying for a new loan as a co-borrower.

• Do NOT increase your debt-to-income ratio once you have applied for a mortgage.  If you are carrying credit card debt, and it has been factored into your pre-approval, do not increase the debt, as it may turn a pre-approval into a rejection.  We are living in a stricter lending world, and banks will not hesitate to reject a loan application if you do anything that alters your qualification status.

• Do NOT count on being able to get a home equity line of credit or second mortgage to withdraw money from your home after the closing.  Many lenders have done away with these programs, and others have just frozen the credit line without warning, and it doesn't matter if they are a well-known bank or not.  Please read Paul Slaybaugh's post, entitled "Citibank ... I'll Make You Famous" to see a real-life example of what I'm talking about.

If you are a seller, you should keep the following in mind:

• Most buyers take out a mortgage to purchase homes.  When evaluating offers, it is wise to evaluate the offers based on more than just the offer price.  Human nature makes most of us lean towards taking the highest offer, but it is not always the best decision. 

• Buyers that are putting down more of their own money are more desirable than buyers that are putting down very little of their own money.  Buyers that have no home to sell are more desirable than buyers that need to sell a home.  This includes a buyer that has their home under contract, but has not yet closed.  If they can only close on your home if their sale goes through, there is a degree of risk involved.

• Do NOT underestimate the importance of the appraisal.  Buyers and sellers can agree on a selling price, but if the appraisal comes up short, the deal will not happen without some renegotiation.  Even if a buyer is financially capable of putting more money down to make a deal happen, they most likely will not want to pay more than a bank is telling them the home is worth.  Even when a home is appraised for the selling price, there is no guarantee that it won't be reviewed and re-appraised.  This happened just this week to Jason Crouch.  You can read about it in his post, entitled "Sign of the Times? A new experience for this real estate veteran."

The bottom line...

We are in a new market with tighter lending restrictions.  We cannot allow ourselves to have a false sense of security that deals are going to get done because they have in the past.  I've recently had one deal die because of student loans that were not even due to be paid for another year.  Because the lenders factored in this future debt, the buyer's debt-to-income ratio was too high, and the loan application was rejected. 

Unfortunately, the buyer had several student loans, and each one is going to have a minimum monthly payment.  These loans will be consolidated, but this cannot happen until the repayment of the loans begin.  This higher debt-to-income ratio significantly lowered the amount of money that these buyers could spend on a home, so they are continuing to rent for the time being.

Another deal is at risk because a co-borrower had co-signed for a loan that is currently in default.  Until this judgment (which has nothing to do with the buyers) is cleared up, the buyers are in a holding pattern, and at risk of losing the home that they intended to purchase.

As real estate professionals, we must do whatever we can to ensure that the buyers and sellers are educated and prepared to work within the parameters of current market conditions.  Homebuyers must realize that, in today's market, they need to get pre-approved by providing all of the documentation necessary to obtain a loan, and then refrain from doing anything that will hurt their chances of closing on their mortgage.  Home sellers should be prepared for the possibility that tighter appraisals and lending restrictions could result in a deal dying before it gets to the closing table.  

The rules of the game have changed, and only those that adapt to these new rules will reach their desired goals.

When moving to a new area, one of the top priorities for most people is knowing where the supermarkets are located.  This is true whether you are moving across Long Island, from another state or even from another country.  The following is a list of the supermarkets that can be found on Long Island, with a brief description of each.  The name of each supermarket is a link to their website.  At the end of each description, you will find a link to a store locator for that supermarket.

REGIONAL SUPERMARKET CHAINS

King Kullen - A family owned business that started with one store in 1930, and has grown to be one of the largest supermarket chains on Long Island.  The King Kullen website is truly innovative.  Check out the King Kullen interactive shopping list.  This helpful tool will allow you to search through the weekly circular and simply click on the items that you want to add to your shopping list.  This store locator will help you to find the nearest King Kullen.

Waldbaum's - One look at the map of Long Island featuring Waldbaum's logos will show that most Long Islanders live in close proximity to a Waldbaum's supermarket.  The Waldbaum's website features Kraft articles, food safety tips, entertaining guides and more.  The Waldbaum's store locator features an interactive mapping tool.

Shop Rite - With over 200 stores in the Northeast, Shop Rite uses its buying power to pass along savings to its customers.  This retailer-owned cooperative is comprised of 43 members who individually own and operate supermarkets under the Shop Rite name.  Beyond groceries, you can also order pool & patio furniture, electronics, DVD's and much more on Shop Rite's website, and pick up the items at the closest store. This store locator will help you to find the nearest Shop Rite.

Pathmark - Considered to be one of the pioneers in the "super center" concept, combining traditional grocery items with non-food items such as small appliances.  Pathmark was the first supermarket in the Northeast to be open 24/7, and also one of the early adopters of scanning registers at checkout.  Pathmark is the exclusive retailer of Wild Oats natural, organic foods.  This store locator will help you to find the nearest Pathmark.

Stop & Shop - Wide aisles in a clean, easy-to-shop environment offering many full service departments (foods-to-go, pharmacy, florist, branch banking, bakery, deli, photo processing, salad bar, bookstore and small appliances).  Stop & Shop's super sized stores offer toys, party goods, home accessories and office supplies.  Many of the stores have partnered with Dunkin' Donuts with an in-store presence.  This store locator will help you to find the nearest Stop & Shop.

REGIONAL SUPERMARKET CHAINS WITH LIMITED LOCATIONS ON LONG ISLAND

IGA - IGA stands for Independent Grocers Alliance.  The company was founded in 1926 when a group of 100 retailers joined forces, making it the world's largest voluntary supermarket chain.  The company slogan is "Hometown Proud Supermarkets."  Check out the IGA homepage to search for the nearest location.

Key Food - A supermarket chain that strives to offer the highest quality foods for the lowest possible price, Key Food has over 100 stores across the tri-state area, although there are only 5 locations on Long Island (Kings Park, Garden City, Woodmere, Valley Stream and Floral Park).  Click here for the addresses of the Long Island locations.

NATIONAL SUPERMARKET CHAINS WITH LIMITED LOCATIONS ON LONG ISLAND

Trader Joe's - Beyond a grocery store, Trader Joe's offers the basics, in addition to imported cheeses, organic produce and hand-tossed pizzas from Italy.  Great food at a great value.  Trader Joe's offers a unique product guarantee... "We tried it, we liked it, if you don't, bring it back for a full refund, no questions asked."  Trader Joe's has locations around the country, including 6 locations on Long Island (Commack, Hewlett, Lake Grove, Oceanside, Merrick, Plainview).  Click here for Trader Joe's locations.

Whole Foods Market - National supermarket specialty store has two locations on Long Island (Jericho and Manhasset).  Their motto is... "Whole Foods, Whole People, Whole Planet."  Whole Foods sells high quality natural and organic products.  They feature foods that have no artificial preservatives, colors, sweeteners or hydrogenated fats.  Click here for the addresses of the Long Island locations.

SPECIALTY STORES / SMALL SUPERMARKET CHAINS 

Uncle Giuseppe's - Specialty store focused on quality Italian food with three locations on Long Island (Smithtown, East Meadow and Port Washington).  The deli and bakery departments are the highlight of the store, in addition to the ready-to-eat and heat-and-eat entrees.  Meats, cheeses, baked goods, catering and more.  The website for Uncle Giuseppe's is up and running while awaiting the launch of a new and improved website.  Check out their home page for store locations.

Fairway Market - There is only one location on Long Island (in Plainview), but the customers come from far beyond the Plainview area to shop at Fairway.  High quality produce, meats, cheeses, baked goods, coffee and more.  Plenty to choose from for the health conscious shopper as well.  Check out their website for store contact information.

Wild By Nature - An independent subsidiary of King Kullen, Wild By Nature is a full size, full service natural food marketplace, promoting well-being by supplying fresh, wholesome foods and natural healthcare products.  Click here for directions to Wild By Nature's four locations (East Setauket, Huntington, Hampton Bays, Oceanside).

Giunta's Meat Farms - Small chain Long Island specialty store has four Suffolk County locations (Commack, Lake Ronkonkoma, Port Jefferson, Medford).  Known for top quality produce, meats and deli.   Click here for maps and directions to each location.

Pat's Meat Farms - The motto of this local specialty chain is... "Give the consumer a superior product with unsurpassed service at an affordable price."  Pat's Meat Farms currently has 2 locations on Long Island (East Northport and Farmingdale), and plans to open several more locations in the near future.  Click here for directions to each location.

During a home showing to a potential investor, we got to talking about the real estate market and business in general.  At one point during the meeting, the investor said something that really hit home, and since then, I've been seeing examples that prove that he was absolutely correct.  The statement was short and simple, but powerful and true.

"People will always remember their last experience with you, either positive or negative."

He went on to give me an example.  He told me that he could buy 30 houses from me, but if he bought the 31^st house from someone else, it would change my feelings towards him.  I jokingly said that I'd give him a pass for buying the first 30 houses, but his point is valid. 

As real estate professionals, we tend to think that our past clients will think of us first if they, or someone that they know, is in need of a real estate professional.  However, many agents do not do the things that need to be done to ensure that this happens.  If you've ever been to a Brian Buffini seminar, you are aware of the importance that Buffini puts on maintaining the relationship with your sphere of influence by providing them with something of value on a regular basis.  Buffini cautions you to take nothing for granted, even with your friends and relatives.

We live in a world filled with competition and choices.  Loyalty exists, but as the aforementioned investor said..."people will remember their last experience with you, either positive or negative."  I've always considered myself to be very loyal, but I am also an educated consumer.  I realize the value of outstanding service, and I also realize that when the service is basically the same, that price will likely be a determining factor.  This is something that we, as real estate professionals need to be mindful of.  After all, if we don't show the value in working with us, why wouldn't the consumer just look for a less expensive option, or at the very least, a bigger bang for their buck.

This year, when it came time to evaluate our household expenses, we became more price conscious.  We had been using the same landscaping company since we moved to this area around 3.5 years ago.  They did an efficient job, but the lawn never stood out as being one of the nicer ones on the block.  It was about average for the neighborhood.  When his prices started rising, we decided to look into other alternatives.  We also didn't like the way that the billing was handled. 

The invoices were supposed to be left on a monthly basis.  Sometimes this happened, and other times it would be 2 or 3 months at time.  Since the landscaper only wanted cash, or checks made out to cash, we would sometimes go months without paying because he didn't come to collect personally.  No disrespect to his crew, but I wasn't about to hand over money that could get "lost" before reaching the business owner, and have a situation where a dispute may arise. 

On several occasions, I mentioned to him that he should take credit cards and do automated billing so that he didn't fall behind in his receivables.  He decided that it wasn't right for his business, so we decided that he wasn't right for us.  With one phone call, we found a landscaper that not only does automated credit card billing, but also was $7 cheaper per week.  We even negotiated a bi-weekly cut during the hottest part of the summer where the grass doesn't grow as quickly. 

Big savings + more convenience = new landscaper.

(By the way, the lawn looks as good as it ever did)

We have also been using the same pool company to open and close our pool since we moved to the area.  Their service was good, but their prices had risen far beyond what other companies were charging.  By the looks of their heavy stock, glossy jumbo post cards that we received, I can see why they needed to raise their rates.  However, I didn't need to be the one to finance their marketing campaign.  With a few phone calls, we found a company that was $40 cheaper, and did the exact same job.  When they close the pool, we will have saved $80, while experiencing no discernable difference in the way that the job was done.

Big savings + same job = new pool company.

(By the way, the pool is as clear as it has ever been)

These are only two examples, but I've experienced others during my real estate career with mortgage brokers, attorneys and home inspection companies.  My loyalty remains in tact for as long as the service being provided meets my expectations.  When my expectations are not met, I find new people that can do the job for me. 

You may have clients for life, but only if you make a concerted effort to do so.  Just because someone has been loyal to you in the past, doesn't mean that they will be loyal to you in the future.  Remember..."people will always remember their last experience with you, either positive or negative." The danger of complacency is that you may very well lose the business with absolutely no warning.

In the previous post in this series, "Long Island Homebuyers ~ Buyer Representation," it was discussed that buyer clients have access to information that could give them leverage in contract negotiations.  So far in this series, it has been discussed (in detail), why it is better for buyers to have their own representation.  However, despite all of the advantages that buyer clients have over buyer customers, there are still some common concerns that many Long Island homebuyers share about being contractually obligated to a buyer's agent. 

Long Island homebuyers are accustomed to having the freedom to work with as many agents as they would like to.  Buyers that are comfortable working with a single agent, without having a buyer broker agreement, are missing out on the advantages of having buyer representation.  This may be a case of not knowing about their options, or it may be a choice to not be contractually obligated to one particular agent.

The following is a look at some of the most common concerns that Long Island homebuyers have about buyer representation.

THE CONTRACT - Homebuyers sometimes feel that they have limited flexibility if they are under contract with one agent, asking questions like..."What if things don't work out?  How long will I be "stuck" with this agent?"  With proper due diligence, this shouldn't be an issue.

First of all, the contract length is negotiable, as are the contract terms.  Often times, there will be a termination clause added to the contract to allow either party the right to cancel the contract.  Since this is decided between an agent and a client, there is no "rule of thumb" that can be elaborated upon in this post.

If you are a homebuyer, and you want to make sure that you and the buyer's agent are a good fit, you should interview them the same way that you would if you were listing your home with an agent.  During the interview, any concerns about the contract should be addressed.

COMPETING CLIENTS - When homebuyers choose to have buyer representation, they want to make sure that their interests are protected, and rightfully so.  So what happens when a buyer client is interested in the same home that another client of the buyer agent is also interested in?  Very simply, both clients should receive the same level of service, which includes the following:

• Confidentiality - The buyer agent owes all buyer clients confidentiality.  Neither client will be told what the other client is offering, should both clients be bidding on the same home.

• Disclosure - The buyer agent should provide all of the same information to each client in a timely manner.  While the information won't be provided in the same e-mail or phone call, it should be done at around the same time to ensure fairness to both parties.

Neither client should expect to receive preferential treatment by the buyer agent.  In fact, the process should be handled in the same manner that a listing agent would use if a particular buyer was interested in more than one of the agent's listings.

DUAL AGENCY - The situation may arise where a buyer client is interested in making an offer on one of the listings in the buyer agent's office.  Since all listings are technically with the brokerage, and not with the agent, this would create a dual agency situation.  As long as this is disclosed to both the buyer and the seller, it is perfectly legal in New York State for this to occur. 

The listing agent cannot be the buyer agent in the same transaction.  Should buyer clients be interested in one of their buyer agent's listings, the broker would have to designate another agent to represent one of the parties.  This is because it would be impossible for one agent to provide the same level of service to both the buyer and the seller.

It is best to discuss this situation upon signing a buyer representation agreement to see how the situation will be worked out.  In my opinion, the fairest way to handle this type of scenario is to have the agent continue to represent the client that has been with him the longest, regardless of whether it is the buyer or the seller.  The broker would be responsible for designating another agent with comparable skills to represent either the buyer or the seller. 

It is important to note that all confidential information that was learned about the client by the buyer / listing agent is to remain confidential, and cannot be used during the negotiation process.

This situation occurs far less than most people would expect.  While it is a legitimate concern, it is one that can be overcome as long as all of the proper disclosures are made.

There is one more concern that most Long Island Homebuyers have about buyer representation - COMPENSATION.  The issue of how buyer agents are compensated will be addressed in the next part of this series.