Buyers Broker?

[DKZB]

I was thinking about it. It is a lot of work to know a good deal from a bad one. The brokers out there, while very good, are representing both the buyer and the seller. At least where I am in NJ, there are buyers brokers and sellers brokers and they split the commissions on real estate transactions. Why are there no "buyers brokers" in DVC?

 

[JETSDAD]

On regular real estate transactions there is also a lot more money to go around between the listing brokerage and the buyer's brokerage. Even if a broker is charging 9%, at best you're going to be offered 4.5% for bringing a buyer (assuming other offices would co-operate) but you're looking at a lot of sales that are only $15,000-30,000. Then how many offers will they have to write before one is accepted? What happens if the contract is taken through ROFR? Then throw in the office split and you're really doing quite a bit of work for not much pay.

 

[RoseGold]

It's not a lot of work, it's pretty straightforward. There's one reseller that slaps on closing cost fees and messes up the math, but that one is small. Everything else is pretty standardized. I find DVC math refreshingly transparent.

I do think we will shift to a broker fee model as the 2042s age and the contract values are get lower, but that hasn't happened yet. I guess we can do some math when it does.

 

[DKZB]

It's not a lot of work, it's pretty straightforward. There's one reseller that slaps on closing cost fees and messes up the math, but that one is small. Everything else is pretty standardized. I find DVC math refreshingly transparent.

I do think we will shift to a broker fee model as the 2042s age and the contract values are get lower, but that hasn't happened yet. I guess we can do some math when it does.

Are there people making good deals with sellers and re-selling those deals for a fee?

Are you referring the the $195 "administrative fee" that Fidelity tacks on? Unfortunately, I didn't realize they tack that on my last VGF contract. It was still a great deal but stinks to get stuck with unnecessary fees.

 

[RoseGold]

Are there people making good deals with sellers and re-selling those deals for a fee?

Yes, they're called resale brokers. Pick among the cheaper listings at the board sponsor and you'll be pretty close to the market pricing. These contracts are the cost of a used car, it's not like there's a ton of room for it to move.

Maybe there's a few out there a little cheaper. Maybe take your time and make some offers, maybe you get a motivated seller. And some are priced ridiculously high for reasons no one can figure out. As long as you avoid those, you're pretty close to market rate. This is a three figure discussion. Not much room for a buyer agent.

Heck, talk to an agent at the board sponsor. Mine was awesome and gave me exactly what I asked for.

 

[StoweFoSho]

Technically they are not the seller's broker either.

In Florida and some other states real estate agents are able to operate as "transactional brokers," and that is what most (if not all) of the DVC brokerages are acting as. This means there is no fiduciary relationship or responsibility to either the buyer or the seller and they are not "dual agents" representing both the buyer and the seller. They still have to be honest and fair, but there isn't the same fiduciary responsibility or even the same level of confidentiality. In this case they are repping the transaction and assisting and facilitiating the seller and buyer in the transaction.

 

[Jodi Gross at DVCRM]

Hi, Jodi with DVC Resale Market here. All DVC Resale Brokers will be transaction brokers unless otherwise noted. There is a common misconception that we are working "mostly for the seller". For those who want to read the actual Florida Statue on Brokerage relationships as it relates to Transaction Brokers, I have copied and pasted here for you. Feel free to reach out with any questions

Presumption of transaction brokerage.—It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer.
(2) TRANSACTION BROKER RELATIONSHIP.—A transaction broker provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. The duties of the real estate licensee in this limited form of representation include the following:
(a) Dealing honestly and fairly;
(b) Accounting for all funds;
(c) Using skill, care, and diligence in the transaction;
(d) Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer;
(e) Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;
(f) Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and
(g) Any additional duties that are mutually agreed to with a party.
(3) SINGLE AGENT RELATIONSHIP.—
(a) Single agent; duties.—The duties of a real estate licensee owed to a buyer or seller who engages the real estate licensee as a single agent include the following:
1. Dealing honestly and fairly;
2. Loyalty;
3. Confidentiality;
4. Obedience;
5. Full disclosure;
6. Accounting for all funds;
7. Skill, care, and diligence in the transaction;
8. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and
9. Disclosing all known facts that materially affect the value of residential real property and are not readily observable.