Buyer Broker Index

Fall, 2007

Introduction

A Buyer’s Broker is a real estate broker hired by the buyer to represent that buyer.  The following topics elaborate or expand upon this business relationship.  Some are important to know in depth, while other topics are optional, depending on your level of interest. I explain the topics to all my clients—but putting them in writing here is one more way to give you the information.  Also, you may call me, I'll immediately call you back and we can just chatter, and I'll take you through these issue and my site... 906-228-5257.  Leave your number either by e-mail or phone message.  I'm sometimes hard to get. 

Topics ---

• The question of representation concerns law and real estate practices,  who represents whom.
• A little history introduces representation, and offers you perspective.   
• Then representation,  the dreaded word,  discusses more in detail and is philosophical in nature as related to Buyer’s Broker. Your choice of representation may be one of the most important decisions you’ll make in your life, because it involves so much money.   
• The honorable seller is one exception I have as a Buyer’s Broker. I explain this by way of disclosure. 
• Why Buyer’s Broker is just that. 

• Fiduciary is defined from my perspective  as well as a real estate law perspective.    In my opinion, fiduciary is a very important term to understand. The fiduciary responsibility is unfortunately not followed by most real estate practitioners. For you the buyer,  if you don’t know what fiduciary means then you don’t know where you stand or your legal rights. 
• Benefits working with me are just that. You have a right to know HOW I can help YOU.  Knowledge is king.  This specifically tells you what I will do… my strengths.  
• Customs of the UP is just that.  I explain the nature of customs up here because I want  you to fit in. 
• Log cabin background, camps is interesting:  because it is a gift to my clients.
• Counseling Buyer concerns education. It is my belief that you make better decisions with education,  although many don’t believe this. 
• Where does my payment come from is about costs, and why say this… because it is straightforward which I like.  
• I am unique is about choices. I am trying to sell myself to you. I want you to choose me.   
• Location, information, etc. is about my limits, geographic and otherwise.  I have no desire to waste your time or mine... because I don’t get paid if I don’t succeed. 
• Association for entire lakes is about an opportunity, if it applies to you. 

• Sample Buyer’s Broker Contracts
• Older advertising, late 1980s
• See references or endorsement under my other site
• Ad I ran
• A survivalists article I wrote.

              The question of Representation

This is about being told that something is wrong with the property you wish to purchase. For example, let’s say you have found your dream house but do not know that it’s infested with termites—no one tells you. So you buy the house, and the very first night you hear munching in the walls, you step out of bed, there they are all over the floor.

This admittedly is a humorous example, but the question at hand is one of representation—who had the obligation  to tell you about this serious problem?  And do they always tell you or just occasionally tell you?

So, what does this question of representation mean?  It is a mouthful.   Let’s try get to the bottom of it.   It is a long story.  It is the future of real estate in general.

A little history…………

Let’s start out over from the beginning.  I’m 58 years old today; back in 1974 I was studying psychology, farming, and was a maple syrup producer.  I was offered a job in wilderness real estate and late that fall I got my license.  I soon moved north to Marquette from downstate Big Rapids, MI.  In my first five years I was a salesman, and picked up all kinds of real estate knowledge.

During this time I learned the hard way what it meant to represent the seller.  I was selling land in northern Marquette County.  I’d spend three days with a buyer showing forty acres here, an eighty there, giving the buyer all kinds of choices… becoming somewhat acquainted with and even developing a partial friendship with a potential buyer.

I came back to my boss (seller) and naively asked him to reduce his price.  It had been 5 to 10% less the previous year, so I reasoned.  He snapped at me, “Who do you think you represent?  Did they see last year’s ad?”  I got real quiet.  He was right.  I represented the seller, and my job was to get the highest price.  My co-workers and I talked about this topic of this inherent conflict in our job extensively, yet quietly. 

I had always wondered about the apparent conflicts in the law as I was studying it… well not the law, but the real estate business.  I was seeing the dark side of the profession…. The inconsistencies between law and practice.

Then in late 1979  at age 29 I changed employers and essentially started working as a buyer’s agent.  I called myself a property manager but soon realized the full implication of  representing a buyer, the person who hired me to put together 13,000 acres of land.  He was quite ruthless.  I realized I had obligations in reverse of what I had originally been trained for.  I subsequently studied business law while visiting in another state.  At the time I could find little information on buyer’s agents in the real estate community.  Instead it was kind of buried in law books.   I found some early literature from a California person I emulated.  I even went back to my co-worker and talked of the difference.  He did not know what to think.  (The point behind this is:  In those first five years, the idea was, the offer to purchase said: we recommend that you see an attorney… this being the only representation the other side of the fence received).

It is curious, the first 10 years of my real estate career was spent becoming aware of representation,  learning its in and outs, but in later years things faded off for me to an extent.

While I was busy surviving in life,  the state of Michigan was busy wringing its own neck, real estate-wise.  And I did not know it or care. But I  read of this some weeks ago, and laughed to myself.  Apparently the story unfolds as follows.  

As short summary:

In the 80s,  I observed  buyer representation starting to come into the real estate profession.  It was in law books before, but just was not talked about by the profession.  I saw its partial conflict and meaning when I first became licensed in 1975.  I just wondered about it, and studied it whenever I could.  

As time marched on, the conflicts and confusion persisted, but I solved it personally by heavy doses of disclosure… thereby ignoring the whole mess.  Connected with disclosure was timing, meaning whoever (buyers) came first had priority.  Yet I drifted back into seller agency as time proceeded.  Overall, I would weave back and forth from seller to buyer representation. Also, I was by myself and did not have to deal with others in my company.    I just knew the real estate profession needed help, and I knew this ambiguity and confusion was one factor in real estate people having poor reputations.   There was not much I could personally do about this… except keep my own nose clean.

It’s interesting…I read recently how Michigan real estate was behind the times with buyer’s brokers and agency disclosure and then suddenly had to rapidly move along because of this self-procrastination: law suits were happening in the 90’s while Michigan was sleeping.  So Michigan enacted an agency disclosure law, then a mandatory residential seller disclosure statement.  This circles around the continuing confusion of representation and exclusivity.  Then another law: the right to farm act.   Furthmore, Michigan had to educate its real estate people in a hurry or as much as possible, so, it made yearly education mandatory, still another law.  All this because the state had been lax in getting its real estate people to understand that representation was the big legal issue, and this leads right back to my original experience with my first seller in 1975 where I asked for a lower price.  And it is hypocritical, that Michigan professes to be progressive but it is not--it seems to work better when  its back is against the wall.  In my mind it still does not have disclosure up to speed. 

Well, buyer’s broker as a means of leveling  the playing field of buyer vs seller, and thereby resolving  the representation conflict,  has been growing more rapidly in popularity in the last 5 to 10 years, yet also gradually for the past 25 years.  The timeline has been a struggle and that struggle continues.  I think to myself, “Thank God it is at least coming along.”  Meanwhile I personally try to make my way in life…still disclosing the devil out of things.

Representation: the dreaded word

Many of us do watch TV once in a while.  Imagine the old Perry Mason show: Perry defending someone, then switching to being the prosecutor, and accusing the person of murder, then going back to being defense attorney defending that person of murder.  Perry would soon go crazy jumping back and forth from defense to offense. Defender to attacker…..endless.

So our legal system (western) has evolved to say that you are either on one side or the other. You cannot have a defense attorney during trial before a jury suddenly switching and “saying” my client is now guilty, not innocent.   But then the prosecutor attorney, changes his mind too and says, no he is innocent, not guilty and proceeds to prove why.  The judge looks in bewilderment…what zoo is he in, he thinks… but he listens.  Is there a reason why this could not occur?  I’ll bet law schools have a name or title for this….some long  paper explaining views, touching on conflict of interest and other ethical considerations. Or maybe the idea is too ridiculous to waste ink on.

Then along come the real estate people and I guess they think they are different, or they just don’t pay any attention at all to the inherent conflict of playing on both sides in an interaction… straddling the fence. It’s interesting to think of it deeper, but the topic gets too complex.    Meanwhile though,  the real estate people pile on top as they need to sell houses, making one fine mess. They want a cut (monies) on both sides, selling  and buying.   And historically they have been getting it, if you can believe that.    So, they don’t want a good thing to slip away.  Amazing yet or furthermore, one problem of inconsistency leads to another piled on top, then more messes of dubious dealing.  And so, the evolution of western law of either one side or the other remains, while real estate people continue to reject this idea. 

Now, the conclusion to representation is:  it is not done for a buyer unless that buyer hires a buyer’s broker.  This splits up the representation I view it as.    But habits/ business practices are set...meaning the public floats along in a daze and the real estate industry is quick to oblige the public.  Shaking my head, I see that disclosure is incomplete and manipulated.  And buyers don’t understand, therefore real estate has a poor reputation.  Seems like a book could be written on this.

I wonder, isn’t this word representation really about honesty.  Can we not make this simple… 

Ruminating further: it is said that a person spends a large part of their monies on their home.  Buying a home is an extremely important decision in life.  This truth is expressed when you read up on home ownership, and reinforced with sayings, such as, “A man’s home is his castle.”  Historically we have clung to our lands… as in Tara in Gone with the Wind.  So, our government has a pretty good inkling that they should pay attention to home ownership, so they create laws accordingly.  Now, imagine the real estate person getting a piece of the pie at each end of the deal even at such an important life event.  Wouldn’t your logic say to you that this does not bode well for real estate people?  Some are trying to get their act together (halfheartedly)…. Meanwhile, on another plain, the public seems to want to continue to be cheated, habits being hard to break on multiple levels.  The public has to think about this and realize the inherent conflict , and so does the real estate industry.  

Not that a party will be cheated automatically.

The buyer’s broker is to represent the buyer in that transaction to keep order.

An Honorable seller, the one exception

The one listing I have right now is a couple named Rachel and Steve.  They have two little girls.  I sold them their 80 acres around 10 years ago.  Times have changed for them and they decided to sell.  In this 10-year time period, sulfide mining has come to the forefront.  Several  times when I have disclosed the possibility of the mine on the nearby Yellow Dog River, the potential buyers are not interested.  A few are at least willing to look. This has been going on for around 3 years.  The property finally sold in the Fall of 2007 after these many years. 

It is amazing to talk with Rachel… she believes in honor.  As her real estate broker,  I disclosure the potential of this mine, and ask that a buyer read on the topic and understand it.  I explain to a buyer everything they ask.  Rachel agrees with me on all my points.  She and Steve want nothing to do with deception.  They have dropped the price down $10,000 but are holding.  They don’t like it, but don’t mind waiting for eight or so years for the mine to play out.  The point here is:   her and my agreement of disclosure,  at is a good and fair disclosure, a straight forward statement.  Due to my  background on sulfide mining, I can make that disclosure.  All you have to do is read other parts of my web site and you will know my documented knowledge for disclosure.  Some seller may think to brush disclosure over, but not Rachel.  I am honored to list her property, and I am glad she stays with me. 

Therefore I am not a exclusive agent, except that now that it is sold I can be an exclusive agent (as of 2008).  A person’s word as in this case with Rachel is more important than an exclusive agency position.  I feel privileged to have this opportunity to stand up for this lady, to represent this family.  I feel I can represent buyers on all other properties.  And if someone should desire Rachel’s property, that someone will have to understand this exception.  And know that this disclosure was made to them.   The individual who purchased this understood this. 

Why Buyer’s Broker

There are several reasons why I have chosen this direction:

1. My election campaign took so much time that I have not found additional listings.
2. My anti-sulfide mining work has also drawn from my energy reservoir for finding listings.
3. I have the option to go this route, as I have done it before and found it rewarding.
4. It is a matter of opportunity and maybe destiny--I don’t know yet.
5. I wonder if its time has come, and that prices are dropping due to the economy anyway, and I may just as well be on this side of the fence.

Fiduciary   one of trust

I have always like this word.  As a child I was one of the bigger  kids in class.  I felt it was my responsibility to look after the littler kids.  Later, I realize that old people need help and I find it satisfying to help.  In a contrary way, I find help to be misused by many.  I feel it is to help when truly needed.   This all leads me to the word fiduciary. 

In law it sounds like a boy scout’s oath.  And I like that.  Law books use these words to describe fiduciary:

• Obedience,
• Reasonable Care,
• Duty to Account,
• Duty to Notify (Disclosure),
• Loyalty.  

Sure sounds like a mouthful to me.  Each word has its definition in these law books and in some real estate books.  It is fascinating to understand how each of them applies to representation, whether of sellers or buyers. If you are a customer, fiduciary  DOES NOT apply.  Personally, disclosure is also a strong word for me.  It does apply to me. 

The words used to describe fiduciary have my own interpretation: 

Obedience means to obey clear and legal instructions.  I once had a terrible time with a principle who wanted me to do illegal things.  It was an endless battle.  I had to bring out the law books and explain how I was not to do illegal things.  I won that argument.

Reasonable Care means to be reasonable (book says this), and not be negligent.  This means to be knowledgeable in my profession, and clarify where I am not.  “A skill ordinarily possessed by competent persons” in my field…a land and water broker.

Duty to Account:  This means to keep track of monies belonging to the buyer, not commingle  funds.  I generally have to exempt this because I cannot keep track of a buyers monies and mine:   I have had this problem before with principles and personally it does not work.  Because I am so busy, I mix everything up.  Just because I exempt this specific principle does not mean the fiduciary word is negated.  Simply put,  one part is exempted, and this is disclosed .

Duty to notify:   reveal all relevant facts. I like to tease with irrelevant facts.  But disclose anything that may affect value, yet don’t disclose too much.  Disclosure: some persons  underplay this, feint it, pass it over, but to me this is terrible.  Much can be written about this.

Loyalty:  not to compete, no personal interests, not two persons at same time, maintain confidential information.  Some books say this is most important.

Disclosure:  I added this. For me this is most important.  One has to be willing to kill a sale with this.  You can just notify your buyer of something  in a casually manner, telling them of something; then again you can make sure they understand what it is you are saying.  Recognize  still that it is an opinion, but make sure someone heard what you said.  It is the difference between hearing, listening, seeing, comprehending versus maybe just speaking the words…. standing there in a trance while the people all nod like sheep as if they heard.

Benefits of working with me.

These include forestry, revealing  the negative side, water quality, easements, history of timber companies, alternate energies, construction knowledge, and gardening.

I have no forestry degree, yet have worked  and studied consistently throughout my 31 years in forest lands.  In the Gallery part of my main web site is a nice photographic display of timber stand improvements.  This topic of forestry  is huge.  There is no question that if I had a degree in forestry I would be even more beneficial to a buyer, but I am what I am.  I have a critical eye towards the  topic regardless, and favor no specific school of thought, which may be a benefit of not having a degree… who knows.  I have been a member of a forest organization for several years now.  It is amazing to watch the forestry people argue an issue back and forth.  I like to impart this wisdom  to buyers, too.  I can chatter endlessly on this topic… giving very good introductions to multifaceted parts of forestry. 

The negative side.  I think it is good to know all sides of a topic, especially regarding purchasing a camp or land.  You want to be aware of  difficult things that may come along because then you are better able to deal with that adversity.  The philosophy is simple, be prepared, do your best, knowledge is power.

Water quality:  this  topic is another big one.  I know much less about this than forestry,  but I am always watchful for its condition.  I believe in the quality of natural waters.  This is an important part of the UP, obvious to see.  I always ask the question, “ What about the water?”  Our area is greatly affected by Lake Superior…more then you can imagine.    I explain this to people.  I draw your attention to water quality.  Relatively few real estate persons stand up against the sulfide mining issue, which in my opinion reflects their indifference to water quality.

Easements (the legal ability to get to your property):   The UP is a confusing  mess with this.  You have several different kinds.   I rate easements from A-E.  This always needs to be explained to buyers.  Sometimes an easement  can be a 2-3 page legally recorded document with many words that need understanding.  Sometimes the easement can be a single  sentence tacked on to the deed.  Sometimes you can improve the easement, and sometimes you can buy it.  Most importantly, sometimes you can do nothing. 

The refusal of downstate to understand and correct easement law stupefies me. Further, the lack of awareness in our own UP congressmen to propose much-needed change  is sad.  As a buyer you need to understand your easement.

History of the timber companies

I am trying to write a book, with the working title Dividing the UP.  I’ve written about 10% of it or less.  I’m quite slow. The timber companies have been a driving force in the UP.  Their strength is waning though,  because they have spun off  so much of their lands into fragmented  ownership. This is the story of my book.  

On my web site under Four Parks, the CCI and US Steel stories are excellent for a beginning grasp of this topic.  If you are a buyer, you want to know what company is operating in or has/had ownership around and of the land you want to buy.  You want to know this because their cutting/harvesting practices may affect you, or their disposal policies may likewise.  Yet this may depend on you.  Maybe you couldn’t care less.  But an example:  one of my neighbors would ride around in all the nearby CFR lands on her ATV.  A company came along and cut the devil out of their forest lands, and she cried and cried because she used to enjoy their land.  The open lands policy is a plus for the UP, but there is  a custom to it. 

Alternate energies: 

My log cabin camp/second home is totally off the grid.  I have used solar power for about seven years now. My solar collectors run the whole thing. I hope someday to set up a windmill to work with my system.  I love to talk about this energy system.  I go to the energy fair in Wisconsin when I can.  I’ve been to maybe five of them.  It is an exciting topic to me.  We have a generator that sits idle spring, summer, and most of the fall.  The windmill would increase our power capacity.  Costs become a factor.

Gardening

Gardening  is a hobby of mine.  I was also raised with it.  To me the farmers are the power of America.  It is our heart.

Back during the Great Depression, people lived on their gardens.  Are their homes, their castles, related to their gardens?

The round headed apple tree borer is destroying our orchard. I’m leaning how to restore it.  If not for the borer, then the coons, or the winter, or the caterpillars, or the bears.

Customs of the UP.

By customs I am referring to how things are done up here regarding  land use. This topic is very important to me and should be to you-- I have seen some failures because customs were not attended to.   Maybe a class should be presented on this subject.  I try to describe whatever customs I feel are pertinent for my buyer to know,  the bad as well as the good.  I guess I am very chatty on the topic because  I believe in it.  There are many others who don’t follow my lead or beliefs, and in my opinion they suffer for it.  Real estate people generally  don’t volunteer on this topic, maybe because it might hurt the sale. To me this reticence alone is a good reason for hiring a buyer’s broker.

Just one story:  A lake had been used for many, many years as a totally undeveloped wilderness lake. People would fish there and leave. Then three guys from outside the UP came into the good fortune of acquiring  a small portion of waterfront on this lake, and going against local custom in this case, proceeded to cut down way too many trees in front of their new camp site. By doing so they destroyed the long-time secluded nature of this body of water.  Moreover, the three guys put in a metal dock, power boats, and lawn….flaunting their wealth.  As I was visiting with them, they voiced concern about someone stealing their stuff since they were not there much of the time.  My point to them would have been:  do not advertise your wealth. And given the nature of the lake, the dock and motors were so unnecessary, nor  in this case did they need to put in a lawn. The point is to be customarily low-key. Make sure you look at the photo gallery on my main site, under educational things/stuff, to see more of what I mean. 

Log cabin background, camps.

Again under my main website, the McCormick Project is important to illustrate to any buyer my knowledge of log structures.  Additionally under Gallery again is a photo list of log structures I have worked on… about 6 or 7.  This knowledge just flows out of me for a buyer as the topics necessitate.   I have built my own log structures (2), plus an earth house.  I designed an 8000 sq ft lodge.   I have a second book I need to write, this one on my McCormick Project, which was a 2 year-long disassembly of historic log structures.

I have represented a few different guys buying frame structures for renovation.  This is always fun too,  to an extent, especially finding the flaws in a structure.  One individual never bought because we kept finding too many problems in houses he kept looking at.  These residential houses were not my normal skills, although with disclosure I’ll play.

Counsel Buyers

This topic is related to Customs of the UP, yet it is more from a general UP real estate perspective.  Customs are habits and traditions of the Yoopers.  Granted this is a form of counseling. 

• We can talk about snow depth, when plowed and if plowed, when snow comes and goes,  and types of snow.
• About bugs, what types and how intense, for how long and how to deal with them.
• I might explain the differences between a mountaintop, stream frontage, river frontage, lake frontage, a tiny brook.  A meadow versus thick forests.  Cut-over stuff, versus something you can walk in, and their price variations.  Advantages of large  acreage  versus small… I call it quantity versus quality and the detail within. 
• Distances from a hamlet or a city and what such might offer, their benefits and negatives.
• I may focus on negative items: who are your neighbors are, what’s your easement, what your forest is like with its past timber practices, what might happen with your area’s water front.  I then may contrast this with the positives.
• I’ll give all kinds of ideas in an offer to improve your position… yet leave the fair conditions so that you don’t offend the seller, thereby more likely getting a condition you may want.  I know what’s fair in an offer and I teach you this.  You take it from there.  I explain why you may want something fair, versus otherwise.
• Changes are always happening, and I am learning, too. Any time I need help, I state so, and we go get it… whether legal, survey, water testing, timber cruise, building inspector, etc.  And very important, I help interpret what is said by that assistance.

Where does my payment come from?

When I am successful as your Buyer’s Broker, my commission comes out of the sale price at closing. The amount most likely will be as per agreement in the MLS, in conjunction with the contract negotiated between you and me. If it is an unlisted property, it comes out of your pocket at closing.  Any way you look at it, it comes out of the sale price at closing, in an amount we agreed upon by contract.  Some say a Buyer’s Broker will cost you a little less than a traditional broker. I agree with this, but I cannot guarantee such. The spectra of real estate I cover and the conditions I operate on are so complex I could not begin to guarantee  a lesser amount paid as a commission or fee.  I can, however,  guarantee that it will not cost you any more than what another would pay under the traditional seller agency arrangement… interesting, hmm.

In my career I have listed properties at 3% to 15% commission.   It is all negotiated.  Do you pay for what you get?  I also may charge a small up front non-refundable fee to make sure you are serious, although it does depend on what you are seeking.

I am unique

I wish I could give you someone to compare me with, but I do not know of any other land/waterfront/camp Buyer’s Broker.    I looked on the internet for such a broker and could find no one, that is, no one dealing in wilderness-type properties and with the knowledge and background I have.  That’s what I mean by unique. On the internet there are lots of buyer’s brokers in housing, and they are interesting to read in order help you understand the practice.   I wonder if there could be any in farms only. 

I wish I could not use so many “I” in this writing.  All I can say is, this is direct communication  from me, and let it be said with humility. 

Location, location,location  and  Information, Information, Information

1.     My geographical  strength centers in Marquette County’s large  and remote Huron Mountain Range. I also have sufficient experience in southern Marquette County.

1. Next are the Munising and Baraga areas, but less.  Houghton and Newberry I’ll still go into, but even less yet. 
2. Keweenaw and Bruce Crossing less even beyond that.  

I’m least familiar with the UP’s south, and its far eastern and western ends, and may turn down client agent representation unless disclosure of my unfamiliarity is made.

Residential housing I’ll turn down unless disclosure of my unfamiliarity with this market, although some houses are different, and it can be easy for me to represent this to an extent.  Actually some like me for hire because of my construction background and my willingness to be critical.

Associations for entire lake

This is a fascinating way to purchase land.  I have tried this before but never found enough buyers, and therefore unsuccessful and consequently never able to develop this idea.  I would do this if the buyers just came forward.  This could give some exciting  lake waterfront opportunities for the right people and mix…. Such is the idea. 

This idea has been done before and bylaws would be looked at from those same existing groups… I suspect I could get copies of their documentation thus giving a template.  I would suspect the group would be from 4 to 15 persons/families pooling their resources to purchase a given piece of property depending on the size of lake and people gathered.  I would develop this concept.  I would only do this for environmentally  aware types of people and a development that only uses approximately 10% of the lake shoreline yet protects the other 90%.

Sample Buyer's Broker contracts

                              Buyer Broker contact

Retainer agreement: The undersigned client hereby retains the undersigned broker, for a period commencing                                              And terminating at midnight of                                        , for the purpose of locating real property of a nature outlined below and to negotiate terms and conditions for the purchase thereof, which is acceptable to Client.

Brokerage Fee:   Client specifically promises to pay Broker as compensation for locating and negotiating the purchase of a property acceptable to Client a commission of             % of the purchase price, plus              % of the difference between purchase price and the asking price/market value/title insurance value; or a flat fee of                              Dollars.  This money is to be paid if:

1.  Client, or any other person acting for Client or in clientsís behalf, purchases, any real property of the nature described herein during the term hereof, through the services of broker or as presented by Broker.

2. Client, or any other person acting for Client or in Clientís behalf, purchases any real property within two years after termination of this retainer, which property Broker presented or submitted to Client during the term hereof and the description of which was shown to Client.

Client Obligation: Client cannot disclose to others the location and names of properties that are presented by Agent/Broker, Client must recognize that there are trade secrets and properties must be kept confidential.  Should others wish to know about properties as disclosed to Client ó then Client must refer others to Agent/Broker.

Trading:   If Client selects property that can be acquired through trade procedures, than an additional fee/commission of                 Shall be charged to Client, payable to Agent at final closing.

Agent/brokers obligations: In consideration of Clientís agreement set forth above, Broker agrees to use diligence in locating a property acceptable to Client and negotiate terms and conditions for the purchase of said property acceptable to Client.  Exceptions to this diligence effort are:                       

Broker agrees that he will act for Client only and will not accept a fee from the seller, unless full disclosure thereof is made to client.

Agents expenses: Client agrees to pay Agent the sum of                  Delivery and receipt of which is acknowledged by the partiesí signatures to this contract; said sum shall be used for Agentsís expenses in locating potential purchase property.  This sum is not refundable, but will be credited to Clientsís commission expenses on closing.

No Discrimination: Contract offered regardless of race, creed, sex, national origin, and age.

Additional terms and conditions:

Size:

Location:

price range

terms

special requirements?

Notice:  The amount or rate of real estate co;mmisson is not fixed by Law.  They are set by each Broker individually and may be gegotiable between the buyer and Broker

              RECEIPT OF A COPY OF THIS AGREEMENT IS HEREBY ACKNOWLDGGED.

Date

Prepared by White Water Realty

signed  Broker

signed  Client, Address, Phone

Older advertizing, late 1980s

I provide "Buyer Broker" representation under certain conditions. For those of you unfamiliar with the term, Buyer Broker is a contractual arrangement between a real estate broker and a prospective buyer, wherein the broker attempts to locate a desired property for the buyer. In other words, you pay me to find you a property.

During the past 27 years as a remote lands real estate specialist, I have worked on and off as a Buyer's Broker. I've represented buyers purchasing from 10 acres to 12,000 acres to a lot on a lake, and even the entire lake. Looking back, it seems endless, but that's what experience is about. I will bring this expertise and experience, my years of hell and heaven, to the table for a buyer if I feel there's a reasonable chance I can find him or her a desired property.

I will work with a buyer interested in any of the following, all for recreational and/or residential use:

• Forest land or other undeveloped land.
• Some waterfront lands: river, stream, waterfall, and lake.
• Large tract of a preservation nature, 1000s of acres.
• Maybe limited farm country.
• Maybe residential houses with full disclosure of my lack of background

We can arrange a Buyer Broker agreement after all the following:

1. After you, the buyer, have reviewed my current “for sale” listings and exempted yourself from them.
2. After we've talked about what else is or may be available.
3. Maybe after we have established a workable rapport with each other.
4. Signing a Buyer Broker agreement is a business commitment and a legal contract, as well as a key to finding your heart's desire.

As the broker, I have a responsibility to my buyers and/or sellers, and I take that very seriously. Consequently, I usually will not work with the following:

• Those wishing only to buy or rent housing (as a remote lands broker, I am unfamiliar with the housing market), unless full disclosure.
• Geographical areas beyond my expertise, unless full disclosure.
• People I dislike…substantially. Please note: If you don’t like my cow-lick, or worn glasses, or that I operate out of my home, or whatever, then you have the right to tell me I’m not your cup of tea, or just quietly walk away.

Ad I ran        

Buying Real Estate in the Information Age

It’s been said that the most important words in real estate are location, location, location.  In this Information Age, the most important words have become information, information, information.  Your best real estate choice is made with the most complete and accurate information. And increasingly, the way to that information is to hire a Buyer’s Broker to represent your interests.

Back in the day, disclosure of information was at the discretion of the seller. Then came seller disclosure forms and home inspections.  But the issue of

representation remains.

Traditionally, the real estate broker represents  the seller. He or she is thus legally bound to get the best deal for the seller.  A buyer is only a potential customer, not a client.  Shopping for real estate with a seller’s broker is similar to walking into a retail store and having the clerk (seller’s representative) assist you in making your selection.

Years ago I learned the hard way what it meant to represent the seller. I was selling land in northern Marquette County. I’d spend three days with a buyer showing forty acres here and eighty there, giving him  all kinds of choices… becoming clearly acquainted and even developing a partial friendship.

I’d come back to my boss and naively ask him to reduce his price.  It had been 5 or 10% less the previous year—so I reasoned. He snapped at me, “Who do you think you represent?  Did they see last year’s ad?”  I  got real quiet.  He was right.  I represented the seller, and my job was to get the highest price.

As a Buyer’s Broker I represent you, the serious buyer.

What is a Buyer’s Broker? 

He or she is  a

• licensed real estate professional hired by the buyer to represent that buyer,
• To find an acceptable property and represent the buyer’s interest in negotiations to purchase that property at an acceptable price,
• Is not paid until purchase. The commission  comes from the property’s sale price.
• Who represents the buyer as his fiduciary
• Who seeks the buyer’s best interest

Over the 26 years I have owned my small broker agency, back and forth from buyer representation to seller representation I have gone. I have done both, but

now  I am concentrating on representing you, the buyer.

Being a Buyer’s Broker means taking whatever time is needed to listen to the buyer and discern his needs. A Buyer’s Broker is impartial regarding all properties and listing agencies. Sometimes, a problem is found, be it with easements, the area, the price,  distances, mineral rights, timber, neighbors, water quality, even the unexpected.  A Buyer’s Broker must be forthright in disclosing this type of negative information to you, the  buyer.  But positive information is also found!

My specialty has always been selling forest land. I have sought to understand critically all its factors. When one has focused on forests and waters you begin to see deeply, more than one would expect.  Topics come up like limnology, survey, forestry techniques, log construction (camps), road building, and mining potential, especially sulfide mining. Again, it is not to fear the worst-case scenarios, but permit the buyer free and unobstructed choice, with the best information I can find and provide.

For me, it is satisfying to find the right property for you the buyer, to inform you of U.P. customs you may be unfamiliar with, and to show how you may care for  the land. 

In this age of information, please take a look if you can at my web site. There you will find over 400 photos, and information, information, information!

Richard Hendricksen

White Water Realty

325 High St. Marquette, MI 906-228-5257

www.richardhendricksen.com