Log In   ·   Become A Member

Hamptons Real Estate: Selling Season In Full Swing

John A. Viteritti

For sale signs like this are everywhere in the Hamptons this time of year. (Photo: iStockphoto.com)

It's that time of year again in the Hamptons and the East End of Long Island. The trees will soon sprout their leaves, the snow birds will be returning, and the summer people will be arriving, the congestion that they bring tolerated for the contribution they make to our economy.

It is also the time of the year when real estate "for sale" signs sprout up before our fall crops do. Every business has a season. For real estate in the Hamptons it is mainly April through October. Soon the surge of sales will begin.

This next series of articles will attempt to provide advice to sellers and buyers which may shed some light on the process of selling and buying. The first article will focus on the seller.

There are three types of employment contracts that a seller may enter into with a real estate broker: an exclusive right to sell, an exclusive agency, and an open listing.

With an exclusive right to sell, the brokerage firm that the seller lists the property with is entitled to a commission if that firm sells property, if another brokerage firm sells it, or if the seller sells it. This is the type of listing that gives the broker the most incentive because regardless of who sells it, that firm knows it will be entitled to compensation for the time and money it spends marketing the property and engaging the cooperation of other brokers with whom they will share the commission.

With an exclusive agency, the seller has the right to sell the property without owing a commission to the brokerage firm they list the property with unless it is to a buyer who was shown to the property by that brokerage firm or any other brokerage firm. Brokers will typically avoid this type of listing because they and any other brokers whose cooperation they engage could all be working for nothing. They could be competing not only with each other but also the owner of the property.

With an open listing, the owner may sell the property without owing a commission to any broker unless the buyer was shown the property by a broker, and would owe a commission only to the broker who sells the property. This type of listing agreement provides brokers with the least incentive. There is also the potential of vicarious liability for sellers who enter into open listing agreements with a number of real estate brokerage firms rather than an exclusive agent.

A seller can also avoid problematic issues that could affect the sale of the property by having available copies of certificates of occupancy, real estate tax statements, surveys, covenants and restrictions, utility costs, and any other documents related to the property.

I also think it is advisable to decide which attorney you might use to represent you in the sale and consult with the attorney before putting the property on the market. This can help you avoid later problems that could adversely affect the selling experience.

The second article posted next week will address issues that focus on the buyer.

John is a St. John's University graduate, licensed Real Estate broker, lecturer, teaches real estate license classes at LIU, NYU, and Cook Maran Real Estate School, and is a well-respected consultant to the real estate industry. www.johnaviteritti.com

Be the first to comment on this article. (Just fill out the form below)

Submit Your Comment

Please note, you are not currently logged in. Your comment will be submitted as a guest.
To submit your comment as a member, please click here.
Your Name:
* Comments will be reviewed and posted in a timely fashion
* All fields are required
What color is a banana?
(For spam prevention, thanks)
Gary R. DePersia, Corcoran Real Estate
With over $2 billion in transactions on the East End and since 1995, Gary DePersia is consistently ranked among the top producers in the Hamptons. A year-on-year member of The Corcoran Group President’s Council, he has qualified as a national list maker since 2007. In 2008 he was Corcoran's top broker on the East End by sales volume and rental units; and ranked as the nation’s 4th top broker. In the 2017 REAL Trends & The Wall Street Journal list of America’s top real estate professionals, he was designated #26 nationally, #4 in the Hamptons and #3 at Corcoran overall by volume with nearly $200 million of transactions for the past year. His office operates with four licensed assistants allowing him to build a business stretching from Southampton to Montauk and Sagaponack to Shelter Island. gdp@corcoran.com

Bridgehampton National Bank
For over 100 years Bridgehampton National Bank has been the East End's hometown bank. Many success stories...one bank, BNB!

Advertise on Hamptons.com - Have your business be seen by over 2 million viewers including NEW searches
Hamptons.com- Our exclusive online magazine has 2.6 million Page Views YTD for 2015. Contact us to join our elite group of clients that benefit from having a presence on the Hamptons award winning publication www.Hamptons.com

Hamptons Carpet One Floor & Home
We pay less,and so do you.With over 1,000 stores in our buying group, we can get the lowest prices from the best flooring manufacturers — and pass the savings on to you.Visit our other locations: Hamptons Carpet One Floor & Home, 675 North Sea Road,Southampton, NY 11968

Southampton Masonry-Visiting the Southampton or the Wainscott locations is an exciting experience.
Southampton Masonry has been serving Long Island's masonry and tile needs since 1975. Delivering quality products from Manhattan to Montauk for over three decades. The company's continued success is due primarily to their number one priority: customer satisfaction, with a promise of prompt and courteous service from the professional, knowledgeable staff. Southampton Masonry has the largest inventory on the east end. As direct importers they can offer a large variety of the finest quality products at the most competitive pricing for both your interior and exterior projects.

Despatch of Southampton
Despatch of Southampton has been moving homes locally on the East End for decades. We operate a well-maintained fleet of vehicles that can accommodate any size move. On a day to day basis we service moves from and to New York City.

RJD Gallery specializes in contemporary art with a focus on Magical, Figurative Realism, Narrative Portraiture and Urban Landscape.
We exhibit representational artists from around the world, who produce fine art of exceptional quality that challenge collectors to contemplate concepts about the artist, themselves, and our human experience. Utilizing timeless techniques in creating their drawings, paintings and sculptures, our artists have developed unique, signature styles that present a current vision of our world.

CP Complete- Landscape Design & Construction
Paul Guillo And Chris Hall Two Of The Most Respected Names In The Community Together, they are partners in CP Complete. They bring their years of experience and integrity to creating and renovating luxury backyards.

CP Complete- Landscape Design & Construction
Paul Guillo And Chris Hall Two Of The Most Respected Names In The Community Together, they are partners in CP Complete. They bring their years of experience and integrity to creating and renovating luxury backyards.