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, DOS Certified Instructor, lecturer, teaches real estate license classes at Cook Maran Real Estate School, and is a well-respected consultant to the real estate industry. He previously taught at LIU and NYU. www.johnaviteritti.com
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.
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.
Hamptons luxury real estate specialist for 34 years, Andrea Ackerman offers outstanding expertise in the field. Trusted, experienced and successful, Andrea has solidified herself as the go-to broker of the Hamptons and a wholehearted advocate for her clients. A pioneer in the real estate industry on the East End of Long Island, she is driven by her passion for the business. Andrea is based in the Bridgehampton office of Brown Harris Stevens as a licensed real estate associate broker and consultant.
Formerly, a principal partner and Senior Director at Brown Harris Stevens, Andrea now assists in developing their corporate strategy for the Hamptons region, advising other brokers and sales associates, as well as being one of the top producers and listors.
Southrifty Drug is a small, neighborhood pharmacy with limited shelf space, and we have to be very selective about which over-the-counter items we carry. As a result you'll find a no nonsense concentration of very effective, high quality and useful products on our shelves. In this new section, we feature a number of these products that we feel are especially worthy of your consideration.
Burner Law Group, P.C. are full service elder law attorneys concentrating in the areas of Estate Planning, Trust and Estate Administration and Litigation, Special Needs Planning, Guardianship and Elder Law. Offices in East Setauket‚ NY, Westhampton Beach, NY, and New York, NY.
Our menu focuses on seafood and Greek dishes such as salt baked fish, seafood pasta and Mediterranean mezze. Our wine list has been awarded The Award of Excellence from Wine Spectator and boasts the largest selection of rosé in the Hamptons. The name Calissa is derived from the brightest constellation in the summer sky.Our sister restaurants in New York are Amali and Bar Marseille, opening 2020 in the Rockaways. Calissa offers private dining spaces for groups from 10 to 300 people. To plan your next wedding, corporate event or gathering, please email firstname.lastname@example.org. 1020 MONTAUK HIGHWAY, WATER MILL
Suburban Propane has been serving the energy needs for home owners and business in the Hampton’s for decades. We offer friendly service by local professionals you know and trust, plus the peace of mind that comes from knowing we are among the leaders in the industry for safety.