With more than 250 neighborhoods to choose from, New York City offers something for everyone. Given the plethora of options and online resources, buyers might consider navigating the process without a buyer’s agent. Experienced homebuyers may be reluctant to work exclusively with one broker, while first-time buyers may be anxious about encountering aggressive agents.
However, a home or apartment is likely the largest purchase an individual will make in their lifetime. A buyer’s agent, also called a buyer’s broker, is a licensed real estate agent who represents the buyer throughout the process of purchasing a home. Finding the right buyer’s agent, even if it is later in the buying process, has many benefits for new and veteran home buyers.
Local Expertise
Each of New York City’s neighborhoods constitutes its own sub-market, and a buyer’s agent knows the city right down to the street level. As you look for a buyer’s agent, consider one with experience in making deals in your preferred neighborhood. They will be able to help you narrow your search to houses that meet your specific criteria, and they have the experience to help you evaluate and assess properties. Because they are familiar with the neighborhood, they can help you manage your expectations when it comes to formulating an attractive offer.
You might even find a buyer’s agent with experience in purchasing in the exact building you are considering. This is a huge benefit, as the agent can offer insights on how to create a winning bid and can provide information about what to expect when living in the building.
An Extra Set of Eyes
Buyers often see what they want to see. A seller’s agent will answer your questions, but they do not have a fiduciary duty to point out an apartment’s drawbacks. Additionally, New York City apartment hunters will need to consider factors like resale value, renovations, monthly fees, and utility costs. A buyer’s agent acts as another set of eyes to evaluate less obvious problems in a property. Also, the buyer’s agent is bound by law to disclose any known issues that may affect the property’s value.
Negotiating Power
Working with a buyer’s agent is the best way to ensure you get the best possible price for your house or apartment. A buyer’s agent has access to sales data that can create accurate, up-to-date real estate comps. While buyers can access some of this information themselves, professional brokers know how to utilize precise data points to create an effective negotiating strategy. Because they’ve worked with so many buyers, they know what works and what doesn’t.
Especially in a buyer’s market, buyers may think they are getting a deal if the list price has been discounted. However, an experienced buyer’s agent with recent nearby transactions may know that the property is still overpriced. Without real-time data and knowledge of local trends, you might still overpay.
Protecting Your Best Interests
If you are a savvy online researcher and a great negotiator, you might consider working directly with the listing agent to save money. However, the listing agent does not have your best interest at heart, as you are not their client. Their fiduciary duty is to their client, the seller. Even if you enter a dual agency relationship, the agent will not consider your interests exclusively.
A buyer’s agent, on the other hand, is your personal advocate. They have a legal obligation to pursue your interests, helping you get the best deal and the smoothest transaction. Additionally, having your own representative can remove some of the stress from the negotiation process. Real estate transactions can be complicated, and dealing directly with the seller can be tricky. With an objective third party agent, buyers and sellers can communicate more effectively. Further, working with a buyer’s agent can reduce the leakage of information between buyer and seller, which can damage negotiations.
Assistance with Board Package Applications
If you purchase an apartment in New York City, you will likely need to prepare a board application. Particularly in co-op apartment buildings, these applications can be lengthy, complex, and stringent regarding the information you must provide as a buyer candidate.
A buyer’s agent working in New York City has navigated this process numerous times and will know exactly which questions to ask to make the process as seamless and efficient as possible. Further, they will know tips and tricks to maximize your potential for approval. They may have even worked with the specific building’s board, a powerful advantage in the application and interview process.
Smart Financial Decision
Some home buyers believe they will save money by negotiating directly with the selling agent, as they will save on commission fees paid to their own agent. However, listing agents do not typically share their commission with a buyer’s agent. Rather, the listing agent and the seller privately negotiate commissions. As the buyer, you do not know if the listing agent is truly reducing their rate to get a better deal for you.
Without a representative, you are more vulnerable to paying a higher price than if you have someone negotiating on your behalf. By working without a buyer’s agent, you will likely pay the same or more, while the listing agent will simply make twice as much money.
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