Should You Hire a Buyer's Agent

Many people think they can get a lower price by dealing directly with the listing agent. That couldn’t be further from the truth. By law, a listing agent is obligated to represent the seller and get the best possible terms for them, meaning a higher price for you! When you hire a Buyer’s Agent, you have someone who’s legally obligated to make sure you get the best terms and walk you through the process seamlessly. A good Buyer’s Agent will save you time and frustration, and make sure you don’t overpay! Here are some other reasons you should hire a Buyer’s Agent when you want to buy a new home.

1-We know the market and how much the homes are really worth so you don’t pay too much

When figuring out what a home is worth, we look at what similar homes have sold for recently. The most recent information available online is usually months old by the time websites get updated.
As a Buyer’s Agent, my relationships with other agents allow me to get up to the minute information about the market. I find out the prices for the newly under contract listings. That information that won’t be publicly available for months but gives us the clearest idea of the current market value and puts us (you) in the best negotiating position.

2-We know how to make your offer stronger than others, even if you aren’t offering a higher price.

Highest price doesn’t always mean accepted offer. There are other terms that can be more important to a seller – closing date, rent back, contingencies, and more. This is even more true when working with co-ops. A good offer will demonstrate to the seller that you will be able to get board approval. A Buyer’s Agent should highlight your qualifications in an offer. As a listing agent, I have had to advise sellers to turn down high price offers because the buyers wouldn’t meet the qualifications of the board

3-We handle the difficult conversations and negotiations.

The buying process can be a rollercoaster of emotions under the best circumstances. It is important for negotiations to be handled with a clear head. Your agent is working in your best interests, but will be more objective and better able to handle negotiations.

4-We have all of the contacts and referrals you need – appraisers, attorneys, inspectors, mortgage lenders, etc.

It takes a team to close a successful purchase in New York City. There is a lot that can go wrong or slow the process, so having trusted partners is a key to success. Don’t trust google to find a lender or inspector.

5-We know how to organize and present the board package and prepare you for the interview so you get approved for co-ops.

Co-op boards have a responsibility to make sure any buyers can truly afford to own the apartment, as well as be good neighbors. It is important that your board package is clear and tells the right story. Finances and lifestyles can be difficult to  explain and understand. As a buyer’s agent, I know what is important to a board and how to demonstrate a buyer’s qualifications.

6-We’re there to walk you through the entire, complex process and answer all of the questions you have.

A Buyer’s agent is there to manage all aspects of your transaction, from helping you choose between a co-op and a condo to setting expectations, to making sure everything gets accomplished along the proper timeline, to making sure your board package is presented in its best light to get you the highest chance of approval.

7- We fight for your best interests.

- A Listing Agent, who represents the seller, is legally obligated to try to get the best terms for their client, which means the highest price from you, the buyer. They may offer you an extra 1%-2% kickback from saving commission, but certainly won’t tell you the seller might have accepted 7%-10% less. A skilled Buyer’s Agent is obligated to get you the best terms, and should be able to negotiate a better deal on your behalf.

Commissions

 There has been a lot of talk lately in the news about Buyer’s Agent commissions. Commissions have always been negotiable, but were often not really talked about with buyers. Now, it should be a discussion with your agent and they will need you to sign a Buyer’s Agreement. It can be for a single home, or a period of time. This promises a minimum payment for your agent, even if it’s paid for by the seller. In practice, I still see seller’s offering buyer broker compensation, but it can always be included in any offer any way. A good agent can help explain to a seller that having the payment come from the seller’s proceeds means the buyer can finance it into the mortgage. The money in their pocket at the end of the day is all that matters. Money spent on protecting your long term interests is always money well spent.