Whether it’s a starter studio or pied-à-terre, buying a place in NYC can be a challenging experience. Fortunately, a buyer’s agent can make the process less daunting. How is that, exactly? Many different parties are involved in the home buying process, from seller’s agents to real estate lawyers. A buyer’s agent will navigate all sides as your advocate.
What Does a Buyer’s Agent Do?
A buyer agent’s job is to make your transaction easy and protect you throughout the process. They will know what should be done at each step and help you avoid mistakes often made by inexperienced buyers.
They will also educate you about the neighborhood, housing stock, current market conditions, and any other questions you may have. When the time comes to make an offer, they’ll perform a valuation of the property, let you know approximately how much it’s worth, and negotiate on your behalf. If you’re able to reach an accepted offer, they’ll make sure things go smoothly from the signed contract to the closing table.
It’s also important to know what a buyer’s agent does not do. They are not there to give legal advice or look for construction defects. That is where your attorney and inspector take over.
Do You Really Need a Buyer’s Agent?
With so much information online these days, it’s easy to wonder if you actually need a buyer’s agent. You can find, view, and submit offers on apartments all on your own. Why complicate things with a buyer’s agent?
We should separate buyers into two camps.
First-time buyers should always use an agent as they have not been through the process before. It’s not always clear what’s best to do or even necessary to do and having someone guide you at each step is incredibly valuable.
Repeat buyers who are knowledgeable and independent might feel like they can handle everything themselves. But even then, with an agent-free (or better), simply having someone to make the transaction smoother and easier is helpful. Want to see an apartment? They’ll schedule it. What are the comps? They’ll put them together. What’s the status of the contract? They’ll find out. They’ll also manage one of the most annoying parts of the process — the co-op or condo application.
If you do your homework, you’ll also find using a buyer’s agent can save you money. It sounds a bit counterintuitive — how can hiring someone save you money? Because of the way listing agreements are structured, all buyers can benefit from getting a commission rebate. In NYC, most buyers save 2% of the purchase price.
When Should You Hire an Agent?
Ask any real estate broker, and most will tell serious shoppers to find a buyer’s agent instantly. That way, the agent can get up to speed on the home shopper’s needs, advise them on the market, and then identify the right properties for them.
How Much Does the Agent Cost?
As a buyer, you’ll never pay any fees to your agent. The amount of compensation (“co-broke”) is listed in the broker portal so your agent knows how much they would be paid on any listing before you see it — usually between 5% and 6%. As long as your agent is a member of the same industry organization as the listing agent, they will be paid. A commission offered is essentially a contract — the seller cannot refuse to pay your agent.
How Do You Find a Buyer’s Agent?
The best way to find a buyer’s agent, by far, is to ask for a recommendation. If your friend or family member had a good experience, chances are you will too. The agent will be experienced and make sure to take especially good care of a referral.
You can also find a buyer’s agent online. Look for things like a web presence, reviews, deal experience, and anything else that gives you comfort they’ll get the job done. To actually hire an agent, you simply start working with them. There shouldn’t be any payment required to kick things off.
