Why should a buyer hire a broker?

So you don’t have to use a broker. 

There is no law requiring a buyer to use a broker in New York

Everything is online, I know what I want and I can find everything.  Why should I use a buyer’s broker? 

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It’s time for transparency and democracy!  Let me break down the things a broker does and let you be the judge on whether it is worth your money.

1. The Search

yes everything is out there in this era of big data.  But it takes a long time for an average buyer to reconcile what the market has to offer and what he or she wants.  New York real estate is all about compromises.  A buyer’s broker can help you shorten the search period and be your sounding board during the search process.  The broker is the shrink who helps you cut through a labyrinth of unimportant things.  Brokers look at apartments and talk to buyers/sellers every day.  We know what the market is (not) looking for, so we can give you an objective opinion for your resale value.  While you are absorbed in find YOUR dream home, the broker can be there to tell you whether the rest of the world will like it or not.  I wake up and the first hour of my day is spent looking at new listings that I flag for my various buyers.  By hiring a buyer’s broker, you also gain the consistency and professionalism.  In short – you save time, gain professional opinion and a much smoother and enjoyable process.

2. Valuation and Negotiation

The value of a home is arrived at by looking at comps in the building and in the neighborhood.  Again, all the data is there.  But a broker would have the latest information.  A broker may have just seen a comparable apartment in the area that is being negotiated.  By being in the market every day, a good broker has a feeling for how much a place is worth without looking at comps.  By calculating the comps and by “feeling”, a broker has 2 ways of framing the value.  There is confidence.  The confidence of knowing that you are not missing anything.  Some direct buyers always have this nagging suspicion that they are not seeing the whole picture, that the seller is not telling them the truth.  Armed with market and product knowledge, a good broker will negotiate with the seller with confidence.  I can usually tell if something is missing and I will tell my buyers to take note of that.  Otherwise I assure my buyers to not second-guess.  In short – you gain market knowledge, product knowledge and a confident negotiation process to maximize your best interest.

3. Trouble-shooting and Process Management

So much could go wrong after an accepted offer.  I can tell you most of my deals have some issues during due diligence.  Some are serious and worth breaking a deal.  But many are simply emotions running high from both sides.  A good broker approaches issues with an objective mind.  He/she tells you exactly what you are dealing with and gives you all the information so you can make an informed decision at every turn.  Of course, there is always the time-consuming Board Application.  The broker will help you assemble, review and submit that.  A broker can be there to tackle each issue with your best interest in mind.  And you gain – time!

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