Should You Hire a Buyer’s Broker in NYC?

There are few times as exciting as when you decide to buy a home. But with that excitement, there also come many potential headaches that you need to prepare for. There’ll be mortgages to apply for, contracts to negotiate, and slippery listing agents to deal with. That last point should be on every new buyer’s radar. A listing agent will represent each seller, sometimes referred to as a seller’s agent. They look out for the sellers and do all they can to get them the highest sales price possible.

So how does a buyer protect themselves against this? Simply by hiring a buyer’s agent to represent their best interests. The reasons for seeking buyer representation go beyond protecting you from the listing agent. There are a bunch of good reasons for hiring one. Here are 12 of them.

They know the local real estate market.

A primary reason for hiring a buyer’s agent is that they know the local market better. Each market is different from town to town and even neighborhood to neighborhood. Anyone who hopes to make a successful purchase should be represented by an experienced agent who knows the local they intend to buy.

They can help with financing.

For many, financing will be the most challenging part of the home-buying process. Lenders like to see a good credit score and good credit history. Having a buyer’s agent can help level the playing field and improve your chances of securing financing for those with poor credit. They’re not miracle workers, but they can help navigate the intricacies of financing options. They can also help you decide which mortgage program best suits your situation and deal with all the paperwork that any mortgage application entails.

They know the neighborhood and buildings.

A key thing to remember about the home buying process is that you’re not just buying a home but also buying the neighborhood with it. This adds another layer of complexity to the buying process that a buyer’s agent can help you with. No amount of online research can replace the knowledge and experience you’ll gain from an experienced agent who knows the neighborhood.

For instance, you’ll want to know how well your chosen neighborhood caters to your preferred lifestyle. Do you rely on public transport to get around? Then you’ll need to know where the closest subway station is. If you’re an outgoing person, you’ll want to know about the nightlife and entertainment options. Anyone with children or plans to soon will need to know what school zone they’ll fall into. These are just some neighborhood considerations that a trained agent can help you with.

This also applies to buildings, which can vary in how they’re run or organized. For instance, is the building a co-op or condo? What are the house rules, and how strict or law are they about accepting new buyers? All of these things can make a crucial difference when making an offer. Gathering all this information on your own can be time-consuming and still won’t match what an agent can do. Elika agents can handle all of this for you, so you don’t have to.

They can help with the details and ensure you choose the right property.

Even at the best of times, the housing stock in NYC can be pretty limited. It’s rare for a buyer to find a home that ticks all the boxes within their budget. Compromises will have to be a made, and a buyer’s agent can help steer you towards the home that best suits your needs and budget. When deciding between multiple listings, an agent can help you focus on those properties that match your needs, wants, and best interests.

They can also help with choosing apartments for you and making appointments. All this takes time, and without an agent, it’s hard to know which apartments and buildings are worth your time.

They might have access to off-market listings.

One clear advantage of having a buyer’s agent is that they may have access to off-market listings without going public, yet known as a pocket listing. These hidden properties are entirely invisible to buyers who go without representation. Access to these listings can prove vital in a cut-throat competitive market like NYC.

They can help with problematic co-op purchases.

About 75% of Manhattan’s apartments are co-ops. This can be problematic for those unfamiliar with their ownership structure or purchasing process. Even for those familiar with them, buying one can still prove a long and stressful journey. With the usual negotiating, offers, and counteroffers, buyers must assemble a board package and pass the board interview. This requires excellent paperwork and preparation, with no guarantee that your application will be accepted.

An experienced agent who knows the area and the board can make this step easier. Along with helping you compile the perfect board package, they can coach you on what to expect in the interview. You’ll be prepared and know what to expect before going in.

They can provide investment advice.

As one of the biggest and most popular real estate markets globally, NYC is a tough market to get into for any newcomer. Hiring an agent can give you the boost you need to get started and make the right decisions. They can help you model anticipated cash flows, internal return rates, cap rates, and expected net profits. They can also connect you with all the right people, from lenders to contractors to property managers. If you plan to become a landlord, an Elika agent can also help you market the homes and find the right tenants.

They can handle negotiations.

Negotiations are a crucial part of any home transaction, and this is where the advantage of having an agent begins to show itself. Even if you consider yourself a good negotiator, you may still come up short compared to an agent with insider knowledge of the market. It also helps to have the negotiator be someone who can keep emotion out of it. This keeps you safe from high-pressure tactics that affect a buyer’s emotions.

Negotiations can be challenging, but a great buyer’s agent will know how to conduct them so you can be sure of getting a fair deal. They’ll also perform a comparative market analysis (CMA) to determine the right asking price to start negotiations. As an exclusive buyer’s agency, you can be confident that Elika has your back throughout all buying processes.

They can manage communications with listing agents.

In any home transaction, emotions can run high. This is why it helps to have a buyer’s agent handle all communications between the listing agent and sellers. It puts an emotional stopgap between you and the property. Since the buyer’s agent is an impartial advisor, they won’t sway you as much as you might be by emotional pressure.

They can handle the condo and co-op buying process.

There’s a lot that goes on when purchasing a property. No matter how much research you do on buying, you may still be tripped up by the unexpected. Hiring an agent can make the buying process a lot less opaque. If any problems arise, like a bad inspection report or a lien on the building, you’ll be glad to have an agent who can get things back on track. They’ll be an invaluable guide through the twists and turns you will surely meet on your journey.

They can recommend attorneys, mortgage lenders, home inspectors, and more.

Hiring a buyer’s agent doesn’t just give you access to all their knowledge and experience. It also gives you access to all the other experts you’ll need on the homebuying journey. You’ll need real estate attorneys, home inspectors, contractors, architects, interior designers, and many other experts before and after purchasing your home. Your Elika Agent will have a calling list of experts they’ve worked with and can vouch for when needed. Nothing says you have to take their recommendations, but if you can’t find a reason not to, that’s one less thing to worry about.

You won’t pay anything out of pocket for their services.

One final reason for hiring a buyer’s agent, which clinches it for most people, is that you won’t pay extra for their services. Like listing agents, buyer’s agents are paid through commissions that come out of the proceeds of the sale, and the seller, not the buyer, always pays this. In NYC, real estate commissions are about 5-6% of the sales price and are co-brokered 50/50 between the listing brokerage and the buyer’s brokerage.

That commission still has to be paid if you were to go without representation. However, it will then go entirely to the listing brokerage. It makes little sense not to hire a buyer’s agent, and it costs you nothing extra and leads to many benefits that you would otherwise miss out on.