Why You Should Pay a Buyer’s Agent Commission

As the real estate landscape shifts following the decoupling of commissions between buyers and sellers, many prospective homebuyers question hiring a buyer’s agent, especially when the seller does not offer a commission. This change is most apparent in boroughs like Brooklyn, Queens, and the Bronx, where some buyers have reduced commissions or may no longer have a seller-paid commission built into their purchase price. While this may seem like a reason to forgo an agent, the truth is that a skilled buyer’s agent—whether or not the seller offers a commission—can provide significant value in securing the best property for the best possible price, protecting your financial interests, and ensuring that your long-term investment is sound.

Though Manhattan properties still typically include commissions for buyer’s agents, as advocated by REBNY (Real Estate Board of New York) to ensure maximum exposure for sellers, hiring an agent is invaluable when there’s no commission on offer. Furthermore, for buyers who require less involvement from their agent, there are now flexible, à la carte options like those offered by ELIKA Real Estate.

Market Expertise and Comparative Market Analysis

Even if a seller isn’t offering a commission, a buyer’s agent’s ability to provide a thorough Comparative Market Analysis (CMA) remains a crucial resource. This in-depth analysis of comparable sales, market trends, and neighborhood valuations helps ensure you don’t overpay for a property. A well-executed CMA enables an agent to negotiate based on concrete data, potentially saving buyers thousands of dollars by preventing them from overpaying for a property. The more thorough the analysis, the more informed the negotiations will be, particularly in competitive markets where price inflation is expected.

The Power of Negotiation: Terms and Price

Negotiation is more than securing the lowest price—it’s about getting the best deal for your long-term interests. A skilled buyer’s agent negotiates favorable terms like repairs, closing cost assistance, and contingencies that protect you. In competitive markets, agents can strategically structure offers with escalation clauses, helping you stand out without overpaying. They also know how to handle multiple-offer situations, ensuring your offer remains competitive while aligning with your budget and goals.

The Risk of Overpricing

In any real estate market, particularly in New York City, one of the most significant risks for buyers is overpaying for a property that doesn’t offer good value. A buyer’s agent can help identify these risks by conducting a detailed CMA and pointing out properties priced above market value. In many cases, agents have saved their clients anywhere from 5% to 10%+ of a property’s listed price simply by helping them avoid grossly overpriced or misvalued properties.

This is particularly true in New York, where the pace of sales can drive prices up quickly, sometimes leading to emotional, price-driven decisions. Without an experienced agent, buyers may inadvertently become part of a bidding war for a property that, in reality, is worth much less than its asking price.

Why a Buyer’s Agent is Crucial When Purchasing a Co-op

Buying a co-op is a different process compared to purchasing a condo or a single-family home, and this is where the expertise of a buyer’s agent becomes even more valuable. Co-op purchases come with additional complexities, the most notable being the co-op board approval process.

Unlike a condo, which is a more straightforward real estate transaction, a co-op is essentially a share in a corporation, and prospective buyers must undergo an approval process by the co-op board. The board’s approval is based on more than just the financial aspects; they will also assess your overall suitability as a community member. This is where an experienced buyer’s agent truly shines.

A seasoned buyer’s agent understands how to structure your offer and tailor your profile to maximize its appeal to the board. They know the nuances of what co-op boards look for, such as:

• Financial Stability: Co-ops require extensive financial disclosure, including proof of income, assets, and liabilities. An experienced buyer’s agent will help you present your financial documents in the best light, emphasizing your stability and suitability as a shareholder.
• Personal Profile: Many co-op boards care just as much about who you are as they do about your financial standing. A skilled buyer’s agent will work with you to craft a profile that showcases you as an ideal fit for the building’s community. They may assist in writing a compelling cover letter or advise you on presenting your background and lifestyle, ensuring you make the best impression.
• Understanding the Board’s Expectations: Co-op boards have their requirements and priorities. A knowledgeable buyer’s agent will help you tailor your qualifications to meet the board’s expectations, increasing your chances of passing the review and interview process.

Furthermore, buyer agents familiar with the local market and specific co-op buildings often have insights into the culture and personality of different buildings. This knowledge allows them to match you with the right property better and negotiate terms that will be favorable for board approval.

In short, the buyer’s agent makes your offer stand out. They ensure that it meets the financial criteria and aligns with the board’s expectations, increasing your chances of a successful transaction.

Access to Off-Market Listings

A seasoned buyer’s agent is invaluable when looking for properties not actively listed on the market. Through years of experience and established relationships with top brokers, these agents often have access to off-market or “pocket listings“—properties that aren’t publicly advertised but are available for sale. If you’re interested in a specific building with no current inventory, an experienced agent can tap into their network to connect with sellers who may be willing to sell, even if they haven’t yet listed their property. This off-market knowledge can give you an edge, especially in tight markets with scarce inventory. By leveraging relationships with brokers who manage private portfolios or connections with property owners, a skilled buyer’s agent can sometimes convince a seller to entertain an offer, offering you exclusive opportunities that other buyers may miss.

À la Carte Buyer’s Agent Services: A Flexible Option

For those who don’t need full-service representation but still want expert guidance, ELIKA Real Estate offers a flexible, à la carte service model that allows buyers to pick and choose the services they need based on their situation. This can be an ideal solution for those who have already found a property they’re interested in but still want the expertise of an agent to navigate critical parts of the transaction, such as:

• Reviewing the Listing Price: ELIKA provides a detailed analysis to ensure the asking price is fair and competitive with current market conditions.
• Submitting and Negotiating an Offer: They’ll draft and submit an offer on your behalf and negotiate to get the best price and terms possible.
• Preparing and Submitting a Condo or Co-op Application: ELIKA will handle the paperwork and submit a complete and accurate application for those purchasing co-ops or condos.
• Expert Advice and Guidance: Throughout the process, the team will provide tailored advice to ensure you make informed decisions at every stage.

Pricing for these services varies depending on the property value:

• $3,500 for properties up to $750,000
• $5,000 for properties ranging from $750,000 to $1.5 million
• $7,500 for properties priced from $1.5 million to $3 million

These flexible options allow buyers to access top-tier expertise without committing to a full-service arrangement. For buyers who may only need support with pricing, negotiations, or applications, these services provide a cost-effective way to ensure they’re making the best possible decision without overpaying.

Don’t Opt for the Discount Agent

While saving money is essential for most buyers, opting for a discount agent can ultimately cost you more in the long run. A discount agent—often someone who is inexperienced, lacks local market knowledge, how to differentiate between a poor, sound, or great property, or doesn’t have the connections to provide comprehensive services—may charge a lower rate, but they can lack the resources necessary to effectively negotiate the best price or protect your interests throughout the transaction. Agents who know their worth typically charge higher fees. Still, they do so because they offer extensive industry experience, expert knowledge, and access to powerful resources like market data, exclusive listings, and networks of industry professionals.

An agent with experience will be far better positioned to guide you through the complexities of purchasing a property, offering valuable insights that will ultimately save you money and time. More importantly, they’ll know how to navigate New York’s competitive real estate market and help you avoid costly mistakes. An experienced agent also has the right relationships with other professionals—mortgage brokers, inspectors, or lawyers—that ensure the deal goes smoothly. In contrast, a discount agent without these resources could expose you to unforeseen complications and risks. Additionally, an agent not a member of professional organizations like REBNY may not have access to the same listing databases, exclusive properties, or connections that a full-fledged member would.

The value of a seasoned, knowledgeable agent cannot be overstated. Investing in an experienced agent can result in significant savings in terms of negotiation power and long-term investment security.

Maximizing Your Investment

The role of a buyer’s agent goes far beyond merely securing the best deal at the closing table. A knowledgeable agent ensures that the property you’re purchasing offers the best long-term return on your investment. This means guiding you toward properties with strong appreciation potential, ensuring your purchase is financially sound, and protecting you from making a decision that could undermine your financial future.

In a city like New York, where the real estate market is notorious for its complexity, an agent provides a layer of security that ensures you’re not just buying a home but making an investment that will yield financial returns for years to come.​

A Buyer’s Agent Is Worth the Investment

While the decoupling of commissions may cause some buyers to question the necessity of hiring a buyer’s agent, their expertise, negotiation skills, and market insights remain invaluable. In a competitive and fast-moving market like New York City, an experienced buyer’s agent ensures you’re making an informed decision and helps you secure the best possible deal on your next home. Whether you’re seeking full-service representation or tailored, à la carte options like those offered by ELIKA Real Estate, hiring a skilled buyer’s agent protects your financial interests, helps you avoid costly mistakes, and maximizes the long-term return on your investment. In the end, the value of a buyer’s agent far outweighs the initial cost, ensuring both immediate savings and lasting investment security.