370 Lexington Avenue, 24th Floor
New York, NY 10017
- Buyer Info
- Seller Info
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- Closing Costs
- Real Estate Glossary
- Neighborhood Guide
Why Use a Broker? - The Importance of a Good Buyer's Agent
New York City’s real estate market is notoriously complex and multi-faceted, with its own set of rules, options, players and conditions unlike any other place in the world. Using the services of a good broker is essential if you wish to effectively navigate the unique challenges of buying property here.
What many do NOT know however, is that having a good broker who is able to negotiate on your behalf and act as your consultant every step along the way will, in most cases, cost you absolutely NOTHING! It is called having a “Buyer’s Agent” and this is a person on YOUR side, acting in your best interests.
Nearly all property sales occur with two agents involved – a Seller’s Agent and a Buyer’s Agent. However the commission on most property sales is paid only by the seller, with the two agents agreeing to “co-broke” the listing – this means that the commission is split between the agents. The Seller’s Agent is being paid to list the property and represent the seller, and the Buyer’s Agent is being paid to bring the buyer to the property and represent the interests of the buyer.
Many buyers call the Seller’s Agent directly from an ad or go to an open house without their own agent. The result of this is that effectively you will have NO ONE designated to represent you! While the Seller’s Agent is required by law to deal “fairly and honestly” with the public, the reality is that their fiduciary duty is to the seller, not to you. And most Seller’s agents prefer this situation since they keep the WHOLE commission – no splitting it with a Buyer’s Agent!
You should use a qualified and experienced Buyer’s Agent for a number of reasons:
- A Buyer’s Agent will help educate you on the market – Most buyers are active in the market only rarely. Agents are active in the market DAILY. They can help you understand current conditions and a variety of other market factors.
- A Buyer’s Agent will help you find an apartment – They have contacts and resources not available to the general public. They know the neighborhoods and buildings.
- A Buyer’s Agent will save you time and energy – Finding you an apartment is their JOB! A good agent will organize your search, keep you posted about new listings and open houses and set up appointments for you.
- A Buyer’s Agent will negotiate on your behalf to get you the best terms possible.
- A Buyer’s Agent is available at NO COST TO YOU! - They are usually compensated for their services by sharing a commission with the Seller’s Agent.
- A Buyer’s Agent will serve as a filter – you will deal with only ONE person instead of dozens. No other agents will call you and if they do, give them your Agent’s number!
- A Buyer’s Agent represents YOU – not the seller. Your agent will be representing your interests and they will be focused on getting you the best possible deal.