Why do you need a real estate agent in New York City?
We'll demystify this topic in the following video.
My name is Chris at Hauseit, Hauseit is the largest For Sale By Owner and Buyer Commission
Rebate company in New York City.
You can check us out at www.hauseit.com, the spelling is below.
Well, the first reason for why you need a real estate buyer's agent is because, well,
it's great free advice and guidance that doesn't cost you a dime.
Again, I mentioned it's free because buyers customarily never pay any broker commission.
Broker commission is entirely paid by the seller and the seller and the listing agent
in fact negotiates a listing commission upfront before property is ever listed.
If the buyer has an agent, as is expected, well the commission is typically split 50/50
between the buyer's agent and the seller’s agent.
If you as a buyer choose not to have an agent, well, the commission goes entirely to the
listing agent and you would have waived essentially a free service.
Hence, that's why many seasoned buyer's agents will explain that having a buyer's agent is
essentially using it or losing it.
Another important reason to keep in mind is a buyer's agent provides invaluable service
when it comes to scheduling, searching for showings, coordination submitting an offer
on your behalf, negotiating an offer on your behalf and generally guiding you through the
process from beginning towards end.
A buyer's agent will help you with the board package or the purchase application. Keep in
mind that even many condos will have purchase applications albeit a bit shorter than those of a
co-op which are significantly longer.
Having a good buyer's agent can help make the process significantly smoother, shorter
in times and also much likelier to succeed.
Keep in mind that having a buyer's agent can be very important as it'll be very nice to
have someone to speak with during perhaps the biggest purchase of your life.
It's someone that you can speak with freely even if you are emotional and yet that someone
will be able to convey and deliver your message the seller or the listing agent in a neutral
and unbiased manner.
Another very important reason to have a buyer's agent on your search is the ability to save
money on your closing costs and earn a buyer agent commission rebate.
Essentially, instead of a more traditional closing gift such as a box of chocolates or
a bottle of wine post-closing, your buyer's agent will agree beforehand to give you for
example, up to 2% of the purchase price back at closing.
This commission comes from a split of the buyer agents commission which is then split
from the total commission.
So, let's do a quick example, let's say that a total commission is 6% and it's split 50/50
per Real Estate Board of New York rules in New York City, 3% to a sellers agent 3% of
a buyer's agent.
Well, your buyer's agent may then give you 2/3 of the buyer agent commission which means
that you would earn 2% back at closing.
This can be significant and in some cases and some property types such as buying a co-op
you may be able to more than cover your closing costs.
Lastly, keep in mind that having a buyer's agent can be very convenient because after
all New Yorkers are busy people.
Wouldn't it be nice to have someone keep an eye out for you for your ideal listing type
to keep an eye out for you for listings that match exactly what you're looking for to send
you listings on a periodic basis and perhaps best of all to schedule and coordinate showings
and tours for you when you're free.
For example, on the weekend on Sunday let's say you're free from 12:00p.m. to 5:00 p.m.
wouldn't it be nice to have a buyer's agent be able to schedule a tour for you to see
say 5 to 10 properties in that one afternoon?
Well, that's exactly what people do. Having a buyer's agent is one of the most effective
ways to see a large amount of properties in one setting without spending too much time
organizing and coordinating it yourself.
Lastly, we want to reiterate that buying a home is such a large and dramatic purchase
for so many people that many buyers underestimate how important it is to have a steady hand
throughout the transaction.
Many buyers will experience buyer’s remorse or feel like they overpaid or otherwise get
very emotional throughout the offer through closing process and it's important at this
stage to have someone to speak to who can steady your hand with industry experience,
professional analysis and comps.
We hope you found this video helpful, if you want to learn more about buying and selling
property in New York City and how you can save money on broker commission when doing
so, please check us out www.hauseit.com, the spelling is below.
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