Does A Buyer Really Need A Broker?

ABSO-FREAKIN-LUTELY! 

In the era of DIY and HGTV, where Streeteasy and NYTimes.com put listing data just a mouse click away, today’s buyers often think they can purchase without representation.  Truth: they can tackle the job alone, just as a hiker can trek Everest alone.  But the question I’ve asked and will ask again, is: Why would anyone want to?

Although it’s a rhetorical question, I’m always surprised when I get answers.  Below are some responses as well as my replies.  Long story short: what may seem like a good idea initially can quickly reveal itself to be a bad one, with just a bit more information added.

Bad Idea #1: I can find it myself.

Identifying available properties is the easy part of house hunting.  Online pictures, descriptions and floor plans make shopping a breeze and everyone a maven.  But there’s more to home buying than a pretty picture and a good layout:

• Is the building the right fit? 
• Will the buyer pass the Board? 

A good broker ensures that a buyer’s precious time is spent efficiently and effectively.  Time is money, right?

Bad Idea #2: I know how to negotiate, so I don’t need a broker.

Who hasn’t heard, “I’m a great negotiator. I can do it better myself”?  The client may indeed be as wily as Warren Buffet, but negotiating for the family’s home on one’s own behalf is wholly different.  In the heat of the moment, when his spouse’s fingernails are bitten to the quick and hair is standing on end - does he really want to be negotiating all by his lonesome?  No way. 

Buyers caught up in the hysterical frenzy of buying a home tend not to be their own best advocates.

Bad Idea #3: I’ll save money without a broker.

Some buyers reason that it will be more costly if they work with a buyer’s broker.  After all, if the seller can save on the commission, won’t that translate into savings for the buyer?  Unlikely. 

Some exclusive listing agreements do provide for a discounted brokerage commission if the buyer is unrepresented.  Most do not.  If there is a discounted commission possibility, the seller will want to reap this financial benefit and is unlikely to share any savings with the buyer.

In addition to these bad ideas, there are other behind-the-scenes reasons for a buyer to engage a broker, things those in the trade know from experience.

Bit of Info #1: The law’s there for a reason

Historically, buyers were unsure about whom a broker represented.  New York now requires that buyers acknowledge in writing that a listing agent represents the seller.  The reason: to protect buyers from being misled.  If the disclosure confirms that the agent is representing the seller exclusively, shouldn’t a sensible buyer reason, “Legislators thought this was necessary to protect me and others in my position.  Perhaps I’m missing something….” 

If a seller has representation, so should a buyer.  If a home has hidden flaws, or there are financial issues with the building, or there is a negotiating ploy to be taken advantage of, unrepresented buyers may lose out.

Bit of Info #2: The work that brokers do

A good buyer’s broker: 

• Provides comprehensive market analysis to evaluate recent sales
• Strategizes about making offers and negotiating, and
• Becomes a buyer’s voice of reason. 

In a competitive bidding situation, a savvy broker’s insight and expertise is often the difference between a winning bid and a losing one.

Bit of Info #3: Navigating Board Approval

An experienced buyer’s broker is best able to prepare a complete, clear, accurate and concise Board package, with all of the required materials in the proper format. Do you really want to have the home of your dreams hinge on something as mundane as improper formatting or poor organization? No! Listing agents may be conflicted regarding unrepresented buyers’ Board packages.

Buyers’ brokers search, strategize, counsel, negotiate and advise.  We deal with difficult personalities and act as the voice of reason.  We help buyers comfortably make informed decisions at every step of a complicated process.  We validate for the unsure and we ask thought-provoking questions to help clarify options and positions. 

Buyers could do it themselves, but what a time consuming and frustrating bother that can be. Take a page from professional mountain climbers, those that face the hardest challenge of all. Even the most skilled hire Sherpa, people to do the heavy lifting.  Home hunting in Manhattan is no different.  Let your personal residential real estate Sherpa do your heavy lifting, and share their experience and wisdom, all at no cost.