Using A Buyer Broker

A: After reading a Curbed.com reader ask the question of loyalty to her Buyer Broker, I had an urge to write this post explaining the job of a Buyer Broker and how one can help you in your real estate needs. There are NO FEES to use the services of a Buyer Broker as their commission is split with the Seller Broker at closing!

My Definition of a NYC Buyer Broker: A broker who represents the buyer and has a fiduciary responsibility to the buyer in finding a property that meets their needs on all levels (price, location, size, condition, style, and living quality). A buyer broker should look to find the best value for their client and negotiate on their behalf during the bidding process to get the lowest possible purchase price from the seller. In times of bidding wars, the buyer broker should advise their client on how high over ask the buyer should bid without overvaluing the property or putting their client in financial risk.

In addition to these services a Buyer Broker will prepare the client for the real estate transaction in a number of ways:

1. Assist the buyer in finding a Real Estate Lawyer if one is needed to review the property's offering plan, 2-Years building financials, and contract of sale.

2. Assist the buyer in finding a mortgage broker if one is needed. A good buyer broker will ask their client what their strategy is with their investment and advise their client on possible mortgage products that could be used. Ultimately, the mortgage broker is the professional you should rely on for the final product to use.

3. Preparation of the board package. If buying a Co-op, the buyer broker should be especially vigilant to providing everything that is requested by the board and preparing the package in a professional manner. If buying a Condo, this process becomes much less tedious.

4. Co-ordinate visits to the property for contractors as needed and accompany the client on the final walk-through prior to closing to fully inspect the property based on the contract of sale's terms and conditions. All electrical, plumbing, and appliances should be in working order.

Most buyer brokers, also known as Real Estate Salespersons or Agents, are in real estate as their full time profession which does not mean they know what they are doing. It is up to the buyer to determine whether or not their buyer broker is responsible, knowledgeable, and privy to the current housing market prices and developments.

I can tell you that as a broker (aka, Real Estate Salesperson) there is a ton of competition out there and very little loyalty. The more experienced brokers understand the need to 'set themselves apart' by offering their clients exceptional service in the most professional manner possible. My thinking is:

I am going to find you the highest quality apartment that meets your needs for the lowest possible price, and do it in a way that makes this transaction a positive experience for you that you will refer my services to all of your friends and family when they need to satisfy their real estate needs

As a buyer you should be especially vigilant that your buyer broker is really out there to assist you, and is not just trying to make another sale. Is your broker showing you apartments in your price range? Is your broker showing you apartments with low monthly's? Is your broker doing the necessary homework to only show you apartments with S/W exposures? Is your broker going out of their way to accomodate your schedule? Is your broker constantly showing you properties that are away from your desired neighborhood? These are the things you should ask yourself when analyzing your broker.

In the end its not about the deal, its about finding you the best apartment possible and making you happy with your new home and investment!

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