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January 29, 2008
broker or no broker?
In order to buy a coop in Brooklyn are you required to enlist the services of a realtor? If not required, what are the advantages besides the obvious (ie; someone doing the bidding for you and someone to connect you with a mortgage broker).
If there's anyone out there who has bought recently without a broker, I would be interested in hearing your story.
Comments
There is no law that states you need to have a broker representing you. Why would you need one? A broker is out to make a commission and make the most money, so even though he/she may claim to represent you, I'm sure you could do better on your own. If you want to make an offer, you give it directly to the seller's broker, who is obligated to give all offers to the seller. Also, you can obtain your own mortgage financing, and do your own pricing comparisons for free using the NYC Department of Finance's website.
Posted by: guest at January 29, 2008 8:38 PM
This question is answered every week on this site. There are no buyers brokers in new york city.
Posted by: guest at January 29, 2008 8:45 PM
Also, without a buyers broker, the seller's broker gets to keep the entire commission. So (in my experience as a seller), the seller's broker will then try to convince the seller that your offer is the best (even if you think it will never pass your coop board) because that broker stands to make twice as much money on the sale. Definitely gets your offer more attention than one where the commission has to be split with another broker.
And, to check out only a mortgage broker suggested by your broker is lunacy. Check out a bunch, get the best deal. They have connections with different banks, different offerings, and different fees.
Posted by: guest at January 29, 2008 11:22 PM
Agree with 8:45. I'm annoyed with people who don't do a simple google search before asking questions. You should post a question "after" you've done a little leg work yourself.
Also, in my opinion a mortgage broker is a waste of time. You can also do this research yourself.
Posted by: guest at January 30, 2008 7:15 AM
Just have your lawyer lined up and an inspector (and do not use whomever the seller's broker suggests). Do your research on comps.
I may be wrong about this, but I can't imagine that there is much inventory out there that does not appear in the Times online ads, so you can easily search the market and see exactly what you want to see -- no need for a broker to beat the bushes for you. So not only is there really no practice in Brooklyn of buyer's brokers, there is no need for them, just another mouth to feed at the closing.
Posted by: slopefarm at January 30, 2008 9:04 AM
"Do your research on comps"
http://www.nyc.gov/html/dof/html/property/property_val_sales.shtml
Posted by: guest at January 30, 2008 10:14 AM
Work with a broker...
NYC.gov will just tell you the price. Brokers have everything that has sold, price drops, pics and descriptions so you can make an intelligent offer.
A good broker will save you a ton of aggravation.
A broker will do the board package for you to ensure you get into the coop.
Why not hire an expert who has done hundreds of transactions and will be able to consult you on every step of the way so you don't get f'd over. Contrary to belief some of us are not just out for a quick buck. Also last time I checked when I worked with a buyer showing up at the closing was not the only thing I did.
Ohh yeah get a good lawyer. Anyone who has done deals knows that a lawyer doesn't want or has time to answer all your questions. A broker will work to get you the answers.
If you have no job and have time to sit online all day and night and learn about real estate than you probably don't need a broker.
Posted by: guest at January 30, 2008 1:42 PM
In response to "Work with a broker..." the seller's broker will help with the board package and a lot of other tasks. My broker did this for the buyers when I sold. The buyer doesn't need his/her own broker.
Posted by: guest at January 30, 2008 3:30 PM
I purchased my Brooklyn Heights coop without a broker. It was a very easy process. The Seller's broker, because he was making the full commission, assisted us with the coop application, including typing it all up and making sure it was complete. Notwithstanding the opinions of others regarding who the buyer's broker is really working for, and while I don't think a buyer's broker is absolutely necessary, it can make your life a little easier. They will help w/ coop application, and will prep you for the board interview. And I agree with the prior posts, get your recommendations for a lawyer, inspector, mortgage banker from someone other than a broker, like a friend/colleague that went through the process.
Posted by: guest at January 30, 2008 3:32 PM
ditto on the majority. Get a lawyer, get an inspector, do your own research but don't bother with a buyer's broker. Sometimes the seller's broker will take less than the full 6% commission anyway when there is no buyer's broker, which means less from the seller's bottom line, which means a better price for you.
Posted by: blowfish at January 30, 2008 4:05 PM
11:22 What good is an offer from a buyer that won't pass the co-op board? If a buyer's broker has a qualified buyer it's in the best interest of the seller's broker to push that offer since the deal has a better chance of getting closed. Half of something is better than half of nothing. If the seller's broker pushes the lesser qualified buyer since he or she receives full commission and it doesn't pass the board review, the deal is dead, and guess what that buyer with a broker just found something else or doesn't want the place anymore. Sellers should want a broker to represent them that will consider working with buyer's brokers since the more exposure, the better chance of it selling quickly & closer to asking. Furthermore, if you don't have the time, you don't have the time, so having a buyer's broker doing research, recommending attorneys, etc. can only help the process run smoothly.
Posted by: guest at January 30, 2008 6:58 PM
aside from being made to look silly by all of the brownstoner "experts", i was interested in hearing anecdotes from those who may have had the experience of buying sans broker, positive or negative.
anyone?
in my experience, 3rd time buying a home, having an agent means access to more listings. is there a multiple listing service here in new york which can only be accessed by brokers?
Posted by: clementine16 at January 31, 2008 9:46 PM
I just bought without a buyer's broker. We saw the listing on NYT and called. The seller's broker was from Prud-Doulgas-Elliman. He was all fake smiles to us, but only had the seller's best interests in mind. He did nothing at all to help us or make us feel at ease during the process. He was downright nasty to us at times. We loved the house and bought in anyway even though I nearly called the whole thing off a few times because this guy was such an annoying pompous ass.
I hired a top-notch RE lawyer to represent my interests and ran all the nonsense the their broker tried to throw at me through him before signing the contract. There was a period of two weeks during negotiations that I refused to speak to the agent at all and made him communicate only through my laywer, that was how obnoxious he was.
One of the things their broker tried to do was get us to use a lawyer he knew. I may be a first time buyer but I wasn't born yesterday! He was trying to engineer the best deal for his clients by fooling us into using all his own people. We know we overbid and overpaid but our lawyer worked out closing credits for us. He said we should have held out for even more credits but we were nervous if we waited too long we'd lose the place.
The broker kept saying there was another buyer and when I offered to put a good-faith deposit down he refused it and just continued to bager us a few times a week until we decided we would sign a contract. He even let us have our inspector come in before we signed anything. Again he wanted us to use an engineer on his recommendation and we refused and went with our laywer's usual engineer.
Basically, you have to look out for your own interests and hire your own people. DO NOT use anyone that the seller's broker recommends for any reason. They are all "buddies" and you will be the loser.
Posted by: premadas at July 9, 2008 1:12 PM
I'm interested in buying without a broker. Would any one mind breaking down for me how you "do research on comps" with the NYC website. I see how you can enter blocks and lots, but how do you find recent sales of comparable properties? Thanks in advance.
Posted by: Garp at July 24, 2008 11:32 AM
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