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June 30, 2009
How to Buy?
My wife and I are first time home buyers and are wondering if anyone out there has some resources for first time buyers. We are confused about the process of using a Realtor to purchase a home. We thought we could find an agent we liked and this person would show us homes. But on this blog we are reading things about brokers not representing buyers or not all brokers having access to all properties that are for sale. Also, most of the books out there were published before the market tanked and were published for a suburban audience. Coops are hardly mentioned, for example. Any resources would be greatly appreciated. One major question we have is that if we find a broker, will that person be able to show us any and all properties for sale? Or will they only be able to show us listings that their agency has? Thanks.
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"One major question we have is that if we find a broker, will that person be able to show us any and all properties for sale? Or will they only be able to show us listings that their agency has?"
No, they will not show you any and all properties for sale. A broker will only show you properties for which they receive a percentage of the commission should you buy. They will only show you properties that allow co-brokes (seller broker shares commission with any buyer broker that brings them a sale.) Not all agencies co-broke.
Are you comfortable searching the listings yourself? If so, just contact the seller broker for each property you want to see. If you do that yourself, and don't involve a buyer's broker, you also have a better chance at obtaining your desired property since the broker will not have to share the commission with your buyer broker.
Posted by: bk14 at June 30, 2009 12:02 AM
First off check out this site http://www.nhsnyc.org/
Listen to this Brian Lehrer's show episode: http://www.wnyc.org/shows/bl/episodes/2009/05/14/segments/131900
You may have done this but make sure you get pre-qualified/pre-approved for a mortgage.
Once you know what you can afford. For co ops, the best known primer book is: The Ultimate Guide to Buying and Selling Coops and Condos in New York City by Neil Binder.
Feel free to just call the sellers' brokers directly, go to open houses on your own, just remember, the listing broker works for the seller. If you happen to find a broker that you get on with at an open house that offers to show you other listings that may interest you, then go ahead. Outside of any exclusive listings he/she represents, in theory that agent should represent your interests in any co-broke with another seller agent, even at the same company but remember, I said "in theory"
Always - your own Lawyer/your own inspector.
Posted by: Crownlfc at June 30, 2009 2:14 AM
When I moved from SF here 9 years ago, not being able to walk into one agency and have them show me everything boggled my mind. However I was not quite a newbie. In PS, I must've gone to 12 agencies and I spent 2 months of almost daily walk-ins.
Not having your own agent is a blessing in disguise. You have to learn what due diligence is, to trust your instincts and not sweat the small stuff. You'll need professionals later in the game...inspector, lawyer of course.
And you'll have to have an eye for how much it'd take to fix up a place...is it cosmetic? deep repairs (I never use the term 'gut' because I think it's never necesssary in 95% of the buildings you're likely to see; besides, if you're new, that level of renovation is best left to later.) Don't get caught up into thinking you have to do everything at once; these houses have stood for over a century and can be fixed with time. Unless, of course, you are made of money as many renovators seem to be.
Good luck.
Posted by: cmu at June 30, 2009 8:19 AM
I would buy a book. I wish I could remember the name of the book we used 10 years ago but it was specifically geared towards owning your first home. It covered single family, coops and condos. It covered all the of the pitfalls one might run into. We found it very helpful. I'm sure you could find something along the same lines at a bookstore or on line.
Good Luck in your search.
Posted by: italiana71 at June 30, 2009 9:30 AM
The NY Times real estate section--in paper and online--is still considered the gold standard for all real estate sales listings. Make friends with it!
Where are you looking? Remember, realtors are a local resource--they're best utilized for their own particular neck of the woods. When you go to an open house, introduce yourself to the realtor, take their card, tell them exactly what you're looking for, etc.
Good luck!
Posted by: feral at June 30, 2009 10:05 AM
I also recommend reading Ultimate Guide to Buying and Selling Coops and Condos and Crownlfc's suggestion to get pre-qualified for a mortgage.
My husband and I bought our first apartment last year, so my advice is based on that experience. We worked with a wonderful buyers’ broker. While we did search listings mostly on our own (NYT and Street Easy), and went to Sunday Open Houses on our own, our broker recommended we see some listings and when we wanted to make an appointment for a mid-week viewing, or wanted more information on a property, she arranged that. Having a buyers’ broker was invaluable during the bidding, negotiation, and contract process. We always kept in mind her business interest in getting the sale done, but she was a wealth of information and extremely helpful.
My advice is to go to open houses, talk to the brokers there, and find one you like. Don’t rely on him/her exclusively to bring you listings, but ask a lot of quetions about the process. If you find a wonderful FSBO or apartment with no co-broke, then pursue that on your own. Most big agencies, though, will co-broke and it’s great to have a buyers’ broker to help walk you through the process.
I also recommend you pay for a subscription to Street Easy to get a sense of neighborhood comps.
Good luck!
Posted by: fawn at June 30, 2009 10:21 AM
First ask 'why buy now?' You can buy for significantly less (or at least have more choices at the same price point - but that doesn't really make sense - more inventory, lower prices) if you wait (good things come to those who do). The market will bottom out when the monthly change from previous year of the NY S&P Case-Shiller Index approaches zero. In the intirim, rents are falling. Rent a duplex and wait. Buying is supposed to be cheaper but it isn't yet. Good luck either way.
***Bid half off peak comps***
Posted by: Brownstones Half Off at June 30, 2009 10:58 AM
Buyers brokers can be useful. Their fee is paid by the seller, so it does not cost you (they will split the fee with the seller's broker, in most cases.) Are you looking at coops only, or coops and condos? There can be a big difference, and not just in price. A good buyers broker will know a lot about the buildings already, so they can keep you from wasting a lot of time checking out listings that are not right for you. They may also know about the in-and-outs of the board, any problems, etc. etc. One tip: My broker went with me to read the board minutes at the management company (between offer and close). You can learn a lot from that! Remember that the physical apartment is not the only thing you will be dealing with in a coop--the neighbors, the board, the approval process, maintenance and possibly assessments, etc. are also factors.
Posted by: Carol Gardens at June 30, 2009 12:30 PM
My fiance and I (first time home buyers) didn't use a realtor and went through the entire process ourselves along with the buyer's agent (who was absolutely helpful in helping us with the coop board paperwork and answering all our questions). We are about to close on a coop sometime in the next two weeks.
As for how we did it, we went to a lender and got pre-approved first (so we know how much we can afford). Then we just found open house listings in neighborhoods we liked, and checked it out ourselves. When we decided on "the one" we put in a purchase offer to the buyer's agent. (Buyer's agent will give you the form if you're interested in buying the place.)
From there, hire a real estate attorney to handle the contract. Contact the lender who pre-qualified you to apply for a mortgage.
On a side note: the reason we didn't go with a seller's agent was because we were contacted by one who left a really bad taste in our mouths. Then we asked around our friends and families and found out that no one we knew used a realtor to buy a place. We figured, hey, if they can do it themselves, so can we. Besides, not having to pay several thousands of dollars to someone to do something we learned to do ourselves means we now have more money to put towards furnishing the place!
Anyway, hope that helps. Happy home hunting!
Posted by: west1 at June 30, 2009 5:42 PM
Quick question - where do you find a Buyers Agent, or Buyers Broker?? I'd love to start working with one, but don't know where to start.
Posted by: bklyn11238 at July 8, 2009 2:00 PM
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