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August 31, 2009
Brokers Useful when Buying?
I've been relying heavily on the internet in the search for an apartment to buy. This summer seems to have been very slow for new inventory. I'm wondering, am I missing anything by simply relying on Trulia, NYT, etc? Are there some apartments that don't get listed because they are snatched up so quickly? I know that happens with rentals, but with sales I figure it's always listed in case the original deal falls through. I've never had a broker show me anything I haven't already seen in person or on the internet. Has the internet rendered them obsolete? The only thing they add is showing me places that are not in the location I want to live.
Comments
I don't think the internet has rendered brokers obsolete, but the internet has definitely made brokers no longer the only option.
Whether buying or selling I think the benefit of the broker is the legwork (I realize not all do quality legwork, but some do). If you don't have the time to list and show if you are selling, or time to troll the web then brokers can be valuable.
If you are comfortable with your web searching and have the time for your own research you probably don't need a broker. However I would say you should use broker's websites as well as the NYT, Trullia, etc...
... most brokers list open houses on their agency listings so in that way you can "use" a broker without officially using them...
Just some thoughts...
Posted by: christopher at August 30, 2009 11:11 PM
Sounds about on par with what I thought, thanks for the input!
Posted by: IronMaiden at August 30, 2009 11:46 PM
When buying, I'd suggest consider the legwork part of evaluating the relative worth of deals and do lots of it and do it yourself.
Granted asking prices are indicative of selling prices but only by doing the legwork will you know what to bid/agree to. What's been out there a long time, what new developments have crappy finishes and lots of square feet versus the opposite.
It's a lot of work, but considering the amounts of money involved, having someone else do your homework might be more costly ;-)
Good luck!
Posted by: Johnny at August 31, 2009 9:06 AM
I am nearing the end of my first purchase and had similar thoughts to yours in the beginning. No matter how dedicated, no broker would be able to keep up with my obsesive, daily, checking for new listings on the nyt, all major real estate company sites, etc...
I can say however that I found having a broker invaluable in getting the deal done. Specifically, he was a major help negotiating the price, gathering comps, recommending and facillitating the inspection and the lawyer. He also help get me in touch with a good option for financing although I wound up using my own.
I would agree that with legwork you could do without, but just be sure to realize that legwork isn't just finding the place. That isn't the half of it.
As a buyer you're not paying for the broker. As long as they're not wasting your time and are adding value somewhere I don't see the downside, unless people are routinely hardballing the seller's broker to give up half of their brokers commission in non co-broked deals.
Posted by: Ceze at August 31, 2009 9:13 AM
Ceze, is/was the broker you're referring to working for you as a buyer's broker or was he representing you and the seller?
Posted by: herb e hancock at August 31, 2009 10:16 AM
If you use Craigslist, Streeteasy, The NY Times and various realtor websites, I don't see what value a broker will add to your search.
Posted by: DitmasSnark at August 31, 2009 10:31 AM
My concern in the past (and maybe someone can tell me I'm wrong) in sticking to one broker is that it would make my offer less appealing to the listing agent if they then have to split their commission with my broker. (In other words, if they have my offer and another offer, and all else is equal, that they would go with the offer where they don't have to split the commission.) Am I wrong in thinking this way?
Posted by: slope2009 at August 31, 2009 11:06 AM
I have found brokers in NYC to be unhelpful. They push and they pressure and they don't listen. There are probably good, honest, helpful brokers out there, the trick is to find them. It isn't easy.
My least favorite thing about NYC brokers is how they will show you crap and then say: I have two other offers pending on this, you have to decide by tonight.
Whenever I hear that line, I respond: I don't like to be pressured. Then I walk.
Posted by: Minard Lafever at August 31, 2009 11:13 AM
As I'm looking for a new home, I've found that brokers are not a good use or my time. They recommend things that I have already seen on the net, but they refuse to give me all the info that I can get on the net (i.e. all the photos and perhaps the address), as they don't want me to bypass them and go directly to the primary realtor.
I think Johnny gives good advice when he tells you that, when buying, you should consider the legwork to be part of evaluating the relative worth of deals (as well as part of obtaining a good sense of what is available on the market), and that you should do lots of legwork yourself.
I'm skeptical about Ceze's advice that you can depend on a broker for recommendations. I've heard that brokers sometimes steer you to people with whom they have relationships, and that they're not always thinking of your your best interests.
Posted by: brownlime at August 31, 2009 12:33 PM
Brokers when buying are of no value.
No matter what, they still work for the seller as you're not paying the commission.
$0.2c
Posted by: jasetheace at August 31, 2009 1:05 PM
We saw some places with a broker when we were looking, found it really annoying and unhelpful. She was pushing one property in particular on us and generally pushing us about what a great time it was to rush right out and buy. We even told her there was one place in particular we really liked--listed with her agency--but while she called us several times to continue to push the apartment we had shown no interest in, she didnt bother to get in touch with us when the place we liked did a big price cut (which we noticed on our own, ended up buying the place).
I'm sure some brokers are good but if you'd just be using some broker you dont know anything about, I'd say you're just as likely to get one of the worthless variety so why bother.
Posted by: woodys at August 31, 2009 1:10 PM
Once a broker showed me a property that was exactly what I was looking for but wasn't on the MLS or listed by a local agency and had no sign in front, so I would never have found it on my own.
Otherwise, they're mostly useless. I sold FSBO and would do it again unless I wanted a broker to negotiate the price for me, or I was selling or buying long distance.
Sometimes brokers can get in the way. It's easy for misunderstandings to arise when they relay information between seller and buyer
Posted by: mopar at August 31, 2009 3:48 PM
Other people might have already said this, but keep in mind that in NY all brokers are working for the seller, not the buyer.
I was naive about this when I bought, and got pretty well f***ed.
Posted by: vanburenproud at August 31, 2009 5:28 PM
@Herb e hancock: Buyer broker only.
@Brownline: I agree that Johnny's advice of doing the legwork is solid. I just found it valuable to have a professional opinion to check my legwork against. Regarding steering you to people they have a working relationship with, of course they will. That's the point. They are referring someone in whom they have confidence, with whom they can work things out when there are issues.
I consider someone who facilitates getting the deal done, once I've determined that I want it done, working in my best interest. Specifically I was glad to have the broker's lending reference as an option, but went with my own. Glad my broker had a relationship with my lawyer because there were a number of delays getting to a contract I was comfortable with. I was totally happy with the broker's recommended inspector who was extremely thorough explaining everything. I researched all the recommendations prior to choosing them.
HUGE NB: All that is assuming you have a great broker. If your broker is shit, that's what you get.
Posted by: Ceze at August 31, 2009 7:38 PM
I am somewhat new to all of this, or just doing it again. While there must be some wonderful brokers, I read that because of their financial interest, they usually will *not* tell you this is the wrong time to buy. With most of them, it is always the right time to buy.
Posted by: prezanon at August 31, 2009 11:54 PM
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