do i need an agent?
i inquired to an agent about apartments that may come up for sale in a building i like. She regularly is the selling agent for this building. She says there might be one coming up and is approaching the potential seller. My question is at what point do i need my own agent? Now or…
i inquired to an agent about apartments that may come up for sale in a building i like. She regularly is the selling agent for this building. She says there might be one coming up and is approaching the potential seller. My question is at what point do i need my own agent? Now or after I’ve looked and want to move forward? Was it foolish to tell this agent my budget?
One strategy I employed when looking for apartments was to have the bank send me pre-qual letters for various amounts within my budget I also had pre-qualifications from several different banks for differing amounts. That way, if I found a place and wanted to negotiate hard, I could provide which ever pre-qual was more in line with what I planned to bid and the broker couldnt use my higher Prequalification against me.
The banks were more than happy to help us out in that regards.
Don’t worry about the price. You haven’t seen the place yet. Bid what you think it’s worth based on condition and comp sales (not list prices) around the area. Then have an inspection. If the inspection uncovers problems, ask for more money to fix them.
You most likely will have to fax her a prequalification letter anyway, which tends to state what you can afford. Maybe the same thing.
But that doesn’t mean that’s what you’ll pay. You’ll pay market rate (by definition, actually).
thanks phripley. i’ve looked around a lot on my own so i’ll just make that clear. but first time approaching agent about potential listing. I wish I hadn’t said my price.
As a buyer you don’t generally need your own agent. Just remember that the broker is not your agent and take everything she says from the perspective that her priorities are:
1. Get the biggest commission she can as soon as she can.
2. Get the owner as big a price has she can as soon as she can.
These two things are not always aligned, but in no case is working for your betterment a priority for her.
I’d consider an agent as a buyer if I was relocating to NYC from another city and needed advice on schools, commutes etc, otherwise just get a lot of advice from folks who have been down the path before.
As to whether you have shot yourself in the foot by revealing your budget, I’d say that if she thought that hers was the only listing you were looking at she would have you in a tight spot. Your job now is to make sure that she understands that you are looking at other places as well (ideally with other brokers/agencies), that may come in below the figure that you have already revealed to her.