Buying Your First Home in NYC
Buying a home in NYC is complicated, but rewarding. If you're a first-time home buyer, or even a returning buyer who needs a refresher, this guide will provide you with tips and strategies for your home-buying journey.
A few of the topics covered in this guide include: how to find your dream home, how to find a buyer's agent, how to prepare for a co-op board interview (and what even is a co-op vs. a condo?), information about home inspections, home loans and mortgages, and much more! We hope these articles will help you make educated decisions and feel a little more confident as you begin this journey — whether you're a first-time home buyer or a real estate veteran. Happy home shopping!It’s the moment you’ve been waiting for: you’re ready to buy or sell an apartment, and now it’s time to decide if you need a real estate agent to help you do it. After all, a good one can guide you through the process from start to finish — and help you get the best possible deal — so it’s critical to find someone you like and trust.
But the burning question is how to find a real estate agent that meets all of your needs. There are a few things to keep in mind before kickstarting your search. Use this guide to equip yourself with all the knowledge you’ll need.
What Is a Buyer’s Agent?
Whether it’s a starter studio or a townhouse for the whole family, buying a home in NYC can be a challenging experience. Fortunately, a buyer’s agent can make the process less daunting by acting as your advocate along the way. Many different parties are usually involved in the home-buying process, from sellers to listing agents to real estate lawyers. A buyer’s agent will help you navigate all of these relationships, including negotiating on your behalf to get you the best possible deal. They can even refer you to other qualified professionals you may need, such as mortgage lenders, inspectors, appraisers, or attorneys. Ideally, your buyer’s agent should represent only you, and have experience in the neighborhoods or specific types of homes you’re looking to buy.
Manhattan Homes Under $1.5M on StreetEasy Article continues below
When Should You Hire a Buyer’s Agent?
Ask any real estate professional, and most will tell serious home shoppers to find a buyer’s agent as early in the process as possible. That way, the agent can get up to speed on your needs, advise you on the market, and help you evaluate suitable properties. The next question is how to find a great buyer’s agent.
How to Find a Buyer’s Agent in NYC
One of the best ways to find an agent to help you buy an NYC home is through StreetEasy Experts. Experts is our network of licensed real estate agents who may have experience in the building, neighborhood, or type of home (co-op, condo, townhouse, etc.) you’re looking for — and they cannot pay to be referred to you.
You can connect with an Expert from a sales listing. Click either SCHEDULE A SHOWING or ASK A QUESTION — and presto! You’ll be able to contact an Expert who likely has experience in the building or neighborhood you’re looking at. Though you’ll likely be glad you did, contacting an Expert in this way does not obligate you to work with them. Learn more about working with a StreetEasy Expert.
You can also contact our complimentary StreetEasy Concierge to learn more about the buying process in NYC, discover helpful StreetEasy tools and resources for your journey, and be matched with the best Expert buyer’s agent for your needs. Just send the Concierge a message telling them about your home search, and let us take it from there.
What Does a Buyer’s Agent Cost?
When considering how to find a real estate agent, you may also be wondering, what will it cost you? Whether you’re buying, selling, or renting, it’s best to discuss any fees with your agent before working together.
If a buyer’s agent is successful in helping you purchase a home, they typically receive a commission that is paid out to them at closing. The commission amount, and who pays it, is negotiated between you, your agent, the seller, and the seller’s agent. In some cases, the seller may offer to pay your agent’s commission, but in other cases, you may be responsible for it. Remember that commissions are always negotiable, and before agreeing to work with a buyer’s agent long-term or exclusively, make sure you sign a buyer’s representation agreement. Such an agreement should lay out the agent’s compensation and payment terms — learn more.
Beyond any commissions or costs agreed upon by the buyer, seller, and their respective agents, there’s no additional cost to work with a StreetEasy Expert to buy a home.
Brooklyn Homes Under $1M on StreetEasy Article continues below
Why You Should Work Exclusively With a Buyer’s Agent
In some instances, an agent can represent both the buyer and the seller on a listed property, and acts as what’s called a dual agent. Though legal in New York, this is not ideal. “The risk associated with dual agency is that dual agents can’t fulfill their fiduciary obligations to both parties,” says Alyssa Brody, a licensed real estate broker with The Development Marketing Team. “Some may argue that a dual agent can’t advance the best interests of both buyer and seller because those interests always diverge. At worst, dual agency creates a harmful conflict of interest.”
There are other important reasons to work with a buyer’s agent who only represents you:
- Expertise: “Buyers rely on the agent to advise and educate them on properties that fit their needs and one that will also be a smart investment long term,” says Yorgos Tsibiridis, a licensed associate real estate broker with Compass. “When you visit 20-30 properties with a buyer, you can weigh in and help buyers compare the various options to make a wise decision.”
- Negotiation: Since the agent is solely focused on the buyer’s best interests, it’s their responsibility to get you the best possible deal on a home. That’s harder to accomplish in a dual agency scenario.
- Guidance: Buying a home is a process. A buyer’s agent will help you every step of the way, from coming up with a bid to preparing for the co-op board interview. Again, that can be more complicated when the agent is representing both sides.
What Is a Listing Agent, and When Should You Hire One?
When it comes time to sell a home in NYC, you’ll need to choose a real estate agent to represent you as the seller, also known as a listing agent or seller’s agent. That’s because selling a home in NYC — not to mention getting the highest price possible — is a lot of work.
If you’re serious about selling, it’s time to get a listing agent. The agent you choose can advise you on pricing your home, and perhaps most importantly, create and oversee a marketing plan that will help you sell your home quickly at the best possible price. As with a buyer’s agent, we suggest finding a listing agent early in the process, so they have more time to get to know you and your home.
How to Find a Listing Agent in NYC
It can be helpful to speak to multiple listing agents before choosing one for your home. Unfortunately, many NYC sellers don’t do this.
So how can you find listing agents to consider? One way is by reaching out to the StreetEasy Concierge for sellers. Simply tell the Concierge about your home to learn about your selling options and best next steps, which may include matching with a StreetEasy Expert listing agent to help sell your property. Furthermore, you can go to the Sell My Home page to claim your home on StreetEasy and access your Owner Dashboard. In your Dashboard, you’ll see tools like your StreetEasy Valuation, local market trends, and a home sale calculator. You’ll also see a selection of Experts we recommend for selling your home, based on their experience helping others sell similar homes.
Being matched with an Expert is tailored to you, and the agents you see cannot pay to be recommended to you.
How to Choose a Listing Agent
Plan to have a detailed conversation with each listing agent you’re considering. Just as you’re looking to see if they’re a good fit for you and your home, they’ll be doing the same with you.
Here are some things to ask and consider:
What’s Their Deal History and Experience?
Agents we spoke with agreed that experience is the most critical quality in a listing agent. “Your home is your main asset, so this is a big deal,” says Bizzarro. Even better, see if you can find an agent who has experience helping others sell homes that are similar to yours — perhaps in the same building, neighborhood, price point, or type of home.
Experts recommended to you by StreetEasy will have a track record that makes them a great fit for selling your property, such as:
- Having done deals in your building
- A history of successful deals in your neighborhood
- Expertise in your property type (co-op, condo, townhouse, etc.)
How Much Can They Sell Your Home For?
Getting the highest price for your home is a big concern — but it shouldn’t be the only deciding factor for choosing an agent. If an agent comes back with a price estimate that’s far higher than your StreetEasy Valuation, it’s not always a good thing.
“Sometimes, unfortunately, brokers give a high number because they want to get the listing. But then they’re not able to sell at that price,” says Liza Nematnejad, a licensed associate real estate broker with Douglas Elliman who specializes in luxury Manhattan properties. “That, I think, is the biggest trap for a seller.” In fact, the false hope it gives can delay a deal by months or longer.
What should a good listing agent bring to the table? A competitive market analysis explicitly prepared for your property is a great start. It should show you homes they think are comparable to yours, and how much those homes sold for recently.
More helpful tips:
- Review the agent’s deal history on their StreetEasy profile. If many of the agent’s listings enter the market at lofty prices but then sell for much lower, that’s something worth noting, Nematnejad says. (You can see the price history of any StreetEasy listing toward the bottom of the listing page, under Property History.)
- Get an estimate of your home’s value using the StreetEasy Valuation tool. It’s a great place to start for a data-driven, realistic price estimate.
How Will They Market Your Home?
A listing agent’s marketing strategy is vital for selling success. “Anybody can hire a professional photographer and put the listing on StreetEasy,” says Matthew Bizzarro, a StreetEasy Expert and founder of the Bizzarro Agency, a brokerage specializing in Upper Manhattan. “But are they going the extra mile?”
Here’s what to know or ask the agent about marketing your home:
- Experience with your home type is a huge benefit. For example, if your home is an HDFC unit, condo, co-op, or located in a land-lease building, you’ll want an agent with expertise in these types of properties.
- Social media is a significant part of marketing a home to sell. Ask the agent about their social strategy.
- Staging is crucial, so ask if the agent plans to do it in the physical space or virtually.
- Find out whether they plan to use rich media like video and 3D tours, which can attract more qualified buyers.
- Events, open houses, and virtual tours can be especially beneficial when promoting high price point listings.
- Don’t forget to ask the agent if they have a team in place to help manage your transaction. Ideally, they’ll have a network of referrals for real estate attorneys, home appraisers, stagers, photographers, and other professionals needed to sell a home.
- Will they make your home a Featured Listing on StreetEasy, meaning it could appear in the top two slots of search result pages?
What Will It Cost You?
It may be tempting to consider their commission as a critical factor when finding or choosing a listing agent. But Doug Perlson, a seasoned NYC agent, advises thinking of it the other way around. “The first thing you want to do is establish whether this is a business relationship you want to be in,” he says. “Then, just like hiring anyone else, you’ll talk about fees.”
All parties should reach an agreement on the commission amount, who pays it, and whether or how it’s divided between the listing agent and buyer’s agent. Your agent may even offer to throw in extras you’d usually be on the hook for — like home staging — to win your business.
Queens Homes Under $1M on StreetEasy Article continues below
How Does Exclusivity Work With a Listing Agent?
NYC home sellers usually sign a contract with a listing agent, giving that agent the exclusive right to represent their home on the market for a given period. Typically that period is six months, though it can be negotiable. If your home has not sold by the time the contract expires, you’re usually free to renew the contract or find another listing agent to work with. And, just like with a buyer’s agent, it’s best to work with a listing agent who isn’t also representing the buyer.
If you haven’t signed an exclusivity agreement with a listing agent yet, StreetEasy can recommend multiple Expert agents whose experience makes them an ideal choice to sell your home. Connect with these Experts through your Owner Dashboard, or by contacting the StreetEasy Concierge for sellers. If you aren’t satisfied with the options you’ve been presented with, simply submit another inquiry, and StreetEasy will find you a new set of candidates.
StreetEasy is an assumed name of Zillow, Inc. which has a real estate brokerage license in all 50 states and D.C. See real estate licenses. StreetEasy Concierge team members are real estate licensees, however they are not your agents or providing real estate brokerage services on your behalf. StreetEasy does not intend to interfere with any agency agreement you may have with a real estate professional or solicit your business if you are already under contract to purchase or sell property. StreetEasy Experts are third-party real estate agents (licensees/professionals, etc.) who are not licensed with Zillow, Inc.
