I have been looking to buy for a while...I have a friend who is a broker who was "representing" me. I am the one who finds all the apartments, from search engines, and sites like this one, and I tell him to set it up. Recently, I made a bid on an apt thru my broker. The seller's broker was being really shady, and not getting back to my broker. She told him that they already have a bid that might... [more]
I have been looking to buy for a while...I have a friend who is a broker who was "representing" me. I am the one who finds all the apartments, from search engines, and sites like this one, and I tell him to set it up.
Recently, I made a bid on an apt thru my broker. The seller's broker was being really shady, and not getting back to my broker. She told him that they already have a bid that might be going through, so my bid will be considered, if that doesn't go through, and she kept giving the run-around, not giving information on what's going on.
I had my parents (yay dad!) call the seller's broker directly, and this time she said, there were absolutely no offers, and please go ahead, make a bid.
Why did she lie to my broker about another bid?
How does it work, brokers (buyer and seller's brokers) have to split the commission, right?
So, If I want to negogiate the best deal, drop my broker? I mean I was doing all the searching anyway. What will he be providing me that I can't already do on my own?
Can any one enlighten me? thanks.
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Response by inonada
almost 16 years ago
Posts: 7952
Member since: Oct 2008
It is possible that the broker is not presenting your bid to the seller, which is illegal. I assume your bid was made in writing? Did you put a timeframe by which the owner needs to respond?
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Response by KeithB
almost 16 years ago
Posts: 976
Member since: Aug 2009
I think you should out the shady "listing broker", that type of behavior hurts everyone.
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Response by inonada
almost 16 years ago
Posts: 7952
Member since: Oct 2008
KeithB, is there a "right" way to out the listing broker to the seller? Other things could be going on: e.g., seller is in on it, they're shopping for a higher bid but want to keep nycbecky warm and thinking she should go over the top, but they don't want to turn away a potential new bidder until they also put in a bid by telling them there's an existing bid.
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Response by KeithB
almost 16 years ago
Posts: 976
Member since: Aug 2009
Quite frankly with just about no information other than the little that the OP has provided, its hard to really know what is going on. I like playing detective sometimes, my guess is the listing broker does not have an exclusive, so very difficult to co-broke.
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Response by nycbecky
almost 16 years ago
Posts: 36
Member since: May 2009
No, my bid was never in writing. My broker said that everything is done via email. I give him the price verbally and submits it via email. It's weird because during the whole process, I am left in the dark. I am not sure how this is supposed to be done, or the protocol.
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Response by nycbecky
almost 16 years ago
Posts: 36
Member since: May 2009
Am I supposed to submit something in writing? I am pretty much not working with my broker anymore because I felt like he was just another middle man, and I am working directly with the listing brokers.
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Response by b1pwysd
almost 16 years ago
Posts: 32
Member since: May 2009
Having an EXPERIENCE Buyer broker is very helpful. When looking for a coop last year, I started without a broker by doing searches on my own and hitting 10 to 12 open houses every weekend (so very tiring). Once I had decided on the area(UES), I decided to work with a broker I had met through the many open houses I had attended. I still like to do searches on my own (like SE), but when I see something interesting, my broker will research and tell me if it's worth the time to see it. He even went to see a couple of apartments on my behalf since I couldn't make the limited showing schedule. When I put a bid into a coop, my broker was very aggressive negotiating the bid and counter offer with the listing agent. When my offer was accepted by the Seller on a Thursday and the listing agent called 2 days later asking us to raise our offer since seller received another higher bid(even through they were NOT supposed to review anymore bid once they had accepted our offer); my broker found out that the listing broker is presenting multiple offers to the seller and different agents so there were actually 3 buyers bidding against each other (the other 2 buyers didn't even known that seller had accepted our offer and SUPPOSED to be working on the paper work). We dropped our offer and my broker filed a complaint with the listing agent's company. With the apartment that I finally purchase last Sept, my agent was very good in getting together all my financial information needed to complete the board package and he even sat with me and my husband to run through some of the common questions that board may ask, based on his past experiences.
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Response by wanderer
almost 16 years ago
Posts: 286
Member since: Jan 2009
nycbecky, drop you broker and ask KeithB to negotiate for you. This is the best thing you could do. Keep friends and business apart. If you are doing your friend a favor then you are naive, sorry.
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Response by Fluter
almost 16 years ago
Posts: 372
Member since: Apr 2009
I was discussing this recently with someone and we realized that everyone we know who used a friend or relative at an attorney for something seemingly simple ended up losing money or, in one case, in court.
The best way to hire an attorney is to find someone with the expertise you require who is conscientious and who will do energetic work for you.
Real estate agents are much the same. You run the risk not only of getting a worse deal than you would have had, but also of losing a friendship. So I think moving away from your broker-friend is wise.
I agree with wanderer, KeithB is a good cat, he could really help you. You sound like someone who could definitely benefit from a broker, and it won't cost you any more than going solo.
Remember, something like 95% of all deals in NYC involve two brokers. The listing broker will be happy to split a commission to get a deal--really. Direct buyers are rare and most who show up are not ready to buy anyway.
By the way, email certainly counts as "in writing." So do text messages. There was a recent court decision on this, happened during the summer.
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Response by gcondo
almost 16 years ago
Posts: 1111
Member since: Feb 2009
remember, if you go without a broker, you do have a chance of negotiating some savings on the price, as the listing broker will likely be paid less (ie 4 or 5% vs 6%).
I do not see why you would be working with a broker who is not actively finding you units to see based on your parameters. It is ultimately your money going into his pocket, after all.
Oh and, shameless plug, if you want a 1BR condo in a FSLDB for < 1000psf on the UES, let me know :) I am not a broker.
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Response by front_porch
almost 16 years ago
Posts: 5320
Member since: Mar 2008
nyc becky,
bids are supposed to be made in writing (email is the fine, but the phone is not) and are often attached to a mortgage prequalification letter and a REBNY Financial Statement (which is a two-page form that our trade association uses where you list your income and your assets, and then you sign it).
You should be supplying your agent with either a mortgage prequal or a REBNY financial statement so that you look like you're "serious" to the seller.
However, it's not that tough to check to see if your agent submitted your bid. Just ask for a copy of the email.
Once you have a copy of the email, you go to the listing agent's boss and complain -- loudly.
It is possible that the broker is not presenting your bid to the seller, which is illegal. I assume your bid was made in writing? Did you put a timeframe by which the owner needs to respond?
I think you should out the shady "listing broker", that type of behavior hurts everyone.
KeithB, is there a "right" way to out the listing broker to the seller? Other things could be going on: e.g., seller is in on it, they're shopping for a higher bid but want to keep nycbecky warm and thinking she should go over the top, but they don't want to turn away a potential new bidder until they also put in a bid by telling them there's an existing bid.
Quite frankly with just about no information other than the little that the OP has provided, its hard to really know what is going on. I like playing detective sometimes, my guess is the listing broker does not have an exclusive, so very difficult to co-broke.
No, my bid was never in writing. My broker said that everything is done via email. I give him the price verbally and submits it via email. It's weird because during the whole process, I am left in the dark. I am not sure how this is supposed to be done, or the protocol.
Am I supposed to submit something in writing? I am pretty much not working with my broker anymore because I felt like he was just another middle man, and I am working directly with the listing brokers.
Having an EXPERIENCE Buyer broker is very helpful. When looking for a coop last year, I started without a broker by doing searches on my own and hitting 10 to 12 open houses every weekend (so very tiring). Once I had decided on the area(UES), I decided to work with a broker I had met through the many open houses I had attended. I still like to do searches on my own (like SE), but when I see something interesting, my broker will research and tell me if it's worth the time to see it. He even went to see a couple of apartments on my behalf since I couldn't make the limited showing schedule. When I put a bid into a coop, my broker was very aggressive negotiating the bid and counter offer with the listing agent. When my offer was accepted by the Seller on a Thursday and the listing agent called 2 days later asking us to raise our offer since seller received another higher bid(even through they were NOT supposed to review anymore bid once they had accepted our offer); my broker found out that the listing broker is presenting multiple offers to the seller and different agents so there were actually 3 buyers bidding against each other (the other 2 buyers didn't even known that seller had accepted our offer and SUPPOSED to be working on the paper work). We dropped our offer and my broker filed a complaint with the listing agent's company. With the apartment that I finally purchase last Sept, my agent was very good in getting together all my financial information needed to complete the board package and he even sat with me and my husband to run through some of the common questions that board may ask, based on his past experiences.
nycbecky, drop you broker and ask KeithB to negotiate for you. This is the best thing you could do. Keep friends and business apart. If you are doing your friend a favor then you are naive, sorry.
I was discussing this recently with someone and we realized that everyone we know who used a friend or relative at an attorney for something seemingly simple ended up losing money or, in one case, in court.
The best way to hire an attorney is to find someone with the expertise you require who is conscientious and who will do energetic work for you.
Real estate agents are much the same. You run the risk not only of getting a worse deal than you would have had, but also of losing a friendship. So I think moving away from your broker-friend is wise.
I agree with wanderer, KeithB is a good cat, he could really help you. You sound like someone who could definitely benefit from a broker, and it won't cost you any more than going solo.
Remember, something like 95% of all deals in NYC involve two brokers. The listing broker will be happy to split a commission to get a deal--really. Direct buyers are rare and most who show up are not ready to buy anyway.
By the way, email certainly counts as "in writing." So do text messages. There was a recent court decision on this, happened during the summer.
remember, if you go without a broker, you do have a chance of negotiating some savings on the price, as the listing broker will likely be paid less (ie 4 or 5% vs 6%).
I do not see why you would be working with a broker who is not actively finding you units to see based on your parameters. It is ultimately your money going into his pocket, after all.
Oh and, shameless plug, if you want a 1BR condo in a FSLDB for < 1000psf on the UES, let me know :) I am not a broker.
nyc becky,
bids are supposed to be made in writing (email is the fine, but the phone is not) and are often attached to a mortgage prequalification letter and a REBNY Financial Statement (which is a two-page form that our trade association uses where you list your income and your assets, and then you sign it).
You should be supplying your agent with either a mortgage prequal or a REBNY financial statement so that you look like you're "serious" to the seller.
However, it's not that tough to check to see if your agent submitted your bid. Just ask for a copy of the email.
Once you have a copy of the email, you go to the listing agent's boss and complain -- loudly.
ali r.
DG Neary Realty