Use a Buyer Broker or Not

I'm told that about 95% of the deals that happen in Manhattan have two brokers involved. A top broker I know who markets aggressively directly to the public says 75% of his deals have a buyer's broker, with him as the seller's broker. He's a top seller, an outlier (in a good way :) ) and I think in this way as well.

As far as whether you'll get a better deal without a broker in tow: The truth is brokers only get paid when they get a deal, so getting a deal trumps getting more commission every time.

Also, it would be a clear violation of REBNY guidelines (trade assoc) and unethical to the core to discriminate against a buyer who has a broker. The seller's broker has a fiduciary responsibility to the seller, and that means putting the seller's interest above your own. It's a legal obligation, it's not a mere good intention.

If you're sophisticated about real estate--you've bought and sold property in the past---and willing to take your time shopping and learning, and prefer to run the show completely, I believe you don't need a buyer's broker, especially for a condo (instead of a co-op).

Be aware that Street Easy only has exclusive, brokered listings. There are also open listings and for sale by owner listings and for those you need to search Trulia, Zillow and maybe Curbed, and some for sale by owner sites are worth searching for and watching.

If you're new to real estate deals, especially, I would suggest that you get a buyer's broker. We were first time buyers and went without a buyer's broker. I spent many many hours looking at listings, setting up visits, trying to understand all the things that were being thrown at me, etc. However, I'm a fulltime student, so I could kind of afford that luxury. My wife is a teacher, so she had her hands tied and could not get involved with any of this since 80% of the stuff is done between 9 and 5. Bottom line is that if you don't use a buyer's broker, you're looking at spending a significant amount of time doing research, etc.

Also we messed up a least apt. negotiation due to our lack of negotiating skills. I like to think that if we had a buyer's broker that would not have happened. Ultimately though, you need to get a broker that you TRUST.

I meant to say "new to real estate deals, especially in NYC"

Since you portray yourself as new to real estate buying (new to the city?), you would benefit from a trustworty, honest and competent broker. In spite of what you read here, they do exist!
I recommend that you call Keith Burkhardt, who is a regular poster here. He seems to be all that, and his business model includes a rebate of a portion of his commission.
A good broker will listen to what you are looking for and your budget, and can recommend that you check something a bit outside of your parameters, that ends up being the exact place you wanted. I think it also makes you a more trusted buyer, since sellers (rightly or wrongly) assume your broker knows how much money you earn/have, and wouldn't bring an unqualified buyer. Lastly, a good broker will know building rules that will be a good fit for your lifestyle, saving time (ie not letting you fall in love with a place that has a strict no pet policy if you have a dog.)
In my experience, I have met a few brokers that seem to drag their feet when prospective buyers already had a broker. Some will try to broker both side of the deal, it does happen. However, the current market is slow enough that it's unlikely to affect you.
Good luck in your search!

You are not familiar and you want to do it yourself? I think you have your answer right there.

Only in NYC do people with no experience buy >$1MM properties and think they can save $ by having no representation. It's almost funny...

You don't need a buyer's broker if you trust your ability to 1) access the inventory, 2) get behind the pricing, and 3) examine the risks involved in purchasing the asset.

Many people who come to StreetEasy feel that it solves #1 because lots of listings are in one place. Certainly inventory is more transparent than it was twenty years ago, although I feel like we are seeing a bit of a backlash against that transparency, and that there are more "shadow listings" or "gray inventory" -- whatever term you want to use -- than a year ago. There's then the question of whether you as a buyer can find the right apartment for yourself. Clients of my firm's who like our buyer's brokerage services say consistently, "wow, you steered me to something I wouldn't have looked at and didn't know I wanted, and it's perfect."

#2 and #3, are even more problematic. On #3 a good lawyer will help some, but even a good real estate attorney is not going to know the buildings as well as a good agent, and then there's the whole question of the board process to consider -- you can find threads and threads on here from people who were SHOCKED that they were turned down.

And I think a good buyer's broker is far better at #2, pricing, than someone who is not in the market.

In my experience, unrepresented buyers tend to overpay. They spend $100K too much on buying the wrong apartment for them -- and paying above the seller's bottom line to acquire it -- but they're thrilled because they "saved" two or three percent.

ali r.
DG Neary Realty