Value of buyer broker?

Riddhi, Did you buy or sell from Hauseit recently (2011 does not count) or are you just friends and family of Hauseit. If latter, still fair. Nothing wrong in promoting a service.

You guys are great. Sorry, should have thought before making my comment, wasn't directed at you but in hindsight should have realized you guys have really taken over this comment board. Kudos to you for making the good fight directly!

Riddhi, You might want to consider a more private handle. I just want as many buyers as possible to benefit from the rebates. Reduces the ownership cost like it has for me.

As a side note, commissions are always negotiable, so this idea of a "standard" commission shouldn't be accurate. I think I have had three different commission rates on my last three deals.

ali r.
{downtown broker}

Like Keith, we work really hard to be totally transparent, and we have no interest in trying to hide that we offer rebates to our clients – it’s front and center on our website – and we have never had a problem with a seller's broker working with us. In the NYC market, maybe it's easier than elsewhere because most brokers are members of REBNY and are bound by their universal co-broke agreement. While the rebate we offer is a huge benefit, we believe our clients come to us for more than just the rebate.

For buyers, we are primarily consultants and advisors, which is what many buyers need in today’s real estate market (they do not need salespeople). The market is as transparent as it has ever been with nearly 100% of all listings and a trove of other data available to consumers in a user-friendly web-based format at no cost, so the role of a broker in the search phase has been transferred, to a certain extent, to the buyer. But to process that information properly and understand what it means and how to apply it is a more complicated matter, and that is one of the major value-adds for us in our capacity as a buyer’s broker. Yes, we absolutely guide as to the process of buying a home in NYC, which is very important, as it is different and more complicated than anywhere else in the US, and handle all administrative aspects of a purchase, including presenting professional, clear and concise board packages, but we also provide sophisticated counsel on all other aspects of buying a property here, including the two arguably most important aspects of a purchase: evaluating pricing and determining bidding strategy, which often make or break an attempt to buy. For investors (or home buyers with an eye toward renting out in a couple years), we also provide detailed cash flow analyses, which set forth, in conservative terms, what an investment will probably look like over a period of years. Although many buyers today are significantly more sophisticated than they were just 10 years ago, they still can benefit greatly from working with someone who lives and breathes the residential market on a daily basis.

We provide one of the largest rebates (if not the largest) in the industry because we have figured out a way to be profitable by streamlining operations and limiting overhead – not by cutting corners or reducing service. Indeed, as many of our clients have told us, much of the analytical work we provide is not provided at all by many other brokers in the NYC marketplace, let alone to buyers at all price points, including $300K studio buyers.

Dan Gotlieb
Digs Realty Group
www.digsrealtynyc.com

Here is from a presentation I'm giving:
How does working with an agent benefit you?
-It saves you time.
-It makes you a more informed buyer.
-It makes you more competitive in a constant changing market.
-It helps you navigate through the complicated process of acquiring a home in New York.

Buyer Agent - there to advise you every step of the way to:
Find the right mortgage agent to arrange the necessary financing.
Put together a strong offer package to be competitive in the market.
Negotiate the price and terms of the sale.
Find the right attorney to represent you.
Assemble the best possible board package to qualify you for acceptance.
Coach you for the Board interview.
Prepare you for your closing.

 In New York real estate, the broker commission for both the seller's agent and buyer's agent is paid by seller. Typically the broker commission is 6%, which is split 50/50 between the two brokers. However, this commission, as almost everything in the real estate market, could be always negotiated.

Some might argue it is paid by the purchaser ( and in some cases the buyer actually cuts the brokers check and it is then deducted from the purchase price). Do you need a broker? No. However it's not a bad idea to have one regardless of how you feel about using one. Just find one that will be more of a partner rather than a sales person.

I have been running an alternative model for 'do it yourself' types for ten years. The model was essentially shaped from feedback from my clients and this forum. I like to joke we use the George Constanza model; do the opposite.It's worked well for me as well as my clients.

Quick market thoughts. Has anyone else noticed a pop in activity post election? There was a lot of pre election and then post election anxiety. However as it appeared the world was not ending buyers came out of the woodwork! I think we submitted around 9 offers over the last 12 days or so. 7 were accepted and are on their way or else in contract. The others we lost out in highest and best calls or just out bid. Just a quick snapshot from our micro world.

Keith Burkhardt
The Burkhardt Group

If you are willing to do some work yourself as in have some idea of what you like and browse streeteasy listing anyway, you are leaving money on the table by more using a broker who rebates you. I have used Keith for several deals. He provides excellent service and advice.