Why you need to buy real estate in New York City?
New York City, is the Capital of the world, and the center of global finance, politics, culture, art, fashion, design and more. Every day, there are new immigrants and international students coming to work or study in this great city from all over the world. Midtown Manhattan in New York City is a gathering of Fortune 500 company headquarters and brings together a large number of High Net Worth Individuals. Since about 80% of New York's real estate is Co-op that foreigners cannot buy, the real estate market in New York is safeguarded from speculation activities, and make it a safe and stable market. Most foreigners can only buy Condo, Townhouse, and House. Compared to other major large cities in the world, New York City is still less expensive and more attractive than London, Paris and Hong Kong, in terms of price and room for appreciation. While 70% of New Yorkers live in rental properties and only 30% own their own homes, there is a huge demand from the rental market. If you own a piece of New York City real estate, your child can also go to public school for free within the property's school district, enjoy quality education benefits, and have freehold property in the U.S. that your offspring can inherit. No matter what is your reason to own a home in New York City, Manhattan has always been the first choice for both domestic and foreign buyers. "Manhattan" is like a luxury brand; owning real estate here is your symbol of noble status in the world!
In New York, why would you need a buyer's agent?
Many people have this idea: "When I bought my house in my own country, I didn't need a broker to represent me. I located a house for sale that I liked, went to see it, negotiated a price with the seller, and then made a deal. Why will I need a broker to buy real estate in New York?
First, the State of New York has strict laws for Real Estate Agents - Buyer's Agent is working on behalf of the buyer, and Seller's Agent is working on behalf of the seller. Real Estate Agents must be absolutely loyal to their client and present the State Department's Agency Disclosure Form to their clients for signature. When a buyer goes directly to the seller's agent, the interests of the buyer are not guaranteed at all because the seller's agent is fully serving the best interests of the seller. His / her intention is to sell the house, at the highest price, in the shortest possible time for the seller, and by all means to achieve this goal. Sometimes the property management is having financial problems, or in the future there will be a new assessment. There could also be plans for a new building nearby, that will block your view from the home you're buying, or the property had an accident and so on. The seller's agent will not tell you those details, because he / she is entirely in the service of the seller's best interest. That's why there is this saying "Caveat emptor" which means let the buyer beware.
Second, the Buyer's Agent does not charge any commission from the buyer, so if I represent you as Buyer's Agent, all my services to you as a buyer are completely free. When a listing was being generated, the listing agent has already set a commission rate with seller in the listing agreement, and the seller's agent and buyer's agent will 50/50 split the commission. Therefore, as a buyer, you might think you can save money by not using a broker representing you. In fact, you simply won't. For example, an $800,000 apartment has a 5% broker commission in the listing agreement before the apartment is listed. A few months after closing, the seller must pay $40,000 broker commissions according to listing agreement, splitting between the buyer's brokerage firm and the seller's brokerage firm, and the agents get paid from their companies.
Third, Manhattan does not have a Multiple Listing Services (MLS) which is known outside the New York City, though many people and firms have tried to build it for decades. Big real estate companies all have their own listing system, and their own listing system is used only by their own agents. Each company's website publishes its own exclusive listings, and they send its own exclusive listings to other companies that are members of Real Estate Board of New York (REBNY). Big brokerage firms will store a large number of other companies' listings in their own internal database, even for sale by owner listings and listings that do not belong to any companies (open listings). Therefore, brokers have the best tools and information. To buy a home in New York City, if you choose to work with a broker in a large company, he/she is usually very well-trained and familiar with the local market, the area, the neighborhood, even the apartment layout. With their help, your search for your dream home will be much more efficient than you browsing the Internet, which may feels like looking for a needle in a haystack. It will save you so much time and energy. My company Douglas Elliman Real Estate is New York City's oldest real estate brokerage. Founded in 1911, it is now New York's largest real estate brokerage company in Manhattan with the largest number of exclusive listings and agents.
Finally, the Buyer's Agent will help buyers to provide the price history of the listing and negotiate on your behalf with the other side to get the best price possible. He/she is responsible for filling out purchase application on your behalf and deliver it to the condo or co-op board. Board packages must be typed and send to the management company first for review and then they will forward it to building board for approval. At the same time, he/she also communicates and coordinates with all aspects of the deal - the contract of sale, the financial statements of the building, the Offering Plan, making sure that they are promptly sent, and making sure the progress of the loan will be timely, and sometimes resolves disputes between lawyers on both sides. Buyer's Agent communicates diligently with everyone to get problems resolved, otherwise it will lead to delay or even lose the sale, and the property might be bought by other buyers. A Buyer's Agent can be of great assistance to the buyers throughout the whole process.
I have met several buyers who came to me because they have failed after they tried to negotiate on their own with the seller's broker to buy a property. In the process of a real estate transaction, not only is the price being negotiated, but many of the terms of the contract are also negotiated. It is important that you have a professional to negotiate on your behalf, and to protect your best financial interest. I am a REBNY member and a Certified Negotiation Expert. If I represent you and escort you through your purchase process, your best interest will be protected and guaranteed.