What Exactly Does A Buyer’s Agent Do and Why Should I Hire One?
So you’ve started the process. You’ve looked into your search and maybe even flirted with a couple of numbers, but now, the question starts to ponder: “Do I need an agent?” To further complicate things, you’re probably wondering, “What do they even do?”
This is one of the many daunting questions that home buyers have when it comes to buying in NYC. To put it into the simplest terms, a buyer’s agent is a licensed real estate salesperson who is legally obligated to protect the interest of the buyer and help them land the best deal possible.
1. What does a buyer agent do?
A buyer’s agent is essentially your advocate (buyer’s advocate) – the quarterback of the team, and their entire objective is to make sure you land home safely. Their responsibility is to get the best deal for you and guide you on all the pivotal homebuying decisions you’ll be making that can either make or break the deal. Their line of duties goes as follows (and beyond):
- Working with you in crafting your search criteria from inception to narrowing it down to the perfect search that fits your all needs
Identifies both off-market and on-market properties that fit your criteria and join you on the journey to view such properties to point out any red flags that may have not been visible on the listing. - Already knows or can investigate certain properties for you in advance to ensure the home you are buying is future proof of your investment.
- Advises and recommends the best of the best in the city from the transactional real estate lawyer to the best inspector in the area. The buyer’s agent is there to help you rally the right team around you that can take your deal to the finish line.
- Guides you on the right offer, crafts it, and presents it to the seller ensuring that the offer highlights you in the best way possible (a serious and bonafide buyer).
- Advocates for your best interest in the sale from what could be included in the price to other contract negotiations.
- Manages the entire transactional process to ensure all other parties involved are honoring any deadlines and terms agreed on.
- If the purchase of the home requires a board application, the buyer’s agent guides you to put the perfect application together.
- In the event that things go left, the buyer’s agent negotiates repairs or price adjustments that may be feasible as a result of appraisals or inspections.
- Prepares you for the final walkthrough and join you through that final walkthrough to ensure the home is how you bought it.
- Stands-by for any necessary advice and support at the closing table.
2. Why is it important to have one?
The reality is, it’s a hard knock life out there in the NYC market. And when it comes to buying in NYC, you are doomed to miss out on some really good deals if you are thrown in a cage full of lions without a weapon. More importantly, you are doing yourself a disservice by not having a buyer’s advocate when buying a home because they obtain an important skill set that you don’t have: they know the buyer’s NYC real estate transaction inside out.
A buyer’s agent can bring professionalism and know-how that’s not just comforting, but also a practical advantage in a competitive environment. They can forecast when a deal can go sideways and make judgments on what a good deal is and isn’t, based on the current real estate environment. And for someone who isn’t in this day in and day out, what you don’t know, you don’t know and that’ll make you get the shorter end of the stick in any deal you get.
3. Do I really need one?
Technically, no. Do you want to go that route, I don’t recommend it. Look, you can put your search together. You can view properties on your own. You can use your cousin’s friend who is a part-time attorney and you can hire your inspector from Task Rabbit. You can call the seller’s agent and tell them you like to make an offer and unintentionally make an offer that puts you at a disadvantage from the next buyer.
There are a lot of things you can do on your own that a buyer’s agent does. But if you’re like me, you may also have a family to watch over, or you’re handling other responsibilities at work, or you just don’t like the feeling of “what you don’t know, you don’t know“. So instead, you err on the side of having “peace of mind” because a buyer’s agent is the peace of mind option.
4. How much will it cost me to hire one?
Depends. For many transactions, if the seller has agreed in advance, the seller’s agent will split the commission with the buyer’s agent. In some cases, the buyer will be responsible to pay their agent the commission to be negotiated.
In Conclusion
When you begin your home-buying journey, there are a lot of things to factor in. At first, it can be overwhelming, and you may not have all the answers right now, but that’s okay! Remember, you want to honor your process and when coupled with the right buyer’s advocate, the home of your dreams will manifest.
