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Updated almost 7 years ago,
Do I need a buyer’s broker in NYC to successfully buy a home?
Can anyone give me the pros and cons of NYC buyer’s brokers? I’m looking at purchasing a 2 or 3 family property (to live in and also rent out) in Brooklyn and am getting conflicting input from friends and advisors.
A few people I know are telling me to ditch buyer’s brokers entirely, because seller’s brokers don’t want to sell to someone with a buyer’s broker, because they have to split the commission. It’s often the first question I am asked when I inquire about a property with a selling agent (“Are you working with a broker currently?”) which makes me think I’m being screened out if the answer is “yes”.
On the other hand, a few people I know (realtors) are saying I’ll get eaten alive without a buyer’s broker.
My feeling is that adding another broker into the transaction is burdensome and that even a buyer’s broker who is working “for” me will not care if I overpay - after all, it means they get a higher commission if the sale goes through.
So if I’m doing my research, I know the value of the properties I am making offers on, I know my market, and I have a good real estate attorney, do I really need the middle man?