Do I need a buyer’s broker in NYC to successfully buy a home?

[Account Closed]

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?

[Russell Brazil]

If it is a competitive market, then yes you absolutely need one. When I am the listing agent and people make offers without an agent 1 of 2 thibgs happen. If it is a super competitive situation...the unrepresented buyer just has no clue what to do to compete, so someone with an agent always wins. When it is not super competitive, I take advantage of the buyers lack of knowledge and have them waive things no agent would ever allow and get them to bid against themselves.

Getting both ends of the deal is nice, but many full time agents are doing 20 to 40 transactions a year. So an extra side isnt exactly moving the needle for us to create any incentive not to just do what is best for their selling client.