Brokers and Bankers:
Especially for a first time buyer, relocating buyer or inexperienced buyer in a niche market (NYC co-ops), the choice not to use a broker makes little sense. First of all, they don’t cost anything. But more importantly, brokers who have been in the business for many years tend to gravitate to a certain niche either by conscious design or blind luck. Either way they develop a certain expertise in a particular neighborhood, property type, even a building. They are the local experts. And their expertise goes way beyond knowing where to look for property to meet your needs. They know the schools, restaurants, stores, contractors, babysitters, dogwalkers, supers and other necessary accoutrements of neighborhood living. They also know the people and places you should avoid. Remember buying real estate is only the beginning. You have to live in real estate.
In certain cities, notably New York, you may have to deal with that strange ownership model known as the co-op. In order to buy in a co-op you need the approval of the Board of Directors. That requires preparation of a Board package which contains a laundry list of documentation and is usually quite detailed.
If you dont’ use a broker familiar with co-ops you might get in trouble and likely to waste a lot of time and energy. Board packages can be rejected for any reason. Package submission can even be delayed for something as minute as using a binder that the board does not accept. If your broker is not experienced with the building practices, you can easily miss a board interview (some boards only meet one a month). This “niche knowledge” is essential. Brokers also know the pet friendly buildings & the sublet friendly ones (rare).
Also, if you are relocating, a broker who knows the area is like finding Wonka’s golden ticket: Priceless.
What else do brokers offer? Well they might know when a property is going to hit the market before it officially does. This alone is worth working with a broker because it allows you to get a chance to preview and possibly make an offer on the property before the general public does. It’s like knowing the operator who takes the classified ads for the newspaper. You get first crack at the property. A piping hot listing beats a stale listing anyday.
And here’s another little known fact–some MLS or broker trade organizations allow brokers up to a 72 hr. period where they need not enter the listing in the orgazination’s database. This gives the listing broker a 3 day headstart to show the listing to their buyers. So if you’re lucky, you will have first look at the listing before anyone even knows about its availability.
Contrary to some opinion that brokers are self intersted and want to make the deal so its’ to the buyers disadvangtage. It is precisely because of this interest in getting the deal done and the commission earned that brokers go the extra yard to make a deal happen. If a buyer sticks to their guns, the broker will do what it takes to get it done. I’ve known brokers who have paid for the paint job on the house that the buyers demanded and the seller refused to budge on. Ask any broker what they had to do to make a deal happen, within the law of course, and you will be amazed at the stories you will hear. As a matter of fact, that sounds like a great future post: What I Had To Do To Close A Deal: Real Stories by Real Agents (If you have any stories you would like share with us, please contact us)
There are great brokers in every neighborhood who specialize in every type of real estate. Ask your family, friends & colleagues for recommentdations. Whether you’re looking for a Residential Rental, Business for Sale, Commercial Office Space, Factory, Vacation Property, Timeshare, there is a Broker that specializes in that niche. Find him or her.
Mortgage Broker & Bankers:
Unless you intend to pay all cash, you are going to need financing. There are loan products for every scenario and every type of property. For example, if you are selling one house and buying another and there is a gap of time for which you need short term funds, you will need a bridge loan. If you only plan to live in the house a short time, a low or no interst ARM may be fine. Maybe a convertible loan.
These professionals can secure you a pre-qualification for a loan, or better yet, a pre-approval. You become a more attractive buyer when you make an offer, especially if you have been pre-approved for a loan. If you know the difference between pre-qualifaction and pre-approval, it will help you evaluate the mortgage broker when you ask him or her to explain it. Mortgage brokers and bankers know who has the best products and can walk you through the entire process. They normally have long standing relationships with bankers, even private lenders. Since it is in their interest (and yours) to close the loan, they will act as your advocate should a problem arise with the underwriter. A mortgage broker or banker who knows who to call at the bank if there is a glitch can be a lifesaver.
Buy smart, use a pro!
