I am looking to possibly buy a condo in the near future, but would love some basic help understanding the process and the best way of doing things.
I understand that for a buyer, a real estate agent will help them find potential properties, etc, but I pretty much know exacly what complex I want to buy in - its just a matter of finding a suitable unit to choose from (there are ~10 for sale at any time, from various agencies). Since I already know what I want, do I still go to a real estate agent for help? If not, do I approach the seller’s agent and talk offers, etc.?
There doen’t seem to be any pure buyer’s agents around the area (NY), and since the agent would therefore then represent the seller, I am a little confused.
Go straight to the builder/seller/developer if they in any way make their information available.
An agent provides a service. If you don’t need the service, don’t use an agent.
Now, the builder/developer/seller might, by practice, want all business run through their agent, and if you do business with said agent, then the agent has responsibilites to you and them as a ‘dual agent’. The builder/developer/seller could still be contacted directly, and they often make this possible by hanging or posting their own ad signs.
You should be able to get a better price via the builder/seller direct, as they don’t have to pay a commission.
I would never buy using the sellers agent. Always use your own, because you want someone there to represent your interests. Some agencies will charge you a fee, but in most cases the seller and buyers agent split the commission, which is paid by the seller.
I can’t speak for how reputable this site is, but they list buyers agents in NY.
When I bought my co-op, I already found the place I wanted through some open houses, so I didn’t need an agent. I used a real-estate lawyer to handle the transaction, which went very smoothly. His fee was pretty cheap, too, especially compared to the commissions that real estate agents charge.
In all of the house/condo sales that I’ve be in, the seller is paying a 6% commission. That gets split between the buyers and the sellers agent. As the buyer, it shouldn’t cost you anything extra to have your agent.
Other then helping you find the correct property, my buyers agents have ended up doing a lot of the run around work. Relaying offers and following up on them. Making sure all the documents are correctly set up. If you are looking at a condo, I’d use them to get you a copy of the condo association agreement.
I would use a real estate agent just to make sure you’re dotting all "i"s and crossing all "t"s, and to make sure you’re not getting screwed. We used one when we bought our condo 4 years ago, and she was really helpful.
One word of advice: look into how much money the condo has in their reserve fund, and what their maintenance schedule is (I’m talking big things, like roof, siding, windows, etc. – not just sweeping and other upkeep). We ended up having to spend $30,000 (just my unit, that is) over the 2 years after we bought, because the Homeowners’ Association decided to re-do the siding, roof, windows, doors, and other things. It was either that or everyone’s dues would go up $300-400/month, so that there would be enough savings to do the work in 10 years, when it would be really necessary.
We love our place, but if we had known to look into that before we bought, there is a good chance we wouldn’t have bought it.
All that said – I still think you should use an agent, even though ours didn’t save us from this (how could she know that this is what the association would vote for?). There’s a lot more to condo buying and living than the cost of the unit and the amount of the monthly dues, and an agent can help you navigate that.
This isn’t a new complex. It has been around for a 20 years or so, but is large enough to usually have a decent number of unit for sale.
That said, since I am new to the process, I thought having someone on my side would be helpful - it just seems that there may not really be such a thing as an agent on the buyers side.
Funny, I already stubmled upon that site, and if you look into it you find that every link to every town in NY goes to same page that says - nothing has been found!
After a bit of looking, it seems that pure buyer’s agents aren’t very common in the north east US
Interesting. I am in a similear situation, I think, in that I pretty much can pick a place on my own without a realtor’s help.
What exacly did the lawyer help you with? - offers, financing, inspection, contracts, closing, etc? Basically, what did you have to do on your own that the lawyer didn’t handle, and an agent would?
Thanks of the help everyone! I feel I’m a pretty smart guy, but most of this whole home buying stuff is new to me!
Read the condo association’s rules. Assume that they are all enforced. If you have a pet. make sure they allow them. Ask for the minutes of every meeting in the last two years. Make note of any problem owners and don’t buy next to them. Talk to other owners.
The lawyer did due dilligence on the co-op (making sure all their finances were in order and so forth) did a title and lien search for the property, explained the various legal agreements and documents (for both the co-op purchase and the mortgage), worked with the bank and co-op to figure out all the closing costs and make sure the closing went smoothly (it did.) He was also very good about explaining what was happening at each phase of the whole transaction, which took a couple months to complete.
Yes, and check the dues. Make sure you can afford them, even if they increase (one building in Westwood years ago voted for FT security guards and the dues more than doubled). “Talk to other owners” is important, as in one Condo complex I know of, one dude runs the condo assoc like a King, and is generally offensive and bossy.
Also check the dues history for the past several years.
Had I known that my condo had not increased dues at all in 10 out of 20 years, that would’ve been a big flag. That combined with the previous year’s accounting report not being complete several months after the due date ought to have been enough of a clue for me to go look somewhere else.
I didn’t know there was actually a difference between buyer’s agent and seller’s agent, other than the fact that the seller hires the seller’s agent and the buyer hires the buyer’s agent. Isn’t it that all Realtors are qualified to be both?
When I bought my house, I knew exactly the house and exactly how much I could afford. I called up a Realtor I trusted (who did not work for the same real estate company that was selling the house) and I said “help me buy this house.”
She got the keys, showed me the place, did some of her own research, I asked if she thought I would be ok in this house, she gave me good advice. Then I said “ok, I’ll take it, for this price.”
She did all the phone calls, the paperwork, the back-and-forth. Kept me from the sellers, gave me super advice, helped me decide what to make sure got done before I bought, and bargained the hell out of the deal for me.
Didn’t cost me a penny, as (as others have stated) there was going to be a 6% commission paid no matter how many Realtors were involved. She continued to help me after I’d bought the house. Her help was indeed priceless.
People have a bad view of buyer’s agents. I don’t know why. Yes they are interested in making money but if all they did was try to get their buyer to pay the highest price for the property they would never make any money, they’d just get a lot of "no"s. You have the power to walk away, because they will either be making 3% of what you are willing to pay or NOTHING AT ALL (if you tell them to go to hell.) So it is in their best interest to get you the property at the price you are willing to pay. That’s the deal.
I’m not sure what you mean by a “pure buyer’s agent,” but then I don’t know NY real estate. IME, most agents do both, buy and sell. And IME, and as others have said, the commission is split between the real estate agents and is paid by the seller, not the buyer.
As a buyer, I can’t think of a reason not to use an agent. They would be delighted to have you – you know what you want already. An agent can handle paperwork and things like scheduling the home inspection for you.
I have bought three houses and sold two. In all cases as buyer, I worked with an agent of my choosing and it didn’t cost me a cent, because the seller pays the real estate agent commission. In both cases as seller, I had to pay that commission, which was split between the buyer’s agent and my selling agent.
Also, as others have said, when buying a condo or townhome it is extremely important that you get the Homeowner Association Bylaws, Articles of Incorporation, and CC&Rs and review them before you buy. You will want to know things like: How much are the homeowners’ dues? Has there ever been a special assessment, and if so, when and for how much? Is there any major routine mainteance coming up that will result in an assessment? For a 20 year old complex, I’d want to know when the units were re-roofed and re-sided or, if that hasn’t been done, when it’s scheduled. How much does the HOA have in reserves? Etc. etc. You may want to get a real estate agent who has experience with condo sales who can walk you through some of this stuff.
In many states, the “buyer’s agent” actually has a fiduciary obligation to the seller, not the buyer. A “pure” buyer’s agent is one who actually works for the buyer. The rules on fiduciary obligations of real estate agents are gradually changing, though.
Interesting that this came up, I am in fact about to sign a contract (knock on wood) using the selling agent as a dual agent. I was in the same situation as OP – I’ve had my eye on a specific estatblished condo building for about a year. I had an agent last summer, who took me to a bunch of other buildings, and I decided that this building was the best given my very limited budget. So I basically kept checking realtor.com and set up viewings on my own. It seems you have to tell the office receptionist that you would like to speak directly with the selling agent, otherwise you’ll get a different person from the same office offering to take you around to a whole bunch of other listings off of the MLS. You also have to clearly state that you do not have your own agent (ie, you’re not going behind anyone’s back to cut a deal).
FWIW, the (dua/sellingl) agent was very upfront that he would want to sell to me because he would get more commission if I bought without my own agent. He told me that another family offered slightly more money than I did, but because of the dual agency the buyer would pay less commission so I was selected. I did have to negiotiate on my own, and of course I actually have no idea whether or not this family even exists, so you can take this with a grain of salt. But this is just a little econobox condo, its not like I’m buying a four-bedroom house here.