First off, the economics aren't on my side - I'm still going to pay 96, 97, 98% or so for the home even if I get a commission reduction, which isn't a sure thing. Secondly, knowledgeable real estate agents have actual value, and probably nowhere as much as with buying NYC co-ops.
Number three, much of the value a real estate agent / broker has is in education; they should know more about the buildings than you can ever find out without living there, and they can guide you before you commit to a purchase.
Having lived in NYC for over thirty years, it's no place to be without a guide - whether in real estate, or as a tourist.
So, no, I wouldn't put it under the heading of, "Good Ideas."
All the best,
To use or not to use a Realtor is your decision, my question is why you would not want to use a professional that knows the homes, area and has the information necessary to help you make a smart decision..
But, the bigger concern here is buying a "co-op". I would re-evaluate that first.
I laugh and say, sure I can.
The, I am going to save you the buyer’s agent commission thing does not work on a listed property. Commissions are negotiated prior t listing.. and there is not a well, If the listing agent sells it price it is this and if a buyer walks in on his own price. I’ll pay this... Not how it works.
As far as the co-op thing, being educated in co-ops and condo's, I would rather remove the 80% of the market and find a condo.
But of course you should do your due diligence and come up with the best situation for you!
I agree, not looking at a co-op will limit your choice of places.
Howeverr, if the property you are looking at is listed with an agent, you have to go through the agent to negotiate with the sellers, unlike a For Sale by Owner. SO it's in your best interest to have a Realtor representing YOU during the negotiations since you cannot negotiate directly with the seller on a LISTED property.
Eliminating the agent on your side doesn't change the fact that the commission has already been pre-determined by the listing agreement and is paid by the seller.
Minimally I would suggest you DO use a Realtor to help you wade through the paperwork involved in applying for ownership in the co-op. I know Manhattan has more co-ops than most areas, and as Marc said, most are going to be listed with a Realtor for the seller. You would be wise to have someone representing you on your side as well.
Good luck to you,
Unwavering Commitment to Service
The other part of buying a co-op is getting accepted by the Board. A realtor knows what the Board is looking for so that you do not waste your time. My realtor went over my financial package with me to make sure I presented it correctly. My financial package to the co-op Board was more extensive then my mortgage application.
Remember the realtor is not costing you anything. Don't think that if you went directly to the seller you would get a lower price. Most sellers do not know how to price their home and most likely your mortgage appraisal will come in lower then the sells price.
Yes, if you do know what is a co-op, and you know what you're doing. It's a good idea to save money and time.
But when you want to buy a co-op, it seems like you are confused by the estate type. In general, most people do not consider to buy a co-op. Let me know if you change your mind.
Parsippany / Montville Office
1072 Route 46 West
Parsippany, NJ 07054
There is no law that requires it. However, most co-ops in Manhattan are listed by real estate agents. So while you won't be using an agent, the seller of the co-op certainly will. And their goal will be for you to pay the highest possible price at the best terms for the seller.
So if you can fight that battle yourself, and are qualified to do it, by all means, do not use an agent. If your knowledge base and expertise are also sufficient in law and property condition, you can also dispense with the attorney and the home inspector also.
Century 21 Joe Tekula Realtors
201 Route 10 East
Succasunna, NJ 07876
Phone (direct): (973) 584-4235
Coolest map-based home search: http://www.marcpaolella.com