A) It costs the buyer absolutely nothing... The seller is the one who pays the entire commission at the time of closing, whether or not the buyer is assisted or represented by a Real Estate Agent. The seller is contractually obligated by law to pay the commission, without exception.
Q) "If Buyer's Real Estate Agents work for free, how and when do they get paid?"
A) Upon the purchase of an apartment, the seller pays a commission to the Seller's Broker. The amount is usually 6% of the agreed-upon purchase price of the apartment. This amount is then shared between the Seller's Broker and the Buyer's Broker in what is known as a co-broke agreement. Whether or not a Buyer's Broker is working for and representing you, the entire commission is paid by the seller to the Seller's Broker at the time of closing.
Q) "Can I save money if I look at New York apartments on my own, without a broker?"
A) The short answer is no, whether you look on your own or choose to shop with a Buyer's Broker, a commission will always be paid by the seller to the Seller's Broker at the time of closing. This is true of every apartment advertised and represented by a Seller's Broker, without exception. Because the sellers almost always have a broker working for them, as a buyer, it is more likely to cost you time and money, if you do not have your own Real Estate Agent representing you.
Q) "How can I tell when the Broker represents the seller?"
A) When you search advertisements to view New York apartments for sale in Manhattan, those ads have been placed by the Seller's Broker. Just keep in mind that while the Seller's Broker will be friendly, accommodating and cordial to you, they are always working for the seller, with the seller's best interests in mind, not yours.
Q) “What is the difference between the various types of New York apartments, including condominiums, co-ops, and cond-ops?”
A) When you buy a condo in New York City (Manhattan), you are purchasing your own property, complete with a deed and a portion of common space in the building. Investors tend to prefer buying condos in New York because they offer considerably more flexibility to sublet, plus there's a more lenient review of prospective buyers. Condos in New York generally require proof that one has obtained adequate financing and can afford the monthly common charges. When you buy a coop, which is short for co-operative housing project, you are actually purchasing shares in a corporation. Most co-ops do not own the land that the building sits on, but instead has a land lease. A condop is a coop with much more lenient ownership requirements set forth by the board. This type of apartment ownership is much less common. With all coop and condop ownership, including pre-war coops in Manhattan, you have a leasehold interest in your apartment, but you don't actually own your unit. In all cases, a board package will have to be assembled, carefully prepared and submitted for review by the building's board before a purchase can take place.
Q) "What is a pre-war apartment?"
A) A pre-war apartment refers to a building that was built before World War Two. Most pre-war apartments in Manhattan were originally set up as coops, and include the majority of upscale New York City addresses. Residents who purchase pre-war co-ops in Manhattan do so in order to live in a white-glove building that also maintains a certain level of exclusivity. Pre-war co-ops typically impose strict guidelines for buyers that include a thorough background check, minimum income requirements and sometimes an all-cash purchase. Some coops require prospective buyers to show monthly earnings equal to or more than four times their monthly expenditures, including mortgage, monthly maintenance, outstanding loans, alimony and child support payments. All of this can take several months before an in-person interview is even granted by the co-op board.
Q) "Should one approach buying an apartment in NY City based strictly as an investment, or is it okay to let emotions influence the decision?"
A) Purchasing a home is one of the biggest financial investments anybody will make during his or her lifetime. This is especially true when considering that New York apartments typically sell for more than $1,000,000. The process often stirs up conflicting emotions in the buyer. This is why it is beneficial to have a New York Real Estate Broker who specializes in representing buyers on your side. A good Broker/Agent will save you time, and recognize what moves you emotionally as a buyer to help you focus your New York apartment search on the criteria most important to you on a financial level. At the same time, your Buyer's Real Estate Agent will be protecting you from the pitfalls associated with negotiating and purchasing a New York apartment.
Q) "With so much info out there, why not try to go it alone and get a Real Estate Agent when I’m ready to bid on a New York apartment?"
A) Did you know that looking at New York apartments for sale with a Manhattan Real Estate Agent costs the buyer absolutely nothing? Just keep in mind that the Real Estate industry is a highly specialized one. Similar to brokers who invest in stocks, bonds and commodities, New York Real Estate Agents have tools that are not available to the general public. If you had an income tax question, would you attempt to deal with it without the help of a CPA? If you ever face a major legal situation, would you attempt to handle it without a qualified attorney? Even attorneys know it is foolish to represent themselves; most seek their own counsel in the event that they encounter a legal situation. Because there are so many risks associated with making an investment in Real Estate, an area that is highly specialized, it is unwise to start the process without proper representation, protection and advice.
Sellers Of
New York Apartments
Hire Real Estate Brokers To Get Them
The Highest Price Possible...
You Should Have Your Own Buyer's Specialized
New York Real Estate Agent
To Save You Time And Money
