The short answer is no. Due to recent legal changes you can definitely buy a house without a real estate broker in New York. This may seem normal to most Aussies who are not familiar with the concept of engaging and paying their own broker to buy a house; it's just not how we do it in Australia. But be aware, buying a house can be a complex and risky process in the US and there can be significant advantages, and even cost savings when engaging your own broker.
The recent changes also mean that when buyers do use a broker they may have to negotiate and pay their commission fees. This is a change from the past where the sellers usually covered the buyer’s agents’ fees. And while some sellers do still choose to pay the buyer's agent fee, this is a very important change to be aware of and needs to be known up front.
In Australia you would be more familiar with the agent being the one selling the house and pointing out all the elements that make the price-tag justified. In the US however there’s not only a seller’s agent, there’s also a formal buyers’ agent agreement.
If all this is confusing and you think it would be easier and more cost effective to just do it yourself here are some important considerations:
1. Brokers have location and market expertise
A skilled broker is going to possess a wealth of knowledge of these nuances, understanding pricing fluctuations, school districts, and even the subtle shifts in buyer and seller behavior. In fast and volatile markets (especially like NYC) many prime properties never make it to public listings either, so your broker will often have access to a network of contacts and exclusive listings, giving you a chance at something better than average.
Not only that, but a broker will conduct a comprehensive comparative market analysis (CMA) to ensure you're either getting the best possible offer and not overpaying. While you can do your own research, generally keeping your finger on the pulse over a long time can have far-reaching benefits.
2. Negotiations and processes are complicated
Real estate transactions are complex and emotionally charged. A broker acts as your advocate in the early stages of your search right through to when you’re presented the contract. They’ll work alongside you to help negotiate closing dates, offer values, and other elements crucial to actually making an offer on a home.
In a competitive market, and especially in big cities, multiple offers at the exact same time are common and a broker can help you put the best proposal forward and make you look like the most enticing package. They’ll also manage what happens when counter offers are received, or if there are elements of the offer that you want to tailor to your specific needs.
3. You won’t have time to focus all your energy
Nobody really likes looking for a house.
Dreaming of a future home is different than getting down to the wire, with a timeline in mind, and having to search endlessly through homes that you desperately don’t like. Not to mention scheduling showings and if something good actually arrives, then managing the paperwork involved can be incredibly time-consuming. A broker handles these tasks, freeing you to focus on other priorities (like measuring space for your new sofa).
More importantly than all of that, though, is the fact that brokers have established relationships with lenders, inspectors, title companies, and other essential professionals and they can connect you with them. This will mean less time spent looking and more time spent doing.
Real estate transactions are fraught with potential pitfalls so a broker's experience can help you avoid costly mistakes, so be sure to lean on them for advice at every step.
One really important note here is that wire fraud is especially common in real estate transactions, so whatever you do, be sure to not trust emails that aren’t double verified on the phone, and be extra cautious before sending any payments.
4. Having someone disconnected can be a good sounding board
Lastly there’s the emotion. Buying or selling a rollercoaster and a broker can give you objective advice, helping you make informed decisions based on facts rather than emotions.
If your heart is set on it but they’re pointing you away, it’s time to listen and really try to zoom back out because it’s so easy to fall for a place that might not have everything buttoned up properly.
What else can a broker do for you?
Overall, the broker’s role in addition to finding places for you to look at centers around this idea of shepherding you along the way. There are so many moving pieces, especially as an expat, so having someone who is invested in getting you a good result is crucial.
From first browsing to punch lists at the end of the process—you’ve got a friend in B…rokers.
So how do you know who to trust and where do you start? If you just want to find out more without any commitment, America Josh has partnered with some reputable trusted brokers that you may want to contact.
