Getting A Discount If You Don’t Use A Buyer’s Agent to Purchase Apartments in Manhattan
A few days ago I had a conversation with listing agents who were confronted by potential Manhattan apartment buyers wanting a discount on the sales price because they didn’t want to use a buyer’s agent.
I Want A Discount on a Manhattan Apartment!
This is one of the biggest misconceptions we face as luxury Manhattan real estate brokers. For whatever reason, Manhattan apartment buyers seem to think that by working with Manhattan top listing agents can automatically get a reduction in the sales price of a property. So what do you say when you are approached by a potential buyer who wants a discount?
Educate The Consumer
The very first thing you need to explain to them is that the commission is a legally binding agreement between the seller and the Broker. It is not an agreement with the listing agent, but their Broker. The seller has agreed to pay the Broker a certain percentage. Of course there are exceptions and those would be stated in the listing agreement, but I’m speaking in general terms. So while the buyer thinks they would get a “discount”, in most cases they wouldn’t. The listing agent would simply get the full commission.
Explain Agency Laws
The next conversation would need to be that of Agency. Since Agency laws vary from state to state, you need to discuss the level of representation you would be able to provide to these potential Manhattan realestate buyers. Lastly what is your standard of practice when it comes to working both sides of the transaction? Of course they will say that other Manhattan real estate brokers offer a discount to buyers, but you can’t control what other Manhattan real estate brokers do or don’t do. You can only talk about what you do. Consumers need to understand the value of having someone represent them and their interests 100% is FREE, and hopefully they understand the importance of representing someone fully.
What Is The Manhattan Property Worth?
Although many jurisdictions allow dual agency, I find it difficult to walk that thin line…but that’s just how I choose to run my Manhattan real estate business. There is no right or wrong way of running your business, but it is our obligation to educate the consumer so they can weigh all of their options to make an informed decision. At the end of the day it’s about the consumer feeling as though their interests were represented fairly. Manhattan real estate buyers should make an offer based on what they feel the property is worth, and what their agent advises them based on my property appraisal experience tells them. Trying to get a “discount” has nothing to do with what a property is worth.
Soho Lofts– Tribeca Condos – WestVillage Apartments – Upper East Side NYC Apartments-Upper West Side Apartments – Battery Park City Apartments –Chelsea Apartments– Gramercy Apts – Midtown East NYC – Midtown West NYC – Murray Hill in NYC – Lower East Side NYC– East Village Apartments