In the early weeks of a sea change in real estate, where all buyers must sign buyer representation agreements to work with agents (see our other post here), September’s Deal of the Month speaks directly to why, for most buyers, agents are so absolutely essential.

How We Met

We met these buyers not through some chummy country club or philanthropy, not through friends of friends, but in the most innocent way: at an open house for an Upper West Side property we recently represented. That’s right—we had to build trust from the ground up. I bring this up because the stream of lawsuits against the brokerage industry has been predicated by strong statements that buyers shouldn’t trust agents’ motives, that there was collusion to keep brokerage commissions high, and that buyers can and should ultimately buy without representation.

I’m here to tell you, these lovely buyers, based in Connecticut, needed some assistance. They had been looking for a pied-a-terre with a good-sized living room, so they could entertain in the city. It was our team agent Jonathan Goldstein who hit it off with them, telling it like it was about the market, and being incredibly responsive. How could he have known that they had already been looking for three years?

More importantly, how did they not know that they should have been looking not on the Upper West Side, but the Upper East Side all along? After meeting countless buyer agents, not one had suggested that they might be better served looking among the gorgeous housing just off Fifth Avenue. Nor had anyone suggested they consider raising their budget from +/- $1 million to $1.5-2mm. I know, it sounds like the most obvious thing in the world for an agent to do, but many agents act like order takers—like servers in a restaurant—rather than advisors. Sure, not every buyer can snap their fingers and spend more money, but from my conversations with agents across the country, it’s much more common than you might think. And this shift into a role of recommender and truth-teller shifted our soon-to-be successful buyers into the next gear.

The Next Steps

I share this information gingerly: these buyers were afraid of cooperative boards. They worried about being rejected, especially at the whims of small buildings. So how would we get them over this? Step by step, and showing by showing. Luckily, they had burned up enought anxiety up looking at properties before we met that when they raised they budget, a world of new listings came into view. Specifically, 24 East 82nd Street.

Ring In The New

What don’t you get for one million dollars?

(1) Bespoke Renovations
(2) Eleven Foot Ceilings
(3) Locations just off Fifth Avenue
(4) One-bedroom apartments with 22′ square living rooms.

When the property they ultimately bought came online, asking just under two million dollars, they immediately knew it was right for them (I know, it’s a lot for a one-bedroom apartment, but you had to see this apartment!) We got in the first weekend and made a full asking offer. No more messing around. No more agents letting them run the show. We advised based on what we could see in the market: This property wouldn’t last, and it was gorgeous, featuring the kind of square-shaped living room perfect for light, air, and fun. That’s what you get for a bigger budget: a 1910 mansion that has been converted into stunning apartments.

More importantly, we knew this deal had to bre consumated quickly. Their attorney completed due diligence review in lightning speed; they signed a contract within 4 days of initial offer.

To The Closing

At every step, the buyers had to be reassured that they were going to pass muster with the co-op board. These were successful people, who were going to be just fine, but some part of them felt otherwise. The value of real estate agents may be seen through shrewd negotiation, or inside knowledge. Here, our relationship with the listing agent was key, as was our ability to hold space for these buyers’ anxiety—and our willingness to be the captains of the ship.

Only after the closing did they seem to relax and let it soak in: Their three-year journey was over. It was time to decorate.

A big shout-out to hard-working advisor, Harris Residential Team agent Jonathan Goldstein, and congratulations to our buyers! – Scott & The HRT