I still respectfully disagree!
Let's say that the median price for an apartment in the neighborhood is $300,000, and that listing brokers are only getting paid 3%.
Now let's say there's a massive uprising in the neighborhood among sellers and they demand that listing agents start cobroking. They agree to pay an additional 3% for a buyers broker but increase listed prices for their apartments by 3% to make up for this. So now the price becomes $309,000. And let's say that they want to have a bit more of a cushion, so they increase the price to $315,000, or $320,000.
Now let's say that your buyers broker, through negotiation, is able to get 5% off the price for you. That's $16,000 off. And you end up closing at $304,000.
We're talking about a $4,000 difference on the price of the apartment. If it were up to me, and I was investing $60,000 (20% down), I'd be willing to take out an extra $4000 on my loan so that I could be represented by someone who is experienced.
Now obviously scenarios can easily be made where there is a greater savings, but in general, I would say that the difference is often less than one would assume.
At our firm, we go over each offer with the partners of the firm. Often times I'll discuss it with my managers at great length. We all work as a team. The two partners of the firm are Harvard and Columbia grads who both worked in investment banking for years. They have a great deal of financial savvy, to say the least. We hyper analyze each deal to make sure that we're coming in with an offer that will get our clients the apartment they love at the best price possible.
My strong belief is that for a buyer, it is certainly worth it to have this kind of team on your side when making the single greatest investment of your life.
Aram
______________________________
Aram Bajakian
Senior Associate Broker
Cooper & Cooper Real Estate
Residential Sales & Rentals
341 West 38th Street, 10th Floor
New York, NY 10018
O: 212.864.4555
C: 917.348.0704
F: 212.706.2939
aram.bajakian@coopercooper.comwww.CooperCooper.com/AramBajakian