When people move to New York, the very first thing they assume is that there must be abundant housing. There should be a wealth of apartments to pick from in every size, shape, amenities, etc. There must be right? The city is gigantic! There are buildings as far as the eye can see! However, despite the appearance of a surplus of apartments, their actual availability is doubtful.
Lets make up a client, his name is Joe. He is looking for a 1 bedroom in midtown east, he has a Boston terrier and is looking for a move in date that is exact and immovable. His budget is 2500 dollars. So what happens next? He starts looking on craigslist. He sees an abundance of apartments in this range, almost a surplus if you will. "This is going to be easy," he thinks. But behind the hundreds of adds he sees there are some unrevealed truths. First of all, 50 percent of all the apartments you see are already gone, or have an application pending on them. Second, quite a few brokers have decided to list and re-list the apartments they are advertising for, with different descriptions. Third, 95 percent of all the pictures that you see on craigslist, are not going to be of the actual apartment.
After seeing a bunch of apartments through craigslist, and not being pleased with any of them, Joe is starting to get frustrated. This apartment search is starting to turn into much more of a hassle than he thought originally. He decides that he would be better off working with a real estate broker, someone who would do the work of finding apartments for him. However, before he continues to look for apartments, he has a decision to make.
"How do I choose a broker?" The first instinct for Joe is to work with one of the agents he met on craigslist, because it's easy, and he knows them already. This is a mistake. It's a mistake because he has, literally, the world of real estate available at his feet and he decided to go with the laziest option. In New York City alone, there are literally thousands of brokerages, big and small. Look up NY real estate brokers, read their websites, see if you can relate to a particular company. Choose someone that you want to work with. Whether they choose a big firm, small firm, popular, or barely known firm, the most important thing is finding an agent that is both personable and knowledgeable.
"What's the type of agent do I want to work with?" There are two types of agents in real estate: buyers agents (tenants agents), and sellers agents (listing agents). A buyers agent is exactly what it sounds like. The job of a buyers agent is to represent you in all things real estate. Their job is to do their best to find you exactly what you want, or close to it. They represent you. A sellers agent, is exactly what it sounds like as well. They represent properties, or building owners, or management companies, and their job is to get the highest price possible for a property they have been given the exclusive advertising rights to. When you have decided that you want to work with a particular agent, according to Department of State regulations, they MUST present you with an Agency Disclosure Form. This form is not a contract (as it will state at the very top) and it is not for the protection of the agent; it is for your protection. It is a non-binding understanding, clearly stating who the agent is working for. If they are a buyers agent, the agent will have checked off the box that says "buyers agent" or "tenants agent", and if they are a sellers agent, they will have checked off the box that says "sellers agent" or "listing agent." You have the option not to sign this form, in which case the agent will have to declare on a Department of State form stating why and when you did not sign it. Once again, this form is for your protection and not the agents! It is in your best interest to sign it.
Joe has chosen his agent, he's signed the disclosure form, and now he's ready to go out to see some apartments. Joe gives his agent his criteria for the perfect apartment for him, and now the job is up to the agent. Now, this is very important. You must give your agent at least an hour or even better, two hours notice before you would like to go on a viewing, even if they insist on immediately meeting. The nature of sales dictates that, even if they are unprepared, the agent (good or bad) will meet you at the drop of a hat; however, you are not using that agent to the best of their abilities. Unprepared, the agent will meet you, and simply take you on a tour of buildings that he's been to, and hope that there's something available that meets your criteria. This is not why you hired an agent. You hired an agent to show you specific properties, that they know meet your criteria. The way an agent does is this is by calling management companies in advance! By making appointments, keeping them, and by getting knowledge from these companies about the apartments you will be seeing. LET YOUR AGENT PREPARE!
So after all of this, it's finally time for Joe to see apartments. He likes some, he doesn't like others, and he's starting to get discouraged. Don't worry! If you have a good agent, that agent will speak to you constantly, figuring out your likes and dislikes. Stick with your agent! They're going to find you something you'll like! I promise!
After sticking it out, Joe finally finds the apartment he wanted. It may not be perfect, but after seeing so much of the New York inventory, he is perfectly happy with the apartment he's chosen. Now it's time to make an offer...
More to come... Next Chapter... the Closing Process.
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