I'm a first time home buyer and considering not using a buyers broker. The reason is that its an expensive property and requires a substantial amount of renovations. Probably 150k or so. i will need all the money I can save to renovate. Anyway, I'd like to negotiate the purchase price with my typical buyers broker rate of 3% coming off the final price.
Has anyone done this before? Is there a website that can walk me through what I will need? Am I making a mistake?
Eta: this is an NYC coop apt that requires 25% down.
A few points:
Yes, you should be able to get a lower price on the property, since the seller normally has to pay the commission for the buyer's broker. A broker looking out for his sellers best interests would move some on that price unless you present yourself as desperate or an idiot. However, you would need find out what commission the seller is offering, because while 3% is common, it is certainly not the only option.
The biggest benefit of a buyer's broker is that the broker knows the process and what to do if something breaks down during the process. Without a broker, you will have to arrange your own attorney, make sure that all paperwork is completed properly, set up inspections, make sure the attorney gets the invoices, set up title insurance, and so forth. You can do it, but it will have to be done on top of all the other preparations you will need to do before moving into the property.
As a broker in NC, I don't know all the real estate laws and procedures in NYC, so I can't get into details about specifics. You will need to know how long your due diligence period will be. You will need to find out if earnest money is enough, or if they require a fee for extended due diligence, etc.
Overall, if you know enough about real estate in NYC and have the ability to manage it on your own, it can be done. As a first time home buyer, though, I'd advise getting a broker. And make sure that you enter into a buyer's agency contract with the broker (exclusive or non) so that you know they are working for you and not as a subagent of the seller.