Issue 108 - To Use a (Buyer’s) Broker or Not to Use a Broker — That is the Question

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Issue 108 – To Use a (Buyer’s) Broker or Not to Use a Broker — That is the Question

April 1, 2025

Becoming a buyer in NYC is a process in which you learn what you are made of. Creating something valuable, enjoyable, and worthwhile requires fortitude, guts, and a little imagination. Not only is the endeavor highly emotional, but it is also nuanced and can be expensive if mismanaged. It requires having the right supporting players in place, from your mortgage broker to a fantastic attorney as well as a broker who truly serves your best interests. Someone who says what they think, not what you want to hear, differentiates a salesperson from a trustworthy advisor.

The right team is vital in helping you deal with potentially rigid co-op boards and the legal intricacies of financing, negotiation, and comparative market analysis. An experienced broker will also know how to structure your bid to stand out amongst a sea of others.

Adding to the confusion is a new variable regarding which party pays the commission on a real estate transaction. What once was a seller’s responsibility has now become an open forum for discussion and negotiation. But pushing the commission onto buyers, who already bear significant friction costs associated with purchasing, has serious repercussions. That additional ‘hit’ can prevent them from meeting the price a seller will agree to — especially given the continuation of higher interest rates, which further diminishes the buyer’s purchase power.

Based on that fact pattern, we see that everything is status quo: sellers are still paying the commission because they recognize it’s the smartest thing to do. Because they are vested in getting the highest price possible and protecting the building’s value, sellers have essentially boycotted the idea of reallocating the commission.

According to a report by The New York Times last spring, 85 to 90 percent of home buyers in New York City used a buyer’s broker. More recently, StreetEasy published a Zillow research report showing that 88 percent of buyers nationwide used a buyer’s agent the previous year.

There are so many reasons a buyer’s broker is essential. When people buy a real estate asset, they generally want to avoid buying a lemon. They typically wish to have the ‘blessing’ of a trusted residential broker to ensure what they are looking at is sound.

A broker can advise on certain things that a third-party website cannot, such as the nuances and underpinnings of the neighborhood and the building—including whether you can hear the train or subway rumble underneath the unit, whether there’s a history of water or gas leaks that hasn’t been fully disclosed in the building minutes, or whether the next-door neighbor is a heavy smoker. All these factors are material and set the tone of who your broker is and how they serve you.

Most buyers recognize the value of bringing in an advisor to provide comparable analysis, conducting proper due diligence surrounding the building’s financial history, and determining how the unit will hold value over time and what sets it apart from other properties. An expert will also be able to ascertain whether the property is in a ‘fringe’ neighborhood that will recede quickly in a soft market, or one that will take off. A qualified buyer’s broker can genuinely understand how to structure an offer properly and illicit a deep counter from the seller to get what the buyer wants, all while creating an environment that will allow both parties to feel like they have won.

A buyer’s broker understands that they aren’t just helping them obtain a home; they are helping to secure an asset that must perform well over time.

They can prepare some of the most laborious but necessary documentation, framed in a way that fully discloses the buyer’s identity to the board, the managing agent, and the seller — without their meeting the buyer.

The skill with which a broker curates that narrative is among the most critical components in the sales process, given this will determine whether buyers are granted a board interview and get approved to buy in the building.

The buyer’s broker should prepare you for a co-op board interview protocol and detail what you can and cannot say during that interview (if you are lucky enough to get to that point.)

Buyers who choose to represent themselves forfeit valuable support and assurance in how and what they present to ensure a successful transaction and the long-term protection of their purchases’ value.

My chief point is that there are some things that money can buy, and one is a level of experience and acumen, showcasing what a broker’s value truly is. Brokers who have been through many different market cycles recognize and know how to leverage those opportunities in their client’s favor. A seasoned pro can find inherent value where others may panic and mistrust the opportunity in front of them. Having an advisor guide you in going against the market’s grain is where the value proposition of a great broker lies.

Moreover, an established buyer’s broker can often ‘part the sea,’ if you will, getting their clients’ offers considered first by the seller, who can rely on the broker’s consistency and track record in seeing the deal through to the end without any issues.

Sadly, buyers often feel they cannot trust a broker based on negative prior dealings. I spend much of my time cleaning up what others have overpromised and underdelivered. It is a trust exercise in convincing the client to believe that what I say, I will do.

I also spend time clearing up falsehoods, such as that buyers believe because they don’t have a broker, they will have more leverage to offer by applying commission points to incentivize the broker to move forward with their offer– even if it’s not at the same price–or that the commission adjustment allows the seller to have more to take home.

Most people don’t realize that when a buyer doesn’t have a broker representing them, two things happen: The listing broker has no issue driving that bid up whether they have a broker or not and most likely will still increase the bid to maximize the seller’s profit. They may not always disclose transparently to the seller that the buyer has come in without representation. Therefore, they are capitalizing on the additional 1.5 or 2 percent it may have saved and allocating it to their own pocket.

While we recognize it is a conflict of interest, it is the fiduciary responsibility of both the buyer’s and seller’s broker to disclose if a dual agency has been created.

Without using a buyer’s broker, the listing agent’s fiduciary responsibility remains with the seller, not the procuring buyer, so the buyer entering the transaction is walking into a situation where they have no one advocating on their behalf.

The bottom line is that when you are putting a substantial amount of cash into an asset, it is incumbent on all parties to have a representative looking out for their needs to ensure they are getting the most value for their asset, whether on the buy or sell side.

As a real estate advisor, I am very uncomfortable ‘selling’ my value to anyone. However, I am a big believer in actions speaking louder than words. Anyone wishing to enter into a real estate transaction should look very carefully at their agent’s actions to appreciate best what they bring to the table.

Issue 122 – Foreign Demand Re-Emerges as Luxury Buyers Underwrite Political Risk

June 1, 2026

As we head into summer, we are seeing a very notable resurgence of international buyers entering the New York market — and frankly, in a way we haven’t seen in years.

Let’s explore why.

Historically, global capital gravitates toward stability, discretion, and internationally recognized assets. In New York City, that typically translates to park-facing residences, trophy properties, and globally recognizable “name-brand” buildings. These include Aman, Four Seasons, Related developments, and legacy Park Avenue or Central Park South product with strong service infrastructure and long-term value preservation.

Right now, buyers are looking for quality, security, and assets that feel insulated in uncertain times. NYC, despite all the headlines, remains a strong, long-term store of value internationally.

When there is instability abroad, New York City benefits. It offers legal transparency, deep liquidity, world-class education, finance, culture, and healthcare — and a real estate market that, while imperfect, is still well understood around the world.

What’s different now is that buyers are not necessarily purchasing because they think New York is “hot.” They are buying because New York is established. That is an important distinction: the capital is less speculative and more preservation-oriented. For many international families, a New York apartment is part lifestyle asset, part hedge, part legacy planning.

The headlines about wealthy buyers fleeing New York City are often too simplistic. Yes, some buyers have moved capital to Florida, Texas, or other lower-tax markets. But that does not mean New York has lost its global relevance.

The newly announced pied-a-terre/second-home tax in New York targets luxury second homes valued at $5 million or more, with the goal of creating an annual surcharge on non-primary residences. This proposal is certainly something international buyers are paying attention to, though it remains to be seen if this will impact continued investment. Rather than eliminating foreign demand, the tax likely makes buyers more selective, becoming part of the broader cost-of-ownership analysis alongside the mansion tax, carrying costs, and currency exposure. It may create pause around marginal purchases, but for a trophy asset, it won’t stop the buyer. It simply raises the bar for what feels worth owning.

The concern is less the dollar amount itself and more the perception. International buyers are highly sensitive to whether a market feels welcoming, predictable, and stable. Policy often moves perception before it moves fundamentals.

We’re consistently seeing foreign buyers generally gravitate toward turnkey product. The appetite for renovation or operational complexity is far lower than it once was. Buyers want ease, service, security, and a property that immediately translates internationally, both from a branding and lifestyle standpoint. For these global buyers, New York remains one of the few carrying both emotional and financial prestige.

Enter: Japanese buyers. The Real Deal recently reported a massive resurgence in Japanese capital, providing a lifeline to aging multifamily walk-ups. “Japan-linked firms have acquired at least $2.1 billion worth of New York City property since the start of 2024, according to analysis by Okada & Company and TRD Data,” the piece details.

This surge is driven by a stark yield gap: With low interest rates at home, Japanese buyers can borrow cheaply in Japan to acquire higher-yielding assets, a strategy supercharged by domestic tax incentives for multi-family purchases.

We are also seeing diversifying residential demand from Australian, Brazilian, Taiwanese, and Western Europe buyers. Eastern European activity is still highly selective compared to prior cycles, but international demand as a whole has undeniably re-entered the market. The usual suspects — such as Central Park South, Tribeca, Billionaire’s Row, and select Downtown properties — remain the primary anchors.

Target price points for these foreign investors vary by country of origin and the purchase’s purpose, with the most active international demand falling into clear segments:.

The serious lifestyle buyer ($3M to $7M): Typically targets a strong two or three bedrooms in a premier building, prioritizing service, security, and an easy lock-and-leave lifestyle.

The wealth-preservation buyer ($7M to $15M+): Focuses heavily on blue-chip locations — Central Park, Fifth Avenue, Park Avenue, Tribeca, Billionaires’ Row — or globally recognized branded residences.

The ultra-high-net-worth buyer: Prioritizes the asset above any price point, focusing on scarcity, pedigree, privacy, views, service, and long-term relevance. They are not asking, “Is this affordable?” They are asking, “Will this matter 10 years from now?”

Today’s foreign buyer is much more disciplined. They want turnkey and certainty. They want building quality, service quality, financial stability, and a residence that translates globally.

The biggest shift is that foreign buyers are not chasing the market — they are underwriting it. They are asking better questions: What are the monthly carrying costs? Who is the resale audience? How strong is the building financially? How liquid is this asset? Does this location hold value in multiple cycles?

Overall, cultural nuance matters more than ever. Buyers are underwriting not just the apartment, but NYC itself.

Five years ago, there was still more appetite for optionality — buyers were more willing to consider renovation, new development premiums, or speculative upside.

On the Japanese side specifically, what I’m noticing is a renewed comfort level with NYC real estate as a legacy asset class. The buyers I’m seeing tend to be highly analytical, long-term focused, and extremely quality-driven. They’re not chasing hype — they’re buying permanence.

The Brazilian and Australian buyers we’re seeing tend to be incredibly lifestyle-oriented while still highly aware of long-term value, whereas many Western European buyers continue to prioritize pedigree buildings, architecture, privacy, and stability. Taiwanese buyers similarly appear very focused on security, quality, and established global positioning.

For foreign investors, New York City still represents something very specific: legal stability, cultural prestige, liquidity, access, education, healthcare, and global identity. The buyers I’m seeing are not ignoring the headlines. They are simply looking past them when the asset is strong enough.

New York is no longer a market where everything trades easily. It is a precision market. But for the right property — the right building, the right view, the right service, the right location — foreign buyers are still very much there.

The common denominator across almost all of them is that they are buying selectively — but decisively — when the product feels globally relevant.