Posted by Leonard Steinberg on April 10, 2011

I have repeatedly heard the refrain “I am not working with a broker!” in the fifteen plus years I have been a broker. The words are said by some buyers almost with a sense of pride and accomplishment. And they are often heard by listing brokers who relish the thought of collecting double the commission.

Some buyers these days come equipped with a knowledge base that is often impressive: Streeteasy, Curbed and a whole host of websites have helped them become well informed. They come armed, and more importantly, they come with the intent of getting a discount. But for most, it is a painful process when the reality sets in. For the buyer, they learn that if there is any discount at all, it is often marginal. For the broker, they learn that their work is often more than doubled. Smart sellers also know to be weary of bargain hunters. Representing both sides of a transaction can be tricky when neither side trusts you have their best interests at heart. Most importantly, buyer may have good knowledge, but a really good broker may have more knowledge, the kind that is not detailed on websites, and certainly not revealed by a listing broker. 1% of $ 2million is certainly not to be sneezed at, yet for the wrong apartment, or for a property that may have issues that will cost significantly more than $ 20,000.00 to cure, buyers without brokers should take heed.

For buyer’s brokers the message is clear: unless you bring real value to the process, you won’t be replaced by technology sometime in the future…..YOU HAVE ALREADY BEEN REPLACED. It’s time to re-structure the role of buyers broker as a buyer’s consutant, a problem solver, issue identifier and resolver, editor and mediater/negotiater. A buyers broker needs to be as informed as their customers PLUS have information and knowledge their clients do not have. They must learn to deliver real, intrinsic value to the process.

At the end of the day, great buyer’s brokers will thrive, and their customers will benefit tremendously.