Why is it so difficult to buy a home in Harlem? Home values for properties in Harlem are outrageous. Most Harlem families do not have sufficient income to qualify for a mortgage. In the 1990s, many home values in Harlem were still under $200,000! But inflation and the demand for affordable housing have made homeownership almost unattainable. But it is still possible to buy in Harlem.
What is important now is knowing how to assemble your home buying team. When selecting your home buying team, a question often arises as to who will assist with negotiating the sales price for the property? Should you use a buyer’s or seller’s agent? What is the difference between them? Most prospective first-time home buyers are not aware of the different types of real estate agents.
Essentially, there are three types of real estate agents: the buyer’s agent, the seller’s agent, and a dual agent. The buyer’s agent works directly for you. You will usually pay them a percentage of the sales price for their services. As the buyer, you will provide this agent with your housing requirements, i.e., desired location, number of bedrooms, and price range.
They will conduct a search for properties within your price range and most suited to your specifications. The buyer’s agent will assist you in negotiating a purchase price. This can be a huge benefit, especially if you are not very confident with your negotiating skills. They know the market value of the property being considered based on location, size, and recently sold comparable properties. For many first-time buyers, using this agent will eliminate much of the stress associated with shopping for a home.
The seller’s agent is most commonly used by first-time homebuyers. They work exclusively for the seller. But they need prospective buyers to purchase the property. Since they are paid a commission based on a percentage of the purchase price, the seller’s agent will usually try to sell the property for the highest possible price.
You must be mindful that any information you share with the seller’s agent will be shared with the seller, and that could hamper your negotiation opportunity. But the advantage here is the seller will pay the entire commission and not you. Although you will pay indirectly based on the agreed-upon sales price of the unit.
The Dual agent will work for both the buyer and the seller. Each party will split the commission fees for the property purchase. It is not often recommended to use a dual agent because there is often a conflict of interest when the agent tries to represent both parties in the home-buying process. This could potentially become a problem that you should avoid from the outset.
If you are interested in attending the workshop or have questions regarding the home buying process, contact Rev. Dr. Charles Butler at (212) 281 4887 ext. 231or email at cbutler@hcci.org.
Based on reporting by Harlem Community Newspapers.
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