If you’re considering the purchase of a condo hotel unit, then you’re prepared to spend a substantial amount of money. Let’s face it, these aren’t your average $10,000 timeshares. It’s therefore certainly in your best interest to do everything you can to ensure that you get the very best property for the price.
That’s where an exclusive buyer broker comes in. He or she can provide you with objective information about each property and about the area. Basically, it’s like hiring a personal consultant to protect your interests without any additional costs. Here are some commonly asked questions regarding the use of a buyer broker:
1. Do I have to pay the buyer broker for his services? No. The seller, usually a developer in the case of condo hotels and fractionals, pays the buyer broker a sales commission.
2. Is the price of the condo hotel unit or fractional ownership discounted if I buy directly from the developer? No. The commission is built into the price. Therefore, the price is not discounted without a buyer broker. The developer must pay a commission to his on-site agent no matter what. If a buyer broker (outside real estate broker) is involved, that commission is split between the buyer broker and the in-house salesperson. Either way, the buyer does not benefit.
3. What is the benefit of using a buyer broker (real estate broker)? A buyer broker will look out for you. After all, the developer has people looking out for him and ensuring he gets the best deal every time. You’re on his turf and he sets the rules. A buyer broker can help level the playing field.
More importantly, a buyer broker can provide you with objective information about all the different properties available. The information you get from on-site agents will of course be biased toward the property they represent. You want someone who can help you look at the big picture and consider all your options. Using a buyer broker is like hiring a personal consultant to protect your best interests, without any additional costs!
4. Does the buyer broker ever represent the seller? No. The buyer broker is working only on your behalf. He has no allegiance to any particular seller or developer. His loyalty is never divided between you and the seller. He does not have any seller listings. His only goal is to help you find the property that best meets your needs regardless of the seller.
5. Specifically, what kind of information can the buyer broker provide me? This question really gets to the crux of why you should consider hiring a buyer broker. Information is power. The more you know, the better decision you can make.
Some of the facts that buyer brokers can give you are: Background (including the positives and negatives) of each property, developer, franchise flag and management company; comparable sales and price comparisons; anticipated occupancy rates; appreciation potential; possible risks; negotiating strategies; financing and insurance options; and information about the area in which the property is located.
6. Will a buyer broker protect my confidentiality? The buyer broker is 100% loyal to you. He will only disclose to sellers any information that you give him permission to share.
7. Can I use any real estate broker as my buyer broker or should I look for some sort of specialist? Just as you wouldn’t go to a general practitioner for heart surgery, you shouldn’t choose just any old realtor. Condo hotels and fractionals are extremely specialized types of real estate. In fact, the condo hotel concept and fractionals concept is so new that many realtors don’t understand them at all. A real estate broker who specializes in condo hotels and fractionals will have a depth of understanding and information resources that can help you make the best decisions.
8. If I choose to hire Condo Hotel Center to act as my buyer agent, can you summarize the services you will provide? Briefly, as your condo hotel’s buyer’s agent, here’s what we do:
- Provide you with detailed information about all properties on the market that meet your criteria
- Prepare property comparisons to enable you to make an educated decision
- Ensure that all known material facts about the property you select are disclosed up front
- Give you background on the developer, the management company, the franchise flag and the area in which the property is located
- Negotiate the best price on your behalf
- Pursue a transaction that meets your needs
- Maintain your confidentiality and anonymity
- Give you total loyalty as we ensure that the deal is completed in your best interest
- Receive our compensation from the seller. Our cost to you is always zero.
9. What’s the next step if I’m interested in going forward? You can proceed in one of two ways. 1) View all the properties currently available and then tell us which ones you’d like more information on. See Featured Properties here. 2) Contact us at info@CondoHotelCenter.com and tell us what you’re looking for. We’ll get back to you promptly with some suggestions.