The travel agency just charges some fees (like $20 per person) for handling this. They are not expecting you to book hotel or itinery with them at all, all these details are created to help you get the visa and they immediately cancel them once you are approved.
Besides, as you live in the tri-state area, you won't enjoy going to 12th Avenue....So if you use the travel agency service, you only need to drop off your passports with them and go pick them up once the visas are approved....hassle free. :))