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July 22, 2009
6% Broker Fees Still Happening?
My close fried in Brooklyn is selling his two family brownston in Cobble Hill. Great shape, nice place. We are debating whether he should still be paying a big 6% fee. He insists on listing with one of the companies like Corcoran, Brown Harris, etc. and I'm wondering if anyone has any expereince in this market with the fees that are now happening; specifically are these companies negotiable? Thanks
Comments
Fees are neg. List it with a company that co-broke.. 5% if a buyer's broker's involved, 4% if they sell it directly.
Posted by: Crownlfc at July 21, 2009 11:00 PM
The bigger firms all co-broke but they will not go down to 4%. Make sure that they hire a full service firm becasue that is what sellers need in this market.
Posted by: PHfamily at July 22, 2009 9:04 AM
better chance of negotiating lower commision rates in hot market not a slow one.
Posted by: Petebklyn at July 22, 2009 10:18 AM
better chance of negotiating lower commision rates in hot market not a slow one.
Posted by: Petebklyn at July 22, 2009 10:18 AM
With so few properties on the market its easy to stand out. No need to be paying 6%, get them to work for you.
Posted by: dittoburg at July 22, 2009 10:27 AM
We used Brooklyn Properties this spring to sell our coop. After a very brief email negotiation, they agreed to 3.75% if they found the buyer and 4.5% if an outside broker brought in the buyer on a cobroke I didn't get a sense they did anything less than their best effort. Generated lots of traffic.
Posted by: sixtysox at July 22, 2009 10:50 AM
You should try to negotiate a lower fee in the event your buyer comes off the street. Our broker was very sure it wouldn't happen and so happy to agree to a 1% discount. As luck would have it, our buyer was going it alone, and we saved a full 1%.
Posted by: ham at July 22, 2009 11:25 AM
I might be alone here but I would definitely stick with one of the big companies, ESPECIALLY in this market.
It might seem like a waste of money but there are a lot of buyers out there who only look at a few companies. I guess the stamp of approval from corco or bhs gives them confidence.
I know plenty of people disagree, but I sold my place last year and i know the buyers never would have stepped up to the plate for a noname broker or FSBO.
Makes no sense but go figure.
I am all for trying to knock them down 1% or so, though.
Posted by: ontheparkway at July 22, 2009 11:38 AM
" I guess the stamp of approval from corco or bhs gives them confidence."
What the heck does that mean? What stamp of approval?
Posted by: dittoburg at July 22, 2009 12:00 PM
BHS and Corcoran agents/brokers are not allowed to negotiate their commissions since they are owned by corporations and the standards are set from the top. Some of the very experienced brokers with those firms are allowed to accept 5% for an exclusive but never less. Also, serious buyers in brooklyn find out rather quickly that Corcoran and BHS are not the only game in town. All reputable brokers use the same exact marketing techniques, advertising with the NY Times, web ads, open houses, etc. You should use someone with a good track record of success, good reputation, knowledgeable about the neighborhood, and in my opinion, negotiable. Good luck!
Posted by: broker at July 22, 2009 12:53 PM
In this market FSBO is a hell more attractive than through broker- more so if a big name is attached.
Through the owner- you will almost always have more room to negotiate.
I'd say try that first, if it fails you can always take a
5% hit.
Posted by: Brooklynchimp at July 22, 2009 2:19 PM
I agreed to pay it-full 6% with highly respected and professional brokers. He is a pleasure to work with and got a contract in 1 month, almost at full asking, in this market. I tried to go at it alone but I found the NYT exposure alone is not enough. It was good amount of traffic but since it was FSBO, people expect it to be free. There's something about associating with a boutique type of brokerage firm brings a difference class of buyers.. the ones who are serious about purchasing and have the money to get the deal done. Don't get me wrong, it hurts to have to give up a huge chunk of change, but the alternative maybe to sit on the property for a lot longer.
Posted by: ClintonHillGal at July 22, 2009 3:40 PM
"a difference class of buyers"
You mean dimwits who think BHS will give them a money back guarantee or something?
Posted by: dittoburg at July 22, 2009 3:50 PM
The trick is to nail the broker at the end:
1) Figure out who your buyers are and agree roughly on a price.
2) Now tell your broker to get 2% more and tell the buyers to walk away if you don't move.
3) Broker will kick in 1-2% to make the deal happen.
Posted by: thwackamole1 at July 22, 2009 4:23 PM
Ditto:
why are the people who are actually looking to purchase through BHS "dimwits"? We will always disagree on name calling. At the end of the day, I believe and in my case proven true, the people who go to boutique brokerage houses are there as seriously looking to purchase their next home or investment and they have a higher budget limit. Would I rather keep the 6% for myself, absolutely, but once I made up my mind to sell, I rather it'd done than not. keeping the house clean every minute of every day wears me out.
Posted by: ClintonHillGal at July 22, 2009 4:40 PM
Personally, I would rather deal directly with an owner than through a real estate agent. I find they introduce needless complication, trouble, and miscommunication.
Posted by: mopar at July 22, 2009 4:58 PM
I'm referring to the ealier idea that going with Corcoran or BHS somehow means a stamp of approval, as if it is somehow safer that way than going with other brokers, and the goons who believe that.
Posted by: dittoburg at July 22, 2009 5:12 PM
Mopar:
I'd agree with you for the most part. But, there is a lot to be said for not being emotional attached to the property. Naturally I think my property (my home) is the best thing on the market. It might be less than mediocre for all I know. An outside voice can also be the voice of reason. I see a lot of negative opinions on this site concerning brokers and I also have some negative expierences with them. I am pretty pleased with the current one. As far as the fees goes, one side will always think it's too much, the others not enough.. age old debate. My own barometer for anything is .. did the job get done on time.
Posted by: ClintonHillGal at July 22, 2009 5:15 PM
Nonsense - Broker is right, Corcoran may not be as flexible on their commission because the are owned by a parent company. According to a trade magazine and the NY Times, their parent company NRT is leveraged up to their eyeballs in debt, that explains a lot. Like Starbucks, many people mistakenly think they get better value, just because they're charge more. If you want to pay 6% by all means pay it but in this market 5% if they use buyer's broker, and %4 if they sell it directly is totally reasonable. You should get a firm that preferably belongs to REBNY, or is at least willing to CO-BROKE off the bat, that has a strong web presence, that will advertise in the NY Times, that will run open houses just about every weekend. Also, an agent that is personable, that will give you realistic comps, take good pictures, give good descriptions, and stage your home well for open houses.
You can follow Mopar's "advice" cut out the middleman and try on your own. But, like those who try to give themselves haircuts or change their own car oil, if you don't know what you're doing or don't have the time or patience, you may end up paying double in the end.
And of course theWACKmole1 has probably never read an exclusive contract or understand the concept, that also goes for his grasp of ethics as well, unless you want to get sued, I would avoid his "advice" at all cost.
Posted by: Crownlfc at July 22, 2009 6:35 PM
Ok, you know what? Assuming the seller knows what they are doing - and in plenty of areas the sellers are more savvy than the agents -- the only time it's handy to have an agent is for the price negotiation. So for a high end property, maybe that's important because there's
ore at stake. Or maybe the price will come out the same anyway.
Most buyers can't really have their own brokers anyway in NYC.
Then there are those who feel it's tacky to sell high end propert fsbo.
Posted by: mopar at July 23, 2009 10:05 PM
Ok, you know what? Assuming the seller knows what they are doing - and in plenty of areas the sellers are more savvy than the agents -- the only time it's handy to have an agent is for the price negotiation. So for a high end property, maybe that's important because there's
ore at stake. Or maybe the price will come out the same anyway.
Most buyers can't really have their own brokers anyway in NYC.
Then there are those who feel it's tacky to sell high end propert fsbo.
Posted by: mopar at July 23, 2009 10:05 PM
You should be able to negotiate it down to 4%.
Posted by: superstooper at July 24, 2009 7:17 PM
oh boy, I just love the "advice" you get on this site if you're gonna neg down to 4% then why bother giving an exclusive, you might as well try to sell in yourself or put it as an open listing at 3%
Posted by: Crownlfc at July 28, 2009 10:53 PM
Has anyone ever attempted to FSBO but offer a 4% commission for any broker who can provide the actual buyer? This acts as a serious incentive for the buyer's broker (vs the normal 3%) to take their clients to view your property but you save as the seller because you don't have to pay the regular 6%
Posted by: Frank02 at August 9, 2009 7:55 PM
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