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October 29, 2009
First Time Seller
Hi,
I am considering selling my apartment in downtown BKLYN but am very confused about hiring a broker.
The first question that comes into mind is what is the average fee those guys charge? Is there a range? Can you negotiate?
Thanks!
Comments
Speak to brokers but consider selling it yourself. I'd commit to one or two NYT advertised open houses and if you dont get enough interest, engage a broker. Do not do an exclusive. All fees can be negotiated. Six percent is customary but 4 to 5 percent is common. Ed Kopel Architects, PC
Posted by: edkopel at October 29, 2009 9:35 AM
Most big firms, Corcoran, Halstead, etc. charge 6% commission and usually don't negotiate the fee. Smaller and mid size firms usually give a discount, but expect 4% to be the lowest commission a reputable firms will accept.
The commission is split (usually in half) between the listing agent (your broker) and the buyer's agent. When the pot is too small, brokers won't bring their customers, greatly reducing traffic to your home.
If you have the time to do the showings yourself, eliminate the listing agent and market your home yourself (FSBO). Advertise on nytimes.com and streeteasy.com.
If you don't get much interest, I suggest you open the listing to buyers brokers and offer a 2% or 2.5% commission to them. Add "Buyer's brokers welcome" to your marketing materials and distribute your listing to all the local firms.
If you go with the listing agent, I disagree with Ed on the exclusive: no broker will spend
any money on advertising your home, without it.
I work in the industry for one of the parent companies (don't do sales). I see the slimy dishonest brokers get all the listings, where as the good, knowledgeable ones (and there are tons of them), don't. If you do go with a broker to market your home, please choose one carefully.
Posted by: kdabrowski at October 29, 2009 11:18 AM
Thanks Ed and Kdabrowski for taking the time to answer my questions.
One more, if you will ... What is the time commitment like? meaning how many hours does the broker put in for the purpose of selling my apartment? Am I paying 6% for the broker's brand? It just seems like alot of money.
(sorry if this sounds naive)
Posted by: BlondAmbition at October 29, 2009 1:45 PM
We had a very good experience with a broker from Brown Harris Stevens named Angela Ferrante. She's incredibly hard working, very genuine and honest and got a good offer on our place after three weeks. My guess is that buyers probably trust her.
Posted by: Leela at November 14, 2009 10:27 AM
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