OP here, thanks all for the info.
I was surprised to hear from the architect that we didn't need to. We won't likely be adding a toilet as we are taking out the existing bathroom, and the sewer line is already on the wall where the new toilet will be (the upstairs tenants have their bathroom on the same wall as projected bathroom).

To give the architect the benefit of the doubt before we revisit this with her, is it possible that we would not need to file given the conditions above?

We are totally willing to file btw.

Posted by: brevoort at August 21, 2007 7:45 PM in response to Filing to build a new bathroom?

Real Estate Agents work as independent contractors for the Brokerages and they get paid commission only.

Many brokerages will contribute significantly to the advertising of "producers" i.e. an investment in an agent with a proven record. Although there are always significant out of pocket expenses.

The commission "splits" are negotiated between the individual agents and the brokerage, so as the agent gains experience and proves herself she can get a "raise" in that way. Usually it starts about 50-50 but can go up from there.

The Real Estate Board of New York as well as other organizations will offer insurance.

Despite the (many)rotten apples there are also many brokers without job security working very hard for their money.

(yes I'm a broker)

Posted by: brevoort at October 17, 2007 10:12 PM in response to Broker Salaries & Commission

Most are not making real money.

It's one of the highest turn-over industries around (revolving door) which is why you see so many new ones.

For every one doing well there are 10 or more struggling.

Not for the feint of heart. But it's an easier gig than acting (or writing, dancing....)

Posted by: brevoort at October 18, 2007 7:35 AM in response to Broker Salaries & Commission

PS: REMAX agents get 95% of their commissions, however they also PAY the broker/owner from $1000 - $3000 per month to be affiliated there.

Howard

Posted by: howrealnyc at October 18, 2007 3:04 PM in response to Broker Salaries & Commission

Howrealnyc: - Just because you sell privately, without an agent, does NOT mean you got the best price in your pocket. Saving 25K, but selling for 40K less doesn't add up to me.

Firstly I don't know of too many places for sale for $410,000 which at 6% realizes a $25k saving for FSBO.

In April 2005 we sold a triplex co-op in Park Slope for $925k within 72 hours of our Craiglist posting (the eventual buyer actually called within 10 hours). Every broker we'd spoken to (and that includes 2 Corcoran brokers) estimated we'd get $850,000 max.

To have netted 925,000 with a broker would have meant we'd have to have sold it for $984,000 and there was no way we were going to get that for a 1200 sq ft 4th, 5th & 6th floor walk-up.

As long as your property is in a desirable area then a well constructed website with photos, floor plan and lots of details plus an add on Craigslist (or even the NY Times) seems to be all one needs to recoup most if not all of the brokers fee.

If the 6% ceiling is ever seriously broken then that might change but while the big players insist on their cartel they're going to see more and more of the best properties going FSBO - it really is that easy.

Posted by: guest at October 18, 2007 3:43 PM in response to Broker Salaries & Commission

6%?? That can always be negotiated, especially for higher end properties. Btw, in Queens, it is 3%, and in other places, i.e. New Jersey, it is also 3%.

Posted by: bklynbks at October 18, 2007 3:54 PM in response to Broker Salaries & Commission

Wow, 3:43 - that was eyeopening. I sold my place well-located, desirable P.S. apartment with one of the big P.S. brokers, for about what they told you you'd get - now I wonder if I could have gotten 75K more. With prices going up so much, it is hard to imagine the brokers underpricing by so much, but what you wrote has made me rethink what I thought I knew.

Posted by: guest at October 18, 2007 4:18 PM in response to Broker Salaries & Commission

I have both sold homes on my own and with a broker. There is a lot to consider when making the decision to do either. When I went with the broker, I had a full time job and two young children. I did not have the time to market and sell the home which had appreciated outrageously. I therefore listed with a realtor who did the work for me to earn her commission, which came out of my gain. The next home I sold myself and I had to work to get it sold. Although the home was in a prime area it was not as easy as 3:43 makes it out to be. I had to make appointments with complete strangers and allow them to enter my home. I had to become emotionally detatched when showing the home. When I got an offer, which didn't take long, I had to negotiate the counter-offers and other conditions. Of course the buyer wanted a huge discount because there was no broker. I had to stay on the phone with the attornies and buyers until closing. If your home has appreciated considerably, list it with a broker. If you are working with financial constraints do it yourself. It's like paying a painter to paint your house. If you have the money you'll pay someone to do it because it's a pain in the a**, if you don't, you'll do it yourself. I think at the high end of the market, most qualified buyers are coming by way of agents though.

Posted by: guest at October 18, 2007 4:19 PM in response to Broker Salaries & Commission

I agree that the broker does some of the work - but there's still a lot of work for the seller - I had to negotiate counteroffers, etc., stay in touch with the buyers and their attorneys 'til closing, too, when I sold - and doing it through telephone tag with one or two brokers in the middle was more complicated than doing it directly would have been.

I figured it was worth it because they marketed it for me - I didn't have to do that part. But if they underpriced it, like 3:43's potential brokers did, I'd have to rethink whether it was worth it.

Posted by: guest at October 18, 2007 4:30 PM in response to Broker Salaries & Commission

3:43 here again.

I am the first to agree that to a certain extent we lucked out in that we found a buyer and had accepted their offer within 4 days of posting our initial ad. But we had a highly desirable (despite it being a walk up) property with 2 bedrooms (plus attic bedroom) with a terrace and views of Manhattan, Statue of Liberty etc. We were also zoned PS321.

And that is my point - if your property is desirable; in a good area etc then I can see little reason to use a broker. Both my wife and I had full time jobs as well as a 18 month old child plus she was pregnant again. But for a $59,000 saving I'm not going to get overly concerned about getting detached from our apartment and showing a few strangers around.

We sold ours for over $500,000 more than we'd paid for it 3.5 years earlier although we'd basically done a gut renovation as well as adding moldings, baseboards, new kitchen, laundry, baths etc. Sure we made a ton of money but I can not see the point in giving a huge slice of that to a broker when it was going to be so easy to sell. I never understand why brokers get such a huge junk and attorney's not so much and could someone explain why a broker's fee should be dependent on the selling price.

Posted by: guest at October 18, 2007 4:51 PM in response to Broker Salaries & Commission

The time of the broker is slowly coming to an end. With technology and increasingly savy people, its only a matter of time until people realize the service they provide is not worth the price.

Posted by: newsouthsloper at October 18, 2007 8:06 PM in response to Broker Salaries & Commission

"Savvy" people are not as smart as they pretend to be. However, everyone is entitled to their opinions.

Posted by: guest at October 18, 2007 8:48 PM in response to Broker Salaries & Commission

I wouldn't want to give up $59,0000 either but I don't care how desirable a property is, I would not want to have a stranger who could just be wasting my time or worse in my home. Especially with small children and a pregnant wife. Is there some way to prescreen potential buyers before actually letting them into your home. If I do list with an agent, I will make that person earn every dime of their commission and I would not be on the phone with another agent or calling someone else's attorney.

Posted by: guest at October 18, 2007 10:24 PM in response to Broker Salaries & Commission