Question on Broker Commission
Hi, I am thinking of selling my one bedroom in center Park Slope. I talked to a real estate agent from Corcoran and they told me the fee is 6%. Does anyone know if that is negotiable? Are the other real estate firms a lot cheaper? Thanks
Hi,
I am thinking of selling my one bedroom in center Park Slope. I talked to a real estate agent from Corcoran and they told me the fee is 6%. Does anyone know if that is negotiable? Are the other real estate firms a lot cheaper?
Thanks
Be sure the broker you use is a member of the Real Estate Board of NY (REBNY) which requires its members to co-broke with all other REBNY members. In the Slope, all the major firms are (BHS, Corcoran, PDE), and the smaller ones aren’t (Berman, Warren Lewis, A&H, etc.). The smaller firms will tell you they co-broke, but it’s really on a case-by-case basis, and I know many cases where representatives of these firms have refused to do so (especially on the better listings; they’ll only co-broke if they can’t sell it themselves; Warren Lewis is horrible on this – and when they do co-broke, they’ll only share about 1% of the commission, so it’s hardly worth it).
And remember – you get what you pay for, and, as Adam said above, you really need to pay an appropriate commission to get other brokers interested – I’d say 5% (split 50/50) is the minimum on a co-broke, but you can often negotiate 1/2 – 1 point lower on a direct sale.
The price of your listing is another factor – commission rates are more flexible for properties over $1 million.
And unless you want to run the show yourself, meaning hire a floor plan person, a photographer, handle and pay for all the advertising and marketing materials, run and host the open houses and make yourself available for private showings, a FSBO will wear you out – not really a good idea if you intend (or need) to have a life outside of selling your home.
Good luck!
Yes, stipulate co-brokering. Or do a FSBO and say “Brokers welcome at 3%.”
Some realtors will not co-broke AT ALL…make sure you find out before signing a contract.
The lower commission that they get the less likely that they will allow Co-Brokering of deal which means less potential buyers.
I think 6% used to be the norm and many brokers still tout that as the “standard” rate, but the reality is that I have not seen a single transaction (and I have seen many of them with both large and small brokers) done in the last several years for more than 4% in commission, so I would say the reality is that the standard commission is 4% and is somewhat negotiable downwards even from that.
The more you cut the broker commission, the less incentive you give your broker and any broker they would work with.
I’m not saying that you shouldn’t be smart about how you spend your dollars during this process, but you should be aware of certain repercussions that may happen.
Since housing prices have gone up relative to incomes in the past 20 years, wouldn’t it make sense that the % commission should go down so that brokers are making the same relative salary that they were before the real estate bubble?
Like mentioned above, 6% is the norm. The lowest I think most brokers will go is 3% (except, maybe those specialized broker-service type of things).
Yes, 6% is standard in NYC. However, we paid 4% to our realtors who sold our apartment in 6 weeks in 2009.
Jesse Temple 347-725-3370
did a fantastic job
Definitely negotiable. I know from personal experience that Corcoran will easily go to 5% – and perhaps even lower. No matter what they say IT IS negotiable, or you threaten to walk.