The Condition the Commission's In...
Per the cover story in this weekend’s real estate section of the New York Times: “Prices in the New York real estate market may rise and fall, and trends in housing may come and go, but one number has remained largely unaffected: the 6 percent broker commission. But lately that figure is under attack by…
Per the cover story in this weekend’s real estate section of the New York Times: “Prices in the New York real estate market may rise and fall, and trends in housing may come and go, but one number has remained largely unaffected: the 6 percent broker commission. But lately that figure is under attack by buyers and sellers looking to save money in a tough economy, and by an array of alternative real estate business models that offer an à la carte menu of services to clients willing to do some of the work themselves.” There’s also this quote from a new-model broker who doesn’t go the 6 percent route and calls himself a “buyer’s broker, describing his niche as that subset of real estate enthusiasts who are glued to sites like StreetEasy and don’t need a lot of hand-holding while visiting Sunday open houses, a task that can take up a lot of a broker’s time.” While the article doesn’t mention any non-6 percent transactions in Brooklyn, do any of you see this as a growing trend here?
Not true – most larger firms won’t go below 6% on properties below a certain price point. 5% is possible for over that. Those firms charging less are typically not REBNY members and do not co-broke (thereby drastically limiting your pool of buyers).
And I recently sold a new development condo where the developer paid me (buyer’s broker) 3% and 2% to his broker (a lower % because they were the exclusive brokers for the whole building).
Is the title of this article supposed to be a riff off of the First Edition tune? If so, better said as either:
The condition my commision is in
or
Just dropped in, to see what condition my commission is in
As for the actual article, nobody pays 6% anymore. Developers pay 3% and any Joe Schmoe selling will negotiate to 5% up front and even lower when the deal is at hand if the broker can’t get the price they said they could. Its been that way for more than 5 years.