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Interesting read, provides a more detailed account of the situation.
P.S. She was very kind to me when I was searching for an apartment in NYC. Lovely, down to earth person. At the time, she was with another agency, I believe Eliman.
Is Susan Singer still with Town?
I think this is the second top producing agent to leave Town since this all began.
It's going to be an epic ugly battle. The reps and the clients are the only ones that will suffer.
Messrs. Heiberger and Sitt will still be filthy rich just not friends (or partners) anymore. =
I am interested to know what the term "bad acts" refers to. Were these purported acts illegal? Could there be legal actions taken if money's from the firm was used? Drugs? Ladies of the evening? Mr. Heiberger certainly is not shy with the women and there are plenty of rumors of drug use so one can only imagine what that term is insinuating.
One very interesting tidbit is where one of the commenters mentions an email from their newly crowned COO Mr Appel. He apparently emailed the entire firm telling everyone that everything is fine and there is nothing to worry about. Then a mere few hours later Mr. Heiberger emails everyone to announce his departure and subsequent lawsuit. Is Mr Appel a lame duck? Who is the leader? Where is Wendy Maitland in all of this? She is awfully quiet for someone with such a large role in the firm.
If I worked there I would be polishing up my resume and calling all of my contacts this weekend. The lack of leadership and respect shown to the employees and agents is appalling.
Here are two articles that talk about commissions:
I recently represented a husband and wife I met on Trulia that was hesitant about using a buyers broker, they felt they could do most of the grunt work of touring open houses and searching online, but wanted my expertise when it came time to negotiate and assemble the co-op board application. In exchange I rebated them half my commission. They ended up purchasing for $875,000, seller paid 3% to me, at the closing they got a $13,125 rebate from me.
It worked extremely well and everyone walked away happy. I hold my license at Rutenberg Realty, if I were at one of the big box brokerages that take 40%, 50% or even 60% of my commission I couldn't have done this for these buyers.
I think there is a lot of downward pressure on broker commissions. The old model of brick and mortar offices with fancy furniture and flat screen TV's will become a thing of the past as savvy buyers and sellers realize it doesn't take a fancy office or website to sell or buy a place.
I agree with whitedesert, bigger is better, more is better, just like in that AT&T commercial. $20/month for unlimited domestic texting is a good idea, Whatapp is just a fad.
why not offer 8% commission? Hell, 10% is even better.
ss400k: I used Elia Clemente from Douglas Elliman.
He's extremely easy to work with and VERY honest/ethical. He was very thorough on the packages for both our sale and purchase. He went above and beyond what he had to do. I recommended him to others who had the same positive experience.
Isn't that amazing that most brokers will shun a listing with less commission?? How can you say your buyer broker is looking out for your best interests when they secretly won't take their clients(you) to see a desirable apartment(one you may love) because the commission they will receive is less??? They make the buyer suffer and the buyer is so reliant on the broker they don't even know they are being abused this way. Buyers need to look for themselves and stop being manipulated this way. If the buyer broker feels the work is just too much for the less commsission then well that's just too bad.
Generally, Article 12-A of the Real Property Law provides that anyone who, on behalf of another and for a fee, 1) negotiates a sale, exchange or rental of real property, 2) collects rent, or 3) negotiates a commercial loan secured by a mortgage must be licensed as a real estate broker.
All licensed real estate salespersons in New York are required to work under the supervision of a real estate broker. A salesperson cannot operate independently.
I would like to know that if there is any other way to work as a salesperson but being an independent contractor?If someone can't be self employed would it be possible "to employ" the broker?Or any other solution?
@douglasternnyc - One of the apts I'm interested in is listed on realdirect.com. Can you speak to how RealDirect brokers would be involved with closing a deal and working with the buyer? As a potential buyer, I'm a bit wary of how organized and truthful the seller would be about the property. Will the RealDirect broker be the point of contact to get the building financials, house rules etc? Will they also be the ones setting up the board meeting etc? Thanks in advance for your input!
I am the founder of RealDirect. We have worked with hundreds of sellers over the past 3 years and we are a licensed brokerage as well as a member of the Real Estate Board of NY. We work with sellers in both a full service "Agent Managed" capacity as well as our "Owner Managed" program. For owners who are inclined to sell themselves and have the time and ability to do so, the Owner Managed program is a great deal and has been very successful. We advise the sellers every step of the way, but they show their own properties (again with our guidance).
Of course not everyone is successful (although the vast majority are). Some Owner Managed sellers will try us simply to test the market at a very high price for a month, an if they don't get it, they de-list. Others have properties that are "under water" and need to net a certain price or they won't sell. Still others may think they have the time to show, but then they realize it's too time consuming. For those clients we offer them the option to switch to our Agent Managed program and get a refund on whatever they have paid against our commission.
If anyone has any specific questions about how we work, I would be happy to answer them in this thread or over email. And if anyone wants to speak to our sellers - active, closed or de-listed - I would be happy to put you in touch.
Nah: While I don't necessarily disagree with your recommendation for MOST sellers, I think your one-size-fits-all advice assumes too much about RealDirect's business model and the results it can yield for a suitable seller.
The linked listing showed beautifully, and sold for 3.6% above ask. It appeared on all the inter-broker databases; I think the buy-side commission split was 2.5%. The open houses were mobbed. While it's possible that Corcoran or Elliman could have done even better, the decision to use RealDirect seems to have worked out well for these particular sellers. The listing certainly did not suffer from a lack of exposure.
West 81st summed it up well actually. It is an assisted For Sale by Owner. That's what you get. It's not for everyone though. Keep in mind most New Yorkers, despite their Ivy league educations and other accreditations, generally have an inability to sell something as simple as lemonade to a group of 6 year olds so the FSBO concept usually falls flat quickly.
For the 1,585th time people, list your apartment with a big brokerage. People don't realize the impact in this market of trying to save a couple grand on the fee and when you should be paying a full 3% to a buying broker who just might have that buyer who pays 10% more than any other buyer.
Hmmm. Save 1% or 2% or make a possible extra 8% or 9% on the sale?
If Real Direct is anything like Fresh Direct, I suspect Aboutready will use them so she can get a refund if something goes wrong.
W81 -- I have done it every which way under the sun, and your assumption is about what everyone does, which I can't know -- but on the face of it, what you say sounds right.
West81st: My opinion is that you got "that part right".
Ali: You're right - the commission is on the deal sheet, so a savvy buyer can find it out before signing a contract. It's certainly worth asking. If it turns out that the listing broker is pocketing a full 6%, or even 5%, it might even be worth trying to renegotiate the price and make the broker eat the difference. I doubt it would work very often, but you never know.
My main point, though, was that a 50% commission reduction for a direct deal is rare, so "wad" was starting with a flawed assumption about saving 3% by going direct. Did I get that part right?
but you can take a $350 course:
about 2 weeks ago
Member since: Mar 2008
ignore this person
>As a longtime REBNY member, I disagree with W 81.In addition to what's citied above, REBNY also provides significant continuing education and forums to share best practices. The cost of that per salesperson is pretty minimal (my firm just paid my dues, so I don't remember if they were $325 or $350, but one of those numbers is correct.) The way I see it, do 10 deals a year and that's $35/deal, not a significant cost for being in an association that maintains professional standards.
DG Neary Realty
about 11 hours ago
Member since: Jan 2008
ignore this person
>That brings us to what might be a better reason for going it alone: some listing brokers do tilt the scales toward unrepresented buyers. It's a breach of their fiduciary duty to their seller clients, but there's no denying that it happens.
Has anyone else had an insane experience with this broker? She's been harassing me via text and is threatening to charge/sue me for $8k for just showing me an apartment.
I was just wondering if there is any other way to work as a salesperson.Can a salesperson "employ" a broker so the salesperson doesn't have to be an independent contractor?
i wanted to let anyone know that if you are considering working with this broker from rutenberg realty, he scammed me and took my security deposit. i assume that he was commingling funds into his own account and was unable to pay me back for that reason.
If i can't be a self-employed is it possible that i employ the broker so i can collect my points as a licensed salesperson?
Annalisa Menin who is working for Corcoran Group has been very helpful in assisting us in finding a dream co-op in New York city recently. She is very familiar with each area of the city, and was able to provide us with valuable information and resources as soon as we needed. She is a responsible, trustful, warm-hearted, knowledgeable and kind person. She can produce good results for all parties and represent you with dignity and confidence, She can coordinate with your attorney, co-op management, seller's agent very well, always getting required documents, applications, financial statements prepared completely and smoothly. We would say she is one of the best real estate agents you can find in New York city, you will be very happy and satisfactory with her services for sure. We will definitely recommend her to our relatives or friends to use her services whenever they plan to look for a real estate property in the city.
Where do I begin....
I think to summarize I would say, do not use or be very careful with any real estate company without a proper recommendation!! My girlfriend and I were very excited to look for an apartment to move in together and we assumed this company had a great reputation given the rapid growth in NYC and the personal approach with great service that it markets itself as. The website, the offices, the chic addresses, etc all look great. I believe there are many hardworking people, and whether in NY or Alabama, we all deserve to deal with a company that has integrity and is professional. It is frustrating that I have to write this review, but I tried in every way to be very understanding in every aspect of the rental transaction. When we payed the 6% commission out of pocket, as customers renting an apartment in a luxury building, we expected to receive not only good service, but also disclosure of the true terms and conditions of the rental contract. This did not occur at any moment. The apartment was promised to us to be painted and the kitchen cabinets which were peeling and in terrible shape, fixed. This is a five star residential property, after all.
The property was empty for an entire month, which should be more than enough time for the work to be completed. One week before the move in date, we did the walk-thru and were surprised that the apartment was not painted, nor cleaned and the cabinets were not fixed as promised. Our agent was also surprised of the shape of the apt and later e-mailed us that she was not expecting the condition to be as it was. She fully agreed that it was not handled correctly, since we rented and signed the lease for a painted apartment, with fixed kitchen cabinets - not in an as-is condition as it was later implied to us. After the first walk-through, Town tried to talk us into not painting the apartment as promised. The day after this horrific walk-through, we received an email stating that we need to find and pay for a cleaning service for the apt, or they could find the cleaning person for us (how thoughtful) and we would have to go and give them cash in order to secure them.
After paying thousands of dollars in commission alone to TOWN, we did not expect to be looking for cleaning services, negotiating terms that were already promised to us. What occurred was simply MISREPRESENTATION: omission of lease terms and clauses, embellishing and obfuscation of the property. We were being scammed. We did not agree with these new terms that were being thrown at us. To negotiate painting and cleaning 3 days before the move in date, after 2 walk-throughs with no progress, caused so much stress and frustration that we tried everything in our hands to reach for an agreement and in order to move in to the place. Finally they reviewed their procedures and offered to remedy the situation by offering another apartment, that IF there was one available (they weren't sure) or by correcting some of the issues at hand.
After phone calls and some offers from TOWN in order to remedy all their faulty service, we requested a 25% refund of what we paid cash out of pocket. I made clear that the service they provided broke many of the rules, terms and regulations that New York State division of license for real estate broker regulates and supervises.
We received many phone calls from TOWN and they offered an amount close to what we requested however today, after waiting for many weeks we were told that they did everything right, contradicting everything again.
This company is completely untrustworthy and have demonstrated that even after a mistake is discovered and pointed out in their procedures and business, nothing was done to make things right.
If you experienced great service from TOWN, believe me, we are very happy for you, as that is exactly what we hoped would happen for us when we paid the full commission. We expected to be happy in our first apartment and have no hassles or problems the entire transaction.
If you had terrible service, countless headaches and the feeling of complete hopelessness, that there is nothing you can do, and have been scammed or ripped off, I know the feeling exactly! It is a shame that TOWN RESIDENTIAL LLC continues to act in this manner. It is unprofessional, unethical and a disgrace to New York City residents.
We still never received the original lease signed which was promised at signing.
I'd love to hear your experience, please feel free to contact me via email to email@example.com.
For now, be careful who you choose as your real estate professional.
Regards, Fabiano Heitor.
Legal Memorandum LT01
DISCIPLINE OF REAL ESTATE BROKERS AND SALESPERSONS
FOR UNTRUSTWORTHY CONDUCT
" Real Property Law grants to the Department of State the authority to regulate real estate brokers and salespersons. Real Property Law §441-c provides, in part, that the Department of State may revoke, suspend, fine or reprimand a real estate broker or salesperson if that licensee is found to have, among other things, violated any provision of Article 12-A of the Real Property Law, engaged in fraud or fraudulent practices, or demonstrated untrustworthiness or incompetency. As the Court of Appeals stated in Matter of Gold v. Lomenzo, 29 NY2d 468, 329 NYS2d 805, 811 (1972), "the Legislature intended the Secretary of State to be vested with a wide discretion in determining what should be deemed untrustworthy conduct."
In fact, even if a licensee engages in conduct unrelated to its activities as a real estate broker or salesperson, that conduct can still act as the basis for and be considered by the Department of State in bringing a disciplinary proceeding against that licensee for engaging in untrustworthy behavior.
For example, in Eich v. Shaffer, 136 AD2d 701, 523 NYS2d 902 (2nd Dept. 1988), the Department of State held, after a disciplinary proceeding, that a finding by the New York State Department of Insurance petitioner violated his duties as an insurance broker and thereby demonstrated untrustworthiness and incompetency, was a sufficient basis for determining petitioner guilty of untrustworthiness with reference to his license as a real estate broker. In confirming that determination, the Appellate Court stated that it was "proper for the [Secretary] of State to base her determination that the petitioner was untrustworthy to act as a real estate broker within the meaning of Real Property Law §441-c on his misdeeds as an insurance broker." Eich, 523 NYS2d at 904.
Eich followed the holding in Dovale v. Patterson, 85 AD2d 602, 444 NYS2d 694 (2nd Dept. 1981), in which the Court stated that "[a]lthough the actions underlying the disciplinary charges are not acts for which petitioner's license as a real estate broker was required, they may be considered in determining petitioner's untrustworthiness and incompetency as a broker." Dovale, 444 NYS2d at 695. In Dovale, the Court upheld the Department of State's revocation of petitioner's real estate broker's license based upon his regularly engaging in the practice of submitting fraudulent contracts and loan applications to banks in order to obtain larger mortgages than might otherwise be available.
Finally, in Fogel v. Department of State, 209 AD2d 615, 619 NYS2d 104 (2nd Dept. 1994), the Court held that the Department of State properly denied the renewal of petitioner's real estate salesperson's license and properly denied him a real estate broker's license based upon his prior criminal conviction for sexual misconduct.
However, the manifest purpose of Real Property Law §441-c is the protection of the general public. It follows from this that when the conduct of the real estate broker or salesperson has no adverse effect on the public at large, the Department of State generally has no jurisdiction to intervene. Typically, such cases involve isolated disputes between a real estate broker and its salesperson or between two real estate brokers. In Stowell v. Cuomo, 52 NY2d 208, 437 NYS2d 270 (1981), a dispute arose between real estate salespersons Terry and Dianna Elich ("the Elichs") and petitioner real estate broker Lawrence Stowell ("Stowell"). The Elichs had earned commissions before leaving Stowell's employ. Stowell attempted to deduct certain expenses from those commissions and the Elichs refused to accept the reduced amounts offered to them. The Court of Appeals held that the Department of State did not have jurisdiction to discipline the broker based solely upon a simple contractual dispute between the broker and his sales personnel because the Department of State failed to point to any supportable adverse effect upon the public. Stowell, 437 NYS2d at 271.
The Court of Appeals cautioned, however, that "there may be situations in which, for example, a broker's 'business practices' or 'business methods' (see Real Property Law §442-e, subds. 5, 6) with regard to his salespersons are so devious as to indicate clearly that he would not deal fairly with the public and, therefore, disciplinary action under section 441-c of the Real Property Law for demonstrating 'untrustworthiness' might be warranted..." Id. Clearly, if a real estate broker repeatedly engages in unethical conduct relative to its sales staff or to other brokers, the Department of State would have jurisdiction to commence a disciplinary proceeding against that broker for demonstrating untrustworthiness pursuant to Real Property Law §441-c.
Interesting. Most people I know never check their mail, so they need to be reminded to do so.
Chk your gmail nada. :)
Catwithguy, something tells me you don't really have much respect for doctors.
Brokers are the most educated, sophisticated and generous people I know. I love their wit, their great writing, their understanding that less is more, and their ability to quote what a remodel will cost in just a minute or two. They never push, they all read Proust, and I just wish I could swim in a great big pool filled with brokers all the time. I wish my parents were brokers, my doctor was a broker and I even wish my fish monger was a broker. My son is in med school now but I have encouraged him to drop out to work for a brokerage firm -- you know a "real classy" one filled with those great folks like the ones at Elliman. "You don't need to be an MD", I tell him. "Just take a brokers test and you will be qualified to do so many things." And I told that if he cannot pass that "really tough" test, he can always be a managing agent -- such an elegant job.
I'm looking to begin a career as a RE agent - what kind of fees should I expect to pay? I know each firm is going to be different, but just looking for a general idea. MLS, desk, marketing and approx. how much? Thanks all.
Correct. Almost all of the retro hex that's been used in the past 20 years is weirdly undersized. It doesn't look good compared to the stuff from WWI and earlier, but I suspect there's a practical reason for its use.
I like a hex. Especially, if it is slightly larger.
Harlem? Then I'd go with the hexagon tile.
I have both hex tile and varied-size rounds in one bathroom. Rounds are funkier, but shows more grout.
fieldschester, of course I do. I adore it. I'm just not crazy enough to live here.
MlBNYC: Thanks for that Ja Bob link.
Although he did not shoot "the sheriff" in a NYC apt. He "did not shoot the deputy", here or anywhere.
Crazyccardo, just admit it, you love New York.
anonymous, grow up you stupid sissy. Probably lots of murders happen in New York apartments, what with all the lunatics and degenerates that reside in your city. Just look at the losers on this site..............
Core just moved two of the loveliest townhouses I've seen in Brownstone Brooklyn, at way above ask, well above $2m.
Core had a mass exodus, many went to Elliman.
CORE is a very reputable firm. Pat from SINGER NEW YORK REAL ESTATE. 212-570-6095.
Core has some great listings.
Due to a schedule conflict, I asked a licensed colleague of mine to take my buyer client on a follow up showing to a unit they were interested in purchasing. After the showing, the clients made an offer and are now in contract to purchase. What is the appropriate compensation for my colleague given that he assisted in helping this process through?
It's more about the way Linkedin works. When you sign in they ask, "would you like to connect with your contacts" as well as some other options for "people you may know", people not on linkedin in your contacts.
I just went through this when I rebooted my phone, I hit the wrong button and it sent a request out to over 1000 people! I only want people who have contacted me about business, personally not interested in having other brokers in my connections. Too late now!
What does his profile say?
Columbia County is a realtor?
Is c0lumbiac0unty one of your friends or followers?
Can't believe the broker community just discovered linkedin but in the past 24 hours I've gotten 3 invites from Brokers I don't know. Seems every new technology /media invites a new form of spam.
Luis is a douche. I wouldn't do business with him.
A lot of passion?
Frederik is my fav. Luis has a lot of passion, but it looked from the show like he has a lot to learn.
he has a new partner: http://www.enstarz.com/articles/23067/20130808/million-dollar-listing-new-york-luis-d-ortiz-joins-fredrik-eklund-company-douglas-elliman.htm from http://streeteasy.com/nyc/talk/discussion/35547-a-little-white-lie-isnt-going-to-kill-anybody
So nobody knows how much Eklund-Gomes makes?
What about the new guy on the show Ortiz?
If i were a buyer i would be leery that my attorney who is supposed to be representing my interests would earn 3% in the event i purchase a property. What if there is something in a title report that suggests i shouldn't buy a property, is my attorney representative going to be ethical with 3% hanging in the balance? Sounds like a conflict of interest to me, commissions are not implied they have to be negotiated by licensed real estate salespersons, associate brokers and brokers. Agents and Brokers add value to the transaction you just have to be certain you select a professional opposed to someone who just holds a license. The value will be far greater than 3% happy hunting.
If one wishes to avoid the brokers fee its a lot simpler to deal directly with the other side.
Have any attorneys applied for the license and used it for a house? Not an apartment/coop? If so, does it influence offers on purchase price etc.?
Question since it seems like we have a lot of real estate brokers here:
Does a "broker" or "agent" need to be licensed in NYC (or anywhere) in order to obtain/ask for a fee in NYC? I am being told by a certain "broker" that if I want to sign a lease/continue living in the apartment I am currently subletting (the sub lessors are not continuing their lease), then I need to pay a broker's fee. Yet, this person is not licensed, nor is he affiliated with any realty firm, nor is he performing any service for me except possibly presenting the lease.
I found an apartment listed, and it explicitly stated a one month broker fee required. I've emailed with the broker to set up an appointment. When I called the number listed though, I got an answering machine (not a cell phone), and the message said I'd reached (name changed) "Lexington Avenue Associates."
When I did some research into the building on PropertyShark, I found that the owner of the building has the same last name (different first name) as the "broker," and the LLC that owns the building is in fact "Lexington Avenue Associates." So if it's actually a by-owner rental, is the owner (or someone employed by / related to the owner) allowed to act as a broker, thus getting more money toward the same entity?
Is this legal? If this is legal, is it a red flag? Or is this a common practice?
Any help appreciated. Thanks!