I am interested in an apartment where the broker is also the owner. Does anyone have thoughts on pros and cons?

Statistics show that owner/brokers get themselves a higher % of the list price then they do for outside clients.

Typical.

Why would it make a difference? You are negotiating with the owner anyway, whether through a listing broker or directly

If you're going to deal with the owner of the apartment directly, it's good to talk about who is responsible if an appliance such as a dishwasher, oven, microwave, etc. or something else breaks in the apartment. I've known quite a few people who have sublet apartments directly from the owner and had alot of problems getting the owner to arrange to have applinaces repaired or replaced.

BPC is this for a sublet or purchase?

"Statistics show that owner/brokers get themselves a higher % of the list price then they do for outside clients"

Maybe they set more realistic asking prices.....

On a more constructive note, I can't see any real problem in buying (and I'll assume this is a purchase situation) from a licensed real estate professional....the state requires them to disclose this fact to you under the theory that a professional might have some kind of negotiating advantage or special knowledge that you and your attorney would need to be alert to....but I'd be willing to guess that having someone on the other side of the table who has seen a few deals might actually be to your advantage...particularly if issues come up after you sign a contract with financing hang ups, appraisals etc.

But as always, caveat emptor is your guiding principle from start to finish.....

I'd ask the owner if he or she is on the Board for the building or has done a lot of deals in the building...if this is a coop.....

I guess I'd sort of also want to know why a real estate pro would choose this particular kind of crummy market environment to try and sell a coop....anything going on in the building or in the 'hood that you ought to know about? Or is this just a trade up move....

i looked at a place on 6th bet b and c where the owner was the broker. i can see some slight disadvantage perhaps but nothing major, i wasn't turned off by it

this is a purchase situation

Am I wrong in assuming that since the broker will be paying a commission to themselves I should be able to get the apartment at a discount to comparables in the building?

Am I wrong in assuming that since the broker will be paying a commission to themselves I should be able to get the apartment at a discount to comparables in the building?

Am I wrong in assuming that since the broker will be paying a commission to themselves I should be able to get the apartment at a discount to comparables in the building?

Depends on how it is priced I would think. It may be priced more attractively than others because they are paying commission to themselves. Also, they prob still have to split commission with their brokerage house

I wouldn't assume a discount....if broker is with a major firm, broker will remain under control of that firm and may or may not be able to work a deal on the fee for listing. If broker is working for him/herself, wouldn't hurt to ask....note that a fee is ordinary taxable income to a broker while price received for the apartment itself may (underscore may) be essentially tax free if seller is not exceeding a capital gain of $250,000 (single) or $500,000 (married).

How old are your comps?

I think they have to divulge the fact that they are also the owner; there must be some reason for that.

sounds like he/she did already disclose that he/she has an equity interest in the property. I still don't see the big deal. but if it's a dealbreaker then just move on