Any insights in negotiating brokersfee as a seller?

First, I would say, it never hurts to try!

But you do have an employment contract with the broker--that's what a listing agreement is. You agreed to pay (probably) 6% to the broker independent of how the buyer is acquired. The broker did the job you wanted done, did it well, did it in a down market, and now you want to cut her or his pay because his or her expenses are less than expected.

Well, do take just a moment and consider how you'd react if your employer proposed that to you. (If you're self-employed, this exercise is easier.)

Working with broker-less buyers is definitely more work, especially if we're talking co-op, so I hope you'll remember that, as well.

You might not get anywhere in such negotiations, because it seems that at least some brokers I run into work at companies where they are trained to have lines prepared to deal with any attempts to lower commissions.

I tried to get a cat at a major firm to lower his take on behalf of my client, we both would have earned less, but instead of doing that, he just squeezed more money out of "his" buyer. Too bad his buyer chose such an agent. Good thing we didn't lose the deal over his inflexibility.

All that said, if I were you I would open the conversation and see where it goes.

{Manhattan real estate agent.}

{Manhattan real estate agent.}

I was able to get agents at a big shop in town to cut their fee to 5% when they had a direct buyer

Ask.

We got 4.5% for a direct buyer, 5% for a buyer represented by the same firm and 6% for a cobroke. That being said, the choice of broker is MUCH more important than the marginal 1-2% savings.

Does NYC have an MLS or its equivalent?

As more and more people discover websites like streeteasy, it would seem fewer and fewer buyers will need a broker. Sellers may still want to use a broker's services (and be willing to pay 3% for the pleasure). I bet the days of 6% will disappear soon enough since there will not be a buyer's broker to split the commission with.

I sure hope the post above is correct. It infuriates me that the NAR tried and tries to block discount brokers from gaining full access to the MLS. They can pay a fee for the access and there will be no alleged unfairness towards the full service ones. The fact that the fees remain at a 6% level is, in my opinion, evidence of collusion and monopolistic behavior. A saying comes to mind: a monopoly is like a crying little baby. No one likes it until they have one of their own.

The best approach is to negotiate specific terms in the listing contract. It is a bit late to do it afterward. If the buyer has no broker, it shouldn't even take much to get a broker to agree to only a 5% commission. Push a bit more and I think 4.5% is doable. Some larger brokerages may not go for it. I'd just use one that did. What is most important is to have an agent you like and trust and who commits to a particular marketing plan that you both feel comfortable with.

But if you signed an agreement for 6% without mentioning what happens if the buyer has no agent, it seems kind of wrong to go back to the broker and try to change the terms on your contract. That isn't how contracts work. It isn't exactly like the situation couldn't have been anticipated and addressed.

You could also try to get thme to agree to 5% if there is a fee split and 4% if there is no fee split. They still make out better on their own then if they had to split a 6% fee and you just saved 2%.

1% on 1 million apartment = 10,000
suck it up

I agree with Kylewest about negotiating specific terms first, I know it is too late to do this now, however as a reference point to bring to this brokers attention or for next time. I have signed with one of the big firms in the last week and after telling me they could get the asking price, I wanted them to back it up with there commission structure and they were fine agreeing to a:

5% fee if with another broker was involved and the offer was with in 2.5% of the asking price.
4.5% fee with another broker and the offer was not with in 2.5% of the asking price.
3 % fee if done by themselves (I am on the admissions committee of the building so I see what happens and yes is it it a little harder for 1 broker instead of 2, however if the broker is capable it is only marginal, there are even company's who prepare the whole Board package for a $400 fee if the broker goes on about how daunting the board package part is).

I didn't put it in this contract however I know people who put in 4% if co brokered by the same firm, you have to be careful as the RE firm can't write this as they are not allowed to give incentives to keep it with in the same firm, however you can imagine they are more flexible on a reduced commission if they look like they will get 2 deals out of it. Important here that the firm takes the slight reduction on both sides as you don't want your broker to wear it.

Other terms that I think must go in.
* Always a 10 day written bilateral agreement to terminate if the partnership is not working for any reason(rather than the one year they will have in a standard contract, who wants to be tired to someone who you believe is not performing.)
* An exact budget they are willing to spend on your apt for advertising and marketing so you have the same expectations. As great as internet marketing is, I still see a lot of people carrying the Ny Times paper to showings (an ad with reasonable large print $600 week). Plus I believe the post cards posted to targeted buildings in the area are very effective (people in NY often move just a few blocks from where they live).
* Specific terms that you want, ie if you want the broker that you hired to host the open houses rather than there assistant put that down, if you want a longer open house at the prime time negotiate that now, if you want open houses until it sells rather than some brokers not wanting to do them after say 6 weeks, put that down.

Back to your question,... sorry I easily get a little off track....I do all of the above and more because I don't like misunderstandings or having to negotiate at the end with the time sensitity of a willing buyer and still I think it is important to be clear with your broker and let them know what is the Net price you want to clear (ie after you have paid there commission) and let them work out how to get there. There are 3 people who can get the price up if the Net price hasn't been achieved in an offer. 1. You, 2. The broker 3. The buyer. (I don't believe it should all fall on you)
Brokers are often great, they want to help you and get the deal done and get you your Net price. Let them do it how they want, they know the choices (you don't need to tell them)- by either taking off some of there commission (esp if there is a hefty 6% )or by showing and getting the buyer to pay what the broker justified to you what the apt was worth when they were winning your business, or a combination, plus reasonableness on your part. I don't believe the seller should wear it all and I don't believe in re negotiating, and still I believe there is a way for all parties to come together if you say "no thank you" to any offer that doesn't NET you what you want.

Waverly and Gabrielle,
The vast majority of sales are co-broked. So when a buyer's agent is working with a buyer and they do a search in the agent database, they will see that most listings that fit their buyer's criteria that come up are 6%. That means if their buyer buys one of those listings, their firm gets half of that, and they get half of that half (1.5%). So in a market like this if the average agent has about 50 apts. they can show that fit their buyer's criteria and are listed for 6%, and 3 or 4 listed at 5%, wouldn't you agree they are more likely to show those where they will get their split on the 6% rather than on a 5? So the listing agents who took the listing for 5% are then getting no traffic at their listings and while the seller thinks he did great getting an agreement for 5% from this agent, it will take way longer to sell, and will probably ultimately sell for less. It doesn't help a seller, it hurts them if their listing agent can only offer a low co-broke to the buyer's agent.

Negotiating a commission in this market is less important than finding an agent with years of exerience in your area and lots of deals under their belt. With co-op boards and lenders being much more selective since the market melt-down last year, you want to hire the best of the best if you need to sell. Being "penny wise and pound foolish" by trying to save 1% on commissions could cost you thousands in profits in the long run. A seasoned agent who works for one of the larger firms an arsenal of better marketing tools/venues at their disposal. Generating a lot of traffic is the name of the game to sell quickly and obtain an optimum price. While commissions are never standard or fixed, paying a competitive commission to a successful agent will usually not only get you more exposure, but more buyer's agents are likely to show your property...and a quicker sale. Just like hiring an attorney, physician or other professional...or buying almost anything, you usually get what you pay for.