An Idea For StreetEasy Regarding Brokers

This sounds like a great idea. Buyers are really the ones taking the risks in real estate. I'd like to get some transparency as to what brokers charge what percent, and how much goes to the broker and how much to the brokerage company. Also, I'd like to see a ranking of say the top 100 brokers in NYC by sales volume.

How about total dollar volume of brokerage commissions in NYC in a year? Now that's ambitious!

Most brokers have the ability to negotiate their fee, but the industry standard is 6%.What gets negotiated in any given situation is not going to be public info, nor should it be. How much goes to the broker/agent versus the company depends in part on the company, but mostly on how much money the individual broker brings in. The true superstars can probably write their own tickets to some extent, for normal people the split starts from 50%, then goes up incrementally. I know Elliman's threshold even for 70% is surprisingly attainable, a succesful broker should be taking home 65% at least.Again, this info will not be made public, and it can change yearly in any case. There are probably lists of the top brokers out there somewhere. I guess I don't see how any of this info would help anyone?

#4 - The idea is TRANSPARENCY. You can't see how knowing where the 6% of the purchase price that disappears goes is useful information? Hmmmm...you must be a broker.

Well, I just told you basically where it goes and that it depends on the broker and how much they bring in by the end of the year. Rather than be snide why not explain to me why it matters to you if the split is 50/50, 60/40, etc...

Actually all this info is interesting but secondary. I am interested in commissions percentages for Corcoran, Elliman, Bellmarc, ect - AND how they compare to those in the suburbs. If it's 3% in NJ, it should be 3% in NY!

Industry standard is 6% in NY. Of those 3 firms, I will say that my experience has been that Corcoran is the LEAST apt to negotiate commissions.

"Industry Standard" is not set in stone. 3% is a good start.

I just meant currently.

people often hide behind calling things "standard" in order to try to get others not to negotiate. Even when terms are quite negotiable. I had a broker who recently tried to use a lot of those lines and me, but eventually, of course, he buckled once he saw I was having none of it.

uhhh...yeah, #11..You negotiated, that's the point.

6% standard = price fixing / anti-competitive. It will go away like in all other industries that used fixed-rate commisions.

nuggit

I can't believe my broker got 6% of my purchase when I sold my apartment. I mean, could I REALLY have not found the buyer myself? I think at least that the broker's commission should be reduced to 3%. There are so many brokers in the city and so few apartments on the market. Why should there not be more competition as far as fees go? I bet a quality broker charging 2% or 3% could take some market share. There is no rule from on high that Elliman and Corcoran should be on top here.

Part of the problem is at 2 or 3% your broker would be unable to cobroke in the current market, and this would cripple the marketing ability. Many brokers will negotiate a tiered commission structure, and also relatively often even the full "cobroke" commission amount is 5% as opposed to 6%. But the most important thing is that the apartment is fully exposed to the entire market, and that currently does kind of limit the extent to which negotiation will occur. If you try to negotiate the fee, concentrate on the tiered aspect of it (how much you pay for a direct deal) as that aspect of neotiation will not negatively impact the desirability of the unit to buyer brokers.

What do you mean by tiered?

What I mean is when you pay 5 or 6% commission in the event of a cobroked deal(when the prospective buyer has come through a buyer broker), but 4% in the event of a direct deal(when the the buyer has come directly to your broker).

#16 is another broker. OK, so "cobroke" at 1.5% each. There! Problem solved.

Retard.

congratulations on your ability to divide, #19. Glad you think the problem is solved. Interesting that you are the kind of person who probably uses the term "broker" as slander, and no doubt thinks we are all money grubbing pigs, however you seem to think that offering buyer brokers 50% of what they would make on most other deals would present absolutely no problem to the enthusiasm with which they show your unit. Brilliant!

#20 - great condescending babble. Just great.

They are co-broking at 1.5% each. The commission split is 3% to the seller's broker (the seller is paying the commission, btw) and 3% to the buyer's broker. The brokerage firm takes 50% of the 3% on the sell side and on the buy side, so in reality, the broker is ONLY getting 1.5% of the commission. New York City is not NJ - there are numerous overseas buyers who are looking to purchase real estate in Manhattan, not in Hoboken or Teaneck for that matter.

#21--#20 here--what would be a more appropriate response to #19's comment?You know, the one that manages to be not only disparaging but to also throw out the term "retard"?

#18 here. To get the conversation back on track, its time for the brokers' commissions to get cut. Their role is smaller, they don't work hard - time for less money. Period. This needs to be a topic of major concern in the NY real estate media.

#20, I think the point is that given how much prices have appreciated in NY and how the internet has made a broker's job easier, one would expect that there will be more people willing to do the job at a 3%, rather than a 6% commission. Even if they only end up with 1/4 of that, #22, or .75% (After splitting with brokerage firm and other broker), that's still $7500 for your average $1M apartment. Not a bad payday for setting up a few open houses and doing some hand-holding through closing.

#25--#20 here. I don't necessarily disagree. Frankly, I am a broker who sells commercial buildings, I do not sell apartments, and in my business the commissions are vastly more negotiable, and often considerably lower percentage-wise. Far less "set". And there is a great deal more work and often knowledge involved, in my opinion. My only point is that possible progression to a lower commission will be a gradual process and not just a question of a broker deciding to accept 3% and offer a cobroke of 1.5%, because with current conditions this will end up hurting the seller.

#26 - More broker talk. How exactly will it hurt the seller to pay less of a commission? Won't it save them money?

Oy, broker talk. Anything to scavenge.

Ok--I am so sick of people being needlessly nasty.What have I said that hould elicit that? What I mean is for that INDIVIDUAL seller who decides to have his/her broker offer cooperating brokers only 1.5%. the market to which they are exposing their unit becomes smaller. Simply because the commission offered buyer brokers is significantly less than what others are offering. I know alot of brokers who wouldnt let it influence them, but hey I'm sure you will believe me when I say alot of them are all about the dollars and cents. So many will not show this unit, or will in any event try to steer their buyers elsewhere. Now it is always possible that the seller may end up with that buyer who will pay the best price even in this situation, but by definition the odds are smaller. Thats all.

broker talk

29, 19 & 20; go ahead and be the first to revolutionze an industry by cutting down the very people who seemingly control it. Please find me the broker to hawk an overpriced $400,000 studio @ 1.5%. on a typical co-broke agents walks with $3k after split with the brokerage house. Now time on market is 4 months. is the expectation for the broker not to ea,t or to over extend their pipeline to compensate for lower commissions ? Either way the market is not nearly as fluid as it was, meaning more time and more advertising dollars invested. There needs to be adequate compensation for this. Remember the broker ultimately brings the most valuable piece to the transaction - the money. If you can go out and find 'real' money without using a broker, then by all means go right ahead.