Better to use a seller's broker in the building?

Market rate is 5% for most transactions. 5% is no special discount.

Personally, if the broker in your building is competent, better to use her as she knows the building, board requirements, and will get the managing agent to act fast.

A real estate broker on the board is a big conflict of interest. To say her interests are divided is not how I see it; she wil do whatever to get paid. I guess if you don't use her, the board may give you a hard time.
Any buyer should have their own broker represent them especially in this case.

It seems like the argument is to use the broker on the inside as a seller.

But what if I find a broker on the outside that charges less? I may be able to get solo broker on a transaction (doing both buy and sell side) who will only take 3% -- but then again, that deal may come at a lower selling price, or not happen at all.

Your building broker will match it. If you like the broker in your building and her competence, it is a no brainer to go with her for a coop sale.

Curious why you wouldn’t sell yourself if you are trying to optimize every $.

I have always liked it when the selling broker knows the product well and has all the info readily available. That is the critical service a selling broker provides. I have also seen some brokers who take their building listings for granted and will not work hard. I wouldn’t go for someone like that.

"Market rate is 5% for most transactions."
I'm curious where you are getting that statistic from?

Prove it otherwise for listing more than $1mm in NYC.

I'm not selling it myself because I don't know what I'm doing. Do you think that's a good idea?

I bought in 2015, so I may take a loss on this place. I'm selling in the $500k range. Eliminating the broker fee would help a lot in making me even.

The inside broker has been in the business awhile, and she has spoken about selling million-dollar homes, but I'm not sure how hard she will work.

I suppose since I'm at the low end of the market, she will allocate her time accordingly and bigger fishes will get more of her attention.

5 percent is pretty good for $500k. But I will let various brokers comment.

Also, I've seen a number of brokers.

- the inside broker suggested a paint job, and then passed me on to her guy, who wanted $3500 for the job.
- other brokers have said I didn't need to spend such money.
- brokers generally say their marketing services come without cost, but I can't help but think the amount spend will relate to the amount of profit they can turn on a sale. (and for me, it will be minimal.)

Baier, seems like you don't have faith in this broker, from having your best interest in heart to your most recent comment on her allocation of time / effort to getting you highest and best. If this is a reasonable coop board with straightforward purchasing process, shop around for some better representation. bring in like 3-4 agents that work in the area and hear them out. They should be negotiable on the commission as well.

"5 percent is pretty good for $500k"

-- meaning this is a good deal for the broker? or for the seller?

For the seller.

Thaks itesfai. I've worked with the inside broker on the co-op board and I haven't had reason to dislike her, but I realize this is business. Isn't it normal to assume a broker will allocate time based on what they will gain, and only the smallest broker will treat me like a big fish?

Even the other brokers I've seen who have shown more hustle, I can only assume it's because they want my business, and when I've signed with them, they will allocate their efforts accordingly.

That said, yes, my faith in her is wobbly, so I should pay attention to that. But I think it would be wobbly with everyone. With the brokers who better win my confidence, I will be wondering if I just fell for their more sparkly sales pitch.

And with the brokers who do neither -- sell me with pizzazz or turn me off with suspected self-interest, I will wonder if I'm selling myself short on competence...

300_mercer: "5% is no special discount." vs "5% is pretty good for the seller" -- these seem to be going in opposite directions, no?

I assumed you $ sale price was higher before.

I assumed your $ sale price was higher before.

got it, thanks!

having a broker on the board of your building is a huge conflict. most buildings don't allow brokers to sit on the board (my building being one of them) for good reason. you shouldn't make your decision to hire the broker on your board just based on her being on your board - you should find a broker who you like and can trust.

if the broker fee is a concern for you, you should reach out to Dan Gotlieb at Digs Realty. He's amazing, and he charges his clients less (so your total commission payout to the buy and sell side brokers would probably be something like 4% instead of the standard 5-6%).

nychomeowner: Thanks for the guidance. I will reach out to Dan. I'm trying not to lose more than I have to on this sale. I also have a request in to upnest.com.

Why is having a broker on the board a huge conflict if she recuses herself from sales or rentals that she's not a part of?

Is it really important that I know and trust her? I know her, and I get along with her, but I know this is about NYC real estate, and this is her business, so she will act in her own self interest.

It's already been pointed out that she brings value for knowing the building, and outside brokers have appealed to me about their marketing skill (their buyer networks, their art direction and mailing campaigns).

In talking to brokers about 6% versus 5% commissions, a broker suggested I offer 6% because then the buyer's brokers are more likely to show their clients those with the bigger commissions first. Do I run a risk of not getting seen by using a 4% broker?

"Prove it otherwise for listing more than $1mm in NYC"

I just did a random search of listings between $1 million and $1.5 million and of the first 50 that came up 35 were at 6%.

In full transparency I'm a broker that has a reduced commission model, celebrated our 10-year anniversary this year. That said I'm currently not taking on listings below $1M.

When we offer a full service reduced commission product to a client, we pay out 2.5% to buyer agents, 1.25% to us. You will not lose any interest of buy side agents by offering 2.5%. and if anyone tells you that you will, it's because they're trying to protect their commission schedule.

find an agent you're comfortable working with and gives you a realistic valuation of your home that makes sense based on the market. As long as the agent is a member of REBNY, all member brokers will have access to your listing. And of course make sure your listing is making it onto streeteasy. All buy side agents will find your listing the same way, searching the RLS or third-party site that gets its feed from the RLS. And I wouldn't hesitate to say that 95% of buyers are finding listings via streeteasy. your listing will also wind up on plenty of other third-party sites.

Yes there's more to it than that, a lot will depend on your home and how it shows. Unfortunately you bought at the peak, so it's going to be very difficult to get out of this thing whole. However best of luck!

Keith Burkhardt
TBG

Thank you. That is a good proof. I stand corrected.

Thank you. That is a good proof. I stand corrected. Curious what percentage is 6 percent above $2mm. Are you checking in OLR?

Yes, OLR.
$2.0 million to $2.5 million was 14 out of 31 lower than 6%. So significantly higher percentage than at the lower numbers (but totally non-scientific, just a random sample).

Price structure makes send as low $ transactions have not that much lower fixed expenses than the more expensive ones and half is going to the buyer’s broker anyway.

Makes “sense”

Commissions are always negotiable, and everyone's business model is different. For me, the amount of effort I put into a deal (above the minimum standard I bring to all deals, which is, of course, higher than my competition's) is as much about my network as about price point. I sweated my heart out last year over a $700K sale, because I got along famously with the seller and I thought that he was going to be likely to recommend me to his friends in the future.

>Ali,

Did that happen?

PH41, I don't know yet because he ended up buying through me as well, and we just closed on his purchase a few weeks ago... so he's been moving!

> Ali - looks like it definitely worked out for you

"And I wouldn't hesitate to say that 95% of buyers are finding listings via streeteasy"

Based on Central Park Tower I think it's relatively safe to say that Extell does not believe this.

@30 that's why I said 95%. The 1% of the 1% may not be searching the internet for their homes. Extell has many of their other listings on streeteasy. Curious about your opinion on Brooklyn point?

Keith
TBG

Baier, you need to sell so soon means your building is not a friendly place at least, and I guest if you don't let this insider broker to handle your sell, you will make more enemies. I think there is no choice for you but cut loss and exit. Lesson learn, some guys posted here telling us boards and managements could be A-ho, so never touch it again. Feel sorry for you though.