« previous next »
Pages: [1]

Author Topic: Broker Commissions  (Read 1991 times)

Offline eddiestjohns

  • Council Member
  • ******
  • Posts: 455
    • View Profile
Broker Commissions
« on: December 27, 2013, 11:50:58 PM »
What is the current standard broker commission for selling a cooperative?  I know historically  6% is a good estimate but everything is negotiable.
Logged

Offline enfr11215

  • Resident
  • ***
  • Posts: 33
  • Keller Williams Realty
    • View Profile
Re: Broker Commissions
« Reply #1 on: March 03, 2014, 06:11:52 PM »
Hi;

Please contact me so we can discuss about  commission. thanks

firdos kumandan
Keller Williams realty
347-885-9302
Logged
Firdos Kumandan
Keller Williams Realty Jackson Heights
Licensed Real Estate Salesperson
cell: 347-885-9302
email: fire11215@gmail.com

Offline Superclam

  • Mayor
  • *******
  • Posts: 610
    • View Profile
Re: Broker Commissions
« Reply #2 on: March 03, 2014, 08:01:43 PM »
Speaking only for myself, I paid 6% in 2011.
Logged

Offline rhydewithdis

  • Council Member
  • ******
  • Posts: 384
    • View Profile
Re: Broker Commissions
« Reply #3 on: March 04, 2014, 11:44:36 AM »
Quote from: Superclam on March 03, 2014, 08:01:43 PM
Speaking only for myself, I paid 6% in 2011.

if you have to use a broker, pick a good one that knows the area well and ask them to not co-broke it, and negotiate 3-4%

if you have a desirable apartment, in this market you should be able to FSBO pretty easily and avoid paying any commission.
Logged

Offline Matt

  • Council Member
  • ******
  • Posts: 378
    • View Profile
Re: Broker Commissions
« Reply #4 on: March 04, 2014, 03:52:05 PM »
There is no industry-wide standard, however different brokerages may have set commision ranges within their company that they can offer and this may limit what you can negotiate.

Quote from: rhydewithdis on March 04, 2014, 11:44:36 AM
if you have to use a broker, pick a good one that knows the area well and ask them to not co-broke it, and negotiate 3-4%

Other than the possibility that you may be able to negotiate a lower commission, I am not sure what the benefit of working with someone that does not co-broke would be. Your home would be marketed to a much smaller number of people which may result in a lower selling price or having your home on the market longer than is necessary.
Logged

Offline A Queens Girl

  • Tourist
  • **
  • Posts: 6
    • View Profile
Re: Broker Commissions
« Reply #5 on: March 04, 2014, 05:19:39 PM »
To not co-broke today, it is a dis-service to the seller ultimately and a bad business model. When you are selling a property, you want as many people as possible to see it, in order to maximize the selling price opportunity,  especially in todays sellers market. In addition, the real estate the adage " don't co-broke, go broke" is very true. Commissions are always negotiable.
Logged

Offline rhydewithdis

  • Council Member
  • ******
  • Posts: 384
    • View Profile
Re: Broker Commissions
« Reply #6 on: March 04, 2014, 06:18:28 PM »
Quote from: Matt on March 04, 2014, 03:52:05 PM
There is no industry-wide standard, however different brokerages may have set commision ranges within their company that they can offer and this may limit what you can negotiate.

Quote from: rhydewithdis on March 04, 2014, 11:44:36 AM
if you have to use a broker, pick a good one that knows the area well and ask them to not co-broke it, and negotiate 3-4%

Other than the possibility that you may be able to negotiate a lower commission, I am not sure what the benefit of working with someone that does not co-broke would be. Your home would be marketed to a much smaller number of people which may result in a lower selling price or having your home on the market longer than is necessary.

If your property is desirable, then I don't see the point of co-broking. If it is really desirable, then of course I wouldn't use a broker at all.
You can negotiate a 3% commission no-broking with a broker who knows he can move the unit, much easier than you can negotiate 1.5-2% commission per broker if the deal is co-broke.
A good broker will have a list of clients looking for the unit you are selling, a well trafficked agency website, place an ad in the Times, etc.
The benefit of saving 1% or more on a 400k sale is 4k per 1%. Not much, but if you know you are priced right, then it's money in your pocket.
Logged

Offline Matt

  • Council Member
  • ******
  • Posts: 378
    • View Profile
Re: Broker Commissions
« Reply #7 on: March 04, 2014, 08:11:10 PM »
A broker who does co-broke and charges a 6% commission would only have to sell your home for 3.2% more to break even (in terms of the amount left in your pocket after the commission is paid) with the broker who does not co-broke and charges a 3% commission.

If there was a standard commission that all brokers charged, would you prefer the one that co-brokes or the one that does not?

I personally would prefer the broker that co-brokes and can reach a greater number of people, including people that are not focusing their search in Jackson Heights. People that have been priced out of other neighborhoods are often more willing to pay over the asking price in a neighborhood they can afford when they find a home meets their needs.

Everyone needs to decide for themselves what they feel more comfortable with. The relationship with your broker is key. Above all, be sure to find someone that you can trust.
« Last Edit: March 04, 2014, 08:20:31 PM by Matt »
Logged

Offline lalochezia

  • Mayor
  • *******
  • Posts: 819
    • View Profile
Re: Broker Commissions
« Reply #8 on: March 04, 2014, 11:43:40 PM »
If your broker won't co-broke, who represents the buyer in the transaction before the lawyers get involved near closing?

If I can't bring my representative to the table, why should I trust you>


There must be some non-co brokers out there selling shady properties. Perhaps people who are buying shouldn't trust these people, and sellers should stop using them.
Logged
Pages: [1]
« previous next »