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Crazy brokers fees?? — Brooklynian

Crazy brokers fees??

katecast
katecast
edited November -1 in Brooklyn and Beyond

Has anyone ever paid a broker's fee of more than 15 percent?

A listing agent told my broker that I would have to pay his full commission of 15 percent, plus my broker's fee.

Seems like a total scam. But I heard other people are so desperate for apartments that they're doing it.

Comments

  • tateinbk
    tateinbk

    Is the apartment that good of a deal? That sounds ridiculous. The only brokers I've dealt with or anyone I know has said their fee was 15% and then offered 10% or one months rent to make themselves look cheap. Why would you be paying a broker fee and a listing fee?

    So basically, no, there's no damn I way I would pay more than 15% and I would be hard pressed to pay more than 1 month's rent to the broker in the first place. Is this your first time getting a NYC apartment? How about these other people who are doing it? Or did your broker make up these other people to push you into it? Just how much do you trust this broker and who is he so we all can avoid him?

    If you tell us what you're looking for and in what price range I'm sure a number of people will be able to advise you what your options are in the current housing market. Then you will be in a better place to not be taken for a ride by an unethical ass.

  • bohuma
    bohuma

    I think this is way too high, especially if it is a free-market apartment. I paid a 12% commission on a big one-bedroom in Astoria in 2006, but that was a pretty good deal: $1700, about 1000 sf, utilities included (even air conditioning), pet friendly. I was also time poor at that stage.

    Now, if I was in the rental market, I would only pay a double broker's fee for one of those mythical rent stabilized apartments, you know tony building, classic 6, doorman, parking, rent $1000 a month. Those mythical rent stabilized apartments might be standard on sitcoms, but they are not to be had in New York in 2013.

  • newguy88
    newguy88

    If you shop around you can find an apartment without a broker's fee. I can't imagine an apartment being awesome enough to warrant one.

  • tateinbk
    tateinbk

    It used to be a lot easier to find a place without a broker's fee. The only way a no fee place turns out in your favor is if you find one "by owner". If there is a broker there is a fee, you just may not see that it's been tucked into your monthly rent as the landlord payed said broker to find you. As rent may go up a certain amount every lease re-signing you obviously want your starting amount to be as low as possible. In the last three apartments I've had in the past 10 years I've paid broker fees for two of them. (Same broker).

    As neighborhoods go up in desirability landlords are more likely to use brokers so they don't have to slog through so many applications and background checks themselves. Also, many of the "no fee" ads on sites like padmapper and craigslist are of the bait and switch variety. Finding a place completely on your own, even a place that a broker shows, can be a second job. That said, this is a rip off.

    Newguy88, how long have you been here? How many apartments have you found without a broker especially recently?

  • walkathon
    walkathon

    Eight percent is the going commission rate for a real estate broker and anything else is a ripoff.

  • newguy88
    newguy88

    tateinbk said:

    Newguy88, how long have you been here? How many apartments have you found without a broker especially recently?

    I've gotten two apartments through no fee brokers one in NYC and one in Atlanta. I got my current apartment without a brokers fee in 2012. They are out there and there are a lot fewer of those bait and switch ads then you'd think. If you encounter any please contact the DA or Consumer Affairs and file a complaint. Many of my friends have been able to get apartments in Brooklyn, including Prospect Heights and Williamsburg sans broker fee. I'm not sure why you think they're so common.

  • ribbons
    ribbons
    edited December 2013

    I have also never paid a full brokers fee but I was expecting to pay one months rent when I moved to Brooklyn from Manhattan a few yrs ago.

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