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Old 02-16-2008, 05:54 PM
 
Location: Vermont
4,552 posts, read 8,307,976 times
Reputation: 1769
We found a 2 bedroom for $1100 in Hawthorne and stayed there for 2 years. We paid the realtor $1100. This was our landlord's listing realtor. Factor in the realtor fee ($1100/24 months) and we still could not have found a 2 bedroom 2 bath with laundry and parking for $1145 in Hawthorne I don't think.
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Old 11-17-2008, 03:19 PM
 
4 posts, read 19,634 times
Reputation: 10
Default It makes no sense because....

Real estate commissions make no sense because realtors have a monopoly over the information. NJ is one of the few states that continues to fight the Justice Department's order to allow broker to negotiate rebates and incentives with consumers.

I think realtors provide a necessary and valuable service. The central problem is that there is no market to fairly value their services by adhering to the fixed commission system lobbied for by The National Association of Realtors.
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Old 11-17-2008, 03:50 PM
 
353 posts, read 594,980 times
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Typically, the tenant pays the commission for a rental. If this custom changed, the landlord would just build this cost into the monthly rent.

Realtors do not have a monopoly here... landlords are free to advertise and promote their properties. He/She can then meet with perspective tenants, qualify them and make sure the leases are signed.

Once again, there is a listing and selling side to any deal. If I rent an apartment to someone, the Realtor who represents the landlord gets $550.00 and the selling office gets $550. As the agent, I split the $550 and take home $275.
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Old 12-02-2008, 08:04 AM
 
4 posts, read 19,634 times
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Default You miss the point

The question is not one of landlords and tenants, but of agency and the right to information.

The current agent/broker compensation system does not work because buyers and sellers have limited access to market information.

Think about the stock market. Stock brokers used to set commissions arbitrarily and detailed, market price information was not released to buyers or sellers. When the government encouraged stock brokers to share the information, the overall market became more efficient and a better deal for buyers and sellers. New kinds of brokerage firms sprung up offering new and market valued services. Traditional broker commissions fell precipitously, and forced many out of the business.

That is very much the current situation in the residential real estate industry. This is not original thinking, but it is at the heart of the ongoing legal complaints about real estate agent commissions.

Realtors need to fully share market information in the MLS with buyers and sellers. Why is so much of the information withheld, e.g. days on the market, previous sales, properties withdrawn from market, etc? Buyers and sellers want to know so that they can better value properties and the services delivered by real estate agents.


Why is the commisssiWhy is access to the MLS limited to realtors only?
Quote:
Originally Posted by AndrewMensch View Post
Typically, the tenant pays the commission for a rental. If this custom changed, the landlord would just build this cost into the monthly rent.

Realtors do not have a monopoly here... landlords are free to advertise and promote their properties. He/She can then meet with perspective tenants, qualify them and make sure the leases are signed.

Once again, there is a listing and selling side to any deal. If I rent an apartment to someone, the Realtor who represents the landlord gets $550.00 and the selling office gets $550. As the agent, I split the $550 and take home $275.
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Old 12-02-2008, 08:07 AM
 
4 posts, read 19,634 times
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I don't get it. Why would buyers and sellers care about your expenses, health ins. etc. It's your decision to work as an agent. You cna freely decide to do something else if you don't like the compensation.

Welcome to America.
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Old 03-29-2012, 12:24 PM
 
3 posts, read 4,422 times
Reputation: 10
Sorry to revive this post from the dead but I am moving from Miami to New Jersey and have also been shocked by a potential tenant paying 1 months commission. I have never heard of such a thing. The landlord is the one seeking a tenant but the tenant becomes liable for commission towards a real estate agent and one month at that? Down here in Miami, the landlord pays typically 1/2 month rent as commission to the real estate agent that finds the mentioned tenant while nothing is owed by the tenant.

I am currently looking in the Union County area. I noticed some posters saying that this was NJ region specific. Is this the standard for this area?
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Old 03-29-2012, 01:05 PM
 
Location: NJ
90 posts, read 84,739 times
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Quote:
Originally Posted by skuzzy View Post
Sorry to revive this post from the dead but I am moving from Miami to New Jersey and have also been shocked by a potential tenant paying 1 months commission. I have never heard of such a thing. The landlord is the one seeking a tenant but the tenant becomes liable for commission towards a real estate agent and one month at that? Down here in Miami, the landlord pays typically 1/2 month rent as commission to the real estate agent that finds the mentioned tenant while nothing is owed by the tenant.

I am currently looking in the Union County area. I noticed some posters saying that this was NJ region specific. Is this the standard for this area?
It's true for all areas remotely close to NY, including Union County. Welcome to NJ. Open up your wallet, fork over the $$$, and keep it open until there's nothing left.

With that said, there are plenty of apartments available that do not carry broker fees paid by the tenant in northern NJ. You just have to keep looking. It's a case of you doing the homework i.e finding listings and scheduling viewings or a REA doing the homework. This has been hashed out over and over again in the NJ forum, so a search for "apartment" or "broker fees" will reveal many other threads with more info.
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Old 03-29-2012, 05:42 PM
 
Location: Northern NJ
2,902 posts, read 2,559,255 times
Reputation: 2656
Quote:
Originally Posted by skuzzy View Post
Sorry to revive this post from the dead but I am moving from Miami to New Jersey and have also been shocked by a potential tenant paying 1 months commission. I have never heard of such a thing. The landlord is the one seeking a tenant but the tenant becomes liable for commission towards a real estate agent and one month at that? Down here in Miami, the landlord pays typically 1/2 month rent as commission to the real estate agent that finds the mentioned tenant while nothing is owed by the tenant.

I am currently looking in the Union County area. I noticed some posters saying that this was NJ region specific. Is this the standard for this area?
You always paid the commission, it's just that it was included in the rent. Here in northern NJ we are just more honest and up front about it. And yes, it is standard in northern NJ for the tenant to pay the commission. But it can be negotiated, just like any other fee. A certain proportion of landlords will tell you to take a hike, but others will share it, or pay the whole thing if they've been vacant for long enough.
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Old 04-03-2012, 10:23 AM
 
103 posts, read 227,500 times
Reputation: 43
I definitely agree that a good realtor is essential! But I also agree that you chose this work etc. But when writing up a contract anything goes. You can say you will only pay 1/2 the commission lets say. So you can pay your realtor that you hired. Which makes a lot more sense to me. That landord might pass but maybe not. Listings are on the market for awhile now. And if that landord is is eager to rent it out I say go for it. When were renting and our lease was coming to end, they were showing the house. This one couple that liked it needed it right away. We agreed to move out 2 weeks earlier than our contract if the landlord gave up back that months rent. And they did. It was better to do that than have the house sit not making any money. Get yourself a good realtor and anything can be negotiated!
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Old 04-03-2012, 01:08 PM
 
794 posts, read 887,711 times
Reputation: 388
it is worth it. When we rented in Jersey City, the realtor lined up 6 different places for us to see in a 3 hour period. I would have never been able to schedule that on my own (and the realtor had the keys to each place). Kind of a lot of money, but it probably saved me 2 or 3 vacation days and many hours on the path/subway

And if you stay more than a year, it is better for you. I see a lot of places that are "no fee" that just charge 1month/12 more in rent each month
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