How to Negotiate Broker Fee??? URGENT! PLEASE HELP! (transplants, apartments)

[ijyeo85]

Hello,
I am about to rent an apt in NYC.
My broker is trying to make me pay 15%.

Detail about APT:
Exclusive listing, so co-broker fee
Rent: $2000
So 15% I would have to pay $3600 to both of them in total.

Since this is exclusive listing, dealing with seller's broker side might be hard. But I am sure there are some ways I can negotiate with them?

Please help me. This is an urgent matter as I need to go close the deal ASAP!

Thank you guys!!!!

[Chava61]

15% is a standard broker's fee in NYC.

[pureistheword]

Fees can usually be negotiated, although if its a cobroke (ie both sides have to split) they may not do much

[loratliff]

If you weren't willing to pay the broker's fee, you shouldn't have considered the apartment to begin with. Plenty of apartments have no broker's fees.

[ijyeo85]

So standard is 15%.
and there is no way for them to get it down to 10%?

I mean I like the apt, so I am trying to lower the money coming outta of my pocket.

[pureistheword]

different places have different fees, smaller places will do one month. 15% is common for Manhattan.
But as above there are plenty of no fees apts.
If you signed paperwork, already put in an application, it may be too late to try and deal direct with the mgmt office.

[ny789987]

There are plenty of no-fee apartments in NYC, especially in this miserable economy. Anytime a broker picks up the phone, hang up and move on.

[jcoltrane]

Originally Posted by BrianManhattan

Hi,

I am an agent in Manhattan with Sunrise Realty and I can charge as little as 10% and in some cases 1 Months rent [8.4%]. If you are still looking for an apartment please shoot me an email at Brian@SunriseRealtyNY.com. But to answer your question 15% is not uncommon in this city, but I'd be happy to help you out and save you some money.

Brian

Ahhhhh, is soliciting allowed?

Anyway, the broker poster examples the reality.

Only naive Transplants pay a percentage, let alone 15%. Many Manhattan brokers will ask 15%. In trendy Brooklyn areas some will try for 15%, more will try for 6%. 1 month is enough, and I've never paid more!

The key is to NOT sign their stupid little agreements which lock you in to whatever is written. Sign and you'll be required to pay the amount in the terms of that little paper.

Its usually included in the papers they hand you to fill out. Fill out your info, what you're looking for, but don't sign anything! Don't say anything either. I will ignore that little paper. I've read the agreement while they're watching and simply put it down and hand it to them. Most of the time they've simply gotten the message with little said.

If they question you, or insist you sign, just say I'd rather not. Nothing they can do, except not show you any apartments. That's OK, simply walk out and go to the next broker. There are zillions of them, most in a partcular area are showing the same damn apts. As long as you're in the market for average apts in average price ranges, there's little to lose.

There are few 'exclusives'. If a broker has 20 listings, MAYBE 1 or 2 are exclusive, and these are not necessarily the best ones.

In any negotiation you MUST be prepared to walk. It's your only leverage. If you are not prepared and they know it, then they have little incentive to negotiate.

If you want to really play hard ball, even iff you've signed an agreement with the broker, then understand that the broker's 'services' are separate from the act of actually renting the apartment.

If the broker is handling the entire transaction, quite common, then manage a way to sign the lease BEFORE handing over any checks. Sign the lease, hand over checks for rent and security---then the broker's check in the amount you feel appropriate. Make sure to note in the memo, 'paid in full'.

Now, you've just rented the apartment; with a signed lease it can't be undone. Of course, if the lease isn't signed by the landlord, then the broker might refuse to submit the lease for the LL's signiture. If that happens, then call AND write the LL stating you have a dispute with the broker. You have signed the lease and tendered checks, and will be moving in on X date. Make sure to copy the broker.

The broker will be pissed, but what can he/she do? The choice for the broker is to accept the check you've offered, in which case the deal is done; or, to refuse the check and sue, in which case you can make your case to a judge who will determine the amount to be paid. Your only risk, if you lose, will be additional fees for the broker's court filing fee(s).

Remember YOU control the checkbook!

To the OP,

When their are two brokers involved, the usual custom is for them to share the fee. Since the LL's broker has an exclusive listing, she/he is playing hardball (and expecting you to pick the slack). If $3600 is the fee, then I'd offer YOUR agent what she would normally be entitled to---$1800! A total of $5400. I'd tell the broker to work it out with the other Agent---meaning they can split however they choose.

Though, frankly, I'd just walk.

Or, you could just offer the$ 3600 and tell them to take it or leave it! Brokers often are living hand to mouth. It'll be up to the LL's broker, if she/he needs the money she'll accept, if not, then he won't.

[Cida]

I know there's a prevalent train of thought that "everything is negotiable," but it's not, and it's starting to annoy me.

Ask yourself this: If there are two candidates for an apartment, and one keeps trying to cut a deal to shaft the agent, and one doesn't - which do you think will get the apartment?

[Francesca Carelli]

I'm applying for 1 bedroom apartment in NYC and the broker want to charge me 27% the reason why, he said, because is his exclusive and the rent that the owner establish is low $2,395.00. My question is: is this legal...? I know there are 2 broker involved, but I think this is too much. I applied for the apartment but I haven't paid yet, please help me to figure this out. Thanks, Francesca.