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I want to put my one-bedroom Brooklyn co-op on the market, but I'd prefer not to pay the 6% broker's fee.
Would love advice from anyone else on the forum who has tried - successfully or otherwise - to sell a NYC apartment on their own (i.e. "by owner" sale).
It seems to me that brokers add value primarily by advertising the apartment and bringing in potential buyers to see it. So if there's some way to do that on my own, maybe I don't need a broker.
Do brokers help in other ways? I thought maybe they vetted potential buyers, but after talking to a couple of brokers, it sounds like they don't do too much in that regard.
I think using a real estate broker makes good sense if you don't want to put in any effort to selling your home, but in this market, that 6% could be the difference between me coming out a little bit ahead in the sale and just breaking even...
This is my first apartment sale, so all advice is welcome. And since this is my first Forum post, I hope that I am within forum etiquette here. Thanks in advance for any suggestions!
One problem is that it is not as easy to sell a coop as it is to sell a house or a condo.It is just more complicated.
Secondly,it is not as easy to "sell it yourself" in a down market as it is in a seller's market.Not saying it can't be done but you may eventually wind up turning to a broker after the apartment has been on the market for a while and that might not be so good.
If you are going to try to do it yourself in this market make sure the savings is obvious to buyers by pricing it under the comps.Use it as a selling tool,not as a way for you to net more $$$$.
Good brokers also screen out unqualified potential buyers.You might find that part of the job very tedious.You can lose a lot of time and market exposure by getting involved with whacko's and unqualified lookers.
I used to be a real estate salesperson and here's my unbiased 2 cents...
For starters, 6% is high in a weak market - if you called a few brokers, you can probably negotiate a 3% or 4% commission.
Next, I've always believed in a FSBO (For Sale By Owner), but how successful you are will depend on how much your willing to work for it.
With a broker, you will have your property listed on the MLS, which is accessible by all brokers in Bklyn, so it's a much further reach that you can accomplish. They might also do a little advertisement as well, and maybe do a open house for you. One important thing they do, is screen the buyers. Believe me though, they don't do this for you - they do it because they don't want to waste their time with a un-qualified buyer.
Now, with that being said, you can do most of this yourself. If your willing to spend the money, you can advertise it in papers and/or websites. Places like Zillow and Craigslist are free advertisements, but you won't be able to place it on the MLS. One key thing though, is that you can't screen the people who call you. Also, if you are still living there while your selling it, you will also have to accept the risk of total strangers coming into your home to see the place. With a broker, all buyers must go through the broker, who will generally meet the person, talk with them to get a feel to see if they are serious, possible perform credit checks and validate their incomes. But if you sell it yourself, then anyone who sees your listing on craigslist will be calling you, and you will need to make yourself available to show the apartment.
Now, with a assumption that your asking $150k for your place, 3% commission is about $4,500 - which is a decent amount of money. But you should weigh that against the work that might be involved and the risk of strangers coming to your home. If you think you can deal with that, then you should try selling it yourself for a couple of months and see if you have any luck. If your in no rush, you can always go to a broker afterwards.
Just read this post and wondered how it turned out. I am in simmilar position ,considering selling on my own (coop in NYC) and wd love to save 6% comm. I am unemployed so in position to show apt full time.
I sold a co-op without a broker, and everything went perfectly smoothly. Just make sure you engage the services a good lawyer to handle all the legalities.
I think the single biggest advantage of eliminating the broker is that you can possibly negotiate directly, and add in the human element. I was in a situation where the seller wasn't using a broker, and I think it helped. But I think then you have to really educate yourself. And I don't mean by posting on a forum to get advice from anonymous starngers, but by reading widely, books, articles, whatever - about legal aspects, about "staging," etc.
By the way, from what I hear, you might be able to negotiate that 6% down somewhat.
when I bought my co-op, I was already renting an apartment in the building on the first floor. I was friends with a young couple on the fourth floor, and they were getting a divorce and just wanted to get rid of the apartment, as co-op's weren't selling to good around 1995.
So back and fourth we got the bank to let me "assume" the mortgage. The bank agreed after I had to submit all my financial papers and they took their name off the mortgage and put mine on. So they were like basically renting the apartment for the 7 years, then I picked up where they left off.
It was good because I had no broker fees, nor did they, and I didn't have to make a down payment. This made it so much easier for me to pay off years ago.
see if you can get someone to buy it from the building if you can, if there are renters.
also the co-op should have its on lawyer, i know ours does, so that is the lawyer you should use.
me and the tenants had our own lawyers, ( a friend), but the sponsors of the co-op said we should have used the co-op lawyer, since they have all the financials and stuff, and the fee would have been less.
You can defintely do it on your own. You just need to know all the potential questions and process of selling your co-op. Such as the co-op by-laws, financing requirements for the buyer, requirements for the board package, advising the buyer what to expect on the co-op interview, etc....Also, will you consider paying a buyer's broker commission (2-3%)?
Think about what you went through when you purchased your co-op? Could you have done it without the assistance of a broker? If the answer is yes, then go for it. However, give yourself a time limit whereas, if the co-op has not sold by a certain date then that's when you will consider listing it with a broker.
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