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Mrwalk, Renter in New York, NY

Can someone tell me how the 15% rental commission is broken down between the brokers? I understand that if there are two brokers, it's split

Asked by Mrwalk, New York, NY Thu Aug 2, 2012

7.5% each But what does the individual broker get and what goes to the brokerage firm?

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7
Jerry Trudell’s answer
Its nice of you to be thoughtful of someone who spent time trying to help you find an apartment, as this can be time consuming. However, if you found the apartment yourself, it seems to me that there is no standard fee structure that applies, as fees are based on a percentage of the rent of the apartment that the broker finds for you. As for cobroking, this doesnt apply either, as obviously you did not deal with another broker either. If you want to compensate your broker anyway, thats fine , but it seems that it is more of a tip than a fee calculation.
0 votes Thank Flag Link Sun Aug 5, 2012
Thanks to all for the quick response. One person asked why I wanted to know. I've been working with a broker to find a rental apartment and teh broker has worked hard and been very responsive, but we haven't found the right apartmetnt yet. In the meantime, I've located some non-fee apartments that might work. If I select on of the non-fee apartements, I wanted to compensate the broker for all the work they did, so I was trying to determine what percentage or piece of the 15% commision the broker would have received if I had leased an apartment through him. Thoughts/suggestions??
0 votes Thank Flag Link Fri Aug 3, 2012
Have you considered having this discussion with your agent...
Flag Fri Aug 3, 2012
First of all, commissions are always negotiable and no particular percentage is mandated.

Second, all commission payments must be revealed to the parties in the transaction in New York State. So you will know which party is getting paid how much.

The split between the broker and the agent is by contact between them. The range starts at near zero and goes up to most of the commission. This not only varies from firm to firm, but in many firms, different agents receive different commission splits depending on their value to the firm--how much business they bring in.

Karla Harby
Licensed Real Estate Salesperson
Rutenberg Realty
New York, NY
212-688-1000x146
kharby@crrnyc.com
0 votes Thank Flag Link Fri Aug 3, 2012
Why not simply ask your agent the question...as for the individual agent and broker split, it depends on the agreement between the agent and his/her broker owner....
0 votes Thank Flag Link Thu Aug 2, 2012
There is no way to accurately answer this. Each brokerage may have several different splits depending on the agent. Why do you ask? The agent should theoretically be satisfied with whatever split it is. if it's a cobroke, it may be a little tougher to swallow but we do it all the time.
0 votes Thank Flag Link Thu Aug 2, 2012
Hi, It depends on the brokerage and what their policy is. Typically anything in my local MLS has to offer some sort of compensation to cooperating agents. It could be half a months rent or $1, up to the listing agent. I typically get my fee from the tenant when showing apts. I've had issues with landlords in the past so this makes it easier. I also fully disclose this upfront so there are no surprises to the tenant.

Chris
0 votes Thank Flag Link Thu Aug 2, 2012
That would depend on the arrangement between each individual agent, and each individual broker. There is no one size fits all formula. Each real estate company is free to set its own fee schedule and to negotiate various rates.
0 votes Thank Flag Link Thu Aug 2, 2012
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