Home Selling in New York>Question Details

Kinney, Home Seller in New York, NY

what is a fair broker fee for the sale of a house in queens ny?

Asked by Kinney, New York, NY Thu Aug 11, 2011

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16
Hi Kinney,

When agents from different brokerages discuss specific commissions they are at risk of violating antitrust laws. It may be considered price fixing or collusion. Agents are at risk when they discuss specific commissions online since the DOJ and the FTC are most certainly monitoring the discussions on this site.

Commissions are always negotiable BETWEEN THE BROKER/AGENT AND THE CONSUMER. They are NOT negotiable broker to broker as topics for discussion.
2 votes Thank Flag Link Thu Aug 11, 2011
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
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Kinney,
What is fair is what you and the broker agree upon. Mitchell and Anna are absolutely correct we cannot quote and there are no set commission fees except was has been agreed to by the seller and listing broker/agent. The buyer's broker can also (and is encouraged to by the US DOJ) give a buyer a percentage of their side of the commission as a rebate after closing if that is agreed upon at the beginning. Here the links to some interesting postings by the DOJ on Real Estate ,Anti-trust & Rebates http://www.justice.gov/atr/public/real_estate/
http://www.justice.gov/atr/public/real_estate/faqs.html
http://www.justice.gov/atr/public/div_stats/211491.htm
http://www.justice.gov/atr/public/real_estate/rebates.html
Please be sure to use a licensed agent/broker! Good Luck
0 votes Thank Flag Link Wed Sep 7, 2011
Commissions are negotiable between you and your agent, there are no set standards; therefore interview in person a few agents from different realty companies, then choose the one you like best and who has the most to offer; choose your agent with care...
0 votes Thank Flag Link Sun Aug 14, 2011
THERE IS NO TYPICAL COMMISSION! Each real estate company is free to set its own fee schedule and to negotiate various rates with individual buyers and sellers. Any agreement between two different firms to set standard rates, however, is a serious violation of antitrust laws. Violations occur when competing firms agree to act together, this is what the US Justice Department calls restraint of trade. There is no set fee, fees are negotiable.
Web Reference: http://www.clovelake.com
0 votes Thank Flag Link Fri Aug 12, 2011
Hello, the most common amount for an agent to sell a home effectively is 6%. There are many agents that charge less and most are flexible depending on your situation.
Web Reference: http://www.RhondaHolt.com
0 votes Thank Flag Link Fri Aug 12, 2011
Dear colleagues,

relax.........Janet, Joseph and Mitchel you are totally right, but I believe no one is trying to break the law, the answers in the blog are for help purpose only and not meant to mislead anyone. Most of the agents just gave an average % of commission - the word negotiable was missing, but I am sure not intentionally.
0 votes Thank Flag Link Fri Aug 12, 2011
Kinney,
I am mortified at some of the answers below. There are laws about price-fixing which means no agent EVER could, should say "this is the going rate on commission." There is not allowed to be a "going rate." That is highly illegal and a serious breach of federal law. The correct answer to your question is interview 2-3 qualified agents in your area, discuss their ideas on sale price, marketing and commission, and then make your decision.
Some of us need to go back and study that book you studied to get you license.
0 votes Thank Flag Link Fri Aug 12, 2011
Kinney, There as a rule of thumb thier is no set price and all commisions are negotiable. Until a agreement as been set up. If an agent sells your home for what you ask for and does his/her job saving you time and money. Then it is worth the piace of mind.
0 votes Thank Flag Link Thu Aug 11, 2011
Kinny:
I work in both Manhattan and Queens and they are very different animals. If you have a true exclusive arrangement where they advertise on the MLS (where 95% of the buyers are with their agents) and all other avenues then that arrangement in Queens is 4-5%. If you have a buyer that you met prior to signing the contract then the contract should have that buyer as an exclusion. If that is not the case, then you will owe the broker the fees. If the broker that you mention has brought you the client, and you have no exclusive arrangement with any agent, then around 2.5-3% the normal commission to manage both sides of the deal.

One of the issues in Queens is that some times agents utilize properties as pocket listings, not listing them on the MLS and charging 2%. Sometimes they even charge the full amount and do the same even if you believe that they are listing on the MLS. Most important is having an honest broker who follows the rules. I would be happy to discuss those rules and what you should be getting from an exclusive agent, or happy to send by email as I have had this discussion with other sellers in Queens, and continue to be amazed at those who do not follow the rules as they should to represent their clients.

Kelly Killian
Bond New York
954-675-9915
0 votes Thank Flag Link Thu Aug 11, 2011
Terry- I asked the right question because I have a broker and I have a buyer. I just have to decide what I am willing to pay the broker
Kinney
0 votes Thank Flag Link Thu Aug 11, 2011
Hi Kinney, with so much uncertainty the market is tough but people are still moving- the question you should be asking is what will the broker do for you? where will your home appear? how many websites? what publications? are they full time agents? or part time weekend agents? Commissions are negotiable to a point-it's not how much you pay in commssiion but how much you will end up with. The more aggreesive an agent /broker the more chances you will get higher and more offers.. Would be glad to meet with you at your convenience. Terry K 718-614-3167 cell or email TKorahais@elliman.com
0 votes Thank Flag Link Thu Aug 11, 2011
6% is an industry standard broker fee for the sale of a home in New York City.
0 votes Thank Flag Link Thu Aug 11, 2011
The broker fee is negotiable. 5-6% is the norm for NYC. You should ask whether the broker will accept a lower % if they act as dual agent where they represent the buyer as well. I personally include a special provision to all my exclusive contracts at 3.5% if I act as dual agent.
If you are still interviewing potential listing brokers I'd be happy to meet with you if your property is located in Astoria or LIC. I can provide closed sales data, current market data to better assist in determining a fair market value. Good luck
0 votes Thank Flag Link Thu Aug 11, 2011
Sorry, but I would disagree with Roberto. Typical % that the firms will collect in NY state is 5-6% assuming there is two brokers involved. Sometime broker would agree to take a little less in the case of a direct deal without another broker involved. In my experience if you offer less %, brokers would bring their clients to the listings which offer higher % on commissions.
0 votes Thank Flag Link Thu Aug 11, 2011
i would say 5-6% if there are two agents (buyers and sellers agent) who have to split the commission. 3-4% if it's a sole agent in a dual agency
0 votes Thank Flag Link Thu Aug 11, 2011
Great question the broker can take a fee from 3 percent to 6 percent but in this market you can say 3.5 or four would be fair
0 votes Thank Flag Link Thu Aug 11, 2011
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