Thanks for your question.
The standard broker's fee in Manhattan for rentals is 15% of the annual rent (typically paid by renter, however can vary in different market conditions).
Broker's fee in Manhattan for sales is usually no more of a gross 7%, paid by seller.
Keep in mind that these commissions are usually split many, many ways; And although everyone wants to save money, you do get what you pay for. If there's a broker willing to work for unusually low commission, you are most likely not getting such a great deal. Competent and experienced Brokers know their value!
Hope that helps.
Yes, Real Estate is hard work to keep deals in the pipeline. Getting listings is like pulling teeth and nobody who hasn't worked at this particular profession has a true idea of all the moving parts we deal with every day and that includes people and their various attitudes. Still, the freedom is great and once that ball gets rolling, there's no way to stop it. I would have it no other way.
I feel that's a valid question. Ron, I think you are being a little hard on him. If a consumer wants to know our commission structure, I think that's valid. I believe the more transparancy, the better. After all, consumers are watching shows like Million Dollar Listing where the numbers shown are not real at all - they show the total gross commission, without explaining how that is split.
Ruben, here's the math of a hypothetical. Suppose an apartment was listed for 6% (which may or may not be the case, as there is no price fixing, so this is hypothetical) and sold for $1,000,000. The total GROSS commission is $60,000. That is split between the company of the listing agent and the company of the buyer's agent. So each company would get $30,000. Then the company pays their agent. It depends upon an agent's split. Most are at a 50/50 split. Over time, those of us that are prolific work our way up to higher splits, but let's say the average agent out there. They would get half of their company's cut, or $15,000. If you are trying to figure out how much a real estate agent earns, it depends upon how many deals a year they do and at what price point, plus depending on the split they've worked their way up to. There is GREAT variation, and even for a very successful agent, I can tell you that the where the market is at at any point in time will make a big difference as well. And one last point, if you think it is all glamour, I can tell you it is very, very hard work, particularly for those of us that give it our all.
Halstead Property, LLC