Home Buying in Williamsburg>Question Details

Porkchop, Home Buyer in New York, NY

In NYC how does one compensate a buyers agent when buying a condo from a sponsor?

Asked by Porkchop, New York, NY Thu Apr 24, 2008

I really don't want to go into buying my first condo without an agent on my side for negotiating purposes but I am unsure if it will be worth it in the end. How are they compensated when you are buying a condo from a sponsor?

Specifically I am looking at new condos in Williamsburg Brooklyn in the 800k range.

Help the community by answering this question:


If you use an agent, usually the sponsor pays the commission and if there's a listing agent the fees will be distributed accordingly. As the buyer you will not have to pay the agent representing you unless otherwise agreed and specified along with signed paperwork.

If you need assistance feel free to give me a call and I will represent you for free.

Rhonda Holt
Full Time Licensed Top Sales Realtor
Weichert Realtors, H.P Greenfield
Web Reference: http://www.Kandhhomes.com
0 votes Thank Flag Link Thu Apr 16, 2009
Porkchop- I'm in the same boat as you are, Williamsburg and looking to buy. I'm not an real estate agent or pro like these other guys who answered. What I can say about using a broker for the first time is that he doesn't work for you, he works for the seller. You don't pay his commission. He brings "his client" (you) to a seller, in hopes that a deal will be made and he will get half of the broker commission (2.5-3%). It's not in his best interest to negotiate the price down for you short of not making the sale. From my own experience, after receiving heavy pressure "my" broker (who was not able to negotiate the price down one cent) it miraculously dropped $10K when we decided to back out of the deal. We learned a valuable lesson. If you've been doing your homework about BBurg and know the area and value, be brave, go it yourself, and if anything, you may have negotiating room for price in the absence of a broker. If you need your hand held, well then the choice is yours.
0 votes Thank Flag Link Wed Apr 15, 2009
Hey Prockchop LOL.

This is really quite simple without all those missleading words. Every single New Development Condo that I have looked at offer compensation to a broker, because most sales are done through a broker. Majority of these buildings are marketed by Real Estate firms, or they may have their own sales office and do their own marketing for the building. Sponsors usually offer anywhere from 3 to 4% on average, but I've also seen higher commissions. Don't go on your own, do go with a broker, considering it will be at no extra charge to you. Keep in mind that the sponsor may not budge on the price if the building is brand new, it will decrease the value of all other units, what you can do is try to negotiate closing fees, because they can be expensive after all you have to cover.
Anything else, shoot me an email and I'll tell you how it is without sugar coating.
0 votes Thank Flag Link Tue May 13, 2008
If you need further information don't hesitate to contact me at diane.blackman@prudentialelliman.com. I am a certifed buyers agent and available to answer additional questions.

In short, once you select your buyer's agent part of there role is to spend time with you discussing your real estate goals. Compensation is part of the discussion. A Buyers Agent can be compensated by you the buyer or paid through the transaction. If you are working with a seasoned Buyers agent they will provide you with a full proposal and explain how they will be compensated in a sponsor situation.
0 votes Thank Flag Link Mon Apr 28, 2008
Porkchop, Very smart to use a buyer's agent to represent your interests. What's shocking is that so few people in New York buy property w/o the benefit of their own representative. I'm not aware of anyone in today's market that would turn away a an agent w/a buying client. Q: Do you need a certified buyer's agent? GerryV (vazquezgerry@yahoo.com)
0 votes Thank Flag Link Sun Apr 27, 2008
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