Is Working With Low Commission Real Estate Agents in NYC a Good Idea?

Discounting is not a new concept and low commission real estate agents have been around for as long as there have been real estate brokers. There’s a good reason why everyone isn’t using a low cost real estate agent to buy or sell.

What Is the Average Real Estate Commission Rate in NYC? How Real Estate Commissions Work in NYC

Will a 1% Real Estate Broker Be Motivated to Sell My Listing?

A 1% real estate broker will certainly be motivated to sell your property if they are paid on commission and the property is located in a high value locale like New York City. Considering that the average home sale price in NYC is approximately $2 million, 1% commission is still $20,000! Furthermore, just having an exclusive sales listing in Manhattan, Brooklyn or Westchester brings tangential benefits like enhanced branding and credibility.

1% Listing Fee | Sell with a Traditional, Full-Service Agent in NYC for Just 1 Percent — Hauseit®

Will Other Brokers Cooperate with a Low Cost Real Estate Agent?

Low commission real estate agents face a real risk of being boycotted by traditional Realtors, especially if a low cost real estate agent openly discounts their services.

How Do You Sell Your NYC Apartment Without a Broker? Selling a Condo or Co-op in NYC

Are Incentives Aligned with Only a 1% Listing Fee?

A 1% real estate agent who will only earn a 1% listing commission will have all of their incentives aligned if they will also be able to make a market rate on direct buyers. This is especially relevant if the direct buyer is an existing client of the brokerage. It wouldn’t make sense for the brokerage to proverbially shoot themselves in the foot on their own listing by only taking 1%. That’s because buyers are worth 2.5% to 3% on the open market on any other listing!

Are Low Commission Real Estate Agents Helpful for Buying a Home?

While having a low cost real estate agent who will rebate you a portion of the commissionthey earn from the seller is helpful, you want to make sure your buyer’s agent is not openly doing this as a business model.

Hauseit NYC Buyer Closing Credit | Save Money When Buying a Condo, Co-op or House in New York City

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Save money when buying and selling real estate in NY and FL with Hauseit. Available in NYC, Long Island, the Hudson Valley and South Florida. www.hauseit.com