New York Realtors® Weigh-In on Commissions

Earlier this month The Real Deal writer Melissa Dehncke-McGill asked agents in the Big Apple to opine on what’s happening nowadays with real estate commissions. Here are some of the most notable quotes…check out the full article for more insights:

On 6% commissions: “Some pay less and some pay more. Everyone wants to pay less, but I have had some [sellers offer] incentives. For example, someone who needs to move and will pay more if it is sold within X amount of time. I have seen a little bit of that.”

More on 6% commissions: “Every agent and company has different approaches in listing commissions. While our base commission has basically stayed the same, we are working to persuade sellers to offer high co-broker commissions to help encourage other brokers to show our inventory. We are even adjusting co-broker commissions on new development contracts signed years ago and on developments that are just coming to market.”

On “rescuing” a deal: “Lately we’re seeing an increasing amount of buyers asking what our commission is and requesting to leverage it in order to bridge a gap between a buyer’s offer and the seller’s counteroffer. The practice of sellers asking to help bridge a gap is common and, because I represent them, I’ll work with a seller in certain circumstances. However, a buyer asking how much we are making just shows how cutthroat the market can be today and how buyers feel they hold the upper hand.”

On co-brokes: “From a co-broke perspective it betters the chances of [brokers] bringing their buyers to your property when it’s at a full 3 percent commission as opposed to 2 to 2.5 percent, which we are seeing a lot of listings being sent out at.”

On direct deals (buyer without an agent): “There are more direct deals happening now than before. There were always agents during the peak of the market that didn’t co-broke because they had buyers coming directly to them. … [Now], I have seen more direct buyers coming to the properties because they have more resources at their fingertips.”

Chicagoland Realtors®, what say you?

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