Using a Real Estate Agent in NYC
Have you been thinking about selling your co-op or condo in the Financial District or Battery Park City area of NYC? From the seller’s standpoint, a real estate transaction can be terribly easy or terribly frustrating. A real estate deal typically involves a party of five: lawyers, lender, real estate brokers, title company and buyer. These entities can make the transaction smooth or nightmarish.
In NYC, the standard real estate commission is 6%. For the sake of example, let’s assume that your condo will sell for around $1.5 million. Based 0n this selling price, the real estate commission is $90,000. This may sound like a hefty price to pay someone for showing your apartment and conducting a few open houses. Foregoing hiring a broker all together may appear to be a financially sound move, but I can assure you, this decision may become one of your more costlier and time consuming mistakes in this process.
For-Sale-By-Owner (FSBOs) may save you a commission fee, but here are some drawbacks you may face by going solo on the sale of your home:
The Buyer Pool
When you are not represented by a broker, your pool of potential buyers are those who are also solo (no buyer’s broker). Your pool of potential buyers is relatively small compared to basket of serious interested buyers who would otherwise see your property with their broker. New Yorkers are very busy, most don’t have the time or patience to cruise Trulia or Realtor.com for listings or deal with emotional sellers. Instead, they expect their broker to line up 5-6 listing after work or on the weekends. Since real estate agents are paid by the seller (you hire a broker and he splits his commission with the buyer’s agent), a seller’s broker may zoom past your listing since you are not represented. You probably will make the sale, eventually, to an unrepresented buyer, but when and for how much may not be ideal.
Multiple Listing Service Exposure
By going solo, you miss out on the Multiple Listing Service (MLS) exposure. Only NY licensed agents and brokers who pay for a membership are allowed access to MLS. Home sellers cannot directly list their property on the system. MLS is open to thousands of NY agents who may have a potential buyer in mind for your home. This is by far the best marketing tool in New York real estate.
The real estate broker business is a small community. Buyers’ broker and seller agents run into each other all the time. Once an exclusive agreement is signed by a seller listing their property with a specific brokerage, aside from listing the home with MLS, you better believe the listing broker will get out her rolodex and start calling every broker she knows for a potential buyer/investor for your property.
Social Media & Marketing
It’s 2018. Google Adsense and social media is now a foundational column to every marketing campaign in selling a listing. Do you know how to work Google Adsense? Do you know how to run Facebook ads to market your property? At Paper Street Real Estate, we take full advantage of every marketing tool available to us. These tools have become second nature to the modern broker/agent. We aren’t doubting your tech savviness, but a real estate agent already has these tools in their arsenal to sell your property.
Do you have time to engage in back-to-back negotiations, conduct open houses, organize co-op board packages with the buyer, schedule showings, review sales comparisons, follow up with potential buyers, secure the financials from your building? Like most people, you probably have enough on your plate already.
Commissions are negotiable. Cutting your broker out may not be the best idea. With Paper Street Real Estate, Kamilla Mishiyeva will work as your faithful broker and can provide peripheral knowledge due to her knowledge in real estate transactions. Although she will not be working as the attorney on the closing, she will provide general oversight and awareness. By selecting us to market your property or help you find a home,we promise that you’ll be in good hands. Contact us at Kamilla@PaperStreetRealEstate.com.
If you are a seller, you can also fill out our informational form about your property. What we will do is send you a sales comparison report to better assist you in getting a feel for your respective market and knowing how to price your property better.