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06.21.08, 19:52 PM New York City
52 replies
Any advice? We are doing a fsbo and have decided to allow brokers to show the place and would pay 3% to a buyer's broker. So essentially we are acting as our own listing agent...figure we will maybe spend 3% instead of 6%. Gotten tons of calls from brokers, they seem fine with showing/happy with 3%....but say someone sees my ad in the NY Times, comes to my Open House and then some broker who showed them places 2 mos ago claims they are their 'broker'- would they (they buyer) have to have signed something to this effect 2 mos ago?? [ Reply | Watch | Flag ]
New York City 06.21.08, 07:52 PM Flag
 

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Doesn't matter - if the offer is presented with a Buyer Agreement you pay according to the terms you put in place. [ Reply | More
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General Topics 06.21.08, 07:58 PM Flag
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usually the contract is for 3-6 months (although I'm not in NYC, so don't know what they do there), so it really depends on what they signed and how long ago. In my state though, it is only on houses that they show, so going to an open house wouldn't count. [ Reply | More
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General Topics 06.21.08, 07:59 PM Flag
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how strange, what state ar eyou in? [ Reply | More
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General Topics 06.21.08, 08:00 PM Flag
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Missouri [ Reply | More
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General Topics 06.21.08, 08:06 PM Flag
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^^^It may vary by company... I just know what's on the contract... [ Reply | More
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General Topics 06.21.08, 08:06 PM Flag
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this is not the case in NY [ Reply | More
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General Topics 06.21.08, 08:08 PM Flag
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The least of a Brokers job is to "procure" the listing - anyone can do that. The commission is paid for the work they do on behalf of the Buyer far beyond bringing them to the listing. [ Reply | More
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General Topics 06.21.08, 07:59 PM Flag
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But buyers brokers don't do any work that can't be done by another party. They aren't necessary. [ Reply | More
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General Topics 06.21.08, 08:09 PM Flag
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What other party is doing the work? A lawyer at $250 an hour? [ Reply | More
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General Topics 06.21.08, 08:11 PM Flag
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You need the lawyer anyway. [ Reply | More
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General Topics 06.21.08, 08:15 PM Flag
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what work does the buyer's broker do? We sort of figure the more exposure for our place, the better, but When DH and I bought the place we are selling now, we didn't have a buyer's broker. We went to an open house hosted by the seller's broker [ Reply | More
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General Topics 06.21.08, 08:11 PM Flag
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Then the Sellers Agent received both sides of the commission and you were represnted by a Dual Agent. That is insane. [ Reply | More
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General Topics 06.21.08, 08:12 PM Flag
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ah you are right...she kept the whole 6% for herself. Lucky her! (not that we care because we paid the same price anyway) [ Reply | More
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General Topics 06.21.08, 08:16 PM Flag
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You did pay the same price...but you didn't have someone working on your behalf and may well have paid 5 or 10 or 15k. less...but I am so glad you are happy, you sound great. [ Reply | More
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General Topics 06.21.08, 08:19 PM Flag
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maybe but 15K is very little in the grand scheme of things with this particular place [ Reply | More
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General Topics 06.21.08, 08:33 PM Flag
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Buyers generally don't agreements with brokers [ Reply | More
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General Topics 06.21.08, 08:02 PM Flag
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Hmmm, I make a good 6 figure salary basedon Buyers signing contracts with me [ Reply | More
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General Topics 06.21.08, 08:05 PM Flag
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A seller can (and will) sign an agreement to allow one broker to exclusively show their home. But a buyer as no incentive to commit to one broker. If you find an apartment w/o a broker and your attorney can handle the sale, why bother with a broker? [ Reply | More
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General Topics 06.21.08, 08:08 PM Flag
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Because when a Seller lists their house with an agency they sign a contract splitting the fee with the Buyers Agent. So - in effect - the money is already committed by the Seller and you don't get a refund if it is not used. Besides, the best help a Broker will be is in negotiating which a lawyer won't do. Finally, most Buyers are now represented by an exclusive Agent and it has been this way since about 2000. [ Reply | More
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General Topics 06.21.08, 08:10 PM Flag
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Lawyers will absolutely negotiate. That's one of the central skills to being a lawyer. [ Reply | More
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General Topics 06.21.08, 08:12 PM Flag
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Sure they can but without the knowledge of the market there skills are limited [ Reply | More
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General Topics 06.21.08, 08:13 PM Flag
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A real estate lawyer will have extensive knowledge of the market in which they are practicing. [ Reply | More
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General Topics 06.21.08, 08:15 PM Flag
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That is absurd. Zillow is not extensive market knowledge. [ Reply | More
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General Topics 06.21.08, 08:20 PM Flag
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Not zillow. Who said anything about zillow? [ Reply | More
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General Topics 06.21.08, 08:21 PM Flag
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Funny, I never see lawyers at broker opens, never have them negotiate a deal, present comps basedon first hand evaluation, etc. how do they know what is going on on the ground in my neighborhood? [ Reply | More
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General Topics 06.21.08, 08:22 PM Flag
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By representing buyers and sellers in every facet of the transaction? Who writes the contracts? Who reviews the buildings financials? Who negotiates the contracts? Who represents the parties at the closings? [ Reply | More
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General Topics 06.21.08, 08:23 PM Flag
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Contracts are boilerplate, Brokers conduct negotiations, lawyers typically represent the bank/mortgage holdings at closing. Very few people bother hiring a lawyer for closing anymore since the contract is so standard - any h.s. student can print out the P & S. [ Reply | More
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General Topics 06.21.08, 08:26 PM Flag
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Where do you work? What market? Brokers do not conduct negotiations in my market. Lawyers do. And buyers and sellers both bring their lawyers to the closing, as does the bank. [ Reply | More
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General Topics 06.21.08, 08:27 PM Flag
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I work in MA and CT and rarely do lawyers attend closings anymore - that will be over in 5 years. My clients won't pay 1,500k. plus a huge title insurance commission to boot - the bank will send someone to do any dirty work. [ Reply | More
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General Topics 06.21.08, 08:28 PM Flag
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Then why are yo commenting on a thread on the NYC board? What do you know about real estate transactions in NYC? [ Reply | More
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General Topics 06.21.08, 08:30 PM Flag
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I worked in NY for years and am well aware of the situation there. You must be a real estate attorney. [ Reply | More
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General Topics 06.21.08, 08:31 PM Flag
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Nope. Not a real estate attorney. But if you worked in NY, you know that buyers and sellers in NYC ALWAYS hire their own attorneys. [ Reply | More
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General Topics 06.21.08, 08:33 PM Flag
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I don't think she works in New York or Manhattan. I've never heard of a lawyer not being at a closing...especially with coops [ Reply | More
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General Topics 06.21.08, 08:30 PM Flag
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Seriously! I can't imagine anyone not hiring a lawyer to represent them in a closing. [ Reply | More
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General Topics 06.21.08, 08:31 PM Flag
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^and our coop lawyer certainly is involved in sales in our building [ Reply | More
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General Topics 06.21.08, 08:31 PM Flag
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np - we didn't hire a lawyer for our coop [ Reply | More
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General Topics 06.21.08, 08:32 PM Flag
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You can't use a boilerplate contract. You need to customize the contract to the proprietary lease of the coop. [ Reply | More
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General Topics 06.21.08, 08:28 PM Flag
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false [ Reply | More
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General Topics 06.21.08, 08:29 PM Flag
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Where the heck are you that lawyers don't negotiate deals? Who is writing the contracts? The brokers? That's CRAZY! [ Reply | More
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General Topics 06.21.08, 08:24 PM Flag
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Crazy? Google "Contract to Purchase" or "Purchase and Sale Agreement" and print out your state's standard contract for free. Anyone who pays a lawyer to hit "print" is a fool. [ Reply | More
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General Topics 06.21.08, 08:27 PM Flag
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I don't need a state's standard contract. I need a contract specific to the co-op in which I am buying. A standard contract won't help in NYC. [ Reply | More
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General Topics 06.21.08, 08:29 PM Flag
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That is very misleading and false. [ Reply | More
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General Topics 06.21.08, 08:30 PM Flag
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Not at all. Are you telling me that a resale vs a sponsor unit will have the same contract with the same contingencies? Of course not. [ Reply | More
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General Topics 06.21.08, 08:32 PM Flag
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there are boilerplate contracts for either scenario - you seem quite heated about the possibility of missing a turn at the trough though. [ Reply | More
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General Topics 06.21.08, 08:33 PM Flag
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I just find it shocking that brokers are so self-important that they think they are someone critical to real estate transactions. It is hysterical. [ Reply | More
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General Topics 06.21.08, 08:35 PM Flag
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Buyers have a huge incentive to work with a Broker as opposed to a lawyer - namely a lot less in fees. [ Reply | More
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General Topics 06.21.08, 08:11 PM Flag
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No one with an ounce of intelligence is going to trust a broker, whose compensation is tied to the price of the apartment. They are going to have everything dd'ed by their lawyer anyway. The legal fees can't be avoided. [ Reply | More
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General Topics 06.21.08, 08:14 PM Flag
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I think you are very cynical or just silly. The different of 10 or 20k. means nothing to my commission check - read Freakonomics. [ Reply | More
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General Topics 06.21.08, 08:23 PM Flag
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You are talking about the very low end of the market if the swing is only 10-20K. [ Reply | More
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General Topics 06.21.08, 08:26 PM Flag
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OP here: we decided (for now) not to hire a broker to 'sell' our place because then we would have to pay 6%. But we've put word out to several brokers that we will pay 3% if they bring us a buyer (which is the same 3% they'd get anyway) so at this point, I'm wondering what else a selling broker would do for us (provided I have the time right now to show the place) [ Reply | More
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General Topics 06.21.08, 08:14 PM Flag
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I need to go to sleep so I am not going to spin the laundry list of what a Broker will do for you - it sounds like you have decided to go FSBO anyway - but I will let you know that Brokers are not very interested in FSBOs and will not actively show your property. If called or asked about it they will but otherwise they will never offer to show it to their clients. Since everyone on UB hates Brokers you can flame away about how disgusting and unethical this is. I just wanted to let you know. GL! [ Reply | More
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General Topics 06.21.08, 08:17 PM Flag
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thanks! I already had one broker show it and she's bringing back someone else next week....so I guess you all aren't as disgusting as you think we think you are! [ Reply | More
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General Topics 06.21.08, 08:21 PM Flag
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