George asks…
Is the life of a real estate agent in nyc great?
I just passed the test and I am looking for a sponsoring broker to start real estate. I would like to know if their are other real estate agents that are based in Manhattan, that can give me some insight on how it is going to be, what to watch out for, and is the money potential as good as what brokers say?
Philadelphia Real Estate answers:
The money potential is ALWAYS there, it just depends whether or not you have the motivation to get it and the network to get you there. New agents struggle the most because they have no clients to start off with so they’re usually stuck doing cold calls or working for more successful agents. Those who are lucky enough to have a network to begin with are easily ramped up and ready to go. It’s also about how you present yourself and if you have great negotiating and communication skills.
Also, you have to pick your market. I know some people say take everyone and everything but any good managing broker will tell you that some clients simply aren’t worth it and their deals will never come to fruition (I learned the hard way).
There’s enough money to be made if you’re willing to work for it. I’ve known first year agents who made over 150K while other agents literally made ZERO, and there’s tons in between those income brackets too.
Don’t think this is an easy business and you’ll be rolling in dough quickly. New agents generally take up to 5 years to get established.
Maria asks…
Access to listings available only to real estate brokers in NYC?
I just got my real estate brokerage license in New York City (as a lawyer I can apply for it without any courses). I did it so I could look for an apartment for myself without using an outside broker. What lists are available only to real estate broker that I can register to?
Philadelphia Real Estate answers:
Try an MLS listing service….
Ruth asks…
What recourse does an NYC real estate broker have if he showed me the apt but I was able to rent direct?
The broker showed me the apartment, but when we told him we wanted it, he raised his commission from 1 months rent to 15%, saying there was another broker that needed to be paid. That was the first time he mentioned it. I was so angry that I went directly to the building leasing office, and was able to get the apartment that way. Now the broker is calling and demanding the commission, and threatening me with legal action. I never had a written contract with him, and I feel that he violated whatever verbal contract may have existed with a bait and switch — raising the price to me for his services by 80%!
Philadelphia Real Estate answers:
His fee (and all fees) should have been in writing.
15% is pretty standard, but if your original agreement with the broker was an amount equal to one months rent, then that is what you should pay unless he told you in advance that he had an apartment with a higher fee that he would show you if you were interested. Broker fees in NYC are negotiable.
Your opinion that he “violated” the agreement and therefore you owe him nothing is incorrect. If this person is a licensed broker or an apartment referral agency and they showed you an apartment that you rented, you owe a fee. They can, often do and most likely will sue you for their fee. I know this because our office frequently represents brokers who are suing for their fee.
I have lived in and around NYC my entire life, and I have never met a broker (and believe me, I know a whole lot of them) who didn’t have you fill out a form of some sort BEFORE they show you anything.
I would check to see if this person is a licensed real estate broker and not just an employee of apartment referral agency. Apartment referral agencies in NYC are limited by law to an amount equal to one months rent as a fee.
Anyone who is telling you that you can get away with this is mistaken and ill-informed about the inner-workings of the NYC real estate market.
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If you really managed “several luxury buildings in Manhattan” and were “licensed”, you wouldn’t be giving so many outrageously inaccurate answers to factual questions regarding real estate and landlord /tenant matters in NYC.
Since you probably don’t have access to Westlaw, you can easily Google Index # 105916/05 Cohen v. Seinfeld.
In the write-up published in the New York Law Journal on January 17, 2007, the decision clearly made note of the fact that licensed real estate brokers CAN collect their fee based upon an oral agreement. It applies for rentals as well as for purchases and sales.
And if you truly were “licensed” in NYC, you would also know that without a written commission agreement, the commission is earned when the broker has obtained an oral agreement between the landlord and tenant on the essential terms of the tenancy, even if the tenant later changes their mind.
In case Google is too tough for you to master, you can click on this legal memorandum issued by New York State Dept of State regarding brokers commissions and apartment hunting:
http://www.dos.state.ny.us/cnsl/apthunt.html
Like heck you’re a “licensed” NYC real estate broker who “manages several luxury buildings in Manhattan”. That claim is laughable unless you paid someone to take the test for you.
Charles asks…
What legal recourse can a NYC real estate broker take if I did not sign anything & was able to rent direct?
I was shown the apt through a whole 20 min open house, and ended up knowing one of the buildings tenants. They are good friends with the buildings owner and offered to arrange the rental direct. I never signed paperwork of any kind, but the broker took my name and number. This is also the broker’s “exclusive” rental so they would surly know I was the new lessee. Does the broker have ANY legal recourse?
Philadelphia Real Estate answers:
Im not positive about NY law
but normally, if the agent can show procurring cause, he or she is entitled to the commission. The seller usually pays this commission. If you rent from seller and real estate agent realises that he was the first to show through his open house, you owe the commission
Let’s face it, if the agent hadn’t advertised and sat in the apartment hoping for a rentor, you’d have never found this apartment.
You owe him for these services
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