Brokers Fees! #@%#%

[samblau]

I spent the past week in NYC looking at apartments. Manhattan is a joke...I drop little hints like, "I was in construction/real estate and lost my job" and "I am a native NYer, lived in Manhattan, Queens and Broklyn etc." and they STILL won't admit that it is a soft market. Than they show STUDIO apartments that have some crap drywall thrown up, not to code, that are now magically 2-bedrooms. Anyway, I found a great apt. in Brooklyn, not cheap, and a broker found a way to kill it. We saw an apt. and left a deposit THAT DAY contingent on the acceptance of our terms, essentially $100 off the asking rent and an option for a second year, which has never been a problem before, even in the boom years i.e. '04. The property owner said no to both, according to the broker! We then offered to pay the full asking rent! Now the broker says no to that, no to an option year, and that they are entitled to a 15% fee on a one-year rental! On top of that, they claim that they are entitled to keep a $500 deposit check even though no lease was signed and our application was contingent upon the acceptance of our terms. It says on our application that my roommate is a Manhattan Assistant District Attorney and that I am an attorney who works for the US Federal Courts and this broker, a licensed professional, thinks he is going to get a free $500! Unbelievable! The owner is willing to pay 1/2 of one months rent as a fee. For under 5 minutes of work the broker want us to write them a check, payable in full immediately, for OVER $3000 NON-NEGOTIABLE, in addition to what they are receiving from the owner, for a place we may stay in for one year only as the landlord will clearly try to jack up the rent next year. We called their bluff, and now I am receiving multiple phone calls and e-mails telling me that I am unreasonable for not agreeing to a deal that is essentially paying above market rent, an above market fee and receiving no assurance that I can afford to stay next year. The economy sucks, the finance/law.prof. people who would otherwise be paying these rents are leaving in droves or downsizing and here they have two people ready, willing and able to pay the full asking rent + a "kill fee" if necessary and their greed is going to kill the deal. $5400. Thats what they think they deserve. Over $400 a month based a one year lease. Am I wrong, is this really how the brokers operate?

 

[GQgeek]

 

[clee1982]

Originally Posted by samblau

I spent the past week in NYC looking at apartments. Manhattan is a joke...I drop little hints like, "I was in construction/real estate and lost my job" and "I am a native NYer, lived in Manhattan, Queens and Broklyn etc." and they STILL won't admit that it is a soft market. Than they show STUDIO apartments that have some crap drywall thrown up, not to code, that are now magically 2-bedrooms. Anyway, I found a great apt. in Brooklyn, not cheap, and a broker found a way to kill it. We saw an apt. and left a deposit THAT DAY contingent on the acceptance of our terms, essentially $100 off the asking rent and an option for a second year, which has never been a problem before, even in the boom years i.e. '04. The property owner said no to both, according to the broker! We then offered to pay the full asking rent! Now the broker says no to that, no to an option year, and that they are entitled to a 15% fee on a one-year rental! On top of that, they claim that they are entitled to keep a $500 deposit check even though no lease was signed and our application was contingent upon the acceptance of our terms. It says on our application that my roommate is a Manhattan Assistant District Attorney and that I am an attorney who works for the US Federal Courts and this broker, a licensed professional, thinks he is going to get a free $500! Unbelievable! The owner is willing to pay 1/2 of one months rent as a fee. For under 5 minutes of work the broker want us to write them a check, payable in full immediately, for OVER $3000 NON-NEGOTIABLE, in addition to what they are receiving from the owner, for a place we may stay in for one year only as the landlord will clearly try to jack up the rent next year. We called their bluff, and now I am receiving multiple phone calls and e-mails telling me that I am unreasonable for not agreeing to a deal that is essentially paying above market rent, an above market fee and receiving no assurance that I can afford to stay next year. The economy sucks, the finance/law.prof. people who would otherwise be paying these rents are leaving in droves or downsizing and here they have two people ready, willing and able to pay the full asking rent + a "kill fee" if necessary and their greed is going to kill the deal. $5400. Thats what they think they deserve. Over $400 a month based a one year lease. Am I wrong, is this really how the brokers operate?

I always just go on to Carislist and look for no fee (sure they take a cut somewhere, but at least price is transparent to me). It is a soft market now, buyer has a lot ways to negotitate, I just move to mid town for something that's about 30%, 40% less than what it would have been back in 2007 (and I was able to negotitate on the price they offer). Summer is not the greatest time to look for things though, lots lease coming up, many people will be looking at the same time.

 

[clee1982]

Where are you looking in Brooklyn exactly by the way? There are cheap area and there are expensive area in Brooklyn (not much cheaper than Manhattan is what I mean).

 

[samblau]

Originally Posted by clee1982

Where are you looking in Brooklyn exactly by the way? There are cheap area and there are expensive area in Brooklyn (not much cheaper than Manhattan is what I mean).

I lived in Bk Heights for three years, loved it, want to go back. Also considering, DUMBO, Ft. Greene. Cobble Hill, Park Slope etc. Apparently every mid 20's NYer earns $150k a year and has no debt.

 

[feynmix]

I am going to be looking at apartments in NYC starting next week. At this point, I have decided that I am not going to do it through a broker. I will be moving to NYC for the first time, and I have no experience hunting apartments in Manhattan, but I have heard some serious **** regarding brokers and I really don't want to go down that alley unless I really have to.

If you have any advice regarding finding apartments in nyc, that would be great.

 

[samblau]

Originally Posted by feynmix

I am going to be looking at apartments in NYC starting next week. At this point, I have decided that I am not going to do it through a broker. I will be moving to NYC for the first time, and I have no experience hunting apartments in Manhattan, but I have heard some serious **** regarding brokers and I really don't want to go down that alley unless I really have to.

If you have any advice regarding finding apartments in nyc, that would be great.

Unfortunately, some apts. are not listed by owner. Believe me, no fee or by owner is the way to go. Very few professions can make lawyers look good. Brokers do it with ease.

 

[sonick]

Not to be a dick, but... paragraphs please?

 

[poorsod]

Use nybits.com to find no fee apartments. You'll deal with the management company directly. Streeteasy.com is the best site for NYC real estate. You can search for no fee rentals there too. In addition it is best if you filter for the apartment to include an address then it will be a broker exclusive.

In general, I've found it easier to look at apartments directly from the managing agent. Also many are offering 1 month off.

I've been pounding the pavement the past couple weeks looking for a new place. The market is soft.

 

[chas]

I am in the market for a NYC rental as well. I looked at several places yesterday on the UWS and Morningside Heights. I have lived here for 7+ years and it seems that there are quite a few no fee deals out there. However, pricing still has a ways to drop. I wish my lease was up in October instead of July.

 

[Concordia]

Not to be a dick, but... paragraphs please?

Originally Posted by samblau

I spent the past week in NYC looking at apartments. Manhattan is a joke...I drop little hints like, "I was in construction/real estate and lost my job" and "I am a native NYer, lived in Manhattan, Queens and Broklyn etc." and they STILL won't admit that it is a soft market. Than they show STUDIO apartments that have some crap drywall thrown up, not to code, that are now magically 2-bedrooms.

Anyway, I found a great apt. in Brooklyn, not cheap, and a broker found a way to kill it. We saw an apt. and left a deposit THAT DAY contingent on the acceptance of our terms, essentially $100 off the asking rent and an option for a second year, which has never been a problem before, even in the boom years i.e. '04. The property owner said no to both, according to the broker! We then offered to pay the full asking rent!

Now the broker says no to that, no to an option year, and that they are entitled to a 15% fee on a one-year rental! On top of that, they claim that they are entitled to keep a $500 deposit check even though no lease was signed and our application was contingent upon the acceptance of our terms. It says on our application that my roommate is a Manhattan Assistant District Attorney and that I am an attorney who works for the US Federal Courts and this broker, a licensed professional, thinks he is going to get a free $500!

Unbelievable! The owner is willing to pay 1/2 of one months rent as a fee. For under 5 minutes of work the broker want us to write them a check, payable in full immediately, for OVER $3000 NON-NEGOTIABLE, in addition to what they are receiving from the owner, for a place we may stay in for one year only as the landlord will clearly try to jack up the rent next year.

We called their bluff, and now I am receiving multiple phone calls and e-mails telling me that I am unreasonable for not agreeing to a deal that is essentially paying above market rent, an above market fee and receiving no assurance that I can afford to stay next year. The economy sucks, the finance/law.prof. people who would otherwise be paying these rents are leaving in droves or downsizing and here they have two people ready, willing and able to pay the full asking rent + a "kill fee" if necessary and their greed is going to kill the deal. $5400. Thats what they think they deserve. Over $400 a month based a one year lease. Am I wrong, is this really how the brokers operate?

I find those to be helpful as well.

 

[feynmix]

Originally Posted by poorsod

Use nybits.com to find no fee apartments. You'll deal with the management company directly. Streeteasy.com is the best site for NYC real estate. You can search for no fee rentals there too. In addition it is best if you filter for the apartment to include an address then it will be a broker exclusive.

In general, I've found it easier to look at apartments directly from the managing agent. Also many are offering 1 month off.

I've been pounding the pavement the past couple weeks looking for a new place. The market is soft.

I am using nybits as well. Care to expand a bit more on the "market is soft" statement? What areas are you primarily looking into?

 

[chas]

For what it is worth I am looking to find a 1 br in the $2500 range. I am looking primarily on the UWS. But am open to anywhere on west side (Morningside Heights, UWS, Clinton, Chelsea, West Village).

In all of your searching (those who have posted in this thread) let me know if you see any good deals. I will do the same.

 

[poorsod]

Best interior I've seen is in the Sessanta on W60th near WEA. Brand new building with interiors designed by Andres Escobar. Great appliances and 10 ft ceilings. $3k for 800 sq/ft 1 brdm + 1 month off which is about $2750. It even has it's own tennis court. The con is that the location is kinda remote which kills it for me. *sigh*

YMMV as I've been focusing on westside from 59th to 72nd.

 

[poorsod]

Originally Posted by feynmix

I am using nybits as well. Care to expand a bit more on the "market is soft" statement? What areas are you primarily looking into?

You can look at the data yourself and decide.

http://www.tregny.com/manhattan_rent...ncial-district