Five Secrets to Renting and Buying a Home in New York from an Experienced Broker

What is the standard broker's commission, how to find real estate through social networks, what is the difference between a condo and a cooperative? These and other popular questions about finding housing in New York were answered by the broker Compass Robert Hederian. The edition writes about it Curbed.

So, here are 5 key findings about the city's real estate market from a broker.

What is the commission of the broker

The standard broker service fee is 15% of the total annual rent... Therefore, if your rent is $ 2000 per month, your total rent for the year is $ 24, then the brokerage fee will be $ 000.

“This fee is divided equally between the brokers under the lease agreement, provided that there is one representing the lessor and one more representing the tenant,” Hederian explained.

He says it's usually quite difficult to get a discount on brokerage fees if the landlord and tenant have separate representatives. However, if you contact the broker indicated in the apartment rental announcement directly, you can always negotiate.

“If you do not have your own broker, the size of the commission can drop to 10-12%, maybe even about 8%. Don't be afraid to ask, ”the broker recommends.

If you come across an offer for renting out housing with the mark “no commission”, it means that the landlord pays for the services of the broker himself. In this case, the only amount you have to pay is the service fee for applying for a rental and checking your credit history (about $ 20).

“If you have your own broker who will take you to see the apartment 'no commission', you still have to pay some amount, as your broker still has to be compensated for the work. This fee is set by your broker and can range from one monthly rent to 15% of the annual rent. Don't be afraid to bargain, ”advises Hederian.

Search for real estate through social networks

People usually look for apartments online, and social networks are becoming an increasingly useful tool for this.

“I am very active on Instagram. But even if the exchange of information about housing for rent directly through social networks and does not lead to the purchase or rent of housing, social networks help to raise general awareness about the apartment or even about the area in which it is located, ”notes Hederian.

In his opinion, Instagram is best suited for real estate promotion. Although Facebook also has very active communities dedicated to specific types of housing.

He also advises paying attention to housing that has been leased for a long time. This should give you the idea that this proposal is not so simple, since no one is interested in it.

When a client finds “the same apartment”

Usually the decision to rent or buy a particular apartment is rational in nature. Therefore, the broker recommends, allow yourself to “calm down and really appreciate the apartment,” do not get excited.

Viewing multiple options will allow you to better evaluate the proposals and understand what you really want.

Difference between condo and co-op

When you buy a home from a co-op, you are buying shares in a private corporation that owns the home. You do not get ownership of the apartment, but rather ownership of a portion of the common fund. A single property tax invoice is issued for the entire building, which is distributed to all owners, which means that all tenants are responsible for paying this invoice and maintaining the building.

As such, the process of applying for a co-op can be invasive (a bit like checking a co-investor in a business), including full financial disclosures, letters of recommendation, and interviews with the co-op's board, which may ultimately deny you the right to purchase the apartment you like.

Cooperatives also have more restrictions on how and when you can rent your apartment if you want.

Buying a condo is more like buying a detached property. Although the application process also includes financial disclosures, there is no interview. You own your apartment, acquire title to the property, and have your own separate property tax bill. This way you have a lot of flexibility if, say, you want to rent out an apartment.

“The vast majority of new buildings in New York are condos,” says the specialist.

Interview Preparation

Your preparation will depend on where you buy a home.

“The interview at the Park Avenue co-op will be different from the interview at the East Village. You and your broker should talk about how best to prepare, ”Hederian recommends.

In general, this is the time when the council of the cooperative will recognize you as a person and a potential neighbor. Simply put, this is the time when you need to reveal your personality as much as possible and show what a good addition to the cooperative community you will be.