Saturday, February 27, 2010

Property agent fee in New York

On purchase or sale transactions:
Who pays the property agent fee?  In New York, the seller pays the agent commission or fees which is split between the seller's agent and buyer's agent. This is how it works....

1. When a seller engages an agent to sell his property, they execute an agreement detailing fees to the seller's agent upon sale.   The seller's agent proceeds to market the property.

2.  If a buyer comes through an agent, the seller's agent will split the fee with the buyer's agent. Otherwise, the seller's agent keeps 100% of the fees himself. Hence it is in the buyer's best interest to have an agent.

90% of transactions are performed via agents in New York.  The fee sharing is called co-brokering and makes the market very efficient. 

On rentals:
Tenant typically pays the agent commission.  But in the Manhattan market, a lot of owners are paying the commission to make the property more attractive to potential tenants.

Buying New York Property
International Buyer FAQ

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