While the 6 percent broker commission has been a long-held tradition in New York City’s residential real estate market, that figure has recently come under attack by buyers and sellers looking for a deal in the tenuous economy, according to the New York Times. Many agents at some of the city’s biggest firms say they’ll settle for 4 and 5 percent commissions today to get a deal done, as more residential shoppers turn to websites and other low-cost means of browsing real estate. Kathy Braddock, a founder of Rutenberg Realty, said that negotiability is particularly important in the higher end market. “At a certain price point, 6 percent just feels vulgar,” Braddock said, adding that particularly difficult-to-market properties also warrant a commission cut. Rutenberg follows a different commission model than many firms, with agents paying $99 per month to be at the company, and $1,000 on deals $1.5 million or less. Braddock said that this strategy allows brokers to be more flexible with their commissions, and adjust on an as-needed basis. [NYT]
Brokers increasingly bend on 6% commission
