Shady Realty transactions in Hoboken?

10/7/2010:

Many may be cutting corners in the Mile Square

As far as I know – there are two ways to move a property in Hoboken:

  1. Enlist a full-service broker, their network, agents, and experience (and pay appropriate fees)
  2. Do all the hard work yourself (via Craigslist or other manual methods – much less expensive)

However, the buzz on the street is that there are a growing number of both Real Estate Agents, as well as property owners – looking to scam the system for their own financial benefit…

If you use a Broker, you need to pay commissions

As you know, if an agent wants to rent an apartment for instance – they have to split the commission with the Broker. And the landlord also needs to pay the agreed-to fees to have the Broker market his or her property.

What I’ve been hearing is that there’s an increasing trend from both the agents and landlords – looking to cut the broker out of the equation. The overall “fee” is less – the landlord pays less, but the agent takes a higher payment “on the side.” The broker gets zilch. From what I understand, this type of scam takes place mostly on rentals – not properties for sale.

Hey, if I was a property owner looking to sell or rent, I’d most certainly try to do it myself to save a few bucks. But I’ve seen many properties sit vacant, so it might be in your best interest to try a Realtor if your main objective is to complete the transaction as quickly as possible. But in this market – it may not make a difference anymore.

Either way, it’d be unethical to cut the Broker out of equation – especially if you use their office, marketing reach, and more.

But then again, if all agents had giant blow up billboards of their own faces (like Donna Antonucci), they’d probably want the extra money for their fat marketing budgets.

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4 Comments on "Shady Realty transactions in Hoboken?"

kerenegordon
Member
kerenegordon

To clarify. I am a licensed Real Estate Broker in New York. Everyone in my office is an agent. To be a broker there is a requirement on the amount of deals you have to complete before being able qualify to take a test to become a Broker.
Many rental buildings when the markets are flooded, offer to pay the fee to the “Broker” for all units rented by his/her agents. Therefore this attracts tenants to a No Fee rental.
A Broker is responsible for all misconduct (not reporting a commission) commited by the Brokers agents.
Most Brokers split commissions with agents 50/50. The Broker is incurring the costs for the office, phones, advertising, maintaining a websites and other various forms of attracting new clients.
If an agent is caught receiving a commission without reporting it to their broker, they will most likely be dismissed and in some cases could have their license revoked.
When an agent expects to collect 100% they need to work hard and qualify to be a Broker.

homeworld
Member

Excuse my ignorance, but why does anyone even need a broker? Can’t the agent be the broker?

Stabone130
Member

Maybe I’m misreading this post, but you’re saying the agent & landlord are cutting the broker out of the deal?

Every apt. I’ve ever rented in Hoboken (through differernt realtors), the renter — not the landlord — has to pay the brokers fee. Not the landlord. Maybe with the current rental market in hoboken thats not the case but thats what I’ve experienced.

pawzclawz
Member
pawzclawz

I read the post the same way you did. It seemed odd to me as well. I’ve rented apts.through different realtors myself. I as the renter have always paid the realtor fee. The procedure has not changed. I am now a landlord as well as a renter. I just rented my condo in June. I went through a realtor. My tenant paid the fee not myself. My unit was listed on The MLS. The fee was split between the two agents. Again the renter and not the landlord is responsible for paying the fee. That is in the case of renting. If someone is selling a piece of property,the seller not the buyer is responsible for the agent’s portion. [quote comment=”198402″]Maybe I’m misreading this post, but you’re saying the agent & landlord are cutting the broker out of the deal? Every apt. I’ve ever rented in Hoboken (through differernt realtors), the renter — not the landlord — has to pay the brokers fee. Not the landlord. Maybe with the current rental market in hoboken thats not the case but thats what I’ve experienced.[/quote]

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