Broker’s fee hits nearly $20K for rent stabilized one-bedroom NYC apartment (section 8, real estate)
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Rent stabilization doesn't distort the market according to some on this forum.
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A real estate agent recently collected an eye popping, nearly $20,000 fee on a cheap Upper West Side pad.
The one-bedroom unit was initially advertised for $3,750 a month on StreetEasy, but the agent told prospective tenants that it was actually rent stabilized and would be a steal — just $1,725.
Then the agent, Ari Wilford with City Wide Apartments in Manhattan, dropped the other shoe. The broker’s fee would be $20,000.
“He said, ‘Looking at the rent-stabilized price and looking at the broker fee, it will make sense in the long term,’ which, at the end of the day, it does. But at the same time, it’s like, wow, that’s a lot of money for a broker fee,” recalled the tenant, who didn’t want to be identified.
The renter said he managed to get Wilford to shave $500 off the fee before sealing the deal, taking a chunk out of his savings to pay it.
So you're saying if there were no rent stabilization, that there would be no brokers? Or that the broker's fee would be cheaper? What are you trying to say?
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
So you're saying if there were no rent stabilization, that there would be no brokers? Or that the broker's fee would be cheaper? What are you trying to say?
Nothing unusual about the above instance? Why is Rent Stabilization around in the first place? Any inkling that at least part of the $20K "broker fee" is going to the landlord?
Nothing unusual about the above instance? Why is Rent Stabilization around in the first place? Any inkling that at least part of the $20K "broker fee" is going to the landlord?
Sure, 20K for the broker's fee is excessive
But what proof do you have that abolishing rent stabilization will prevent future situations like this?
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
This is basically acting like a black market. Almost certain LL's are receiving some of these high "brokers fee's" to off-set the RS pricing.
Sweetheart deal between the LL and the broker. The other thing I've heard of some LLs doing when they can't get their price is having a broker come in that can bring in tenants on programs. The reverse of this where you have market rate places that are too expensive compared to the size of the apartment.
But what proof do you have that abolishing rent stabilization will prevent future situations like this?
You seem to be completely missing the point. RS creates this black market.
Do you buy bread or milk on the black market? Why not?
This is no different than the countless instances virtually all in NYC have heard of (if they've lived here long enough) of people buying their way unto M-L/section 8 lists, using NYCHA apartments as extended family dwellings, 80/20 lottery income fraud, and the thousand other ways people defraud social.welfare programs in this city
Aren't broker fees limited by law to a percentage of something like 10% of the first year's rent?
From the article.
Quote:
The state Department of State, which licenses real estate agents, said there was no law that sets a limit on broker’s fees.
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