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If it’s potentially a way to drum up business and get your first few listings then why is the flat fee MLS listing in NYC almost unheard of?First of all let’s define just what a flat fee MLS listing in NYC is. Typically a seller will pay a discount, or “flat fee” listing agent, up to $2,000 upfront to list their property on their local MLS (Multiple Listing Service) and offer a commission to buyers’ agents who are members of that MLS. In NYC since there is no dominant National Association of Realtors (NAR) related MLS that most brokers use, the equivalent inter-brokerage database is the RLS (REBNY Listing Service), which is accessed by a variety of REBNY approved RLS vendors such as OLR, Nestio, RealtyMX or RealPlus.The seller will enter into a listing agreement with the discount listing broker, typically an “exclusive agency agreement” or a modified “exclusive right to sell agreement” where the seller responds to inquiries and conducts showings themselves. Typically, if a buyer comes through a buyers’ agent (most likely because of the brokerage database) the seller will have to pay the commission he agreed to offer (usually 2-3% to be competitive with other offers of commission to buyers’ agents). However, if the ultimate buyer is an unrepresented buyer, the seller has lucked out and ends up paying no percentage points in brokerage commissions.Now this seems like a clever idea and an easy way for a broker short on listings to drum up some business, appear to have more listings and make a quick buck upfront for some data entry work. However, a flat fee MLS listing in NYC continues to be a rarity. Why?Let’s first review some of the upsides for agents:Agents get exposure and the appearance of success with their listings all over the webAgents make some cash upfront for inputting the NYC flat-fee MLS listingsAgents may convert customers to full-commission, full-serviceNow let’s consider some of the downsides for NYC agents:Damage to the agent’s reputation. Remember that these are ultimately For Sale By Owner home owners, not professionals. For most of them, it is their first or second foray into real estate.FSBO sellers could ask silly questions, not respond in a timely manner or at all, get in arguments with buyers’ agents, incur MLS fines or penalties on the agent or hinder showings or open houses with their inexperience. Even if an agent’s state doesn’t have minimum service level requirements or liability for flat feel MLS listings, everything a FSBO does reflects on the agent. Since FSBO home sellers often refuse to pay for professional photographs to save money, they’ll usually have terrible photos which means the agent’s listings have terrible photos.And if the agent is trying to hide the fact that he is doing flat fee limited service listings, forget about having the client protect the agent’s reputation. For Sale By Owner sellers are by definition penny pinchers, ruthlessly focused on saving the maximum amount of money for themselves, and will more often than not be willing to throw their flat fee listing agent “under the bus.” Doing a flat fee MLS listing in NYC can result in confused buyers’ agents and the appearance that the listing agent has an “out of control” client.Upgrading to a Full-Service Listing AgentIf customers upgrade to full service they will typically use another broker than the one used for the NYC flat-fee MLS listing. Many agents get tantalized by the prospect of doing flat fees listings in the hope that the sellers will eventually tire of going it alone and will upgrade to full-commission, full-service. The truth is, they often do, just not with the flat fee listing agent. The thing is, once sellers have worked with a flat fee listing broker, they don’t view said listing broker as a viable alternative once they want full service. The problem is once an agent performs a flat fee listing for a client, the client doesn’t view them as a real broker anymore. So when it’s time to choose a full-service shop, the flat fee listing agent won’t typically even be a candidate the seller will consider.They won’t be any more likely to purchase their home through the flat fee listing agent. We’ve seen many cases of brokers who will offer a flat or reduced fee to list a client in exchange for a promise to buy their next home through them. The problem is For Sale By Owner sellers are for the most part 100% only in it for themselves. Any promise or goodwill the agent thinks he has can’t be relied upon. We’ve rarely ever heard of a case where a FSBO home seller pays back the favor to a flat fee listing agent by buying their next home with him. And in a city of extremely demanding, aggressive Type A personality people like NYC this is often after they’ve worked the flat fee listing agent like an indentured servant.NYC FSBO Seller NightmaresFSBO sellers can waste a lot more of the agents’ time than expected. We’ve heard horror stories from listing agents about countless hours wasted on re-ordering photos, editing descriptions, non-stop status changes, and endless phone calls for advice. This is an especially acute problem for agents doing a flat fee MLS listing in NYC because the clients happen to be the most demanding, type A personality people in the country. It is especially ironic because many New Yorkers are so focused on the bottom-line that they almost never stop to realize that they signed a limited service listing agreement and only paid a few hundred dollars vs the average $100,000 broker commission in NYC.The most egregious example we’ve heard from listing agents is a customer who emailed and called at all hours of the day with the most extreme and unusual of requests, including at one point asking the listing agent to investigate and find out the support email of a search website which was almost impossible to find. This was after the customer had made numerous listing customization requests on third party websites which were not controlled by the listing agent. Guess what, when the FSBO seller decided that things weren’t going exactly her way, she chose a full service broker without even giving the flat fee listing agent a chance. The listing agent found out by an email one morning the customer sent, copying the new full-service agents, to cancel the listing agreement. Absolutely brutal.NYC FSBO Seller HarrasmentOther firms will harass and try to convert listings they discover to be flat fee. This can become a major issue once other brokerages begin to assume that all of an agent’s listings are flat fee. As you can imagine, this can be a major impediment to business if the agent is trying to balance both a flat fee and a full service business. This is a major issue for home sellers to consider before choosing a flat fee MLS listing in NYC provider. Often times they are a one man shop without proper listing syndication reach or the right brokerage database access; moreover, because they typically do this full time most full-service brokers may either ignore their listings or treat them as a fresh source of potential listing conversions.As you can imagine, there are more costs than benefits for most agents to providing a flat fee MLS listing in NYC which is exactly why it is so uncommon.Hauseit works exclusively with full-service listing brokers who enjoy the occasional boost to business without compromising their reputations. We offer a self service, full NYC listing package where the FSBO seller is listed on StreetEasy, REBNY’s RLS Database, OLR (On-Line Residential – NYC Broker Database), Nestio (NYC Broker Database), RealtyMX (NYC Broker Database), Agorafy, Placebee, Padlister, NYBits, Naked Apartments, Hotpads, CitySpade, Zillow, and Trulia – all at once!Prefer full-service but don’t like the cost? Check out our Agent Managed Listing program where sellers are paired with a full-service agent for a fraction of the cost.Don't Tolerate that 6% NYC Listing Agent CommissionReduce your commission bill without any decrease in your listing agent's quality of service!Sign up today!

Based on the NYC median sale price of $1.7 million, home sellers in NYC pay an extra $73,100 in real estate commissions compared to home sellers in London. For such comparable cities to have vastly different real estate commission structures is simply astounding!Furthermore, it’s common in London for real estate agents to actually charge a lower commission for more expensive properties. This is clearly not the case in NYC, where more expensive units may even have higher commission amounts!We've compared NYC vs. London real estate commission rates in detail here: Why are New York City real estate commissions so high?The truth is that NYC home sellers don't need to pay 6% commission.NYC FSBO Sellers can save the full 6% by using a NYC flat-fee MLS service like Hauseit's NYC FSBO - Sell By Owner Broker Free in New York NY.Busy sellers who don't have time to sell FSBO can still save 3-5% in commission by using an Agent Managed Listing - Full Service for 1% - Save TimeNYC vs. London - Real Estate CommissionsAre you looking to sell your NYC condo, coop or townhouse and find yourself asking why New York City real estate commissions are so high?You’ll likely be both surprised and disappointed to learn that New York City is home to the highest residential real estate commission rates in the world – both compared to commissions charged in other comparable countries and compared to commissions charged in the rest of the USA.Since you may be in the process of considering your options as a home seller in New York City, it is helpful to know exactly why NYC real estate commissions are so high compared to cities like London, and what you can do about it to save your home equity and avoid paying 6% in NYC real estate commissions.Types of Full-Service Real Estate Representation in London vs. New York CityThe United Kingdom does not have the traditional ‘listing agent’ and ‘buyers agent’ like we have in the United States. Instead, UK sellers who are considering working with a full-service real estate agent must choose between the following options:Sole AgentHaving a Sole Agent represent you in the UK means that you will have just one agent acting on your behalf who will earn 100% of the commission being offered alongside your property. Because the likelihood of the agent earning your commission is higher (since there are no other agents in play), the real estate commissions charged are generally lower and in the range of 1% to 1.5%. Having a sole agent also means that you are not able to transact through a buyer represented by another agent. The concept of “co-broking” which is so strong in New York City (splitting the 6% commission between listing agent and buyers’ agent) does not exist in the UK under the sole agent listing agreement.Joint Sole AgentThe Joint Sole Agent structure in the UK is the closest thing to the traditional NYC listing agent under an Exclusive Right to Sell Listing Agreement with co-broking. Under the Joint Sole Agent arrangement, the seller hires two listing agents and agrees to split the commission equally between them. The idea behind this structure is to hire two agents who traffic in different buyers’ circles and have differing marketing strategies. With this setup, unlike the NYC Exclusive Right to Sell listing arrangement, if a buyer is found by either agent the commissions are split equally between both agents no matter what. NYC Listing Agents under an Exclusive Right to Sell agreement do not split the commission with buyers’ agent if the buyer was procured by the listing agent.Multiple AgentsA Multiple Agency Arrangement in the UK is just like a NYC Exclusive Right to Sell listing agreement with one minor difference: instead of there being a listing agent and a TBD buyer’s agent (if buyer is not found directly by the listing agent), there are 3 predetermined agents. Only the agent who finds the buyers gets paid any commission. Under this arrangement, all three agents are fiercely competitive with one another since it’s an all-or-none situation with regards to earning the real estate listing agent commission. The typical real estate commission under a multiple agency arrangement setup is 2.5%-3% of the sale price.Full-Service Listing Agreements in London vs. NYC Listing Agreements:Sole Selling RightsThis type of UK listing agreement binds the seller to pay the listing agent a commission even if the seller finds the buyer on his or her own. In that sense, it’s very similar to the commonplace NYC Exclusive Right to Sell listing agreement. A key difference between this agreement and the NYC Exclusive Right to Sell is that no other agents are allowed to sell your home. UK listing agents who have “Sole Selling Rights” keep the entire commission and have no obligation to share it with a buyers agent.Multi AgencyThis type of agreement is used for ‘multiple agency arrangements’, whereby a UK home seller offers to pay one commission to whichever of the agents finds the buyer. This is comparable to a New York City ‘open listing’.Ready, Willing & Able vs. Sole AgencyFor either a “Sole Selling Rights” or “Multi Agency” listing agreement, the document can be either a “ready, willing and able purchaser” or “sole agency” subtype. In the case of the former, this obligates the seller to pay a commission to the real estate agent who finds a buyer even if the seller decides not to go through with the sale. In the case of “sole agency”, the seller is permitted to procure a buyer on his/her own without being obligated to pay a commission to the agent.Quirks of London Real Estate Agents vs. NYC Real Estate AgentsSliding ScalesIt’s not uncommon in the UK and London for the real estate agent percentage commission rates to be on a sliding scale based on the sale price. If the property sells for a higher amount, then the commission rate steps up in bands. Conversely, if the property sells for a price on the lower end, then the real estate commission rate would bracket down. This is not common in NYC, however we think it’s actually a great idea because it incentivizes listing agents to maximize proceeds for the seller.The real problem with NYC full-service listing agents is that they have no real incentive to sell your home at the best possible price. NYC agents with 6% Exclusive Right to Sell listing agreements would prefer a quicker sale at $1.5 million to a sale at $1.55 million which takes 3 months longer.Why? Simply put, the agent prefers to get paid 6% ASAP on $1.5 million (earning $90,000) than spending an extra 3 months and risking the expiration of the listing agreement just to earn an extra $3,000 in commission for himself or herself.Commission based on Asking PriceBelieve it or not, in the UK some real estate agents attempt to charge a commission based on the asking price instead of the listing price. This nifty little trick is definitely not something we’ve heard of in NYC or ever want to see!Sales TaxCommission rates in the UK may be quoted either inclusive or exclusive of VAT (value added tax, or the rough equivalent of sales tax in the UK). Since the current rate of VAT in the UK is 20%, it’s critical for UK home sellers to know how their commission rate is being quoted. Otherwise, 1% could turn into 1.2% and 2% could turn into 2.4%, etc.!Why are Real Estate Commissions lower in London than in New York City?No MLS / Commission SplittingSince the custom in the UK is to have one agent represent both buyer and seller, there is no commission splitting. If only one agent needs to be paid for each transaction, then it somewhat makes sense why commission rates in the UK are roughly half of those which are charged in the US, where both listing agent and buyers’ agent split the commission. However, the quirk here is that under a NYC ‘Exclusive Right to Sell’ listing agreement, the listing agent has the potential to earn the entire 6% commission if he/she finds a buyer or if the owner finds the property by himself or herself. The opportunity to earn such a huge real estate commission on a residential property deal does not exist in London or the United Kingdom.

The best discount broker in NYC is not a broker at all.The reason for this is any brokerage that begins marketing itself as a discount broker automatically suffers in reputation among the community of NYC brokers. The moment a discount broker in NYC begins to offer rebates and flat fee MLS listings is the moment that other brokers begin to “boycott” the discount broker. Note: Hauseit is not a broker, we’ll explain more later on why this is important.Even though “boycotting” is technically illegal under New York real estate licensing law, in practice it is extremely difficult to enforce. How can the NY Department of State regulators practically prove that a certain full-service brokerage is refusing to show the discount broker’s listings?The full-service broker could provide any number of plausible reasons for why he hasn’t done much business with the discount broker such as:Buyer clients not interested in the inventory type listed by discount brokerDealing with discount broker is equivalent to dealing with the owner directlyDiscount broker is not reputable and thus their listings are avoided by buyersAlthough the practice is illegal and not in the best interests of buyer clients, it is hard to prosecute for a few reasons:In NYC exclusive agreements between buyers and agents are extremely uncommonThe lack of any agreement between a buyer and agent makes a tough case for claiming agents aren’t providing fiduciary loyalty to the buyerAgents do not consistently provide the NYS agency disclosure form for buyers and sellers (an optional to sign form for clients so they understand whose interests the agent represents)Exclusive buyer agreements are only seen for international buyers who heavily rely on a local NYC real estate agent for their purchaseAs a result, it is very tough to make a case against an agent for not showing a buyer all available listings including those sold “FSBO” or via a discount broker. The agent cannot expect to work for free, as it would not make sense for an agent to introduce a buyer to listings where he may get completely disintermediated (i.e. FSBO listings). In that same vein, if the discount broker has a poor reputation in the broker community and is actively causing damage to the industry then it is similarly tough to prosecute the agent for avoiding said discount broker.Why do some of these discount real estate brokers in NYC fail? Simply put, because they often have a reputation as a sneaky way to get FSBO homeowners onto the local MLS (in NYC the local MLS is actually not a MLS, it’s RLS – REBNY Listing Service). Because they have this negative reputation, and are sometimes very loud about their “disruptive” tendencies, other brokers will naturally harbor negative sentiment towards them. And in real estate, there are two actors (i.e. 2 agents) to most transactions vs other industries that have been disrupted such as travel booking or insurance (i.e. single agent transactions). And because you need the cooperation of 2 agents to close the typical transaction, each agent will need the goodwill of other agents in the community. This is the reason why real estate commissions in NYC and across the nation have remained so stubbornly high.What are some examples of full service agents not cooperating with discount real estate brokers in NYC?Treating all listings by discount real estate broker in NYC as FSBO listingsRefusing to show buyer clients the listings of discount real estate broker in NYCActively poaching the owner clients listed with the discount real estate broker in NYCWriting embarrassing emails to owners directly (watch out for Common real estate agent lies in NYC)Claiming that their voicemails never made it to the ownersReporting listings of listings of discount real estate broker in NYC to StreetEasy etc as “open listings” which should be removedWith all of these very real issues put to light, is there really an acceptable answer to who is the best discount real estate broker in NYC?Fortunately, Hauseit is a global real estate marketing company which connects discerning NYC homeowners with full-service real estate brokerages who wish to preserve their reputation. All Hauseit affiliated brokerages are full-service firms that do not advertise or promote discount services. As a result, Hauseit affiliated brokerages are able to engage the growing community of FSBO home sellers without risking their reputation as full service, full commission firms with the brokerage community in NYC.Sell for just 1% in NYC:What you get by listing your home for sale with a Hauseit affiliated brokerage:Full buyer exposure by listing with a traditional, full-service real estate brokerageFull discretion – only you and the listing broker will know you haven’t paid the full 6%Listing broker involvement in the process so buyers’ agents aren’t confusedReceive all buyer and broker inquiriesList your home all at once on RLS, StreetEasy, Zillow, Trulia, HotPads and other popular websitesHave the power of over 16,000 REBNY members and 30,000 licensed real estate agents in NYC working to find you a buyerNo solicitation or harassment of clients of exclusive listing agent per REBNY rulesAfter years of experience in the field, we are confident to say that this is definitively the best way to sell your home FSBO (for sale by owner) in NYC.For those that do not have time to manage their own showings and negotiation, the Agent Managed Listing provides full service real estate brokerage for a discounted price of only 1% to the listing agent.Pay 1% to the listing agent instead of 6% to a traditional listing brokerOffer 2-3% commission to buyers’ agentsPay nothing to buyers’ agents if the buyer is unrepresentedThis compares extremely favorably to having to pay 6% commission in a traditional exclusive right to sell agreement. In such an agreement, the seller has to pay 6% regardless of whether the ultimate buyer is represented by an agent or not. If the buyer happens to be unrepresented, the listing agent will get to collect all 6% in commission!Ready to sell your home?Sign up for our affordable 1% agent managed listing for substantial savings on your NYC home sale.