Crushing It in Apartments and Commercial Real Estate
What we find great about investing in New York City apartments is that they’re easy to find, banks love to lend to them, and they’re great cash flow generators.
If you’re wondering how to get into commercial real estate (CRE), you need to have a solid understanding of what constitutes cre. There are quite a few types, including offices, industrial spaces (such as storage warehouses), retail and dining property, and multifamily units, such as apartments.
Step 1: Decide if you want an NYC Real Estate Broker. If you hire a broker you will incur the broker fee. If you don’t hire a broker you run the risk of a less efficient sale process.
Selling NYC apartments with NYC Real Estate Broker
If you elect to use an NYC Real Estate Broker to sell your New York City Apartments you will gain the benefit of having someone do strong advertisement for the sale of your NYC Apartments with no additional cost for you. In addition, you will gain the benefit of the Broker’s knowledge of the New York City real estate market and Real estate websites and he will sell your NYC Apartments at a competitive price.
NYC Brokers Fee
A New York City Real Estate Broker is paid on commission; which means they are paid a percentage of the proceeds from the sale of your NYC Apartments. The types of the commission are as follows:
- Open listing; is one that authorizes the broker to find a buyer and, if successful, earn a commission of a certain percentage of the NYC Apartments sales price.
- Exclusive agency; provides the same, except that the NYC broker will earn the commission if any broker finds a buyer and an “exclusive right to sell” provides that the broker will earn a commission if the New York City Apartment is sold, regardless of who finds the buyer including the owner!
- Multiple Listing Services; is an organization of many brokers that agree to share their listings with each other. This is in an attempt to provide the maximum exposure for the New York City Apartments sale of a particular property.
NYC Brokers Commission Rates
Commission Rates vary from the 6% – 7% “full commission rates” to as low as 2% “Discount rates”.
Note: Lower commission rates are often offered in exchange for an “exclusive” listing, but this means that only one NYC real estate broker will be seeking purchasers for you.
TIP: It is generally a good idea to contact your New York City real estate attorney well in advance of selling your NYC Apartments and ask him/her to read the brokerage agreement and advise you before you sign it.
Selling NYC Apartments – The Do It Yourself Checklist
If you elect to sell your NYC Apartments without retaining a New York City Broker, here is a checklist that you will find useful.
Determine the correct asking price. If you set the asking price too high, you will scare away potential New York City Apartments or Properties buyers. If you set the asking price too low, you will ultimately sell your NYC Apartments for less than you could have. To determine the correct asking price, consider what other similar apartments in your neighborhood have sold for and add 10% to your asking price. If you cannot determine what other apartments in your neighborhood sold for, hire an appraiser to appraise your NYC Apartments. This will only cost a couple of hundred dollars.
Advertise for the sale of your NYC Apartments in Newspapers, online, and in Real Estate sale pamphlets.
Contact a Real Estate Attorney. Now that you found your buyer and have negotiated the purchase price, it’s time to contact your NYC Real Estate Attorney. Your NYC Real Estate Attorney will memorialize your sale agreement in a Contract and will represent you in closing the deal.
Selling your NYC Apartments may end up being one of the most important business transactions of your life. I, therefore, recommend hiring experienced business professionals so that it can be one of your most successful transactions.