4 years ago

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/

Why are we able to work for less at Hauseit and why are our partner brokerages able to and willing to work for a discounted commission? We’ll demystify this topic in the following video. My name is Chris at Hauseit. Hauseit is the largest For Sale By Owner and Buyer Commission Rebate company in New York City, established 2014. You can learn more about us at http://www.hauseit.com.

The first reason is please consider that there are 50,000 licensed real estate agents in the New York City metro area alone and roughly 5,000 closed sales transactions per year. This means there is a lot of spare capacity in the real estate agent industry. As a result, there are plenty of quality agents without a full roster of listings or clients to work on. This is the case at our partner brokerages as it is at firms across the city.

Number 2, please remember that listings are valuable inherently regardless of the commission structure. There are many branding and advertising benefits from having a listing. Keep in mind that once a listing is uploaded into the MLS it is automatically syndicated to hundreds of third-party websites such as StreetEasy, Zillow, Trulia, Realtor.com, The New York Times and so on.

As a result, all of these listings with the firm's branding essentially generate free advertising for the firm that is listing the property this has many tangential benefits besides monetary ones. For example, having many listings can help a brokerage firm with recruiting. Agents who are looking for a sponsoring broker in New York city may check out firms that have more listings. If they see a firm with many listings, it may prompt them to reach out to ask if they can help out and be a member of the team. Furthermore, keep in mind that sellers in a building where a listing is posted, they see the listing and see how the photos are professionally done how it is well marketed and may simply reach out to the listing agent for more information about perhaps what their home is worth and perhaps about listing their home for sale.

And of course, buyers, there will be many buyers and buyers’ brokers who acquire on a sales listing and keep in mind that only one buyer will ultimately purchase the listing. As a result, most buyers will ultimately take a look at the listing but not be interested or not wish to pursue it further. Well, all of these "Buyer leads" are valuable by default as well. If they are not interested in our listing or the listing of one of our partner brokerages, well, perhaps our partner broker can help them find something else.

Lastly, this is a tangential benefit but having more listings gives a brokerage or one of our partner brokerages more market power and this perceived market power comes with more inventory and it ultimately leads to more cooperation from other brokers. Essentially, keep in mind that buyer's agents and sellers’ agents are interchangeable you often will sometimes be a buyer's agent on one deal and a listing agent on the other this means you need to play well with others and work with other brokerage firms. Therefore a brokerage firm that has many listings means that other agents who see them will know that they often will be a buyer's agent on their listing which means that they'll need the cooperation of the listing broker which in turn means that they will want to be nice and cooperative back on their own listings. Essentially, it means that the listing broker that has many listings will elicit more cooperation from other agents in the community which is ultimately a great thing.

So, we hope you found this video helpful on why it makes sense for us and our partner brokerages to take discounted commissions on listings. Of course, keep in mind that our partner brokerages are all traditional brokerage firms with many agents and no set commission rates. Our partner brokerages never openly discount or not discount brokers and all commission rates are negotiable. So they of course have listings of many varying types of commission structures and of course anyone is happy to take on new business especially from clients that are nice and agreeable and easy to work with.

If you have any further questions about how it works or why we are interested in doing this please leave a comment below or send us an email at team@hauseit.com. We'd love to hear from you!

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
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Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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