With a mortgage of $300,000, a New York City apartment owner with an “Airbnb” service can save more than $50 to $60,000.
But if the host is a real estate broker, the real estate agent’s fees can add up quickly.
The real estate attorney in the apartment could end up paying the realtor $20,000 or more, according to a story in the Times.
If you’re a renter and you want to save money, you’ll have to look elsewhere.
“If you’re renting and your landlord isn’t paying you, you’re really screwed,” says Jon M. Kopp, a managing partner at Moneysupermarket.com, a real-estate-broker services firm in New York.
You’ll have trouble finding a good apartment in your area, and that’s before you start talking about what kind of rentals are out there.
And that’s where a broker’s fees come into play.
Real estate brokers charge a fee to help finance the broker’s fee-for-service services, such as buying or selling an apartment.
In exchange, they collect commission on each transaction.
Brokers and other real estate agents charge their clients a fee for a similar service called broker-deal fees, or commission-for.
The broker-deals are often used to get a better price than the average renter can afford, but they’re not a reliable source of income for many renters.
“Most of the people who are trying to save for a house or apartment are struggling financially,” says Michael Kochel, chief executive of the National Association of Realtors, which represents more than 2,600 broker-trades.
“They’re often making minimum-wage jobs or are working part time.
And the money they have to pay in commissions is less than what they need to make ends meet.”
For instance, when a rencer buys a house, a broker usually charges $600 to $1,000 a month in commission.
But the real-tor could collect $2,000 to $3,000 per month if the rencer is in a lower-income income bracket, Kocher says.
When you get an offer from a broker, you usually have to ask for a mortgage payment.
And some brokers charge brokers commissions for letting renters use their service.
“There’s no incentive for a broker to let you buy the property, rent it, and then charge you commission,” Kochem says.
“That’s not right.”
If you want more information on real estate, check out the Real Estate Board of Greater Atlanta’s website, Real Estate Boards of America’s website or look for the Real Deal, which tracks real estate deals.
For more on the housing crisis, click here.