How Do No-Fee Apartments Work?
Updated: Jun 8, 2020
In the real estate industry, it’s common for both buyers and renters to be wary when searching for a new place to call home, especially when a real estate agent is involved. This is because, for many people, finding a new home is somewhat of a nightmare thanks to pushy agents and outrageously-high broker’s fees.
But what if I told you that there are real estate agents out there whose only mission is to help potential renters and buyers find the perfect home, completely free of charge? It sounds unheard of right? Well, I have good news: It’s not impossible to find a no-fee real estate agent.
What is a broker’s fee?
Before we go any further, let me define a few things for you. If you’re unfamiliar with the term “broker’s fee,” here’s a quick synopsis. A “broker’s fee” is a fee that the renter or seller pays their realtor—this is the person who helped you find your new apartment or sold your home.
Typically, broker’s fees are equivalent to one months’ rent. For example, if the rent is equivalent to $1,500 per month, you’ll be required to pay a one-time payment of $1,500 to your realtor.
The good news? With me, you’ll never have to pay a fee.
In an effort to help clients out, I decided to ditch the broker’s fee completely. I did this not only to differentiate myself from other real estate agents but to prove that I’m truly here for my clients. Here’s how it works: Instead of charging renters, I worked out a deal with a variety of property developers. This way, the property developers are the ones who fork over the cash—not the clients! (In other words, the property developers pay the broker’s fee, making it non-existent for the renter.)
My brothers—The Mendez Group—and I have been able to work out an agreement where both the renters and the property owners can capitalize on special promotions, as well! We’ve truly figured out a way to provide a win-win-win scenario.
I’ve partnered with hundreds of luxury properties.
While each property has its differences, each one provides an excellent, safe, and convenient place to live. The properties I work with are equipped with all the amenities one would need to start a new, cozy life.
Many of the properties I work with offer concierge service, maintenance staff, live-in supers, cold fridges for grocery deliveries, pick-up and drop-off drycleaning services, doormen, state-of-the-art fitness centers, yoga studios, spin studios, community rooms, game rooms, theater rooms, soundproof karaoke rooms, soundproof music rooms (stocked with instruments), sports-and-entertainment rooms, on-site cafe’s, rock climbing areas, resort-style swimming pools, jacuzzi’s, on-site dog grooming, dog runs, dog parks, golf simulator rooms, crayon-rooms/playrooms, fire pits, BBQ grills, and hammocks. (Please note: This list is not exhaustive.)
The average market value prices for the no-fee, luxe apartments I work with are as follows:
$2,000 per studio
$2-$3,000 for a one-bed, one-bath
$3-$5,000 for a two-bed, two-bath
$5-$7,000 for a three-bed, three-bath
These prices vary depending on a few factors, including the property’s proximity to public transportation, square footage, the view (New York skyline, views of the Statue of Liberty, or waterside views), outdoor terrace or balcony access, floor level, and accessibility to New York City overall.
I have several clients who live in northern New Jersey and commute to NYC for work; having immediate access to the PATH Train station, the NJ Transit, and Bus Terminal makes the daily commute comfortable and easy.
If you’re not looking for a no-fee apartment, I do have a selection of apartments that are on the private market.
The private market is comprised of private landlords who are offering two-family, three-family, and four-family homes. On the private market, renters are required to pay a broker’s fee—unless the landlord of the property agrees to pay the broker’s fee, which can and does happen.
Unlike a no-fee luxury apartment, the private market does not offer fancy amenities. This means I can find them at a lower rate for clients who prefer to just have an apartment without all of the bells and whistles.
What if I want to sell my home?
If you’re selling your home, the broker’s fee can be negotiated between the homeowner and the realtor—usually, it’s one-to-six percent of the total sale of the house. Once you’ve come to an agreement, the broker’s fee is taken out of the purchase price. (After all of the paperwork is signed, of course.)
For example, If a home is sold at $500,000 and the negotiated broker’s fee is six percent, then the seller owes the realtor a one-time fee of $30,000. This is, of course, under the assumption that the realtor sold the home by himself. If the agent had help from a co-worker (AKA another real estate agent), then they’d split the fee 50/50. In this case, they’d each receive $15,000.
Quick note: If you’re a buyer looking to purchase a home, you do not need to pay a broker’s fee. Brokers are only compensated when the buyer purchases the home and the realtor receives the funds from the seller of the home.
Ditch the fee and rent with me.
If you’re in the process of searching for a new apartment or home, you should definitely work with a real estate agent. Why? Because we’re the only ones with complete portal access. This “portal” is referred to as a Multiple Listing Service (MLS).
Clientele who choose to forego a realtor typically search for a new place to live via third-party platforms like Zillow, Trulia, Hotpads, and Craigslist (among others). Here’s why that’s an issue: Using those platforms usually leads to paying a broker’s fee. If you decide to work with me, however, you’ll receive five-star service, consistent availability, and several luxury apartment options that are within your price range.
Moving is a big and sometimes stressful decision for anyone. Ditch the fee, say “No” to the stress, and let me help you find your dream home. Call me at (201) 904-5554, leave a note on the form below, or send an email to info[at]franklinmendezrealestate[dot]com.