confused about Hauseit claims -- Assisted FSBO and Full Service for 1%

[ctny]

Reading the info on this web site, I am a bit confused...

Assisted FSBO claims "Save up to 6% in Commission When Selling", however many places on this forum, the advice is the buyer agent needs 2.5% ("since many agents will refuse 2%"), so the savings is really 3.5%? How to achieve the full 6%?

Also, Full Service for 1% is in contrast to the 2.5% for the seller agent, right? So the seller pays 1% seller agent (Hauseit) and still needs to pay 2.5% or 3% to buyer agent? Thus it is a saving of 1.5% on the seller agent, and not a reduction of the total 6% to 1%?

Specific to co-ops a bit below $2m (I have a 3 BR in Manhattan), the advice on this forum seems say most buyers will have an agent to guide them... is that sentiment still current in 2019?

Thanks in advance for your reply.

Clayton

[aslan]

Hi Clayton, in the US real estate market it's the seller who typically pays the entire broker commission (both sides). Typically what happens is the seller will pay 6%, and that'll get split 50/50 between the listing agent and a buyer's agent.

Most buyers are represented, and it happens this way 90% of the time in NYC, and likely 75%-90% across the US.

As a result, despite what type of flat fee or 1% service you sign up for, you'll still need to pay a buyer's agent if you decide to sell to a represented buyer. You should offer something market rate and competitive, such as 2.5% or 3%. Some areas such as Eastern Queens might see smaller co-brokes, such as 2% being acceptable.

So the 1% refers to the listing agent's fee, and you'd still pay the buyer agent, does that make sense?

In terms of saving all 6%, that seems to be possible per the Agent Assisted FSBO product page if you find a direct buyer.

For the full-service listing example you gave, if you co-broked 2.5% which is acceptable in Manhattan, you'd owe 1% to the listing agent plus 2.5% to a buyer's agent. Your total cost would be 3.5% in this example, so you'd save 2.5% in commission (vs traditional 6%).

Regarding apartments that are around and above $2 million in NYC, yes I'd say most buyers will be represented. Buyers are simply too savvy at this price point not to understand that having a buyer's agent is "free." It's use it or lose it, so why would they pass on that?