Always negotiate your broker’s fee
Your broker will say things like “this unit will be gone tomorrow, I suggest we file the paperwork…” or “you won’t find a better price.” 99% of the time they’re lying through their teeth. The broker is trying to force you to decide, and to become less sensitive to the broker’s fee because “you need this apartment, and you need it now.” Most of the brokers fee in NYC start at 15%, but you should have no trouble negotiating it down to 10%, and sometimes down to as little as 6-7%. Remember, if your broker loses the unit to another broker showing the same apartment to a different person, your broker goes home broke. Always negotiate.
Don’t get attached to your broker
Remember, your broker is just a salesman, and they are simply taking you through a sales process. My favorite quotes from brokers are:
“I’ve done a lot of work for you to find this place”
“This is the best price per location you’ll find”
Hah, not true! Broker’s are simply trying to gain your trust, and respect by acting like you are special to them, in turn trying to make you feel like you owe them your business. You don’t owe them your business, and you should always work with more than one broker to see who you trust you the most.
Avoid the September Cycle
According to data from RentHop, for a 1-bedroom apartment you will pay 2.83% more on your lease by moving into your apartment in September. College grads, summer sublets, and the hiring cycle are all factors that make September the priciest month to move in or out. On the other end of the spectrum, you’ll spend 1.73% less by starting a lease in November. Obvious move – if you can, try to start your leases in November, and end them in October to save the most.
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Most brokers will also try the “you won’t find an apartment at that price” line to try to offload worse apartments in less desirable neighborhoods. Obviously you can’t be unreasonable, but watch out for this line.
Great point, Mike. Brokers definitely try and pick up some “scrappy-deals” in less desirable neighborhoods by citing the low price as the main selling point, while strategically not mentioning the lack of amenities in the building or surrounding area.