Help with Negotiating Renting Apartment in NYC

[Masashi Borges-Silva]

I need your help/inputs!

I am shopping for an apartment in Harlem area around 150th and Bradhurst, and I need your opinion in where I can negotiate in terms of monthly rent and commission fee charged by an agent.

Below are the facts:

-The 1 bed room apartment is listed on Trulia.com for 80 days

-Original asking price was $1850 and recently reduced down to $1750.

-We are offering $1650 for the rent.

-Based on the rent, the commission fee is $2475, which is 12.5% of Annual rent (The agent already told me that it is reduced from 15%) . He also said that previous fee reduction offer was rejected.

What would you recommend in terms of approaching an offer that is beneficial to all three parties?

I would like to know offer example such as offer to pay full 15% of commission, but lower rent or offer asking rent price with lower commission (such as 10%).

Just a quick math, if I paid 12.5% in fee and $1650, then the equivalent rent would be $1856.25 = ($1650 x 12 + $2475)/12

Another example would be, 15% in fee and $1550 is $1705 = ($1550 x 12 + $1860)/12

10% in fee and $1750 in rent is $1925 = $1750 x 12 + $2100)/12 (this would be higher than the current offer...)

So I guess the math says, lowering the rent will help over all cost for me...?

Any input will be appreciated!

[Jason Lee]

You're negotiating with two separate entities and while, in the end, you have a net cost, those negotiations aren't necessarily linked like you've assumed they are. The owner has turned down your lower offer. He's just lowered the price, has it available during the best season to have a lease signed, and has it at a low price point. He's probably not too worried about getting it rented. If this landlord only has a few units he might be motivated but more likely he's got a few hundred and could care less. Is this a single unit in a co-op or condo, or in a larger rental building?

Your offering more broker fee to the broker isn't going to change the owners mind. The broker wants to get a deal done and if the owner told him no to your lower offer, then the answer is no. If you're a great candidate with high income, then that was most likely relayed to the owner already.

If there's any wiggle room it's on the broker's part. If you had your own broker representing you, then the commission would be split, so at best 7.5% for each broker. You don't have your own broker so the listing broker could collect the entire amount... which is why he's negotiable.

I would try coming up on price and try to get the fee down to 1 month.

As for the area, I have actually sold in the neighborhood (on the corner of Bradhurst and 150th). It's a lot of younger couples and singles in the condos and condo conversions. The area has improved quite a bit over the past several years but not as much or as quickly as west of the park or a little further south near 145th.