[crazygringo]

> A great broker previews every listing and only shows the best deals.

But that's exactly the problem -- the best deals get taken on the spot. Luck, not a good broker, makes you the first one in. And in the end, finding a good apartment, and finding a good broker (with that kind of access) are equivalent problems.

In NYC last year it took me almost 3 months to find a decent apartment. I found the broker on Craiglist (of all places), he pulled a bait and switch on the apartment he'd listed, but it turned out to be a switch for the better. I was the first one who ever saw the apartment, because it wouldn't even be officially listed until the next day, but he was friends with mgmt, and I said yes on the spot. I grudgingly paid the broker's fee, despite only having spent 20 min with him. But I'd already met with probably 15 different brokers (some of them just horrible) showing 25 different apartments (most of them just horrible) before that. In the end, it's certainly not like any broker saved me any time or money. I just kept at it until I got lucky -- most apartments, esp. the good ones, just seem to come with brokers "attached" that you're required to use, and very often exclusive brokers, which means it's not like any other broker has access to them anyways.

[tstegart]

All of the brokers I ever talked to in NYC were "in" with management, I was always the "first" to see an apartment that "wasn't listed" and it inevitably wasn't the one the broker put up on Craigslist with the awesome pictures because it just got taken "yesterday."

[philipdlang]

I'm currently living in an apartment that never went on the market, because my roommate (a broker) knew the management company and he gave us a great deal. Brokers who frequent buildings get to know which apartments are coming on the market before they are listed because the supers tell them.

[philipdlang]

Brokers are compensated for their market knowledge, not just opening doors. The fast that he was "in" with the management company is hugely valuable, and you were able to take advantage of that. 15% is a lot of money, but brokers meet tens of clients each week that don't rent with them, so they are compensated for that low hit rate as well.

And yes, many apartments are exclusive so you have to pay a full 15% fee (split between the broker who has the listing and your broker).

You could have the greatest collection of listings in NYC and still not solve the "rental issue" because you'll always have landlords that only work with certain brokers, exclusives and apartments that are rented on the spot (with no real-time updates). It is nearly impossible to get a real-time feed of data. I've been in the business a year now and I've seen apartments get rented as I was showing my [interested] client the gym. I've showed up to apartments with clients and, embarrassingly, found out that they've been rented between the time I called to make the appointment and the time I showed up.

The entire system is outdated, and the real fix is one that incorporates brokers to make it easiest for clients to rent.

[infinii]

What market knowledge are you talking about specifically? I haven't met many brokers who wouldn't sell/rent you a place because they felt it wasn't worth it.

Your argument that the 15% broker fee is to make up for a "low hit rate" is pathetic. Many people working in retail see just as many clients with low hit rates, yet they don't make exorbitant six figure salaries.

[philipdlang]

Market knowledge is gained by hitting the streets and knowing which buildings are decent deals. 50% of the time, the renter has a special situation - bad credit, international, needs a guarantor, etc and brokers have to know the buildings and which are flexible. When you go to a broker and tell them you are looking for a $3500 Convertible 2 bed in Murray Hill, they are going to rattle off 5 buildings that have availability. If everybody could do that, there wouldn't be a market for brokers (see lawyers, consultants and just about any other service industry for a comparable).

Most brokers don't make exorbitant six figure salaries, which is why the turnover in the industry is close to 80%. In fact, most make about $40k and leave the industry soon after they enter. Only the top 5% of brokers in NYC are making six figures. Brokers are certainly compensated for the low hit rate, just as bankers are as well. This may be a controversial comparison, but in both industries the professionals work on a success-based transaction fee with a very low probability of success.

[PakG1]

But that's exactly the problem -- the best deals get taken on the spot.

Reminds me of:

http://raganwald.posterous.com/canadian-women-are-waiting-fo...

And then that kind of led me to remember this:

http://www.joelonsoftware.com/items/2005/01/27.html

Some of the parallels are striking.

[natep]

Hmm...does that mean that dating sites might be able to improve the user experience of 'fit' users by banning/hellbanning the 'unfit' users? Maybe that's what OKCupid is doing with the whole "Congrats! You're attractive" feature.

[jim_h]

I had similar experiences. Some brokers don't really put much effort with rental and showed whatever they had. One broker 'forgot' our scheduled viewing since he was out in the Hamptons showing a house.

I did find a nice apartment with good view (craigslist), but ultimately decided against it due to busy street and location. Also hated the fact I did all the searching, but I still had to go through broker and pay their fees. All the buildings managed by this particular management company used a single RE and there was no way around it.