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Two years ago The NY Times visited the changing landscape of Harlem; at the time Maya Angelou told them about her part-time neighborhood, saying, "The hope is there. The minute you look down a street and see a Dumpster, you know that's hope." Earlier this year the paper revisited 125th Street and focused in on long time residents and their apprehension about gentrification and the changes afoot that many cannot benefit from. This was around the same time two more Starbucks entering the neighborhood sounded alarms.
Today, some Harlem residents are finding that if they want to move to a new place in the neighborhood, they're gonna have to pay the piper a lot more than previously quoted, as brokers are "force-feeding the gentrification" to prospective renters and buyers. NYC the Blog's Paolo recently had the following exchange with a real estate agent renting apartments around 145th Street.
"Hmm...well, I'm hoping to find a cute two bedroom for $1,200. No more than $1,500, but at $1,500 it really needs to be perfect, with a nice porch or backyard."Signs posted throughout the neighborhood say not to blame the brokers, but those willing to pay the exorbitant rents. Though as pointed out, there are still plenty of 2-bedrooms listed in the $1300 range."Oh, you won't find that in Harlem. Harlem is an up and coming neighborhood, and the rents are reflecting that lots of people want to live here now. You can't find a two bedroom in Harlem for under $2,000."
Photo via nrvlowdown's flickr.
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this is why everyone hates brokers. assholes.
Can you really trust anything a real estate broker tells you about what apartments do/should cost? It's in their self-interest to push prices up.
Thoe worst thing about a neighborhood showing "hope" is that the brokers swoop down with their 12-15% broker fees.
I live around 145th and (surprise!) that broker is full of it-it's still very very possible to find a two bedroom for $1500. I've seen actual ones for less.
But don't move up here. Uh, it's really really violent. Yeah.
I love that my old stomping grounds is now trendy n. You know Harlem is changing when the have scientogist giving free stress test in the 125th stop.
We've been living around 145th Street in our 3 br for 3 years now, paying around $1300 (it was $1100 the first year), so, of course, this broker is def feeding you a bunch of bs. the newly renovated 2-3 br apts in my building (typical 6 floor walk-up tenement) go for about $1700.
Funny enough, we're actually moving to Brooklyn this weekend. Sad to leave the neighborhood, as we have made some good friends on the block. The demographics of the neighborhood have certianly changed within just the past few years, not to mention the ugly condos, Starbuckses...but I don't think any of these changes warrent a 2 br for $2000 in that area. Unless it is a drop dead gorgeous floor through in a brownstone on Convent. Even that would be pushing it.
Doh, I meant 1 br apt, not 3!
Calling RE brokers assholes only give assholes a bad name.
Everything that comes out of a broker's mouth should be fact checked at least three times, and there's NEVER a need for a broker if you're buying or renting a place and you have the time to do the research.
Of course brokers influence the price of apartments. Brokers charge a fee that is a percentage of the rent. If the rent is higher, than naturally, the fee will be higher.
I have never understood what purpose a broker serves besides, clogging up and exploiting the process.
Can somebody here explain to me why the renter is burdened with paying the broker fee and not the landlord?
I'm not certain, but I've always assumed the landlord pays, too.
i think the landlord only pays for the broker in every other city on the planet.
the bigger question is why the phenomenon of the broker exists in NYC at all. to rent an apartment in most other major cities in the US is a process conducted between landlord and tennant - no middle man/woman. i can't speak for every major city, of course, so it's possible the scumbag broker does exist elsewhere, but i was blown away when i moved to NYC and paid a significant amount of money to some jackass who basically knew nothing and did little more than unlock the door for me.
Um dude69, you absolutely do need a broker if you are buying (although I agree you don't need one if you are renting). Your broker acts on your behalf in the negotiations and helps you get everything together for the co-op board interviews (among other things).
I'm currently buying in this neighborhood (a beautiful apartment at a reasonable price) and am psyched!
I actually bought my co-op by myself and a lawyer with no problem. The seller's broker was eager to deal with me alone so she didn't have to split the fee. I guess I am usually more organized than most people but if I could do it, anyone can with a bit of effort.
Renting using a broker on the other hand is throwing money down the drain.
One does not need to use a broker to buy or rent. To state that you need to use one is just inaccurate. Most brokers in sales processes do NOT act with your best interests at stake. They are simply there to speed up the sale and move onto the next sucker. Getting paperwork together for some board is monkey work. The seller could do that for you. A prospective buyer can place their own bid for a property. Brokers exist in this town because people are either stupid or lazy. Anyone can run a credit check-you don't need to pay some asshole 12-15% of the first year's rent or a fee to list your property. If one prefers to use one, then my hat is off to you. I despise them and their arrogance—and yes some of my family members are brokers... Brokers in this town are lower than whaleshit.
I may be wrong about this but...
The two times I've dealt with brokers I was asked to pay cash. I believe the reason for this is because the broker is "double dipping" so to speak. He gets paid by both the landlord AND the tennant and he only reports one income.
That's why I would hesitate to deal with a broker.
Also why would you pay a broker if all you are getting is a market rental? A landlord is not obligated to offer you a renewal on a one year lease so that hefty fee could be for nothing. If you must go through a broker, I would insist on a rent stabilized lease.
I went through a broker for my current stabilized lease. That's the only reason I forked over the money. I now have the peace of mind that my lease will be renewed and my increase will be X amount. No more wondering from one year to the next, how much my rent is going to go up, or will I get a renewal.
(1) I lived in Harlem for two years, just moved back to Gramercy -- it wasn't worth the $1,300 I was paying for a 1BR, never mind the $2k this posting specs out for a 2BR above 125.
(2) Brokers are a necessary evil if you're looking for anything decent over $2k in the city. They have a lot of exclusive listings that you wouldn't find on time (or at all) without paying the hefty 15%. Though most don't accept credit cards for their fee payment (not even major guys like Century 21), NEVER work with a broker who wants cash only; a cashier's check made out to the company should suffice, and then you can be sure they're not "double-dipping."
That's funny, my relatively spacious 2-bedroom near 125 & Broadway is only $1400. It was $1300 when we moved in two years ago.
The noisy neighbors who leave sticky garbage and empty fifths of liquor in the stairwell are still provided completely gratis, though. So are their roaches. If the cost of food keeps going up...
That's my Paolo Paparazzo! Never afraid to call people out on their bullshit and tell it like it is. Nice work. Glad we're finally in the same city!
Its much harder to rent than buy without a broker.
If you're buying, people will deal with you as long as you have money.
The seller's broker will help you, and a decent lawyer to back you up is all you need.
Most of the paperwork is stuff you end up having to do yourself, unless you have a real lawyer who knows you well.
Someone asked if other cities have brokers. Chicago has some, but they function more as apt finder services and you don't need them unless you're lazy, stupid, or relocating and unfamiliar with things. The landlord pays them, which means many landlords also advertise (broker-free) on the side. This means they don't list the address of the building in their ads, which makes the process frustrating.
I've always wondered why New Yorkers put up with brokers at all (I hear my friends' stories) and I think it must have to do with rent stabilization laws and options that allow you to stay in an apartment longer than a year (guaranteed renewal). These do not exist in Chicago at all. The only people protected in Chicago are the criminals, drug addicts and grifters ... you can't evict people six months out of the year hear by law and even when you can it's very difficult to do.
If you're a good tenant, your landlord may still increase your rent 20% or choose not to renew you over a petty reason. Chicago is low density -- it has a lot of owner occupied 2, 3, 4, and 6-unit buildings and many of these owners know nothing about the law. Aunt Midge dies, the neighborhood gentrifies, and they get greedy. Nearly every landlord I've had has attempted to arbitrarily subtract X amont from my security deposit, until I show them the Landlord Tenant Ordinance and tell them I look forward to seeing them in court. I guess renting sucks everywhere.
"Overall, Harlem remained the cheapest place to rent in June, with average prices ranging from $1,287 for non-doorman studios to $2,636 for full-service, two-bedroom apartments."
http://www.observer.com/2008/rent-june