Angst Hits REBNY: Price for New Database Peeves Smaller Firms
Of course, the cost to the dear consumer is zero. But if REBNY's more than 300 member residential brokerages want their listings included in the new database, the price won't be so small.
According to one source, bigger firms will be charged $7,500 annually, while the little folks will pay $3,500. We called Warburg Realty Partnership president (and REBNY board member) Fred Peters for confirmation.
"That was certainly a proposal that was being kicked around," he said, "but it was one of a number."
Did mom-and-pop brokerages find the proposal unfair? (After all, the city's mega-conglomerates like the Corcoran Group and Prudential Douglas Elliman can afford much, much higher fees.) "No doubt there were people who thought that it was too much, and no doubt there were people who thought that wasn't enough."
Self-described "one-man show" Basil Ashmore is in the former REBNY camp. "I'm one person. If you look at Corcoran and Douglas Elliman, they have a thousand [brokers, at least]. So I think it's unfair I should pay 50% of their fee." (He remembered the currently proposed numbers as $3,500 and $7,000.)
"I suspect the proposal will change," he said. "But how much closer to fair it will be at the end of day, I'm not sure."
Back to Warburg prez Mr. Peters: "I like to make a joke as a broker: you know you've successfully made a deal when every side is equally unhappy. That's the point we're trying to negotiate toward: the point of equal unhappiness."
- Max Abelson
I guess the consumer will obviously realize that they are not seeing all current availabilities when they conduct a search. I mean if Mom and Pop RE is priced out of this search engine, so will their property not show up on a search. And if REBNY includes the landlords to advertise as well which will undermine the street agent. Then rebny will become truley hated in the industry.
I believe that REBNY should be fair to all members and charge accordingly instead of discriminating against smaller brokers. It is an issue that should be voted upon by all the members involved, not an item to be forced upon brokers and agents without a vote. Until this article, many members of REBNY were not aware of the proposed web site that is being discussed. Would new members considering joining REBNY if they knew the cost would be the approximate $1,000 initiation plus yearly dues plus $3,500-$7,500 upfront fee and other fees which may be applicable if the new proposed web site is forced upon its members? To be fair new members can not expect to join without paying the yearly fees and additional costs being forced upon current members. Will this new move by REBNY deter other real estate companies from joining REBNY - The Real Estate Board of New York?
Am I missing something? Why would there be separate “flat rates” depending on size? Would it not be more advantageous to charge a flat rate per firm with additional fees per agent within these brokerages? Example: $2000 Flat Rate; $75 per agent.
This would be the best solution while being fair to all. Not too mention the fiscal return would be greater for REBNY and could enhance the mission (and technology) of the organization.