Moderating Along with the Market Brokerage Boom or Bust?

As the housing market boomed in the early parts of the last decade, apartments in New York City seemed to be snapped up mere days (sometimes mere hours) after being put on the market. As the trend continued, thousands of people set out to get their real estate license and become professional brokers in hopes of cashing in on the frenzied market.

However, even with the market raging, the small number of available properties and the sudden increase in sellers made for some very unhappy brokers, as many of these new agents found they had no properties to represent. Now, the situation is even more tense, as many in the industry believe that the New York City market is leveling off.

“About 20 percent of brokers in Manhattan do most of the business—it’s always been that way,” says Phyllis Pezenik, vice president of sales and listings for DJK Residential. “Those are the brokers that make real estate a serious career and put in the time and effort. As a result of more brokers in the market, Manhattan brokerage firms have changed by seeking more exclusive listings and focusing on marketing to grow their brand.”

License To Sell

According to Steven Spinola, president of the Real Estate Board of New York (REBNY), there are about 65,000 licensed real estate agents in New York City, which breaks down to about 41,000 who are salespeople and 24,000 who are brokers.

“Obviously, the rules are you have to be a salesperson first and then get a little bit of experience and then take additional hours of education and pass a new test to become a broker,” Spinola says. “When you are a salesperson, your license is held by a broker.”


Related Articles

Celebrity Real Estate Roundup

Condo and Co-op Activity Among NYC's Rich and Famous

Bitcoin: Fad or the Future?

Will Cryptocurrency Be Increasingly Accepted in Condo Purchases?

Padding the Coffers

How Some Co-op and Condo Buyers Gussy Up Their Finances



  • Some people will start with a ledner, others a Realtor. Depends on you. Call a Realtor, tell them you're a 1st time buyer and ask them if they have a couple of ledners they like to work with. Most of us do, they know what to ask for, what info they need upfront and will not usually say, go find a house and I'll tell you if you can get it. ALWAYS, get at least 2 ledners numbers, different ledners have different programs, experience and know how. Once you have been pre-approved (make sure you really are, ie: they ran your credit, have your paystubs, bank statements, last 2 years taxes and W-2 s) start looking, be realistic, even in this market a 2500 square foot home on an acre with an in-ground pool for $125,000 probably won't happen. Check the internet, check the neighborhoods where friends and family live, drive around, check the commute to work (it may only be 15 miles from work, but may take 45 minutes).Most Realtors have access to the MLS (Multiple Listing Service), meaning we can show every listing out there, no matter what agency it belongs to. Find an agent you are comfortable with, it's important, you need them to understand what's important to you. When it comes time to close you can choose your own Attorney, Closing Agency etc Again, most of us have companies we work with frequently, they are responsible, respectful and get the job done, just ask.Home Inspectors, you'll need a good one, ask for a minimum of 3 recommendations, call them all and ask questions, what they look for, what they charge, do they offer a warranty if you find something they missed after move-in. You should really be at the inspection, the appraisal too if possible, it's interesting and it's going to be yours.If the home is on a septic system, have it checked.The appraiser will be an "agent" of the bank, you don't get to choose.Call the electric, gas and water companies, ask about the last 12 months bills. You'll have a better idea as to what to expect. If there is a Home Owner's Association (HOA) ask what the monthly fee is, if there is a transfer fee and how much, is it paid yearly, quarterly etc Find out about the restrictions, can you put up a fence, what kind, can you plant a tree, shrubs, park 6 cars in your driveway? Outside of the purchase price you'll pay:inspection, appraisal, document fees for the closing, escrow taxes & insurance, title recording fees, loan origination fees for the ledner, I forgot some but yo get the jist. Be prepared, your ledner should be able to give you a Good Faith Estimate. Happy Hunting