New-York tribune., 1908-01-08
BIG BROKERAGE FEES.
THE WAY TO EARN THEN.
l.. b. Eliman Tells Hoo to Sell
PropertY.

Lawrence s. Gilman of the real estate firm Of
Pease & Gilman. addressed last night the real
estate school of the West Side Young Mems Chris
rian Association bis subject was selling AS
the degree Of success attained by every broker Is
the number of his deals most of the members OF
the class present to learn from one OF the
leading brokers IN this city how TO fnd a market
for various kinds of properties. and therefore
acquire money and fame in the realty field In
the brokerage line everything is so shaped as to
produce a lively demand for the properties the
broker has TO SELL and the greater the demand ior
the parcels the larger Will be the commissions
earned. The overlooking Of what is apparently
trivial detail may result in upsetting deals inVoiV-
ing large sums, and thus not only mean severe
financial loss TO the broker but TO other persons
interested in perfecting the negotiations MT ELL
man dwelt at considerable length on these phases
cf the brokerage business as the idea which ne
wanted HIS hearers to retain more than any
nhsr which in the course of his talk he presented
20 them was that broker should know everything
possible that he could learn about property he
offered for sale and that he should do his Work II
q way both fair to seller and buyer
He 6eprecated certain conditions Affecting the IN
se-ests Of sellers He said that the competition
among brokers was keen that this vigorous hunt
for buyers often resulted in sellers being in6uceo
To dispose of their properties for much less than
rbev would If their interests were fully protected
7, exnisnation Of how the sellers part in deal
,x MT as carefully guarded il ought 10 be ne
yaid that If one broker offered certain properly
for sale for ssoce another broker might tell an
, ether prospective buyer that he thought he could
get the property for q much less sum. possoiy
81 600 or s7oeoa and still another broker might
approach the same even another prospective
buyer and say he could probably be able 10 ger 'ne
marcel for ss5.co The broker who could get lne
lsrouerry al the lowest sum would or COURSE coss
the deal Mr. Gilman thought that sellers coula
,,,,r n en6 TO these methods by seeking market
Tor their property through only one broker re
knew Of no ether way Of improving these CoL-oi-
,ions as affecting the sellers interests
L was the seller who paid the broker his COM
mission and il was only right that the orokef
should strive TO get the highest and not 10" Efies
for the property offered Yet the broker shouo ho'
~ unfair with the buyer The broker must De non
ct and cspahIe The buyer should not be ouroeheo
-, 4, mortgage that he may be unable to pay
.p.p due or have renewed when necessary Mt
Gilman said that broker should carefuiy oeCloS
y i7a- the property to be offered was worth ano tHeh
,rv 70 persuade 4 prospective buyer that II was
worth that
-Tl,e sneaker then told about some of his eAper1~
erces Ill Of which related deeds affecting prop
e-tv III the central Fifth avenue section he 1nf-
sher said. The total sum OF the coIilliio9ioAs
earned -tv many brokers is generally large. met
today d leading broker who is connected WIN one
- ~ tj real estate firms and he told me that his
commissions last year amounted TO between so''V
and 81 aN. Now, he IS only one person In a very
large real estate Office, you can imagine what
must 1-sxe been the entire earned IN cor1rs-
-, b,- -bat real estate office last year know
7fe broker very well and have no reason 10 ooUoe
his word as 10 his statement about his earnings
lat wear often a broker will make 5000 or more
a., = commission for one weeks work. The value
f the services he rendered may, stTlctiy SPEAK
ing be represented by sum much less thao me
commission.
-.r9,,, in The brokerage business there are AlhnS
6.zls which extend over period or years beiofe
he commission is earned. CT, in other words
,,-oker NAV seek for several years for bu3er
1er,re sailing the property. Moreover, many
negotiations for property begun as fesuli u ti0
go. may never mature. and his work in this
respect was therefore unsuccessful Inc SUCCESS
fuI deals must pay for these unsuccessful ones
.~T,,o money &c be made II the brokerage bust
ness has drawn 70 the brokerage held large num-
-. rs hrainv conscientious and courteous men
-r. rnen,s, attainnlents OF the majority OF brok-
-z a-s ~reater than those Of the majority OF per-
sons identified with any other sphere OF business
rcuiarlv Is this true of the brokers in the FlIth
.ven,A district in which section my firm has had
:, tsrpe experience About thirty or forty years
-ro the broker who earned in commissions slu'Vo
a wear considered himself fortunate
A hrolxer should know his clients by ClS L
,,aan he should know what are the realty neeoS VI
his clients and what properties they could puy du
...c,relv hold Some months ago a well known man
.is,Ad one of CUR offices and said he was IN search
of q house for his own occupancy ne elhp.h ~
sized the fact that he had decided TO invest sioV'V
=, ho.,sa and that he would not invest one penny
more representative OF the nr'h asceI' '9iiie
,bs- rho irrespective buyer was able 10 purchase
- ai-,a5n as II should be maintained Fifth
avenue house of much greater value than tne mouse
-. .1ie-,. said he wanted So the representative