Although the bar continues to be raised in the residential real estate industry, marginal agents remain the scourge of the industry’s reputation as a whole. From big ego to misinformation, it is all too often that an agent is an obstacle instead of an asset to the transaction process. It remains imperative that buyers and sellers alike take the time to determine if their agent has what it takes to represent them in a successful real estate transaction.
Consumers should consider these things when interviewing and deciding with whom they will trust with often the biggest transaction in their portfolio:
References- Ask for more than one and call them.
Google-It seems obvious but there is so much to learn about someone via Google.
Quiz the selling agent-have a friend call them and ask questions about the building and report back to you as to whether or not responses were sufficient.
Caution with friends/family-If choosing a family member or friend to represent you, don’t take for granted that they have your best interest in mind and demand the professional service you would ask of a stranger.
Ask “why you?”-Listen carefully to their response being certain that they bring something of value to the table.
Referrals-Ask your co-workers, family and friends about their experiences with agents and consider a referral based on their responses.
- The Brand-Greatly consider and examine the company for which your agent works. You may apply the same tips above on a macro level for the company.
Don’t fall into the trap that all real estate agents are created equal. A solid, savvy and sophisticated real estate professional will be the difference between a successfully smooth transaction and a potential nightmare.
The Daily News headline on Friday read “Apartment sales hit three-year low in January as NYC felt winter freeze.” A very misleading headline given that the referenced report issued by StreetEasy is a CONDO report that does not include the 400+ co-ops and townhouses that also went into contract in the month of January. In fact, 634 listings went into contract in January 2014 versus 718 in the same period 2015 representing a 22% increase YoY (via UrbanDigs see UD-report 2008 to present).
As evidenced in the UD-report, there is no”chill” in the market other than the single digit temperatures from which we all could desperately use some relief. Contrary to The Daily News report, the market continues to be starved for inventory and flush with buyers, making it often a frustrating landscape to navigate.
In the spirit of our robust real estate market, stay tuned for some anecdotes from our CORE agents representing just some of the multiple bid situations in which they have been involved on both the buy and sell sides.
In one of the most synergistic marriages to ever take place on the NYC real estate frontier, world-reknowned develop Related Companies has purchased a 50% stake in Manhattan’s #1 Boutique brokerage firm, CORE.
I am thrilled to be a part of this and look forward to everything that this means for our customers, clients and CORE agents.
Check out the complete story from today’s New York Times.
Mazel tov to Shaun Osher, Jeffrey Blau and the CORE and Related families!
With all of the parties that are involved in a New York City real estate transaction, it still amazes me that when anything becomes uncomfortable, everyone looks to the broker’s commission to make things right.
Consider this: there are a minimum of eight (8) parties involved in an all cash transaction (9 if buyer has a broker) and twelve (12, 13 with buyer’s broker) in a financed transaction.
- Seller attorney
- Buyer attorney
- Seller’s agent
- Buyer’s agent (90% of the time)
- Building property manager
- Closing agent for management
And if financed, we add on:
- Mortgage broker
- Bank Attorney
- Payoff bank attorney (just shows up at closing to collect outstanding mortgage balance from seller)
This is a lot of hands in the pot to get a deal from inception/offer all the way to the closing table. What continues to baffle me after 22 years in this industry is that when any of the above parties makes an error (and it does happen), the seller consistently goes after the commission of their broker.
I suspect, well rather I know that this is in large part due to the size of the fee that the broker yields from the transaction. And it is human instinct to want to point the finger at someone when things don’t go our way. The big fee often brings with it a certain resentment when things don’t go as smoothly as everyone had planned.
Recently, one of my agents at CORE recently closed on a transaction in which the seller was furious that the closing took so long. An email string from months ago showed how incredibly well the agent managed expectations, worked diligently on the seller’s behalf, operated with integrity, and tried to persuade the bank and buyer to close as soon as possible. All of that and the seller was furious demanding a reduction in commission. She didn’t attack the bank, her attorney, or management all of whom played a part in the delays. She came after our agent who was consistently working in the seller’s best interest.
The moral of the story: agents must manage expectations, deliver on their promises (think Amazon) and sellers must understand that with so many hands in the pot, it is very possible that someone other than the agent is to blame for any mishap.
Food for thought.
Manhattan real estate has become so incredibly sexy. From the dramatic “reality” shows to the media reports of billionaires and foreign investors gobbling up property, it has never been a more exciting time to live in NYC.
Today, Curbed ran an interesting piece on The 25 Most Expensive Homes in New York City ranging from the penultimate $118.5M potential (nope, it isn’t even one apartment yet) 3 unit Penthouse combo at The Ritz Carlton Residences in Battery Park to a Lenox Hill mansion at 57 East 64th Street for a measly $44M.
I love this articles just like the rest of the world. And a little secret, I love selling these homes too. So when i read this article, I thought I would do a quick check of the plus $50M market and this is what I found.
Despite the numerous articles and media attention given to the mega million dollar sales in Manhattan, it turns out that only 9, yes N.I.N.E. residential properties have EVER sold for $50M or more (via StreetEasy) throughout the history of New York. Compare that with the 14 that are currently on the market and it is obvious that there just aren’t as many super wealthy individuals as the press would have you believe.
I share my thoughts on how to best time the intracies of a sell/buy or buy/sell (that’s the point) move in this excellent Brickunderground piece.
I am back and so is True Gotham! It has been way too long since I have played an active role in the content and life of this blog. 6 years of running The Heddings Property Group kept me away and basically forced me (not really as everything is a choice) to sell out to outside writers which often amounted to considerable fluff. It has hardly been “dispatches from the front lines of NYC real estate,” but it will be going forward.
The Heddings Property Group was recently absorbed by Shaun Osher and The CORE Group and I have enthusiastically accepted the position of Executive Vice President of Sales for the company. This new role has me overseeing nearly 100 Manhattan real estate agents which will give me access to the front lines like never before.
I am sincerely looking forward to once again bringing you relevant and timely content on all that is the incredible Manhattan real estate market.
For those who followed this blog in the past, I am sorry for my departure from what once meant a great deal to me!
But, I’m baaaaaack!
According to a recent survey conducted by Rent.com, Manhattan is the second-best place in the country to live if you are a single adult. Defining a single adult as anyone over the age of 20 who has never been married or who is currently separated, divorced or widowed, the site estimates that there are approximately 494,899 single in the borough. This amounts to approximately 38 percent of Manhattan’s population of nearly 1.6 million.
When ranking cities according to their attractiveness for singles, the site considered factors such as restaurant options, nightlife options and the number of people who frequently visit coffee shops. In all, Manhattan earned a score of 781, with 1,000 being the highest score possible. This score represents the highest score achieved by any city included on the survey, including number one ranked San Francisco, which only edged out Manhattan because 39 percent of its population is single.
Manhattan also scored high on Rent.com’s safety index, earning a score of 822 out of a possible 1,000. With a score this high, singles do not have to worry about being victims of crime as they explore all that the city has to offer. With many places open until 4:00 am or open 24-hours per day, there are plenty of nightlife opportunities for the single crowd to enjoy throughout the night.
The city is also well-known for its actively GLBT scene, meaning people of all sexual orientations can find other singles to spend their time with. Whether walking the streets, riding the train or visiting one of the many late-night establishments, singles have a number of opportunities for meeting and getting to know each other.
Of course, while Manhattan is rated high for having a large number of singles and a variety of places for these singles to interact, there is no saying whether or not these relationships will flourish into long-term relationships. What you and other singles choose to do with the opportunities before you is entirely up to you.
With a population of more than 1.6 million, Manhattan continues to grow. While there are certainly some positive sides to a growing population, there is one downside to having so many people interested in living in Manhattan: housing.
Unfortunately for those who live in Manhattan or who wish to live in the borough, housing is at a premium. With only so much space available for housing, adding more housing is nearly impossible. Furthermore, New York University’s Furman Center reports that Manhattan lost 3,000 rent-regulated apartments in the last year along. In many areas throughout the borough, the stabilized homes that were typically more affordable are being replaced by “market rate” units. In fact, from 2002 to 2012, the number of stabilized or controlled apartments fell by more than 19 percent, while the number of “market rate” apartments increased by more than 19 percent. As a result, finding an affordable place to live is becoming increasingly more difficult. Even local residents who have lived in the borough for decades are finding themselves forced to leave because they simply can’t afford to stay. Even middle class professionals are finding themselves getting squeezed out by the high prices.
Obviously, no one can blame landlords for increasing their prices. If the market demand is high, increasing prices each year is a great way for landlords and investors to make money. Nonetheless, while this is not a new phenomenon for Manhattan, the issue is reaching what many consider to be “crisis” status. After all, when prices continue to rise and force long-time residents out of the borough, it tears at the fabric of the community. It also makes it difficult for families, seniors and other valuable community members to stay in one place, with many finding themselves constantly moving in an effort to find more affordable housing.
Manhattan and its residents have always taken pride in the diversity that the borough has to offer. In fact, an estimated 29 percent of those who reside in the borough are foreign-born citizens. With rent prices rising 19 percent since 2005, however, even traditionally immigrant neighborhoods are at risk of changing dramatically. Already, the change in population can be seen occurring from Washington Heights down to the Lower East Side. While the change is gradual, it is clear that it will continue unless something happens to change the current trend of housing prices in Manhattan. So, while the population continues to grow, the face of Manhattan’s population is likely to be quite different in the near future.
Another major company has transitioned from being located on Long Island to calling Manhattan its home. Last month, software giant CA technologies quietly made the move after unofficially making Manhattan its headquarters for the past several years.
Prior to making its move to Manhattan, CA Technologies was one of the largest companies on Long Island. In fact, the company’s headquarters had been on the island for 22 years. After filing paperwork with the U.S. Securities and Exchange Commission, however, the company quietly and unceremoniously listed its address as 520 Madison Avenue.
For those who have been watching the company’s operations, the change does not come as much of a surprise. Many of the company’s top executives have been based in Manhattan for years, and both of the company’s last two chief executives chose to work primarily in Manhattan. In addition, the company had sold its Long Island property in 2006 while continuing to lease the space.
Fortunately for the local economy and for the nearly 1,400 people who work for the company, representatives say there are no plans to reduce operations. Instead, the address change simply reflects the location of the CEO and the company’s executive team. Nonetheless, with a stock market value of around $12.54 billion, the address change does change the local corporate landscape of Long Island. Furthermore, with CA Technologies being a huge part of the technology community, Long Island officials had hoped the company would be a key player in helping to nurture local startups in the area.
Given the business climate in Long Island over the last several years, the area could certainly use a company to take the lead and bring business back to the area. Since 2007, more than 30 Long Island companies have either been bought, moved or failed. Some of these include Gentiva Health Services Inc., Arrow Electronics and American Home Mortgage Investment Corp.
In some cases, the Long Island company changes did not lead to job loss. After moving its headquarters to Denver in 2011, for example, Arrow still employs more than 500 people in Long Island. Nonetheless, when a headquarters leaves, the top executives go with it. This means there are less top executives available in an area to help volunteer at local nonprofits. Furthermore, once a facility is no longer designated as a company’s headquarters, it is more easily shut down when cuts needs to be made. For this reason, some officials are considering giving CA Technologies some sort of incentive to stay in Long Island. Officials from CA Technologies, however, say they are still committed to Long Island. As the company’s second-largest location, it serves as a key research and development hub.