Everyone has an opinion on what added value the real estate agent brings (or doesn’t) to the real estate transaction. For the purpose of this blog post, let’s assume that a seller is fortunate enough to find an agent who s/he believes will bring real value to the home selling process. If one agent brings value, a team of agents working on your behalf increases that value exponentially. Bear with me here.
In today’s real estate market where financing restrictions and unemployment have thinned the pool of qualified buyers, it has never been more important to make sure that any prospective buyer sees your home when they want to see it. I have personally called agents to schedule appointments to show their exclusive properties and been told "Honey, I’m not taking the train from Greenwich that early in the morning. You will have to show it at a later time?" That specific appointment request was for 10:30AM for a vacant apartment. Not a terribly over the top request. That buyer never saw that property and eventually purchased something else while that home languished on the market for months. It is not uncommon these days for buyers to have 5-10 properties to see that meet their criteria for their new home and if they see 9 of those 10, they just may NOT make it back to yours if your agent can’t accommodate their schedules.
The example above is not the norm. Most agents are incredibly accommodating when it comes to showing property, particularly in a market where transaction volume has dropped so drastically from the same period last year. That said, one person can’t be in multiple places at the same time. I know that sounds ridiculous and obvious but assume that your agent has 5 or 6 exclusive properties that they are showing at any given time (some have as many as 20 or more). It is not unlikely that appointment requests will be made for 2 or more of those properties at the same time. If the agent is unsuccessful in manipulating schedules to insure that all appointments are made and all prospective buyers see your home then you may have lost an opportunity to actually sell your home. The buyer may very well see something else and NEVER circle back to your home.
The solution to this scheduling problem is not rocket science but rather a team approach to assisting sellers with the home sale and accommodating ALL prospective buyers for the property. Most of the more successful agents in Manhattan have built very professional teams around them. The reason that they are still so successful in today’s slower real estate market is not simply because of their experience but also because they can show multiple properties at any given time thanks to the support that they receive from their teams.
The team approach to selling real estate insures that your property gets the 24/7 attention that it requires. In addition to the availability of multiple agents to show your property, a seller also benefits by having multiple professionals (led by the team leader/top producer) come together regularly to design advertising and marketing strategies that best suit your property. And the team leader is ALWAYS the person spearheading all marketing efforts and negotiations.
The landscape of the real estate market continues to change in dramatic ways and the days of the single agent servicing multiple sellers is behind us. For sellers who want to insure that every single prospective purchaser sees their home, they must hire a successful real estate team. And don’t forget, you must also let them show your property when they need to show it. But that is an entirely other blog post.
Already the eighth largest brokerage in Manhattan, Charles Rutenberg Realty’s ranks continue to swell to almost 300 agents. The pace of growth has picked up significantly as agents are asking themselves, "What has my broker done for me or my clients lately?" Too often the answer is a resounding "not much" or "they continue to make a lot of empty promises." I am meeting and/or speaking with prospective new Rutenberg agents almost daily (2 came to my office yesterday) who have determined that a move makes a great deal of sense. The complaints are all the same:
- their firms have cut advertising budgets in half
- those firms have a brand-centric approach to the industry versus being consumer-centric
- the same promises are being made over and over again without delivery
- their firms continue to squeeze them financially in an effort to compensate for the softer market
It’s no secret that the face of the real estate industry is changing rapidly and the traditional brokerage model is no longer best suited to serve the the agent nor the consumer. The Rutenberg design is a true independent contractor model that enables agents to ALWAYS do what is in the best interest of their client from an advertising, marketing and market navigation perspective. Of course those who don’t adhere to this very simple principal won’t last in the industry. Those who do and take advantage of the incredible support and exciting non-traditional business model that Rutenberg has to offer will be the pioneers who change the face of the urban real state landscape. I promise that these changes will hugely benefit the consumer!
Again, if you are an agent thinking of making a move, please feel free to email me or call me for more information on exactly how the Charles Rutenberg business model can work for you and YOUR CLIENTS.
In this TrueGotham video blog I discuss the current Manhattan residential real estate market. Although June was a very busy month in terms of transactions, one month does not a recovery make. And what will Wall Streeters do with 2009 bonuses? Check it out:
Well here it is. My first post for The Wall Street Journal. Check it out.
BTW…this was just one of the plethora of reasons that I sought independence from the corporate environment in which I was working for the freedom of Charles Rutenberg Realty.
I wish that I could say that I sold my house in Bridgehampton in April of 2006 because I was so savvy and knew it was the peak of the market. Such is NOT the case at all but I was very lucky with my timing.
Let’s begin with the Prudential Douglas Elliman Hamptons North Fork Market Report.
From this report comes the following clip from CNBC (via CurbedHamptons). Prices down 42% South of the Highway where the most lux of the lux is found. Note that the agent points out how incredibly busy the month of June was and we experienced the same in Manhattan. That said, one month of increased activity after a brutal year does not a recovery make.
And check out this Manhattan vs. Hamptons comparison from Matrix’s Jonathan Miller.
My 2 cents…I think prices may slide another 10% in Manhattan, possibly more in the Hamptons, before we see the bottom as interest rates creep up and buyers watch to see more signs of economic recovery. (BTW…a $1M mortgage at 5.75% and a $900K mortgage at 6.75% yield the same monthly payment). Don’t expect Wall Streeters to throw their bonus money around like they did in the past. In early 2010, they will look for deals in both Manhattan and the Hamptons and their timing may be perfect. But hey, that’s just one guy’s opinion.
We shall see.
if you are selling property, whether it be in Manhattan, New York or Manhattan, Kansas (yes there is a Manhattan, Kansas), you must find out from your agent/broker exactly where your property information will be disseminated. Most people don’t realize how many companies still subscribe to the philosophy that controlling your property information is a good practice and one that they will try to convince you is in your best interest. The only interest protected by withholding your property information from maximum exposure is that of the agent/broker.
With the explosion of the information age has come a more transparent real estate industry in many ways with buyers and sellers able to access property information in ways once reserved for only agents and brokers. Information can no longer be held hostage, or can it?
Just recently I was slapped on the wrist for sharing contract signed data. The sharing of the information was in an effort to better inform my readers (anecdotal of course) about current market conditions as well as future market direction. And it isn’t just contract signed information that is being held hostage. Some firms continue to resist sharing active property data with web sites that could be incredibly beneficial to a seller’s ability to procure a buyer.
So what to do? Ask your agent if they are syndicating your property information. There are a multitude of listing syndication companies out there which will take your property information, including photos, floor plans, links back to your agent’s web site, etc. and disseminate it to every imaginable real estate marketing site out there. This is inexpensive and gives an instant global reach to your property often in as many as 30 or more languages.
In a market where the number of qualified buyers has shrunk significantly, it is absolutely imperative to make sure you cast the widest marketing net possible. Listing syndication is precisely that net.
And BTW, don’t be fooled by the brokers who tell you that there web site gets a million hits a month. That and a dollar might get you a cup of coffee (from a deli of course…not Starbucks). Those hits mean nothing to you as a property owner unless that prospective buyer finds your property. And in today’s market where finding a buyer can be a "needle in the haystack" dilemna, chances are better that they WILL find your property through listing syndication.
The traditional broker better rethink the ways in which they do business or suffer extinction. The business model is suffering and despite the facade that all is well in residential real estate, I’m here to tell you that isn’t the case at all.
First let’s define ‘traditional brokerage:"
- A real estate company that focuses on it’s brand more than the consumer.
- A real estate company that is highly leveraged with office space and expensive leases.
- A real estate company that hires agents blindly creating a revolving door that can damage the brand on which they are spending so much money.
- The real estate company that continues to make promises to it’s agents that it can’t deliver due to corporate bureacracy.
- The real estate company that decreases dollars spent on the consumer in an effort to maintain profit due to high overhead.
- The real estate company who is "trapped in the box" with no ability to truly see "outside of it."
- The real estate company that defends a 6% commission while providing less service than it did 10 years ago.
- The real estate company that claims to embrace change all the while avoiding it like the plague.
- The real estate company that talks the talk but resists walking the walk.
I think you get the picture here.
I can’t and won’t speak to ALL the traditional brokerages in Manhattan. That said, the traditional brokerage that I believe to be doing the best job of keeping abreast of what technology has to offer while maintaining their focus on the consumer is The Halstead Property Company.
My hats off to Clark Halstead and Diane Ramirez for "getting it!" They understand that the consumer is demanding a more transparent industry. They understand that our job is no longer to be providers of data but rather to help the consumer navigate that information and make smart decisions when buying or selling real estate. They understand the power of technology as they embrace the agent blog (ex. Noah Rosenblatt’s UrbanDigs), the video tour with ProperTV and maintain a powerful presence on social marketing sites like Twitter and Facebook.
So for the rest of the brokerage community out there…take a good hard look at Halstead. As far as the big companies go, they are without a doubt the one that understands the direction in which this industry is heading and the leaders in implementing all that technology has to offer. All of this in an effort to better serve those who matter most…consumers!
Greg Cooper is a former radio personaility turned real estate agent in Carmel, Indiana. So what does he have to do with Manhattan real estate? Check out his commentary on "The Market" and se more of Greg at http://www.gregcooper.tv:
That about sums it up and i couldn’t agree with Greg more. Whether you are selling real estate in manhattan, Carmel, Indiana or Timbuktu, the market is what someone is willing to pay for your home…nothing more, nothing less.
It has recently become clear to me that my real estate colleagues and I need to stay abreast of changes in company policy manuals. If something doesn’t sit well, agents should insist on changes to their independent contractor agreements or simply refuse to sign them. There are plenty of real estate brokerage companies who will fairly negotiate these agreements and be sure you are working with one of them.
Keeping in mind the frequency with which agents move from company to company in our industry, one must be mindful of anything in an agreement that will directly affect future earnings upon departure from their current firm. Regular review of these documents could avoid bad feelings or even future litigation with your broker of record.
Here are a few things to look for:
- Broad reaching statements in agreements such as "you agree to abide by all policies in the company policy manual which may be amended at any time the company’s sole discretion."
- "This agreement shall renew annually." No way, make sure you see a new one each year.
- Insist on direct notification of policy manual changes and make it known immediately in writing if you do not accept any of these changes.
- Company policies that entitle the brokerage to keep additional commissions upon your departure (some companies, not all, will attempt to penalize as much as 30% when you leave).
- Policies requiring reimbursement for advertising expenses or other fees such as assistant salaries incurred by the former company during your tenure as an income producing agent for them.
These are just a few of the things to look for before signing an independent contractor agreement with anyone. Also be mindful that just because something is written in a company policy manual doesn’t make it ethical or even legal in some cases.
Some brokerages out there do their very best to dissuade current agents from fleeing. Despite these desperate efforts, many still see the greener grass on the other side.
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The Manhattan real estate transaction is ANTI-GREEN! It is archaic! It is wasteful! It is insane how much paper is wasted in one single real estate transaction in a day when scanners and digital images are so readily available and prevalent.
In order to understand my complaint here I must first give a little bit of background to the Manhattan cooperative housing market. If your a non-Manhattan resident, continue reading. If you live here and are familiar with co-ops, go directly to the next paragraph. The primary Wikipedia definition of a cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise[1]. In New York City, when purchasing a co-op, one is buying shares in a corporation and the right to sign a proprietary lease to live in a property with rules completely determined and governed by a Board of Directors. The Board of Directors is generally made up of between 5 and 9 people who are appointed via election to conduct the corporation’s business including the review and approval, or not, of prospective shareholders (apartment buyers). Unlike a condominium, a shareholder does not own real property and thus must obtain approval from the Board of Directors if they wish to renovate, refinance, or rent the home to someone (sublet). Here is where the absolute waste of paper comes in.
Each member of the Board of Directors must review a prospective purchaser’s application. This application is comprised of detailed personal and financial information including several month’s of bank/brokerage statements for every one of the purchaser’s accounts, business, personal, employment, and housing reference letters, at least two years of income tax returns with all schedules and a variety of miscellaneous documents and forms that are required as part of the contract or by the Co-op Board themselves. Assuming an average of 6 people on the co-op board and a low estimate of 200 pages per copy, we’re talking about 1200 sheets, almost 3 reams of paper that are being disseminated to each and every Board for each and every co-op sale in New York City.
The impetus for this post is a very easy solution that has already been implemented by the Board of Directors at 20 West 77th Street. Make one copy of an application and all supporting documents, scan it, and disseminate it to Board members over a password protected web site. Not only would this save on paper but it would insure that the sensitive information that is contained in these documents doesn’t fall into the wrong hands and create identity theft issues.
So why aren’t more managing agents and/or Boards embracing this policy? No reason at all in my opinion except that they haven’t thought of it. It would save money and time for not only real estate agents, but managing agents and co-op Boards as well. And let”s not forget how many trees it would save too!
In an age where technology offers an efficiency never before seen in the real estate world, it amazes me that so many still choose to practice archaic methods.
