TrueGotham was born from a desire to raise the bar in the real estate industry and although I have seen quite a shift in those who enter the profession (higher caliber education and professionalism) and the way that most of my colleagues do business, there remains considerable room for improvement. An example:
Last May, a couple whom I have been working with for quite some time viewed a property with me that we deemed overpriced at the time. I must mention that this couple and I have an incredibly open and honest relationship as I continue to work with them in procuring the "right" home. In this particular instance, I nor my buyers were the problem. The property that we viewed was comprised of 2 units to be combined and owned by 2 separate owners. Both were being represented by one of the top real estate agents in the COUNTRY! One of his assistants met me and my buyers at the building and took us into one of the units. He then lambasted the owner of the second unit for being a "bitch" and for not letting us see her unit "claiming she was sick." He also claimed that the unit owner of the "unseen property" wasn’t a "real seller" and that the owner of the unit that we were standing in "hated her neighbor." (Please excuse all of the quotation marks but I’m actually quoting this agent from memory.) Giving the combined price of the 2 units and this additional information, my buyers and I decided it made no sense to proceed.
Fast forward to 2 weeks ago…The property came back on the market with another large firm listing the combination at a slightly reduced price (very slightly but my buyers thought perhaps the seller’s had become more realistic with their expectations). The listing online showed a combined floor plan and made no mention that it was still 2 units. Both I and my buyers thought that it seemed as though the sellers had combined the units to re-market them. My assistant attempted to schedule an appointment to view both units, this time inquiring with the agent duo representing the property as to whether the units had been combined. NEITHER agent for the sellers could answer this question when first asked and called us back to inform us that the units had indeed been combined. Great!!! We scheduled an appointment to see how the combination turned out and assumed that we would make an offer based on a much more reasonable asking price post combo.
We arrived at our scheduled noon appointment to discover that we were meeting the owner of the unit we had already seen and not their agent representative (perhaps they were too busy misrepresenting other property?) The owner was absolutely as gracious as could be and quite informed about how the combination could be done based on her experience combining units in other nearby, similar buildings. That’s right…the combo HAD NOT been completed. The good news was, this owner was "very friendly" with her neighbor and in fact they were business partners in a variety of real estate investments (remember what the agent said back in May?). So we entered the mystery unit that we had not yet viewed and to our delight met the "bitch" who was even more gracious, friendly and informed that her lovely neighbor.
After about an hour conversation with both owners and my buyers, we exited the units and entered the elevator to the leave the building. My buyer turned to me and said, "No offense to you at all Doug but that is precisely why everyone thinks that the people in your industry suck." And all I could say was, "I completely understand where you’re coming from and wish that there was a way to eliminate agents who are obstacles to transactions from the industry." The only way that is going to happen is if sellers and buyers alike are more diligent in their hiring of real estate professionals. Simply hiring anyone with a real estate license isn’t going to do the trick.
Here are some simple things that sellers or buyers can do to insure they aren’t working with these types of agents:
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Ask for more than one reference.
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Google your prospective agent (you may be surprised at what you learn about them)
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When working with a 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.
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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.
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Ask your agent "why you?" And listen carefully to their response being certain that they bring something of value to the table that another agent or working alone doesn’t.
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Ask your co-workers about their experiences with agents and consider a referral based on their responses.
Despite what many people think, a professional and experienced real estate agent can indeed bring considerable value to the buying or selling process. They better if they want to continue to earn their commission.
We’re heading into the weekend and after an insane week being bombarded by the media and providing no further comment than what has already been described on my blog, I’m spent. Having said that, here are some tips and some links to sites with tips about increasing security at open houses so that you aren’t victimized:
- Sellers should not just hide valuables but lock them up. At our open house, my sellers had hidden all of their valuables and these crooks were able to discover some of them anyway. In 16 years, I have never had or heard of this happening before.
- Officer Solomon from the 24th Precinct suggests that agents or sellers call 911 immediately if you witness suspicious persons or activity.
- Consider asking open house attendees for photo ID. It may not please some but if they are real buyers, they won’t have an issue with producing identification.
- Consider having multiple agents at an open house so that each person in attendance can be watched diligently.
- Consider allowing one visitor or pair of visitors at a time to view the property.
- Consider asking visitors to kindly leave handbags (containers) in a closet while they view the property.
- Be sure that your cell phone is charged and that you have someone to call with a code word to alert them to call 911. Also have your cell programmed to 911.
- Don’t let people wander unattended through a property.
- Check all rooms before leaving a property.
If other agents/brokers out there would like to add to this list before we go into this weekend, please do so and I will publish it ASAP.
I think perhaps the most important thought to leave everyone with is that this seems to be an isolated series of events perpetrated by the same duo. This was not meant to create hysteria or anxiety but rather an awareness in the real estate community and the public so that no one else is victimized by these people. That said, as a matter of safety going forward, all of us in the real estate industry as well as the sellers we represent need to be more diligent about safety and security at our open houses as they remain the most effective way to sell a home in Manhattan.
Here are some additonal links to sites about Open House Safety:
Workplace Safety (comitini.com)
Open House Safety (pdf from realtor.org much of which is not relative to apartments but some is very helpful)
More Tips (from Alder Nagy)
UPDATE: This particular duo was apprehended and charged on Saturday, November 24th.
Just got off the phone with the police department regarding the Open House Larceny that happened on Sunday. The officer with whom I spoke commended me for posting the pictures and alerting the industry but wanted me to be clear that this was not a "robbery (use of force) but a larceny (no use of force). Glad to be able to clear that up.
For now, I will have no further comment on this story.
UPDATE: If you recognize these women call Crime Stoppers at 800-577-TIPS. All calls are anonymous.
Good news, bad news. The good is that we FINALLY have the surveillance video from the Open House that was robbed this past Sunday. The bad news is that they aren’t nearly as clear as we had hoped but they are good enough to alert the industry and the public to this duo of thieves who have apparently hit at least (probably more) 5 open houses since October 21st. Note the brunette fixing her wig in the elevator. My agent who caught them in the act is almost certain that the brunette is a man in drag. The blonde was a bit smarter than her partner as she was careful to not show too much of her face on the video. She seems to be a real woman too.
Here are the pics and they are being circulated around my industry and to the public in an effort to thwart any future robberies and possibly capture these dregs.
The duo together entering the elevator.
The adjustment of the WIG!
Entering the building
Best pic of the blond.
We are still reviewing more images but this is a start. As we capture more images and are able to "clean them up" and perhaps enlarge them we will post as available.
To my colleagues and the public,
First and foremost, it appears that this couple has pulled this off numerous times over the past month. Having said that, this is by no means a reason to be overly anxious or suspicious as most of those I have spoken to in the industry have never heard of this happening before. I’m not a detective at all but it appears that this is an isolated incident of serial robbers taking advantage of the open house market. Open houses remain one of the primary sources for buyers and i will at NO TIME suggest that people discontinue having them. They remain the most powerful tool to sell most apartments!
I am suggesting that all of us be a bit more diligent about keeping our eyes on those that attend our open houses and that sellers LOCK UP valuables such as cameras, iPods, cell phones, jewelry, medication, credit cards and other small "stashable" items of value. For a great list of what homeowners should do to prepare and protect themselves, visit my colleague Peter Comitini’s blog.
Here’s to these thieves being captured!
UPDATE: If you recognize these women call Crime Stoppers at 800-577-TIPS. All calls are anonymous.
UPDATE: Not just caught on camera but "caught" as in apprehended! On Saturday, 11/24 the duo was apprehended and charged.
Green is the new black! With all the talk of global warming, hybrid cars, and alternative fuels, it is becoming increasingly popular for builders and homeowners to make eco-freindly choices in their projects and around their homes. This weeks episode of OpenHouseNYC explores ways in which we can do just that.
As part of NBC Universal’s campaign, Green is Universal, in this episode of Floorplan, George Oliphant describes some easy and aesthetic steps anyone can take to make their home eco-friendly and more cost-effective.
First, George visits Bettencourt Green Building Supplies in Williamsburg for tips on paints and countertops that are environmentally sensitive. Then George travels to Red Hook and talks to William Hilgendorf from Uhuru to learn about sustainable furniture made with refurbished wood and recycled fabrics. Finally George, checks out The Future Perfect and owner David Alhadeff shows off items in the store such as bowls made from records and vases from wine bottles.
When George wraps up his shopping, green interior designer and Pratt Institute professor, Carol Crawford checks out George’s new space to see how eco-friendly it has become. Carol gives her assessment and demonstrates how greening one’s home does not have to come at the expense of design.
After all the decorating is complete, George talks with Marcell Van Ooyen, the Executive Director of the Council on the Environment. Van Ooyen gives some easy tips that are easy to implement to make your home even more green. He first suggests the obvious switch to compact fluorescent from incandescent bulbs. Van Ooyen also shows how little things like aerators on your faucets and blinds on your windows can dramatically decrease the energy output of your home.
Go green and watch the video to learn how you can transform your home as well!
Some very easy ways that all of us can contribute to a better environment.
My colleague and fellow blogger Kevin Boer at 3 Oceans Real Estate has this week’s Carnival of Real Estate. With a World Cup of Soccer theme, Kevin’s top three picks are absolute must reads including how to be a successful agent in a down market, the future of the real estate blog, and how sellers hire agents often based on unfulfillable promises. Check it out.
Regarding Sunday’s robbery. I hope to have the pictures up today as building management has approved their release to me. It also appears that this criminal duo (it may actually be a couple with the man dressing in drag…more on that later) has been robbing Open Houses since at least October 21st. I’m just puzzled as to why no one has shared this within the industry or with the public to thwart these crooks?
Yesterday, Sunday, 11/12, one of my Upper West Side properties was robbed during an open house. My agent caught one of the 2 women in the act and when confronted the 2 women panicked, dropped most but not all of what they had stolen and dashed out of the building. One of the women ran into the bathroom when caught, relieved herself, cleaned herself with a bath towel, threw it in the bath tub and ran out of the apartment pushing past my agent and suggesting she would sue him if he touched her.
Upon inspection of the apartment by both the police and the sellers, merchandise (jewelry, etc) and prescription narcotics (with other people’s names) from other Upper West Side robberies was found stashed around the apartment. It appears that when they were caught, they panicked and began leaving this merchandise so that it wouldn’t be discovered on them should the police catch them. So it is likely that someone else was victimized yesterday and may not even know it yet. They haven’t yet been caught but we have very clear video of these two women on building security cameras. To that end, I will be providing all of you with these images upon receipt so that sellers and their agents can be aware at your future open houses. I will also be providing a contact number for the precinct that responded to the scene.
In addition to this just being a disgusting experience, the thieves did get away with the seller’s diamond eternity engagement ring and another heirloom ring that her grandmother had left her. It’s a violation that no one should have to experience but fortunately no one was hurt.
UPDATE: If you recognize these women call Crime Stoppers at 800-577-TIPS. All calls are anonymous.
UPDATE: On Saturday evening, 11/24, the duo was apprehended and charged.
Today’s New York Post reports that Leonard Blavatnik has signed a letter of intent to pay $150M for the Penthouse triplex at The Mark.
The space for sale, totaling nearly 30,000 square feet, is a combination of five planned units on the top three floors of the building.
If sold separately, the apartments would comprise a total of 23 bedrooms, 25 bathrooms and five powder rooms.
Also featured is 3,900 square feet of outdoor space – including a huge rooftop terrace with a pavilion and fireplace – a ceiling from 10 feet to 26 feet, a gym and all hotel amenities such as twice-daily maid service, fresh linens and room service.
This purchase by Leonard Blavatnik at The Mark will SHATTER the $100M record price paid by by Ron Baron for an East Hampton land parcel earlier this past summer.
UPDATE: Deal NOT happening (via The Real deal). Ouch, losing that commission hurts! I suspect this won’t be the last we hear about this transaction.
UPDATE 2: The Post is reporting today (Friday, 11/9/07) that Blavatnik’s offer is only $125M. Where are The Post and The Observer getting there information? Who are these sources? I wonder how Mr. Blavatnik feels about his negotiation being so public. IMHO…I think he should buy the entire building and hire someone who respects confidentiality to sell what he doesn’t want.
From Curbed comes this post on Real Estate Agents Happy/Sad About School Grades. Erin Einhorn and Brian Kates of The Daily News report School report cards may have effect in real estate market.
Homeowners and real estate agents are bracing for the fallout from the city’s decision to give letter grades for the first time to all public schools.
Several schools long-considered to be among the best – so much so that they affect property values – earned less than stellar grades, and parents are "flipping out," said Marci Rosa, a former PTA co-president at Public School 261 in Brooklyn.
Remember the recent uproar in interpreting Fair Housing Laws? Well attorneys throughout the city have been advising brokers and their agents to steer clear of talking about school districts and the "caliber" of specific schools. Maybe this is why? I know one thing and that is that since I’ve been told to leave this information out of my marketing pieces, I point all of my clients with children to the Inside Schools website. It’s an excellent resource and let’s parents judge for themselves whether or not a school is the right place for their family. Or you could trust the grades that the city has just handed down to all of the schools by searching here for your school (via The Daily News).
The beauty of having my own real estate blog is that when I get an urge to vent…well…I vent. Now I will preface the following rant by saying that in my 16 years in the Manhattan real estate business, I have never seen such a large percentage of competent, knowledgeable, and professional real estate agents than those who make up the current agent pool. That said, there is still some "weeding" that needs to be done and gaging by the incessant hiring that the big firms continue to practice, it will be up to the consumer to "pull the weeds."
What am I talking about? How’s this for starters all based on my personal interactions with seller’s agents over just the past 30 days:
- Selling agents representing property on the Internet without photos, floor plan, or video and irritated when asked for photos or floor plans.
- Selling agents unfamiliar with building policies, financials, amenities, and/or Board practices and irritated when asked questions regarding these topics.
- Selling agents taking overpriced property only to procure buyers whom they can steer towards other properties. These agents are often irritated by sellers questioning their marketing strategy and overall activity.
- Selling agents unable to provide complete information regarding their sellers and their attorney to facilitate a contract (this info should be at agent’s fingertips when an offer is accepted to insure an expeditious transaction). The agent should also have copies of financials for the building, the offering plan and all amendments, and a purchase application. Again, this particular agent was irritated by our multiple requests for information over several days stating simply, "this is how I work." Does the seller know "how you work?" I would bet not.
- Selling agents unavailable to show their exclusive listings. This requires some elucidation…so here goes…obviously there are times when a seller doesn’t want their place shown and often there are also times when an agent has conflicting appointments and can’t accommodate everyone. Understood. But how about the agent who lives in Connecticut (why they are selling Manhattan real estate is another topic?) and doesn’t want to have to "take an early train in the city to show at 10:30AM." And guess what? She became irritated when we persisted in getting a late morning appointment.
- And the penultimate…the selling agent who doesn’t return phone calls…for days…or EVER? I wonder if they communicate with their sellers at all.
Anyway, these are just some examples of the dregs of my industry whom I have been forced to try to work with recently. Fortunately, and as I previously stated, these circumstances are not the norm but I’m certain that each of the sellers involved with these agents is completely unaware of the obstacle that their agent has become in the selling of the property. If you’re one of these agents, (you’re obviously not because you’re reading this) BEWARE. Sellers are going to continue to demand more from you. So shape up or be weeded out.
So what should a seller do? Give a little listen to this podcast from June 2006 for my take on selling your Manhattan apartment. The advice is timeless and it’s less than 20 minutes long.
