NICE ARTICLE ON HOW TO FIND A BROKER TO WORK WITH>>>

How to choose a broker: the unscientific guide to finding the right match for you

by HONEYCRISP on SEPTEMBER 9, 2010

Choosing an agent, particularly on the listing side, can be very tricky.  We’ve been asked quite often how to actually go about picking with whom to work, so we’ve put together some thoughts on the matter that we hope you will find helpful.  This section is split up between general thoughts, and questions you may wish to ask agents before making a decision.

Does the firm matter? Yes and no.  On one hand, you want to make sure that your listing will receive the adequate marketing dollars to get sold, and will be represented professionally.  The real question here is how helpful is the firm to your agent?  How many resources are dedicated to making your agent’s life easier in doing the best job of marketing your property, or does the agent need to reinvent the wheel with each and every client?  Also, ask yourself this: do you remember the firm representing the seller when you last bought your property?  Probably not.  You DO likely remember that agent’s demeanor, how (s)he worked through the negotiations process, etc.

Online statistics: With the internet being such a powerful resource for buyers and sellers alike, it’s no wonder that every firm is bending over backwards to come up with the best online stats that showcases their prowess in attracting buyers.  The truth is (we should instead say, “our belief is”) that do-it-yourself buyers, i.e. those with no representation, doing all of their own homework, are likely to avail themselves of aggregators like Streeteasy, Trulia, or Propertyshark.  They are unlikely to be wed to any one brokerage site to find listings.  Further, such buyers make up but a tiny portion of transaction volume.  Having a fantastic online presence is great, but it shouldn’t be the decision-maker.  Infinitely more important is the description of the property that they find on the site (written by an individual agent), the accessibility of the agent representing the property, etc.  In other words, finding the property is merely the beginning.

Commoditized services: Though everyone has a different way of listing a property, certain services are largely commoditized (i.e. if you don’t get them, something’s wrong).  All agents should take professional pictures of your home for use in show-sheets, online advertizing, etc. All of them will conduct some kind of mailing to the building and surrounding properties.  All agents will host open houses on your behalf.  All of them will (via their brokerage firms), make sure the listing is accessible on Streeteasy, The New York Times, the broker-to-broker listing system, etc.

Team or no team?: Some people swear by teams because they can make sure not to skip a beat in terms of showing the apartment, being available 24/7 among the different team members, having multiple minds all working for your, etc.  If you choose a team, make sure you don’t get pawned off to underlings once your listing is “won”.  Other people prefer working with an individual to have only one point of contact and a continuity of experience.  If you choose to work with an individual, make sure (s)he has the capacity to handle your listing and that you have a strong relationship with him/her.

The bottom line, in our view, is that you’re working with an individual or a team of individuals.  They are the ones who matter in the process of selling your home.  Don’t get swept up by the glossy brochures or the fancy statistics.  Try to find the real human being(s) behind the pitch by asking some of the following questions:

-       Why are you in real estate? (something beyond “I like people” would be preferable here)

-       Give me an example of a time when you told your client something (s)he didn’t want to hear. How did you do so and how did things turn out?

-       Give me an example of when you were wrong or made a mistake – how did you rectify it?

-       What is your take on the current economic environment and market dynamics? Why should I sell now and why should I not? (Test for market knowledge beyond the transaction, itself.  The agent should be able to argue the other side of the equation, as well.)

-       What do you feel is your greatest value-add in your working to sell my home?

-       Give me an example of your being proactive with your clients.  How do you partner with them?

-       How do you track activity on my property? How often should I expect to hear from you?

-       What is your philosophy on co-broking and working with other brokers, in general?

-       May I please have three references to contact?

As you listen to the answers given, look for authenticity, depth and compatibility with your personality.  You are about to embark on a journey that will likely test your emotions, ego and patience.  Make sure you find the right partner for that experience.

Best Hotel Suites in the World

Hmmm. Which one to choose?

 Click here to see the CNN's top hotel suites around the world.

Had a nice dinner last night with my cousin Brittany who is working at DKNY for the summer. We went to the new Sam Talbot restaurant Imperial No. 9. Imperial is located in the Mondrian SoHo hotel on Grand Street. Entering the hotel through a gorgeous hotel through a forest of trees, through the blue feathered lobby, and into the beautiful greenhouse/garden dining room is a bit surreal. The food is mostly fresh seafood styled tapas. I highly recommend the scallops.

International buyers are back! C’est vrai!

by RED DELICIOUS on AUGUST 1, 2011

It’s been some time since we’ve talked about foreign investors.  We now have good reason to revive the conversation.  According to Urban Digs, much of the uptick in activity we’ve seen over the last six months has come from foreigners swooping in for pied-a-terres, looking to buy their piece of the Big Apple.  Indeed, even in our business, we’ve seen an uptick of investor activity coming from abroad, particularly Brazil and the Middle East, with a Greek and Turk here and there.  What this means for you sellers is a bit of cultural sensitivity of what this may mean in the course of a deal:

-       Though still a rarity, it’s not unheard of to have offers made on apartments sight-unseen by buyer’s brokers who understand their clients’ needs inside out.  Maybe they lost out on a previous deal, maybe they have a friend in the building.  Nonetheless, don’t be surprised if they don’t need to see the apartment, either to make an offer or gulp to sign the contract.

-       Many foreigners find the concept of divulging all of their financial information to be considered for a property … well … just foreign.  Be sensitive to the fact that they may feel offended by the idea of showing all their cards.  Take care when asking personal information and assure them that this is to simply understand who they are and weigh their qualifications against those of other interested buyers.

-       Lastly, most foreigners will be purchasing properties in cash versus opting for some financing vehicle.  This is particularly the case for pied-a-terres, where one NYC apartment might represent a mere fraction of their world-wide real estate holdings. Don’t discount an all-cash offer with minimal supporting documentation behind it.  Instead, explain your reasons for requiring more information of the buyer to ensure you don’t hit a sensitive spot

When should you buy in a new development for the best deal?

by RED DELICIOUS on JULY 18, 2011

With tax abated properties getting absorbed with each passing week and the inventory of spanking new properties dwindling, fresh new developments coming to market are attracting many interested buyers.  Generally, they are frustrated by the feeling of seeing properties 80%+ sold and having few options from which to choose.  They are also feeling the pressure of decreasing jumbo loan limits and wanting to take advantage of today’s historically low interest rates.  

If you are one of these buyers, you may wonder: “is it better to aggressively jump on a brand new development and purchase one of their first units or wait until a few months down the road to gain the greatest pricing leverage?”  Unfortunately, no clear answer exists.  This is because one could argue the greatest pricing leverage to be had at multiple milestones during a new development’s lifecycle:

·      When it first hits the market argument: the developer seeks to prove viability and will likely discount the first few units to get some sales under his belt

·      The 30% sold argument:  many lenders won’t touch new developments until buildings reach this threshold so the developer is incentivized to hit that mark

·      The 50% sold argument:  50% is the minimum threshold to get Fannie approval, thereby increasing financing options for would-be buyers, therefore the apartments sold prior to that mark should get a good discount

·      The last few units left argument:  once a developer only has a few apartments left, the theory goes, they’ve made most of their money and just want to be done with the project so they’ll discount the last few units.

Now, go back to each of these arguments and think of the flip side of the equation, why it makes no sense for the developer to discount at any stage … not too hard a task, eh?  What we’re saying is that you could strategize ‘till you’re blue in the face and you may never fully understand the developer’s unique circumstances, strategizing until the building is sold out and you’re left with nothing to show for it. 

Use your own personal situation and life needs to guide your decision-making instead.  Does the development have the kind of features you seek?  Do you have the financial wherewithal to purchase the apartment?  What alternatives exist to you?   By letting your situation guide the process, you’re sure to maximize your purchase discipline and minimize any regrets down the road.

Should you leave your apartment on the market during the summer?

Compliments of the Apple, Peeled:

The summer slow-down myth exposed

by MITCHEL ASKINAS on JUNE 17, 2011

It is considered common wisdom that the summer presents both sellers and buyers with the annual seasonal slowdown, both in the number of listings coming to market and in the number of contracts signed.  This is said to be the case due to the mass exodus of residents leaving the city for their Hamptons homes or European villas.

Now, while this might be true for those millionaires living among us (and there are plenty, to be sure), this is certainly not the case for the bulk of the properties responsible for a vast majority of sales volume nowadays, buyers and sellers of apartments under the $1.5 million mark.  Buyers in this range are quite serious and frustrated by the general lack of quality inventory, while sellers are motivated to make a deal and move on with their lives. The more people understand this reality, the less likely this “common wisdom” is to become a self-fulfilling prophecy. 

As Fred Peters wrote on Warburg’s blog about the history of this wisdom:

Increasingly, as smaller apartments entered the sales mix, the seasonality curve flattened. It didn’t disappear, but it flattened. If you are buying a one or two bedroom, you probably don’t care that much whether you are buying it in January or July. You are not spending the summer in the Hamptons. And increasingly we live in a world of two income couples; most of THEM are not spending the whole summer in the Hamptons either.

So what does this mean for everyone?

• Existing Sellers:  If you’ve been on the market for more than a few months, you might be considering pulling your property off the market and waiting it out unit Labor Day.  Don’t!  Instead, use this opportunity to freshen up your listing:  1) re-run your comps to make sure your price is competitive;  2) look at the apartment with a fresh set of eyes as it relates to staging, and 3) consider taking new pictures, particularly if you have outdoor space that looks greener now than it did a few months ago.
• New Sellers:  Remember, waiting until the fall to list, while it may mean more traffic, also means more competition.  Consider listing now full-steam ahead to take advantage of the general tightness in the market and today’s low interest rates to woo buyers.  Just because you’re getting fewer buyers coming through the door doesn’t mean that they are any less motivated; quite the opposite.  Those buyers coming to you now are likely to be more serious than during other times of the year, as they’re giving up barbecue and beach time to visit properties.  Should any offers arise, engage them fully and negotiate every step of the way.
• Buyers:  The hot summer months don’t mean you need to put your search on hold until the leaves start turning.  If you’ve been in the market for several months and have not been finding properties in your price-point, you can leverage this time to test out wider negotiation margins for properties you do like.  Furthermore, those savvy sellers who do list now (read above) are likely to understand the market well and are also likely to be priced correctly.  Lastly, know that you are taking advantage of historically low interest rates.  Who knows where rates will be in the fall?  Work with your broker to stay on top of new listings as they come online so you can pounce on them, should they be the right fit.

To both buyers and sellers, take heart.  The summer in no way means you can’t get what you’re seeking: a meeting of the minds with the other side.  So grab your lemonade and flip-flops, and put your best foot forward!  There are some great transactions to be had!

Good News for Battery Park

Nice to hear this positive news for one of my favorite areas to sell in.



Battery spark - NYPOST.com