Monthly Update - June 2016

Bidding Wars?!

Not in a "down" or "changing" market. Well, not so fast!

What kind of market are we in, anyway? "Correcting," "down," "changing," " hot," "competitive," "buyers'" or "sellers'" — You pick the adjective or type of market that best describes your own experience. I’ve had buyers lose properties in bidding wars and others get 20 percent off the asking price. I've had sellers accept an offer 15 percent off their asking price, and sellers who have signed contracts at 10 percent over the asking price — all in the same week!

Let’s take a step back. Where were the asking prices of these properties? Were they condos or co-ops? Where were they located: Brooklyn or Murray Hill? All of these questions are very relevant to how the market will treat either your sales listing or your purchase and your experience in this [insert your favorite adjective] market. I’ve reported in the past at #thetaleoftwomarkets, and this trend seems to be continuing. Maybe this is the new normal, if you can call it that.  

 

Is Your Broker Leaving Money on the Table?

Co-brokering your most valued asset could be the difference between a best offer and leaving cash on the table!

  James Nelson

James Nelson

A friend and fellow real estate powerhouse James Nelson at Cushman Wakefield reported last month on the power of the co-broke. I felt that it’s such an underrated topic that it needed to be given more attention. The brokerage community is such a powerful resource, with billions in pre-approved lending from thousands of well-qualified buyers represented by hungry buyer agents — who can’t get into your listing! It bewilders me that sellers' brokers would do a huge disservice to their sellers by blacklisting the brokerage community and cutting their sellers out of thousands, possibly hundreds of thousands of dollars, and they do it just to line their own pockets with 2 or 3 percent more commission.

"When fees and buyer pools are shared, properties generate a higher demand and price, resulting in the most value for everyone involved."  

These actions are from an, albeit, small contingent of rogue brokers, but they are large and powerful enough to be ultra-annoying and utterly confusing to this agent. Why they are even in business is beyond me. The actions of these few agents are weakening our industry and giving brokers a bad name. Most of all, they cheat their owners out of money.

Owners, listen up! Cell phone photos, no floor plans and no marketing plan to the brokerage community will cost you money. Hire the best and most professional agents you can find. Make sure they have a well-proven plan. The little black book of hidden listings is long past.


COMPASS News:

  • Compass is now in Aspen
  • Compass is now #3 in Washington D.C.
  • The Compass Quarterly is here

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