Friday, June 23, 2017

Many Thanks to Our Wonderful Clients! #188 Agent Wall Street Journal/Realtrends!

It has been quite a journey. When I first conceived of the Burkhardt Group I was met with many naysayers and skeptics who thought it would never work in NYC.  That you could not operate a 'buy-side' brokerage and last, only listing agents succeeded over the long term.

The problem with that hypothesis is there was never a buy-side focused company that was tailor made for buyers and their specific needs. I also focused on all the complaints I received from buyers or read on those early Streeteasy forums. I tackled each one and made changes until I hit on a model that worked seamlessly and addressed these shortcomings. 

We have seen quantum leaps in financial services, transportation services, shopping (Amazon) and travel services that have made it easier and more cost effective to transact. I brought that concept to real estate. 


Thursday, June 22, 2017

10% Down on a NYC Condo? Yes!

Many agents will look at you like you have 3 heads if you tell them you are financing 90%. That said outside of NYC a large portion of homes sales are done with 90% financing, in many cases even 97%.

So here is some hope for those that want to buy, however don't have 20% down or would simply like to save some cash for renovations.

We have now completed 3 deals where our clients secured 90% financing and it was pretty smooth sailing. Now these were all on deals where the seller was willing to accommodate because other options were limited. The quote I have pasted below is from a buyer who just closed at 338 Berry street;

"Keith, Norman, Christian

It was a pleasure working with you!
Thanks for your help throughout the process, and answering all our newbie questions & anxieties.
We are all packed and moving in tomorrow!

We were able to go with 10% down.   
Sunny @ Citizens actually came through, and moved very quickly for us.  They did give us a bit of a fright with an underwriting document request Friday @ 6pm.  It freaked me out, but Sunny said it was not a big deal, and the file would clear on time.  Overall was very happy, and they were extremely responsive.

Guardhill was also offering 10% down, though moved a bit slower and had higher rates.  Beyond them, I believe PNC is also doing 10%.  

SoFi was too much of a blackhole, so I didn't bother proceeding with them once the other lenders came through.  

Interestingly it seemed like most of the banks that wouldn't do 10% really wouldn't do 15% either (except on sub-$1M).

All the best,
Steve & Cristina"

Saturday, June 17, 2017

This Says it All

Hi Burkhardt team

Shveta and I wanted to thank you for all your help in our long journey to find our apartment. We ultimately found something that we hope will be the perfect place for our family.

I must say that your business model is ideally suited for today's environment. As we discovered through the process, in the industry there is ample technology solution to the discovery of new listings, yet the bid and closing process remains very inefficient. Your firm is set up to focus on the parts of the process where it is most helpful, with a no-frills-when-not-needed style, which combined with the rebate model is exactly what the competitive NY market needs.

Also the team is lean yet offers the complimentary skills that is needed to deliver a complete service. Keith you have always provided very genuine advice. Christian - you have been an example of cool headed and efficient execution at crunch time. Lance you have diligently showed us to more than 50 apartments during weekdays and weekends.

Once again, thanks all of you. I will be more than happy to provide references if you should require.

Puneet

Monday, June 5, 2017

This is What We Work For

"Keith,
Thank you very much for the warm wishes. It was truly pleasure to work with you, Christian, and Norman. We appreciate all of your guidance, expertise, and support throughout the entire process. The beautiful handwritten card with the check that Christian handed to us at closing was a wonderful surprise.

I also appreciate your recommendation for Weidenbaum & Harari. Barry and his team were great.

I will definitely be sharing the positive experience we had working with you and recommend you highly!
Best regards,
Stephanie"

Saturday, May 6, 2017

There is No Advantage to Working Without Your Own Broker!

Yet again I receive a call from a disgruntled buyer who thought they would have an advantage by working directly with listing agents. Guess what? They found out the hard way there is ZERO advantage, actually most brokers/agents bully direct buyers. Especially​ when you try and use the fact you're unrepresented as leverage, tell the agent they should earn less so you can get a discount; see how that works out for you.

I certainly understand if you want to work alone as a preference, though you're not truly alone as you'll be working with the listing agent.  The case I reference above, the buyer needed to close the gap on bid/ask, she realized with us she could ($22k rebate). If we're involved the deal gets done. Instead she annoyed the agent asking for a reduction, challenging the valuation and insisting on a discount because they didn't have their own representation. Remember the listing agent works for the seller, helped price the home.  Listing agents and sellers are especially emboldened in this strong sellers market.

When we get involved it's a win-win for everyone, seller gets a deal done with a happy buyer, listing agent gets the deal done with a happy buyer and neither has to dig into their pocket to get the deal done. We have a model that allows us to reduce our commission and still offer a full service, 100% transparent experience. Please read our testimonials, look at the variety of transactions we have completed.

So, you want to fly solo by all means go for it. Quite honestly you do not need a buyer broker to purchase a home in NYC. But know that you will not receive preferential treatment or a discount.

Please feel free to call me to discuss the experience we can offer you.

Best,

Keith Burkhardt
917.770.4951

Friday, May 5, 2017

It's Been Awhile.....

It has been a very active market, certainly the bias has been towards sellers as the market is in a never say die mode. There is lots of speculation as to when 'the next leg down' will be; so far it is all just talk.  We are having our busiest Spring on record, currently with 11 outstanding/accepted offers, 18 deals in contract.

We have also listed our first property at 101 Warren street and now have the entire model worked out along with all the logistics of effectively listing a home. As discussed previously here we are 100% confident we can compete with any brokerage firm in the business. People were skeptical when I started the buy-side model and it has been a huge success, I expect nothing less from our listing service model. It ain't rocket science kids...Call me and I will run you through what we offer.

Best,

Keith Burkhardt
917.770.4951

Data from www.urbandigs.com

Supply
5,407
LISTINGS ON MARKET AS OF YESTERDAY
 8.1% from prior month
 7% from one year ago
Pending Sales
3,473
LISTINGS IN CONTRACT AS OF YESTERDAY
 8.7% from prior month
 5.6% from one year ago
Days on Market
71
MEDIAN DAYS ON MARKET AS OF YESTERDAY
 7.8% from prior month
 22.4% from one year ago
Price / Square Foot
1,367
MEDIAN PRICE PER SFT AS OF FEBRUARY
 0.1% from prior month
 1.4% from one year ago
Monthly Contract Activity
968
CONTRACTS SIGNED IN APRIL
 13.6% from prior month
 12.9% from one year ago
Monthly New Supply
1,640
NEW LISTINGS IN APRIL
 3.2% from prior month
 3.8% from one year ago
Median Sale Price
1,117,978
FEBRUARY MEDIAN SALE PRICE
 0.3% from prior month
 3.6% from one year ago
Monthly Sales Volume
877
FEBRUARY SALES VOLUME
 12.4% from prior month
 11.5% from one year ago
Volatility Index
1.57
ACTIVE-TO-PENDING RATIO AS OF YESTERDAY
 0.6% from prior month
 1.9% from one year ago
Off-Market Inventory
3,370
OFF-MARKET LISTINGS AS OF YESTERDAY
 1.3% from prior month
 31.9% from one year ago
Monthly Median Listing Discount
3.40 %
FEBRUARY MEDIAN DISCOUNT
 0% from prior month
 61.9% from one year ago
Monthly Absorption Rate
4.50
ABSORPTION RATE AS OF FEBRUARY
 15.4% from prior month
 25% from one year ago
Discount to DOM
0.00 %
MEDIAN DISCOUNT UNDER 30 DAYS IN Q1
 0% from prior quarter
 100% from one year ago
Sales Over Asking Price
18.91 %
SOLD ABOVE ASK IN Q1
 10.7% from prior quarter
 27.7% from one year ago

Friday, March 31, 2017

We Were Compared to Priceline??

I think we have all been there, the sort of uneasy feeling you get when you whip out that yelp coupon at a restaurant for the 'free entree'. Or in this example you purchased your hotel room at a deep discount via Priceline.

I always enjoy waxing poetic on our business model, to me and many others it makes a great deal of sense. It is about creating an alternative vehicle for transacting in real estate for a particular sub-set of buyers. I compare it to the effect that technology had on the travel business, financial services and even buying diamonds. Competition fueled by a desire to evolve.

To get back to the subject of this blog, I politely disagreed with this perspective client. When you use a service like Priceline the end user is feeling the pinch to their bottom-line for that particular transaction (though they should not be complaining. They signed up to participate and it filled an otherwise empty room).

With our business model I absorb the discount while the seller and listing agent all benefit without it reducing the sale price or commission. In fact the seller and agent benefit in two big ways; a happy buyer that is feeling very good about the transaction and the seller is potentially earning more from the sale as the additional grease to get the deal done is coming from me. And we cannot discount the important fact that our clients are very happy campers transacting with a business model they feel was designed for them. This is very key, this is a great byproduct of our model, very satisfied clients that work in partnership with us under 100% transparent conditions.

I created our proprietary business model based on all the negative comments I have heard over the years or read on the Streeteasy forum regarding the process of buying and selling real estate. We essentially did the opposite and gave buyers (and now sellers) exactly what they want. And after I speak with a new client for the first time, that is exactly what I hear.

The proof is in our success, over 50 transactions in 2016! And take a look at our testimonials.

Keith Burkhardt
917.770.4951