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

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

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

Incentives Given To Lead Brokers to Water???

Even in this rather strong seller market there are properties that need a little push to get them sold. Developers feel that incentifising agents with higher commissions or other bonuses will make agents lead you to these properties. Personally I'm not so sure this works. I've always taken the position it is better to simply lower the asking price or provide the incentives directly to the buyer.

What do we do you ask? We give any incentives offered by developers back to our clients. Simple.

You Asked For It: New Listing Model for 2017.

The brokerage business has evolved, both buyers and sellers want more options. When I started The Burkhardt Group over 9 years ago with a focus on buyers, many said it would never work. Last year we closed $80,000,000+ in sales.  This service will be geared towards those sellers that have homes that more or less sell themselves. Where there is not a need for a large firm and its vast marketing reach and finances. 


Listing Service Proposal

Primarily, we are looking for those homes that seem to ‘sell themselves’. If a listing hits the market with multiple bids after the first open house, this is a function of the market, not the listing agents. We want to offer owners of such homes an appropriate brokerage model that accounts for this dynamic and offers an appropriate commission structure.


We will be selectively curating the homes we decide to list and providing you with an accurate valuation along with a strategy that will guarantee a successful and efficient transaction. If you believe you have such a home, please call me to discuss and I will gladly explain why ‘who you list with is’ is just a matter of subjective preference. While receiving multiple offers after an open house can be satisfying, the sobering reality of the considerable transaction cost can most definitely suffocate the elation!

To help remedy that, our basic listing formula has been developed as follows:
3.75% commission, 2.5% to buyer agent (includes us representing a buyer). Direct deals 2% (no buyers agent). Professional photos are provided and the seller pays for floor plans if needed. Exclusive agreements can be cancelled at any time and past clients aren’t protected in the event of a cancellation. This is for full service representation.


Additionally, the following services and amenities are provided:


1)  In-depth valuation report.
2) Detailed feedback on showings.
3) Assistance with staging.
4) Email blast to all REBNY brokers with setup sheet and link to listing pages.
5) A pragmatic selling strategy that ranges from starting listings at market price to slightly soft in order to immediately attract buyers and fuel more frenetic bidding.
6) Three open houses for the first week: Sunday, Monday, Wednesday.
7) Listed in RLS, Streeteasy, Zillow and Trulia.


But most importantly, we will never give you any bull. Instead, we always offer straight talk on what's happening.

In Summary

Remember that 95% of the selling comes from the buyer’s agent; what does the listing agent do? Call me for a detailed explanation of how the brokerage business functions and why correct pricing and current market conditions are 90% responsible for an efficient transaction.  


We revolutionized the buy-side experience, adding value in dollars and sense. We are now ready to do the same with the listing experience.


Best,
Keith Burkhardt


917.770.4951

Real estate commissions cannot be fixed and are always negotiable.

Great Read from Urbandigs:2017 off to a Great Start!

This certainly mirrors what we are currently experiencing. The market is very active, buyers will bid aggressively for quality homes that are priced correctly. The cream is rising to the top however not everyone is coming along for the ride.

New condo inventory is not moving as quickly as similar resales, however pricing remains firm and developers are excercising patience. There is some room to negotiate, however surprisingly limited to a few buildings. Some new developments have begun raising prices (50 Greenpoint Ave). We are seeing some wiggle room on buildings that have been on the market for 6 to 12 months and are struggling to move that last bit of inventory. However you are getting the scraps and they're not cheap. If one of these unsold units works for you, you're in luck.

https://www.urbandigs.com/blog/2017-off-to-a-good-start-but-watch-out-for-condo-yoy-price-trends/

We Are Starting 2017 off Strong! Which Means Our Charities Are Also Benefiting!

We continue to financially support the good work of The Henry Street Settlement and New Life 4 Kids!