Yet again another client who has followed us for years was ready to make an offer on a property. However when we spoke she mentioned she had only one very impromptu appointment the night before with the listing agent who was planning to be at the property. Unfortunately it turns out she had also sent some very specific questions to the broker after the meeting. The broker kindly responded in detail.
You never know how an agent will respond when a buyer breaks the news that they would like to have their own representation. REBNY actually has a protocol for this that allows for a buyer to bring in his own agent after the fact. We treat it case by case and weigh all the facts before deciding on a course of action. We are most concerned with our new client, however also want to respect the other agents involved.
If you are planning to utilize our services or any other buy-side agent it is very critical that you engage your agent/broker before visiting any properties via private appointment or contact any listing agents. There is no advantage to not having your own representative, it's nonsense when people tell you that listing agents will favor your deal. Only crooked agents would act in such a way; all offers must be presented to the seller. The seller with assistance from their agent will decide who is the most qualified, it's not always about the highest offer either.
It's up to you to do some research and find an agent that you can trust and work comfortably with. Don't laugh, they are out there :). Even if you are undecided, best to write in "Broker to be determined" at open houses that you visit.
With our model that offers rebates we can also mitigate any manipulation of commission on the sell-side. Call me and we can go deeper into our strategies and how we can help you maximize your bid without depending on the sell-side for guidance, information. Remember, the listing agent is rightfully looking out for the best interests of the seller, not yours. Read about the perils of dual agency here.
Saturday, March 21, 2015
Friday, March 13, 2015
2014 versus 2015 NYC Market
I remember thinking in Mid December 2013 after a very strong market that things would cool a bit in 2014. That January (2015) we had submitted a total of about 19 bids (a ridiculous amount!), strong bids from well qualified buyers. I think no more than 2 got to contract. It remained a very challenging market through that first quarter, we held our ground and did our best to assist with getting deals done at reasonable valuations.I don't easily get down, but the amount of rejection was starting to wear on me. Many of our clients were feeling the same way, especially after 3, 4, 5 losses in the dreaded calls for highest and best! We wound up having a solid summer, all and winter as we worked tirelessly right through Christmas with motivated clients not willing to throw in the towel.
I was certainly concerned as 2015 began. Would this be deja vu all over again to quote that great Yogi (Berra). Well so far it has been an excellent start to the year, with record amounts of deals getting to contract. We have any very happy buyers, this month looks like we'll do over $10M in deals. Although it is still a tough market, I feel that things have loosened up a just a bit, enough to get to home plate more times than not.
Once you do get that accepted offer it's time to scramble, get due diligence complete, advise the sell side of the progress you are making daily. That time between accepted offer and fully executed contract can be very stressful. On some deals you are just waiting for that dreaded phone call that a "higher, all cash offer has come in and the seller has elected to proceed with the new buyer".
I don't show apartments, I essentially just sit at my computer all day and work on the various aspects of deals. Since we don't ever try and sell you, I am more useful at command central. I can keep on top of all current deals, handle issues that may crop up out of nowhere; essentially handle anything as soon as it arises. I am always available to speak, get emails answered immediately and can assist a client with a property evaluation, offer presentation at the drop of a pin. We didn't plan things this way, just sort happened and business grew exponentially. Go figure?
I was certainly concerned as 2015 began. Would this be deja vu all over again to quote that great Yogi (Berra). Well so far it has been an excellent start to the year, with record amounts of deals getting to contract. We have any very happy buyers, this month looks like we'll do over $10M in deals. Although it is still a tough market, I feel that things have loosened up a just a bit, enough to get to home plate more times than not.
Once you do get that accepted offer it's time to scramble, get due diligence complete, advise the sell side of the progress you are making daily. That time between accepted offer and fully executed contract can be very stressful. On some deals you are just waiting for that dreaded phone call that a "higher, all cash offer has come in and the seller has elected to proceed with the new buyer".
I don't show apartments, I essentially just sit at my computer all day and work on the various aspects of deals. Since we don't ever try and sell you, I am more useful at command central. I can keep on top of all current deals, handle issues that may crop up out of nowhere; essentially handle anything as soon as it arises. I am always available to speak, get emails answered immediately and can assist a client with a property evaluation, offer presentation at the drop of a pin. We didn't plan things this way, just sort happened and business grew exponentially. Go figure?
Sunday, March 1, 2015
Proving the Doubters Wrong One Client at a Time!
"Its been over a year and a half since I purchased my
apartment, and I'm still thrilled with the decision on the apartment, and have
so much appreciation for your help and advice throughout the process. I
could not have imagined a better experience with a brokerage, Realtor, or
adviser in general. I knew you guys always had my interests in mind, and
I would heartily recommend your team heads and tails over anyone else.
Thank you again!!!
Amanda"
Saturday, February 28, 2015
Mindfulness: Just Breathe....
I have been practicing mindfulness for about 10 years. It is essentially the practice of paying attention, usually to your breath. You can sit, lay down be on the train, there is never a bad time to be mindful. It can give relief to an immediate stressful situation, however over the long term you wake up one day and realize you are calmer, happier, lighter...
This is an interesting article from the WSJ on the benefits of practicing mindfulness meditation by school children.
Living in NYC is very stressful to say the least and certainly our children have a lot on their plates as they navigate the city, play dates, school, clubs, sports and friendships etc. I think many of the stresses build up slowly over time, years of exposure to the sights, situations and sounds of city life. It can take a toll on you both physically and emotionally (and you may not even be aware of it). I would become very aware of it on our trips to Costa Rica. After a day there I felt as if a heavy coat had been removed from my entire being!
What initially drew me in was the science behind it, I think it was a study done by Harvard researchers on the brains of Buddhist monks in Tibet. They learned some things that were thought not possible regarding brain function.
Finding and actually closing on a home in this market, mindfulness may be a worthwhile consideration! Even my beloved, yet not very mindful mother would say "Breathe" Keith.
This is an interesting article from the WSJ on the benefits of practicing mindfulness meditation by school children.
Living in NYC is very stressful to say the least and certainly our children have a lot on their plates as they navigate the city, play dates, school, clubs, sports and friendships etc. I think many of the stresses build up slowly over time, years of exposure to the sights, situations and sounds of city life. It can take a toll on you both physically and emotionally (and you may not even be aware of it). I would become very aware of it on our trips to Costa Rica. After a day there I felt as if a heavy coat had been removed from my entire being!
What initially drew me in was the science behind it, I think it was a study done by Harvard researchers on the brains of Buddhist monks in Tibet. They learned some things that were thought not possible regarding brain function.
Finding and actually closing on a home in this market, mindfulness may be a worthwhile consideration! Even my beloved, yet not very mindful mother would say "Breathe" Keith.
Tuesday, February 24, 2015
A Clear, Legal Explanation of Commission Rebates in NYC from REBNY
| Question: I am a New York real estate broker and will be closing a transaction in a few days. Am I allowed to share a portion of my commission with either the seller or the buyer in the transaction? I was informed that the law in New York on this issue was recently amended. | |
Answer: Yes. The New York State Department of State (the “DOS”) has consistently taken the position that New York real estate brokers may share a portion of their commission with a purchaser, seller, landlord or tenant in such transaction (a “Party to the Transaction”). For example, a real estate broker who is representing a purchaser may give the purchaser a $5,000 gift card.Recently, Section 442 (2) of Article 12-A of the Real Property Law was amended to reflect the position taken by the DOS. Section 442 (2) now states, in part:
Accordingly, New York State law is consistent with the DOS position regarding real estate brokers sharing their commissions with a Party to the Transaction.
Important Tips:
(1) The commission may only be shared with a Party to the Transaction. The Party to the Transaction cannot direct that the commission be shared with a non-party (for example, a purchaser cannot direct that the commission be shared with a favorite charity of the purchaser).
(2) The real estate broker must make the decision to share the commission with a Party to the Transaction. The real estate salesperson or associate real estate broker cannot make such a decision. Similarly, the sharing of the commission must come from the real estate broker.
(3) The sharing of the commission could take many forms; for example it could be an incentive (i.e. “use my services and I will pay you $5,000 from my commission”), a gift (i.e. a vase) or a gift certificate (i.e. a $5,000 gift certificate to Home Depot).
(4) It is strongly recommended that if a real estate broker is representing one party and decides to share a commission with the other party, such decision should be disclosed to the party that the real estate broker is representing (i.e. a real estate broker who is representing a seller and who decides to share a commission with the purchaser, should disclose to the seller such decision). Such disclosure prevents any appearance of impropriety or conflict of interest.
(5) A Party to the Transaction cannot be acting in the transaction in any capacity that would require a real estate license (i.e. a seller holding themselves out as a real estate broker).
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Best and Final? No, Highest and Best...
Boy, we have all been down this road a few times! This can be one of the most frustrating, emotionally draining aspects of a NYC apartment purchase. We recently went through a rather troubling situation that really gutted our client which I recently blogged about here. This is a nice legal explanation from REBNY:
Legal Line Question: Best and Final Offer
Q. I represent a purchaser who is looking to purchase a condominium unit located in New York City. There were several offers placed on the unit and the seller’s real estate broker, who is a REBNY member, requested that all prospective purchasers submit their “best and final offer.” My purchaser’s “best and final offer” was accepted. A few days later, I was informed that the seller elected not to sell the unit to my purchaser. What, if any, binding effect does the acceptance of a “best and final offer” have on the seller?
A. The acceptance of a “best and final offer” does not have any binding effect upon the seller. Pursuant to New York State General Obligations Law (the “GOL”), an agreement for the sale of real property will not be binding or enforceable upon the parties unless the parties enter into a signed written agreement setting forth the “essential terms” of the real estate transaction. In support of the GOL, New York courts have stated that until a written agreement is fully executed by the parties, the seller is free to sell the property to another party and the real estate broker is free to negotiate with other prospective purchasers on behalf of the seller. Towards that end, courts have articulated that the purpose of the GOL is to distinguish provisional agreements (like a term sheet) from a final and binding contract. Important Tip: The term “best and final offer” should not be used by real estate brokers as the term is misleading and may imply that the seller will be bound by the acceptance of the “best and final offer.” Instead of using the term “best and final offer”, real estate brokers should consider using a term such as “highest and best offer”. Real estate brokers should also make it clear to all parties to the transaction that the parties will not be bound by any agreement unless and until a written contract of sale, setting forth the essential terms of the transaction, is signed by both parties. less
Tuesday, February 17, 2015
We Have a New Website!
I must admit I sort of liked our dated, bare bones website. For me it was just more confirmation that nothing trumped providing a high level of service for your clients. You could be very successful without a lot of glitz, we grew very organically. However to keep inline with our efficient, cost effective principles we built this ourselves. Lance Piebenga who is our newest team member took the lead and built it out using Squarespace with an assist from me on design.
We kept it simple as well as clean with a link to StreetEasy so with one click you have access to all NYC property listings. Perhaps in the future we'll add some additional tools and features to enhance the experience.
Our business model was created by listening to buyers and sellers express what they liked and did not like about their experiences in real estate. Please feel free to contact me with any suggestions regarding our website.
Best,
Keith
keith@theburkhardtgroup.com
We kept it simple as well as clean with a link to StreetEasy so with one click you have access to all NYC property listings. Perhaps in the future we'll add some additional tools and features to enhance the experience.
Our business model was created by listening to buyers and sellers express what they liked and did not like about their experiences in real estate. Please feel free to contact me with any suggestions regarding our website.
Best,
Keith
keith@theburkhardtgroup.com
The Burkhardt Group
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