Viewing entries tagged
Home Seller Tips

Comment

The Impact of Age In the Market

Two of the biggest portions of the American population are over the age of 65 and under the age of 40, and this has a very, very impactful outcome on our economic position in all sectors—especially housing.

As massive amounts of assets come out of the elderly population’s hands and into the younger generations’, it creates downward pressure on prices. Right now, we live in a relatively tight housing market and there are more people than ever, so that creates ever-more demand for housing. In terms of just the supply of homes, we expect to see a flood of inventory over the next 20 to 30 years as the older generation passes on their property through inheritance or sells it and moves to other places.

Additionally, throughout America and the Western world, the birth rate is low. For reference, my grandfather had 27 siblings! Nowadays, however, meeting someone under the age of 40 who has six kids isn’t too common. It’s economically difficult to raise kids these days, especially given that the younger generation is relatively poorer.

"As massive amounts of assets come out of the elderly population’s hands and into the younger generations’, it creates downward pressure on prices."

Another factor putting downward pressure on prices is the fact that the people who would otherwise be willing to buy them have less money. It’s also a question of how much demand there is for the homes left by the older generation as they pass away (which are sometimes in bad condition).

It’s important to note that all of these factors can change. People are living longer on average. We have no clarity on how properties will disseminate to a younger generation. We also know that millennials are the richest generation. People under the age of 38 actually have more money collectively than any other generation, and they are forming households, despite the low birth rate and despite not having great economic positions. Millennials weren’t as negatively impacted by the financial crisis, and I think that they will absorb that property.

As the aging population bequeaths their assets to the younger population, we will see recessionary periods at times, but there will also be boom periods for companies and practitioners who help improve and sell those properties.

More than any other macroeconomic trend, caring for the elderly, the dispossession of their assets, and the transition from the greatest and baby boomer generations to the millennial generation will be the major trade winds of the entire global and American economy.

If you’d like to understand in more detail how this might affect you, please feel free to reach out to me. I can’t wait to hear from you!

Comment

Comment

Do You Like Being a Real Estate Agent?

Whenever I first meet a business professional, an older person just making conversation, or a peer in the business, I’m often asked, “Do you like working in real estate?” It’s a question I’m always happy to answer, but it is interesting how people almost instinctively ask it.

Personally, I thoroughly enjoy being a real estate agent. I’m immersed in the business day in and day out, and I couldn’t be if I didn’t love it. There are three reasons I’d like to share that explain why I love being an agent.

First, despite all the misconceptions concerning real estate, it’s a full-time, richly rewarding career choice that requires a lot of integrity. When people ask whether I like it, they’re tacitly asking, “Do you like having a part-time job where you earn little and lie a lot?” That way of thinking couldn’t be more wrong.

"I couldn’t be more honored and humbled by the fact that my clients readily trust my guidance with such critically important investing decisions."

For most people, buying and selling their home is the most consequential decision they’ll ever make for their financial future, and we as real estate professionals are there to help them make that decision. That’s something we should be proud of. I know I am.

Some people find their passion in teaching kids because it’s an opportunity to help them grow and become the best version of themselves, and we as agents are fulfilled by a similar opportunity with homebuyers and sellers.

The last, but certainly not least important, reason I love being an agent is that we work as business advisors. Real estate agents might not necessarily be the first profession that comes to mind when you think about people who handle large transactions, but in my career thus far, I’ve helped my clients buy or sell $1 billion worth of real estate.

I’ve found this kind of success because I’ve closely studied financial instruments and debt instruments. Not only that, I’ve assisted people with their financial planning as well as with buying, selling, and renovating properties to turn major profits. I couldn’t be more honored and humbled by the fact that my clients readily trust my guidance with such critically important investing decisions.

If you’d like to speak with an agent who loves what he does, please reach out to me. I’ll be sure to respond right away and I look forward to our conversation!

Comment

Comment

What M.E.D.S. Can Do for Your Life and Business

I’m one of the top real estate brokers in all of New York City today, and I got to where I am by seeking out as much coaching and education and reading as many books as possible.

Early in my career, I attended a seminar where the topic of discussion was on M.E.D.S. And no, we’re not talking about Prozac. Actually, M.E.D.S is a life-changing acronym that I’ve carried with me ever since.

What does M.E.D.S. stand for?

Meditation. One of the first things I do every morning is meditate. I go to TaraBrach.com and usually listen to one of her talks for 10, 20, or on earlier mornings, 60 minutes. Meditation is so important when you’re helping people buy and sell homes because it’s so easy to get caught up in the narrative of a virtual reality rather than focusing on the true reality.

"Though sleep is the final element in M.E.D.S., none of the other three elements are possible without it."

Exercise. If you’ve watched any of my videos, you know how heavily I stress the health and wellness of the Earth as well as the importance of being healthy and well in our lives—both financially and physically speaking. Your physical wellness should be one of your top priorities, and good exercise habits will lead you down the path to a healthier lifestyle. I work with a yoga instructor and personal trainer from TrainDeep.com, and since adopting Jonathan Angelilli’s life-changing workout regimen, I’ve lost 50 pounds.

Diet. I’m personally on the Whole30 Diet, which was introduced to me by my trainer. This is just one of the many dieting options out there, but if you’re interested, it consists of minimizing your added sugar intake and processed foods like bread. Your eating habits are up to you, but my advice is to formulate a deliberate dieting plan.

Sleep. I belong to a club that meets at 5 a.m. each day, which means I’ve made a routine out of going to bed early. Though it’s the final element in M.E.D.S., none of the other three elements are possible without it.

I’ve found M.E.D.S. to be the recipe for success in my life and business, and I’m sure you will too. If you have any questions about today’s topic or about the people I referenced in, please don’t hesitate to reach out to me. I’d be happy to speak with you!

Comment

Comment

How the 2008 Financial Crisis Impacts Our Current Market

When it comes to describing the lasting impact of the 2008 financial crisis, I need to first share a little bit of my own backstory.

You see, I got into real estate back in 2004. Over the next three years, I made millions of dollars’ worth of commission and bought and sold 31 properties for myself. By the time I was 27, though, I lost it all and was facing bankruptcy.

My story isn’t unique, either—everyone was impacted (mostly negatively) in some way by the 2008 financial crisis, and its effects are still being felt today in three specific ways.

First, according to the U.S. Census, homeownership declined by 5% during the Great Recession, and it still hasn’t recovered. That’s roughly 17 million Americans who were homeowners beforehand but now aren’t.

"As that 5% of former homeowners rotate back into the market, we’ll see an increase in homeownership."

Second, homebuyers who bought after the crash did so cheaply and with low interest rates, which means they have little debt and a lot of equity. In other words, there’s a huge amount of homes out there that are cash cows for whoever owns them.

Third, sellers and lenders are more educated than they were before. Lenders aren’t lending money to people who can’t afford a home, and most sellers won’t sell to buyers who aren’t qualified to buy. More importantly, sellers aren’t as aspirational as they were pre-2008. They pay attention to the data instead of trying to hit a random number.

The 2008 crash defined my generation and reset the market to the point where, more than a decade later, we’re still just approaching the levels we saw during that time period. This is a good thing because, as that 5% of former homeowners rotate back into the market, we’ll see an increase in homeownership. This will cause prices to increase, but homeownership will be available to more people in a sustainable way.

If you have any questions about how macroeconomic trends affect homeownership, don’t hesitate to reach out to me. I’d love to speak with you.

Comment

Comment

Why Is Music Effective for Selling Homes?

When you think of the senses you might appeal to when trying to sell a home, what comes to mind? You probably think of sight and smell, but what about sound?

Recently, a client brought several studies to my attention that showed something incredible: Music can have a major impact on potential buyers who are touring a home listing. Ambient music that incorporates sounds from nature—like singing birds or a babbling brook—can be particularly effective.

"Music can make a house feel more like a home."

Think about it: Not many people live in pure silence. Having some pleasant, non-distracting music playing when buyers enter a home for a showing can help them to feel more at ease. Music can make a house feel more like a home.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Comment

Comment

Does Art Matter In Real Estate?

Does art matter in real estate?

Well, unlike fragrances and pleasant scents, I will tell you that art matters. Art really matters.

There are three things that art does to a home that you’re selling:

1. Art defines space. When you put a picture on a wall, it gives the viewer a subconscious feel for how big that wall is.

"Art focuses the eye and elates the viewer."

2. Art helps direct the focus in a room… and makes it seem bigger! In real estate, bigger sells. The picture on the wall not only makes the wall seem larger, but it also makes the house seem larger. Art also focuses the eye and elates the viewer.

3. Art sends a message. If you’re selling a home, framed pictures on the walls say something about who you are. It can send buyers a message about how confident you are as a deal partner, how established you are, and it’s also lovely to look at.

So in the end, yes, I think art matters. If you want to talk about art in real estate, reach out to me. I’d love to have that conversation with you.

Comment

Comment

The Scent of a Ruined Transaction

When you’re selling real estate, it turns out, smell does not sell. It sounds a bit contrarian, but sellers should avoid manipulating scents to help sell their homes.

In 2014, The Wall Street Journal published a great article about this very topic. Essentially, it laid out a few risks that are associated with using scent to attract homebuyers. Smells create a short-term effect, but it can also do the following things:

  • It can seem gimmicky. Selling real estate for hundreds of thousands of dollars is not the same as selling Cinnabon.

  • It can miss the mark. Some people like the fragrance of certain colognes, perfumes, flowers, and candles—and some people don’t. Everyone is different, and you want to cast the widest net possible to attract the best possible price. To do that, you need to be neutral. Present your home like a museum or a hotel, neither of which are defined by strong smells.

"If you want to sell a home for top dollar the way I sell homes for top dollar, don’t rely on smell."

  • It can distract. If there’s a beautiful cookie smell permeating the house, I won’t necessarily think, “I’d better pay full price for this home!” I’ll probably just think about cookies.

  • It can ruin a deal. Smells can make people feel disgusted, complacent, comfortable, or great. But guess what? You’re selling real estate—that’s not your job. Your job is to make the buyer feel like they need to sign a contract by tomorrow or risk losing the home. Smells don’t do that.

I know this view isn’t what most people think, but if you want to sell a home for top dollar the way I sell homes for top dollar, don’t rely on smell.

If you have any further questions about this, feel free to give me a call or send an email. I’d be happy to speak with you.

Comment

Comment

What Does a Real Estate Broker Really Do?

Some buyers and sellers are confused as to what the role of a real estate broker truly is, so I’d like to clarify this for all of you today.

For one thing, brokers are experts on housing values. They know how the size, style, location, and features of a home will impact its value. It takes a lot of knowledge and skill to have such an intimate understanding of this particular point.

Next, brokers are also experts on real estate contracts. Brokers help their clients navigate the process from start to finish. Beyond this, brokers can leverage their wide network of professional references at every step to ensure that you, their client, are well taken care of. A quality broker will have connections with plumbers, electricians, painters, stagers, photographers, and many other such professionals who can assist you with your real estate goals.

"Real estate brokers are service providers."

In short, real estate brokers are service providers. It’s their job to help you get the best results out of your real estate experience.

This is why, usually, brokers pay for every single expense related to marketing your property. This means they pay for professional photography, staging, signage, and other similar services. However, this doesn’t mean they’ll pay for the improvements you make before you sell. If you want to change out your countertops to get a higher return, for example, you’re still responsible for this expense.

If you have any other questions or would like more information, feel free to give me or my team a call or send us an email. We look forward to hearing from you soon.

Comment

Comment

How Can You Spot a Self-Centered Agent?

I’ve been in this business for 14 years and there’s no way I could have achieved the level of success that I’ve enjoyed if being service-oriented wasn’t central to my business. All too often, agents lose sight of the fact that we’re in a service industry.

With that in mind, what three sins are committed by the agent who, rather than taking a service-oriented approach, is self-centered?

1. They have “commission breath.” This is the agent whose sole focus is to close you and collect their commission at the expense of serving your needs. Whether it’s to help you sell your current home or buy a new home, your agent should be working within your desired criteria to bring that goal to fruition.

"Like in the food service industry, you’re in the restaurant because you’re hungry and, no matter what you order, the servers will make sure you’re fed."

2. They don’t have a “big picture” point of view. Because they don’t do a lot of business, when a potential deal comes along, self-centered agents feel like they need to force the issue. As a result, they forget the service facet altogether. Like in the food service industry, you’re in the restaurant because you’re hungry and, no matter what you order, the servers will make sure you’re fed.

3. They don’t listen to your wants and needs. The self-centered agent doesn’t care to be amenable to your schedule. Not only that, but they aren’t sensitive to your experience, nor are they interested in fulfilling your needs—whether with the closing schedule or conditions and terms you’d like to set.

Unfortunately, real estate agents, in general, are sometimes tarred with the same brush as these self-centered types, when, in fact, the agents I work with on a daily basis love what they do and they love the clients they serve. It’s important to work with an agent of that caliber and steer clear of the ones I’ve described today.

If you have any questions about how an agent should behave and you feel as though you’re not receiving the proper level of service, go ahead and call me at 212-965-6051 or email me at David.Rosen@Elliman.com. I look forward to speaking with you!

Comment

Comment

3 Reasons a Title May Be Defective

There are three main types of defects that can appear on a title, and we’ll cover each of them today.

1. Building violations. If you live in a co-op, this applies to everyone living in the property. Building violations aren’t uncommon and, sometimes, aren’t very serious. It usually relates to an incomplete building permit or some feature of the building being out-of-code.

2. Liens. A lien is an unpaid sum of money owed by the homeowner. Properties can’t be sold until these fees are paid off. If it isn’t paid off, the lien is attached to the property, meaning the next owner would unknowingly become responsible. To avoid this, liens must be disclosed during escrow.

3. Judgments. If the property is subject to an ongoing lawsuit or has unpaid taxes still owed upon it, then it cannot be sold until these judgments are paid.

If you have any other questions or would like more information, feel free to give us a call or send us an email. I look forward to hearing from you soon.

Comment

Comment

How Agents Leverage Social Media in Real Estate

Social media is a powerful tool that many professional real estate agents take advantage of. There are three ways your Realtor should be using it:

1. Marketing property on social media platforms. People spend a lot of time on these outlets, and agents want to be capturing their information. Facebook has algorithms that help us capture leads and find potential buyers.

"75% of internet access is done through mobile devices."

2. Keeping it mobile friendly. 75% of internet access is done through mobile devices, and agents want to capitalize on this market. Keeping a social media presence means having quick videos and easily digestible information.

3. Using it as a special feature. Social media itself isn’t an agent’s go-to platform—that’s what the MLS and real estate websites are for. Using social media is simply taking advantage of a great tool.

If you have any questions about social media marketing or would like more information, feel free to reach out to me. I look forward to hearing from you soon.

Comment

Comment

3 Key Elements of Rental Income

Throughout my career, I’ve helped to manage hundreds of homes, and I’ve owned rental properties myself, so I’m well aware that rental income incorporates many factors that property owners need to consider. Here are three key items to think about in terms of producing income from a rental property:

1. Tenants are impulse shoppers. Typically, renters will select a home much quicker than someone who is in the market to purchase a home. Often, renters will only look for a few weeks to a couple months, whereas homebuyers may search for several months before finding one they’re willing to make an offer on. That in mind, if you present a property that is clean, has nice appliances, and has good photos to review, you can get 20% more in rent than if you don’t do those things. Don’t underestimate the emotional experience of seeing a home—that impulse is so important. You don’t want anything that will detract from people diving in.

"Typically, renters will select a home much quicker than someone who is in the market to purchase a home."

2. Good management is key. Once you have a tenant in place (or at least an applicant), make sure that they have access to someone who is easy to pay rent to, treats them with respect, is easy to communicate with, is honest, and has good reviews online. Additionally, it’s a myth to say that a landlord has no rights and that if a tenant doesn’t pay their rent, there’s nothing the landlord can do about it. As a landlord, you can absolutely do everything to get the money you’re owed.

3. Monthly rent fluctuates with the market. Because of inflation, the improvements you make, the economy, and the housing market, rents do go up. Now, we encourage people to be homeowners, and we help people to save money to buy a home, but 70% of the population rents. Those people are signing up for something that is increasing in price. It’s usually the case that rents go up every year, sometimes by 3% and sometimes by 10%. But when you’re a landlord, don’t focus on 12 months—focus on the next five years. Using this period to do your projections is a key element to doing improvements for rental income.

If you have any other questions about real estate investment, either in New York City or nationally, I’d love to speak with you soon. Don’t hesitate to reach out to me.

Comment

Comment

4 Tips for Carrying Out a Well-Organized Open House

Each week of the year, I conduct at least one open house and, sometimes, I do as many as four. As a team leader, I oversee multiple agents, which allows for exponential development in the number of open houses we do.

In fact, we’ve established most of our business from the strangers we’ve met at open houses. Here are some tips for how you can do the same and cement yourself as an authority on all matters related to real estate.

1. Play some music. My specific go-to playlist is Spotify’s “Hôtel Costes.” Douglas Elliman, an employee of my company and one of the top agents in the world, has a business partner who has cited this as his music of choice for open houses.

2. Adjust the temperature based on the season. In the summer, the home should be well air-conditioned, and in the wintertime, make sure the heat is at a cozy setting—you’re going for absolute comfort here.

"Your agent’s ability to secure a higher sale price for your client hinges on these follow-ups."

3. Have fact sheets about the home readily available. Not having these on hand for each and every buyer that visits the home gives a clear signal that your agent is disorganized and ill-prepared, which doesn’t go over well with a potential buyer. My team and I not only supply fact sheets, but we also offer a buyer’s guide, a seller’s guide, our listing statistics, and a social proof (this is a series of images of the homes we’ve sold in the last year).

4. Ask those in attendance to sign in and include their contact information. Further, make sure you monitor the sign-ins closely. A cardinal rule is to never use a pen—but why? Well, through trial and error, I’ve learned what a hassle it can be to try and decipher phone numbers written in chicken scratch. And what if one person doesn’t even leave a phone number? Everyone that comes in thereafter might follow suit and, as a result, you’re left with avoidable missed opportunities. It’s incumbent on the agent to extract as much information as possible from each person in attendance. Their ability to secure a higher sale price for your client hinges on these follow-ups.

If you have any questions about how to conduct the perfect open house, please reach out to me today. I look forward to speaking with you!

Comment

Comment

Capturing the Appeal of Luxury Homes in Terms of Price

When we use the word ‘luxury,’ what do we mean? In New York City, by definition, a luxury property is one worth more than $4 million. In the bigger picture, the word connotes something like a Lamborghini, Ferrari, or a Rolex—something more expensive than a lesser version of it would cost. Luxury items are things that people buy because they love them and see them as cool and cutting edge.

Now, when people look at luxury real estate, they may or may not expect some negotiability; I don’t think that Ferraris are highly negotiable, and when I think of penthouses, I know they sometimes sell for asking price, and they sometimes sell for less. In the last 30 days in New York City, over 100 properties sold for more than $4 million, according to an Olshan report.

"In New York City, by definition, a luxury property is one worth more than $4 million."

As real estate professionals, we want to use round numbers to price a luxury property and create impulses for the buyer. While it won’t necessarily skyrocket in value, we want to convey confidence that this asset’s price is in line with the coolness that it projects. Optimistically, there’s a buyer out there that will marry with that price.

If you have any questions about the luxury market, I’d love to speak with you. Who doesn’t want to talk about the most precious and beautiful real estate in the entire world?

Comment

Comment

5 Tips for Finding the Right Listing Agent

If you’re in the process of interviewing listing agents for the right to sell your home, here are five tips that will help you pick the right one:

1. Ask for reviews and references. If you were considering hiring me, for instance, I’d encourage you to reach out to other sellers who’ve hired me so you can learn about their experiences. You can also check an agent’s reviews online.

https://www.zillow.com/profile/thedavidrosen/#reviews

https://thedavidrosenteam.elliman.com/testimonials

2. Weigh the pros and cons of hiring a local expert. Many buildings have a resident agent who’s made a small fortune selling their neighbors’ homes over time, but these neighborhood experts can limit what you can get for your sale price. Not only can they be sensitive to their reputation and be less bold, but they typically aren’t up to speed on crucial factors like population movements.

"If you follow these tips, you’ll pick the right agent and love the choice you made."

3. Inquire about sales statistics (e.g., how many homes an agent has sold in that last 12 months). I provide all of my seller clients with my listing statistics, including my median days on market and my median sale price.

4. Ask if they’ll customize a marketing strategy for your property. Each property needs a game plan. An experienced agent, such as myself, should have many strategies for different types of situations. In addition to knowing what to do, they should have a team in place to implement their strategy.

5. Make sure their personality meshes with yours. There are plenty of agents in this city who have great sales statistics, but the bottom line is you have to like who you work with and they have to like what they’re doing. If they like what they’re doing, that will lead to a win-win situation for everyone involved in the transaction.

If you follow these tips, you’ll pick the right agent and love the choice you made.

If you have any more questions about how to pick the right listing agent or you have any other real estate needs I can help you with, feel free to call or email me. I’d love to hear from you.

Comment

Comment

Negotiation Tips for Sellers Part 3: Advanced Tactics

Now that we’ve reached the third installment of our series on negotiation tips for sellers, we’ll be covering the advanced tactics you need to know to successfully list and sell your home. We’ve already covered beginner and intermediate tips (which you can find here and here), and before we get into today’s tips, which will mostly apply to the final stages of the deal, please realize that they aren’t ones you’ll want to rely on all the time.

Ideally, the negotiations in your real estate deal shouldn’t be contentious. Even so, it sometimes isn’t feasible to keep the other party’s feelings in mind when you’re trying to earn the best possible deal. With that in mind, let’s cover our advanced negotiation tips:

1. Raise the price after going under contract. This certainly won’t make you any friends, but it will help you earn a high price.

"Never apologize for seeking the best possible deal."

2. Go deep on contingencies. Doing away with inspection, financing, and even appraisal contingencies is an aggressive, yet powerful, way to strengthen your position in a real estate deal. Money may seem like the most important thing, but if you go deep on contingencies in order to make sure you get the buyer’s deposit, then all the cards are in your hand.

3. Remember that today is different than yesterday. Things change. The majority of advanced negotiation tactics people use are actually based around renegotiation. Don’t be afraid to make changes to what you’re asking based on new developments in the market or economy, and never apologize for seeking the best possible deal.

At the end of the day, all of these tips are most effective if you also have a strong agent by your side. As your broker, I would be happy to act as the “tip of the spear” on your deal.

Comment

Comment

Negotiating Tips for Sellers: Part 2

Now that you’ve received a serious offer on your home and you and your potential buyer have started negotiating over its price, here are three next-level tips that will help you secure the best deal possible:

1. Counteroffer with emphasis. There are a few ways to do this, but one way I recommend is lowering your list price. This not only creates a binary dialogue with your potential buyer, but it also creates more competition for them because it shows that you’re willing to make a deal at that threshold.

The only reason not to do this is the fear of missing out. In other words, you think another buyer might swoop in and offer you full price. Here’s the thing, though—if two or three weeks have gone by and that hasn’t happened, it probably never will. If you don’t want to counter by lowering your price, you can also create scarcity by telling the buyer that you’re talking to many other parties.

2. Find out what else is valuable to the buyer (other than price). When you know what’s important to them emotionally, you can build on that and have a more collaborative negotiation. For example, let’s say their monthly mortgage payment is important to them. If you asked for $1 million and they offered $900,000, you can tell them that if they’re willing to come up to $975,000, you’ll pay a certain number of discount points that will lower their monthly payment.

"Negotiation isn’t about giving in; it’s a dynamic process where many other factors besides price are discussed."

3. Remember that they need you too, so don’t give in. Negotiation isn’t about giving in; it’s a dynamic process where many other factors besides price are discussed. Buyers have to come to you. They want to come to you. If they want to buy your home, they understand they you’ll only sell it to them at a certain price and under certain terms. At the end of the day, for most real estate negotiations, the seller has more leverage than the buyer—especially in a market like ours.

Even in a soft market where a buyer might feel like they have tremendous leverage, they’re not going to buy a home just for fun. They’ll buy it because they need a place to live and they can see themselves living in your home—they just don’t want to overspend and feel like they’re losing money.

So counter with emphasis, find out what else is important to the buyer other than price, and remember that they need you and they want you to agree with them. If you do that, you’ll be more successful than if you just negotiate haphazardly.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Comment

Comment

Negotiating Tips for Sellers: Part 1

Welcome to the first episode of my three-part series on negotiating tips for sellers.

I’ve helped negotiate thousands of transactions, and over the last two years, I’ve maintained a track record of earning sellers 100% of their asking price.

If you’re interested in achieving this kind of success for your own deal, simply follow the tips in this series. For this installment, we’ll be covering three beginner-level tips:

1. Create scarcity. Treat your property like the only diamond available in a market full of coal. Make sure buyers know that your home is a fleeting opportunity and that if they don’t make a move, someone else will.

 

"Sellers should pause after they receive an offer so that the buyer becomes more invested in the deal."

 

2. Price compellingly. Home price is not an exact barometer of value. Price is a marketing tool. You can get people to bid over asking price. In fact, between 15% to 25% of properties sell above asking price in New York City during any given month. We don’t live in a bazaar-style economy—many people would prefer to pay above asking price over haggling. You don’t necessarily need to underprice your home to achieve these results, but you do need to price it well.

3. Pause every time you receive an offer. There’s a French child-rearing method called “The Pause,” and this method can also be applied in real estate. Per this method, parents are encouraged not to rush to their child’s side when they hear them begin to cry. Instead, they take their time. This isn’t to say that the child should be completely ignored, just that parents should wait a moment before responding. When applied to real estate, the sellers must do the same. Sellers should pause after they receive an offer so that the buyer becomes more invested in the deal.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Comment

Comment

How I Broke Into New York City Real Estate With a Short Sale

When I moved back to New York City from Scottsdale, Arizona, I was already an expert in short sales because I had gone through five of my own. I had bought a bunch of properties that lost their value, so I knew what it took to sell a home for less than you owed. My prior experience is the reason I have this story to share with you today. 

Since I was looking to break into the New York City real estate world, I met a broker who said that if I helped him with a complicated short sale I could be part of the transaction.

There was a first position mortgage, a second position mortgage, and a bankruptcy estate. The gentleman owed $4.2 million and could only sell it for $3.8 million. It was hard to sell because the market was slow and people did not know what a short sale was.

We had to negotiate with three banks and get them to accept the offer of $3.8 million. While that is a lot of money as far as Chase Bank was concerned, it was not enough. Since there was also a bankruptcy involved, we had to show all the parties that we were getting them the most money possible, which we were.

 

"We had to negotiate with three banks and get them to accept the offer of $3.8 million."

 

The secrets to doing a short sale are as follows:


1. The property must be listed professionally.
2. The agent and seller must demonstrate strong marketing strategies.
3. Ethics and honesty must be shown by getting the most money for the property.
4. An excellent attorney, who can set the minds of the banks and lien holders at ease, must be involved.
5. The seller must be patient.

I was very grateful for the opportunity to break into New York City real estate with this complicated but lucrative transaction.

If you have any questions about short sales, please feel free to call or email. I look forward to speaking with you soon.

Comment

Comment

What Do You Do if a Listing Agent Goes MIA?

What happens if you find a house you really like and you try calling or emailing that house’s listing agent but they don’t answer? 

This situation sounds like something that never happens, but let me tell you something—it happens all the time. Roughly 90% of all people who get their real estate license are only in the business for less than five years, which means that potentially 90% of the people you interact with in the real estate business are unqualified. 

A listing agent might become unresponsive for a number of reasons, such as:

1. They’re greedy. They already have an offer and they don’t want to waste their time with another. It might not be a good offer, but they don’t care. 

2. They’re not efficient with technology. In this case, you have to call them or double-check that their contact information is correct.

3. They’re protecting a direct deal. This means they have a buyer they don’t have to “co-broke” with and they don’t want to bring any other buyers or their agents into the fold because they don’t want to submit any other offers. Even if they signed a contract that says they won’t do this, they still might.

 

"Roughly 90% of the people you potentially interact with in the real estate business are unqualified."

 

To clarify, this 90% also comprises the 80% of agents who do less than 20% of the overall business, meaning that 80% of the overall business is done by the 20% of all agents who are experienced, work on teams, and play fair. 

When we encounter a situation where a listing agent goes MIA, we try and follow up with them by calling, texting, and/or emailing. If they’re still unresponsive after about four or five attempts within a certain time frame, we call their manager. Whenever you hire a real estate brokerage to sell a property, you’re not hiring an individual agent—you’re hiring a company. If a corporate agent doesn’t return my call, I call their corporate manager and tell them what’s going on. 

This practice is commonly discouraged in the brokerage community, and as your broker, I would never let that happen to you. Finding the home you love is an emotional process, and you have to fight to win it. We will always fight for you. 

If you have any other questions about unresponsive listing agents or you’re thinking of buying or selling a home in our market, don’t hesitate to reach out to me. I’d love to speak with you!

Comment