Well after an absolutely non-stop summer that saw me working 7 days a week, all things are now quiet on the Western front( at least on the rental side). The real estate biz is seasonal so it is expected, but the previous months were so slamming that it has taken a little time to adjust. This year I put into practice the things I learned from this recession: save money for a rainy day, you never know when it's going to pour! I think collectively everyone takes a deep breath after labor day as they start to consider where they are at and what the new year will bring. Certainly this has been a very difficult year for many with our economy in a deep recession, rising unemployment, frozen credit markets and a beaten down real estate market. I was looking at a list of dollar amount transactions per quarter of real estate sales on StreetEasy. Wow, some really eye opening stuff! If you have been relying solely on selling apartments over the last two years, you more than likely have taken a big hit to your income.
As some of you know one part of my new business model has been to offer discounted brokerage fees on rentals, along with some rebates. This has been hugely successful! The next phase of The Burkhardt Group business model, now that the fall is approaching and my rental business has slowed is to focus on sales. The center piece of this model is the commission rebate, all buyers we work with will get back a percentage of our commission at closing. This type of buyer program can add a lot of real value to your next real estate purchase, especially here in Manhattan where a purchase can easily reach into the millions. This applies to all sales transactions that we do and in a nutshell you will receive from 33% to 67% rebated back to you at closing regardless of the final purchase price. The amount you are rebated depends on the level of service you require.
Without any advertising other than a few mentions in forums, I am receiving many requests for my service as a buyers broker. In about half the cases it has been from buyers who are out there doing most of the work themselves, in other words they prefer to go it alone at their pace. But they would like some assistance in formulating/presenting an offer as well as an evaluation of properties that they are considering for purchase. With these clients we also trade emails or will speak on the phone to discuss the current market, neighborhoods or a particular property the buyer has some interest in. Even if you are doing most of the legwork I am available to speak with you anytime to discus your purchase, that is part of the plan.
I also will work with those selling a property and can offer you a listing commission of 3.5%, this ensures that the brokerage community is fully included, they will receive 2.5%. The most important part of selling your apartment, well actually there are two parts. The first is you have to be priced correctly. The second is you have to have the eyeballs of the entire brokerage community. Well over 95% of sales in Manhattan involve two brokers, one escorting the buyers around(see broker agency for more information on this) and one whom has listed the property. In my opinion the size or color of the firm does not matter as much as the experience and integrity of your broker. In years past this may not have been the case, but technology essentially evened the playing field. I recently sold a property listed using this model, I had as much traffic as a neighbor listing and the property was ultimately sold to a buyer represented by a Corcoran broker. This was actually a bit of a complicated transaction, the "buyer" is going to rent for 9 months before applying to purchase, but a contract of sale was executed and a deposit put into escrow. She has completed a board application for a sublet first (just approved!) and will have to complete a board application for sale approx. 9 months from now. This took the cooperation of all of us to make it happen and believe me it was not easy! But if you have the right team in place and are working with people that are focused on closing the deal, not just the size of the commission...all things are possible. This property sold for under $400k.
I am really enjoying working with this new model, it allows me the flexibility to create more deals as well as add value to the transaction for the client. The point is to offer you options, a menu of services to choose from to fit your particular situation. And for brokers who want to become associated with us, you will will be able to offer your clients the same benefits. What buyer is not going to be thrilled to not only get out standing service from you, but also a check back at closing?! For those brokers that are experienced and working with many referrals you will see your referral base grow ten fold! You also know that essentially all you need is an internet connection to work with a buyer. Where do you search for your listings?
Marrying your experience with technology and an innovative platform to work off is a great formula for personal and financial success!
0 comments:
Post a Comment