Warburg Blog

A sunny Sunday! The weather is frigid, but we dodged a blizzard and the City is getting ready for a New York-less Super Bowl. We held a 2 hour open house today for a new exclusive, a smartly priced 2 bedroom/1 bath on the Upper West Side. Walking briskly to the apartment, I was wondering what kind of turnout we would have! I got there early, moved the kitty litter out of sight, connected my netbook to the owner’s speakers and tuned in some appropriate background music (Sirius/XM Radio’s Coffee House - a good choice) and waited.

After 25 minutes, some despair set it as no one came — and then, a few at a time, the crowds arrived. By the time the open house ended, we have over 25 parties and 45 people come through the apartment! A few came and went quickly, but a surprising number of buyers spent quite a bit of time looking at the apartment, asking well prepared questions (how long has the apartment been on the market, what the Board was looking for in terms of income and assets, etc). One couple knew about the building - they had been interested in another apartment and just lost out to another buyer whose offer had been accepted.

I took the opportunity to ask most of our shoppers about their impressions of the market. Several had just started their search. Quite a few have been looking at apartments for a while. Most of the buyers were well prepared and knew their market - they knew what was on the market, what comparable sales were like, and they asked very intelligent questions. Some buyers commented that the price for the apartment “seemed right” - an indication that we had done our homework and priced the apartment correctly.

The common sentiment, however, was the seriousness these buyers displayed. These weren’t “tire kickers” out for a Sunday stroll, or window shoppers just looking around. Quite a few felt that the time to buy was now - there was a general feeling on the part of the most serious shoppers that the market had started to show signs of life and that the time to buy just might be now!

Within an hour after the open house, a few calls came in from people who had been to the apartment, asking for more information. And just a few hours ago, our first offer came in. While the offer was below the asking price, it was a strong offer by a pre-approved buyer! Not bad after just one day on the market. Reports from other Warburg brokers tell of strong turnout at other open houses. Several of our new developments have also had good turnout and offers.

We’ll see how things work out - our sellers are considering the offer and planning a counter offer. It’s often difficult to advise sellers when an offer is received so early in the selling process, especially when the market’s recent revival is met with skepticism by some in the press!

All in all, it was a good day for real estate and for Saints’ fans!

Yes, it’s busy. Yes, there is a lack of inventory in many categories - in particular pre-war 2 and 3 bedrooms on the Upper West Side and in Carnegie Hill, which are flying off the shelves at a rapid rate, after Open Houses visited by 50 or 75 buyers, and often with several bids. No, the bids are not, mostly, above the asking price. But sometimes they are (it all depends, of course, on the asking price) Yes, there are still a lot of new condos for sale, even though absorption for those has picked up substantially as well. And yes, buyers DO think, often, that they may have missed the bottom and want to get in now, although many still bid low, just to be on the safe side. Sellers are just starting to think about how the discussions in Washington about changing the Federal capital gains tax rates may affect them, since selling a property two years from now may be a lot more expensive.

The market changes of 2009 wiped the slate clean for both buyer and seller behavior. In 2010, we see a new paradigm taking shape. There is market activity. There is limited inventory. Negotiations are often equally weighted between a more empowered buyer and a more flexible seller. Bonuses make those who receive them feel more financially confident but do not generate market frenzy. Nor do they elevate prices so much that those in other professions feel unable to participate.  There is for today a certain balance in the market. We like it.

As we enter into the 2010 marketplace, few things remain more prominent in New York City real estate than that of the basics. Such “basic” is the VIEW. “Oh my, the view is amazing…”… words so simple, words that we all have uttered. Why? Well, perhaps in all of our personal quests, our real desire is that we covet a piece of the Urban view that so makes up our world.

I began thinking about views in particular during my open house today at 79 Bridge Street. The penthouse two bedroom’s organic interior juxtaposes brilliantly with the urban landscape of DUMBO and lower Manhattan. Despite the fastidiously finished details within, prospective homeowners were immediately drawn towards the wall of windows for a closer glimpse of what could only be described as the energy of the moving city.

Like the view from the windows of 79 Bridge, views in New York allow the apartment dweller to feel one with the city while tucked away in their own private retreat. Views become an aesthetic detail- one that cannot be controlled or refined, it simply exists. Such idea is incredibly refreshing in a city where we are hustling and bustling, day in and day out. How lovely to recognize that something does not need to be managed, only appreciated and enjoyed.   

Angela Latigona

Associate Broker, ABR, CLHMS

We’ve been talking about the broker’s shifting role.  Following are my reflections on the subject to be published next month in The Mann Report.  I welcome your comments.   

In today’s Internet Age, real estate buyers and sellers need only to turn on their computers to surf the proliferating public websites for immediate access to all kinds of information.  With the click of a mouse, they can check out available inventory, view floor plans and photos, gain data about recorded sale prices and even join discussion boards and blogs.  When the Internet provides such easy access to information, why hire a broker?  And how does one choose from among the growing number of real estate professionals?  What makes a good broker? 

Indeed the Internet is a powerful tool for principals and brokers alike.  Though sometimes flawed with outdated or inaccurate information, as the first point of entry for any search, the Internet saves valuable time by allowing us to preview the broad landscape of competing properties from our desks.  Information alone, however, is not enough; for it to have value, the information requires analysis and judgment. 

Experienced brokers serve to evaluate and interpret information.  As consultants, we share more than our knowledge of a particular building, neighborhood or co-op board.  Adding perspective, we highlight nuances and explain market trends in a broader context.  We not only educate buyers and sellers about recent sales, but offer insights about choices and resale possibilities helping buyers and sellers to make informed decisions. 

Effective communicators, we are experts in negotiating and closing.  We know how to prioritize and identify areas for flexibility and compromise.  We know how to listen and are skilled at positioning and packaging.  We are able to champion a cause logically and persuasively to put together the best possible bid, counter offer or board package.  We are adept at guiding buyers through the increasingly arduous borrowing process, helping to identify lending professionals who will explain ever changing requirements and unpredictable scrutiny.   We are accomplished at delivering the best possible presentation to co-op boards. 

Part Diplomat, Part Shrink

Good brokers are well-versed in the psychology of buying and are armed with discretion and diplomacy.  We lend emotional support to every transaction, and are adept at hand-holding and easing stress.  More often than not, we become confidantes to our clients and customers who invariably share personal and often sensitive details.    

Good brokers have a wealth of resources at our fingertips and have strong working relationships with mortgage brokers, lenders, attorneys, designers, stagers, architects, contractors, and movers.  Our judgments are respected, and we cooperate effectively with all players involved in a transaction. 

Good brokers are creative thinkers and problem solvers.  We know how to manage expectations and have the courage and integrity to speak the truth always.  Vigilant during every step of the process leading up to a successful closing, we know how to anticipate and overcome obstacles.  We recognize that appraisals today are coming in low, so we work diligently to price realistically.  Always mindful of the transaction’s timing, we pay close attention to the calendar to acknowledge when a mortgage commitment may expire, or if a board review is taking too long since if a board interview has not occurred 30 days after the contractual closing date then either side may cancel the contract.

Much like the attorney who represents himself and has a fool for a client, the buyer or seller who goes it alone without a broker is shortchanged more often than not.  Without the benefit of professional counseling, time is wasted, money is lost, and deals go astray.  Even negotiating effectively for one’s own account is tough, because ego always gets in the way of self-intentions.  Whenever, I’ve negotiated to buy or sell a property for myself, I’ve asked a colleague to act as spokesperson for me in order to save face if I ever offended with a low offer, inadequate counter, or disparaging comment.

Buying and selling a home is not only a major financial commitment representing a significant portion of net worth; for most, it’s a pivotal life event.  Though not nearly as high on life’s stress meter as marriage or divorce, the process is fraught with emotion and anxiety.  To ensure a smooth transaction from beginning to end, buyers and sellers are advised to select the right broker.  The recommendation is to get referrals from friends or other professionals and interview your prospects.  For the best outcome possible, hire an experienced broker with sensitivity and integrity who demonstrates a willingness to provide personal attention and service and a successful track record to achieve your specific goals. 

Calling all “starchitect” buffs….The Store Front for Art and Architecture has a new exhibition of parallel video installations by film makers Ila Beka and Louise Lemoine. These four architectural movies take an everyday/insider’s look at iconic contemporary buildings and the people who inhabit them.

Koolhass Houselife centers around a house in Bordeaux designed in 1998 by Rem Koolhass and its daily care,  Xmas Meier looks at the impact of Richard Meier’s contemporary Jubilee Church on the Tor Te Teste neighborhood Rome, get a rare look at Frank Gehery’s Guggenheim in Bilbao from the dizzying  perspective of the climbing team in charge of daily care of the structure in Gehry’s Vertigo and enjoy a slice of life with the line dancing grape pickers of Pomerol Herzog & de Meuron. Each of the films is a 20 minutes well invested and will leave you with a new appreciation for contemporary architectural vision. The perspective runs from January 21^st  through February 26^th.

Storefront for Art and Architecture

97 Kenmare St.

NYC

11am- 6pm

212 431-5795

Technology in so many ways has made our business more efficient and in some cases more challenging as we have constant communication within any given transaction albeit real estate or any other. But let’s not forget that at the end of every blackberry, laptop, or even new fangled IPADS, there is a live human being attached.

And the process of purchasing or selling a home is an emotional one, not one of engineered robotics. As we, the brokers navigate throughout the transaction with the aids of our trusted hardware and software, communication on a more human level can get muddled. The anxiety and anticipation from both sides can get morphed into an emotional tailspin if one cannot rely on the basics of customer service.

A “meeting of the minds” should also encompass the customer service requirements that assure that both the buyer and the seller will result in a feeling of a win-win situation. This means using the technology to assure that both parties’ needs and concerns are being addressed by all parties involved. Long gone are the days of waiting for a fax or god forbid someone doesn’t have an answering machine to return a call in an expedient manner? Expediency is good customer service.

And now with expediency, there is no longer an excuse for not returning an e-mail promptly or explaining the details as to why one side or another can’t close or move in a certain timeframe.

 In fact, moving, near the end of a transaction, is one of the most unsettling and emotional aspects of the human component of buying and/or selling. No matter which side I am representing, as soon as a contract is signed, I tell my customer or client to “start packing”. And in cases of putting an apartment on the market, “pre-pack” to leave a fresh environment of the impression that one is ready to move on.

As brokers, while we have all the access to expediency, I think the most valuable reason why a buyer or seller should use a broker is that he or she will provide the best customer service possible. This means that combined with the precision driven service that technology can afford, one will always keep in mind that on both sides of the transaction, human beings are attached and one will make every effort to help him or her “move on” in an understanding and compassionate manner. This is good customer service, and no matter how far we go with technology, good service is always warranted.

This Sunday at my open house at 225 East 36th Street in Murray Hill, I had the loveliest people walk through the door.  I was amazed at all the buyers who commented on the beautiful dog whose name is “Roxy”, they all wanted to know if Roxy comes with the apartment? I said,”everything is negotiable”?  I suggested to the sellers, perhaps to include the dog in the sale of the apartment. The owners looked at eachother and in unison they said, “NO WAY”!, everything is negotiable, but not Roxy”. 

One of the great things about being a real estate broker is that you find yourself in all over the city in any given day.  And many times with a half hour or 45 minutes at loose ends. I was picking up a board package in the Sutton Place area just before lunch recently and ran across a fabulous patisserie called “Financier”.  Fresh, light foods with a French flair- I had the best slice of quiche I think I have ever eaten – gruyere, portobello mushroom and white truffle oil- just sublime. The pastries and coffees are off the charts- in fact for those of us who miss “Payard” on Lexington – this one of their new spots — so the best croissants in all of New York have a new home.

I truly love my office – Manhattan!

I’m not quite sure where to begin, we’ve all had them.  It’s their first time, like a baby coming out of the womb, crying and fussing and maybe even a little scared.  For the purposes of this blog I will refer to the Buyer as Sally and at the end of this story I will disclose as she has given her permission for me to do so.  Please feel free to ask questions at any point during this story.

This started back in 2007, that’s right 2007, when the property was first discovered.  It was a brand new development at the time that was not without problems, but Sally just couldn’t get this property out of her mind.  It was everything she ever wanted in an apt., square footage, a second bedroom and bath, fireplace, washer/dryer, storage and very close to transportation.  As a matter of fact her same subway line just adding three more stops.  Slam dunk right? Wrong.

Now the process begins.  Since there were issues with the developer Sally now thinks there should be some serious negotiating room and we put her first offer in on January 1, 2008 - at the time the development was with another firm.  I put an offer in with the brokers, listing and discussing the reasons for what would be considered a low ball offer. 

Reply from broker to be continued……………

The award I received last night reinforces just how lucky I am. I live and work in the most wonderful city on earth, with the love and support of my family, friends, and colleagues. Fostering and building communities is my life’s work.

At Warburg Realty, we help people find their homes. One of the great pleasures of working in residential real estate is seeing someone sit back at a closing, always smiling, when the paperwork is done, because now they have a new home. I always enjoy that moment. Yes, in real estate we get to see lot of great apartments. But our real work is about relationships and expertise. We are all about using our knowledge to help people come home. I am proud to be in a service business, and to have such strong direct relationships with the people we serve.

But, I can’t help thinking that not everyone has what we have. In Haiti right now, there are hundreds of thousands, perhaps millions, who have no home. All of us who work at Warburg are committed to helping families find homes, and that includes families in Haiti. For so many of them, it will be a long, long time before they too have the satisfaction of moving into their own home. For so many of them, home will be a tent, at best, for months to come.

There are many excellent organizations doing work in Haiti right now, but my own family has come to know well the work of the International Rescue Committee, who are among the leaders in emergency response in Haiti today. We have seen their work firsthand. Please join us in supporting relief efforts in Haiti. And at the moment this is best done in Haiti by letting the experts set up the structures that will allow people to begin to rebuild their lives. We encourage you to give to International Rescue Committee, because we know they know what to do in emergencies to rebuild communities. You can follow the link at the top of our home page to make your donation. As experts ourselves in creating community, we believe in letting the experts do the job.