Warburg Blog

Here in Sharon, Connecticut where I rode out the hurricane with three generations of my family, the sky cleared around 1 AM last night , and the storm gave way to an extraordinarily clear starry night. That morphed this morning into the most perfect day possible. This house, which my wife and I renovated painstakingly over a period of almost two years, has become a wonderful gathering place for family and friends at holiday time, in moments of crisis (my niece, her husband, and their baby son came here three days ago from Brooklyn once they heard all the subways were shutting down and there was no food or bottled water left in the stores!), and for re-establishing a sense of connection with people I love and with the world at large. As I cooked for everyone (I love to feed a crowd), I thought about the meaning of creating a home.

Both our apartment in New York and our house in Connecticut have been centers for family activity. It takes a while to make a dwelling place into a home, and for me, owning rather than renting has given me the sense of permanence, of belonging, which has made that transition possible. True, many people rent long term and feel similarly about their homes, but for me owning is an integral part of the home building experience. I would believe in it with or without the mortgage tax deduction, and regardless of whether my home always seemed like a “good investment.”

The question is, investment in what? I have written before in the blogs about my belief that New Yorkers focus too much on the notion of their home as an investment. When I bought the house in Connecticut, at the top of the market back in 2005, I knew I was paying on the high side. And that was before the renovation! Recently, for a refinance, it was appraised for about 2/3 of what I have in it. But so what? Stocks are down too, and I have no plan to sell this in my lifetime because it makes us all happy. What is the value of that?

So, New Yorkers, remember that money is not the value which counts the most. The home in which you can raise a family or entertain friends or give great parties will fill up with memories and associations which enrich your life and fill you with a sense of well being about your history and experiences. Price per square foot is important, but it doesn’t hold a candle to the importance of creating the right backdrop against which your life can unfold.

Meet Ariel Norwood and Andrew Smith. Norwood is Marketing Team Leader and Smith Associate Team Leader of the specialty department at the Whole Foods Market in Chelsea. Norwood and Smith are dedicated employees who strive to maintain the organic, sustainable and farmer friendly feel of Whole Foods. The market’s success and popularity is due, in large part, to the very close relationships they’ve built among their experienced staff members and with the regular Chelsea shoppers.

Whole Foods

250 7th Ave
New York, NY 10001 USA

Tell me about the history of Whole Foods.

AN: We’re a 30-year-old company based out of Austin, Texas. We were originally a very small team with only a handful of members. But the company has obviously grown.

How does the Whole Foods team operate?

AN: From a production standpoint, we like to encourage people to think out of the box and be creative. We’re very open to team members bringing in new products for their sections of the store. This is really empowering for the people who work here because they have the opportunity to express what they’re interested in.

AS: Also, we’re not labeled as managers at Whole Foods because there’s no task that we don’t do, from the most complex to the most mundane. The other day I spent three hours cleaning out drains! The structure at Whole Foods is such that the leaders delegate while leading by example.

When did the Chelsea location open? How does it compare to other Whole Foods stores around the world?

AN: We just celebrated our 10-year anniversary this past February and this is the oldest location in New York City. Specific to Chelsea, we work hard to build partnerships with other local businesses. We like to give back to the community and our customers. For example, over the holidays we did a MacBook Air giveaway and “tweet-away” in conjunction with Tekserve. We also donated one hundred apple pies to the local Holy Apostle soup kitchen and Tekserve provided iPod shuffles to the volunteers.

Does this store host any classes?

AS: No, due to space limitations. However, once a month we invite three to five beer vendors to the market. They bring in their beer samples and we pair them with food that will attract customers. Where else can you go for three hours and get to sample 20 different beers?

How does Whole Foods contribute to widespread movements like “Support Your Local Farmer” and sustainability?

AS: We really excel at telling the story of where our products come from. If you look at a piece of our chicken, cheese or meat, you can trace it back to the farm. I think our customers appreciate the connection that we have with our farmers and distributors.

AN: Yeah, everything at Whole Foods is very transparent. For example, we’ve started color-coding and separating our meat so people know how it was handled.

How has the neighborhood transformed in the past few years?

AN: Chelsea is experiencing a renaissance and food revolution. There’s been a lot of construction, building developments and new openings like the Limelight Marketplace. There’s so much more life in the neighborhood and it’s very exciting!

For more information on Carriage House or to set up a site visit, please feel free to contact me at JTurken@warburgrealty.com, call 212.24 House (4-6873) or visit the website at www.Carriagehouse24.com

Although the beginning of fall is officially a month away, today it feels like fall. There are a few leaves changing color (early, but still…) and I am thinking about what a tumultuous summer it has been for Americans. Economists and politicians were united in predicting recovery in 2011, but instead we have gotten a debt ceiling crisis, a bond downgrade, persistent high unemployment, slow growth, and the threat of inflation.  The E.U. is worse off than we are, with violent rioting in London and economic unrest throughout the continent. But New York has so far been a haven of stability.

I think there are a number of reasons for this. We are an English speaking international city which ISN’T having riots. Although the financial sector is shedding jobs again, the firms seem both stable and profitable. And while consumers nationwide seem to be stuck, the high end markets in New York, including real estate, continue to enjoy activity. We have seen deals done in August throughout the spectrum of prices, with a tilt towards the more expensive properties. But the two weeks before Labor Day are always a little slow and provide some time for reflection.

Inventory remains low for co-ops priced above $1.5 million in Manhattan, and for townhouses of all prices in Brooklyn. No one to whom I talk believes that is going to change much in September. The famed “shadow inventory” which was supposed to bedevil the condo market for years to come is being absorbed, with many foreigners purchasing units. We are finding traffic brisk at our new developments in Chelsea, in Harlem, and in the Financial District, although our buyers in both Chelsea and Harlem are locals – New Yorkers who appreciate the quality of today’s buildings and are excited to buy the newest thing. There is very little under construction so as these properties sell out nothing is replacing them.

Why is inventory still tight here when the opposite is true elsewhere in the U.S.? For one thing, the market I am discussing is highly geographically contained, and cannot spread. For another, there has been minimal foreclosure, which is one of the primary sources of oversupply in the rest of the country. And for a third, even as the job situation drives people from New York to other parts of the country, the exodus to the suburbs has slowed. Commuting is hard. The schools are no longer so great. And teenagers seem to be getting into at least as much trouble in Chappaqua or Greenwich as they could in New York. The cultural richness, ease, diversity, and excitement of New York continue to be a magnet. Private schools are oversubscribed, as are many public schools like  PS 6 on the Upper East Side and PS 234 in Tribeca.

That said, most people feel cautious as we head into September. The wild gyrations of the stock market, added to everything else, have made many real estate buyers step back, at least for the couple of weeks until after the holiday. Those I speak to still want to buy, and they will act if they see the right thing, but they do not feel urgency. As I have said before, the hyped up pace which characterized the more expensive market in April and May has dissipated, leaving buyers focused on value, condition, and location. My guess is that these “Big Three” items will continue to dominate discussions as the fall progresses.

I am fortunate enough to be able  contribute to several blogs about real estate,technology and social media,in addition to keeping up my own personal blog about NYC life and its real estate. (Yes,this means I don’t always get a lot of sleep) Weekly I publish reflections on what I am seeing in the Manhattan Market for RealEstateandWomen.net, this week,I reflect on what may be hidden opportunities for those considering alternative long term investments given the recent turmoil with the stock market.

Much is written (and lamented) about how this time of year things slow down here in New York City.

An excellent post this week,from my friend Noah Rosenblatt @ Urban Digs ,  ( The Slowest Part of the Calendar Year for Manhattan ) takes a look at the ‘hard data’,in as much as our data issues exist here in Manhattan,as to the how and why.I can’t say that I agree or disagree wholeheartedly,but there are some finer points ….

That said,what I am noticing is that this is also a time of year,where because *maybe* its a bit slower,its a good time to regroup,refocus and explore opportunities. Working on new business for the fall,but not checking out entirely,there are people to help with their real estate needs year round,even in the doldrums of summer.

My observations thus far,to say that the rental market,is sizzling this summer,far beyond the record heat waves we’ve had,is an understatement.

I had a rental exclusive in Kips Bay Towers,that literally had a dozen appointments within the first day it came onto the market,and one of the first applicants,is now the happy tenant and my clients the owners are thrilled.

People are moving to NYC,for all sorts of reasons, school,new employment. There are new companies opening in NYC,and there are companies moving TO NYC. They need places to live- its not a OH maybe I’ll look and see if I can find something,its ,I’m arriving on x day,at y time ,and need to find a home ,like yesterday.

There are properties  for sale that perhaps may be languishing on the market in certain areas of town,whether its because there are too many similar types of properties,or its not the current ‘in’ spot,or of course,how could one overlook the Second Avenue Subway.But for someone looking as a long term buy or hold,or considering the possibility of leasing out apartments,there’s amazing potential.

As a native New Yorker,I am biased,and blessed-having had the opportunity not only to grow up in one of the best cities in the world-but to live here as an adult. Rarely a day goes by where I fail to have this conversation with someone who is visiting NYC (yes, there are many nice New Yorkers, many of us enjoy meeting many of the tourists around town,and giving them tips on what things are musts),or who is contemplating moving here.

Opportunity ?

With all the market turmoil,and if you’re thinking what might be a good thing to do,as a long term investment.You may want to seriously consider New York City.

I am glad to share with you what I am seeing personally,as well as what my colleagues around town are seeing-yes we aren’t all on vacation. There’s work to be done,there are people arriving everyday,looking for a place to live-whether they be buyers or tenants.

Is it an opportunity for you ? Contact me for a consultation and discussion about your goals,and let’s hit the ground running !

Sometimes…opportunity only knocks once. Are you at the door ?

via yournycrealestateresource.com

Is there any point in writing about last week’s stock gyrations? What sense can be made out of a market which goes up 400 points one day and down 400 points another? Things just did not change that much between Wednesday and Thursday! I am grateful that real estate, MY product, is not so profoundly reactive, if only because it can’t be traded by making a phone call. The fact that real estate cannot be sold quickly stabilizes the market and of necessity injects some thought and rationality into the process.

Speaking of thought and rationality and real estate, let’s take a look at the negotiation process as it unfolds in an environment like this one. Buyers and sellers must both exercise caution in their responses to the current situation. For buyers, the tendency is to immediately interpret any instability like that which followed on the heels of the S & P debt downgrade as a sign that sellers should immediately shave an additional 15% off their prices. We have no idea if that will happen (my guess is it won’t) but it certainly has not happened in the last week! That said, sellers also need to be cautious in refusing to accept offers which are within a stone’s throw of their realistic goals. Real buyers making real offers are not to be dismissed lightly.

So…realistic buyers know that it is not appropriate to make offers 20% below an asking price, but they also know they have more leverage than they did a few months ago when the market experienced its hot spring moment. April and May were a phenomenon which we will not see again for a while, with a 2007-like fervor gripping buyers. Even at the high end of the market, and in new developments, where deals continue to be made at excellent prices, there is considerably less urgency than there was two months ago. And I do not anticipate that that will change in September.

Realistic sellers, on the other hand, know that buyers are seeking location, light, and condition, and that they as sellers need to price accordingly. But they also know that for many buyers, frustrated with a search in which good properties seem few and far between, September is not likely to unleash a flood of new inventory.  So it makes sense for buyers to follow the basic rule of shopping for anything: if you see what you want, buy it! Don’t wait because you haven’t seen enough, or because you hope something better will magically appear. Chances are that sort of magic will prove to be elusive!

Our job as brokers is to make sure that buyers and sellers don’t end up like Congress: deadlocked. We do that by trying to find compromises which protect the basic aims of our principals while making concessions to make the other side feel heard and respected. In the end successful negotiations are the same, whether the product is a new home or a bill to address the nation’s financial woes. People of good faith listen to each other and extend themselves. That behavior almost always results in a successful outcome.

For this week’s blog post we have a very special guest: Marc Palermo, real estate agent at Warburg Realty and lucky winner of the Classic Car Club’s weekend giveaway. Since Carriage House was once home to Manhattan’s longest-operating garage, the developers decided to team up with Classic Car Club for the building’s recent launch party. By entering his business card into the contest, Palermo won the keys to a Classic Car of his choice for a weekend. We were interested to see what Palermo planned on doing with his prize—or as he prefers to call it — his ‘blessing’!

How did you feel when you were announced the winner of a Classic Car for the weekend at the Carriage House launch event?

I was very surprised. You always enter your name into these contests hoping for the best. I was especially thrilled because I love classic cars and even have my own classic Jeep Grand Wagoneer.

What do you plan to do with the car – and which car have you chosen?

I chose the Shelby Cobra. I have a country house so I’m probably going to pick a beautiful weekend in October when the foliage is at its prime. It will be a scenic drive with the roof down.

What did your wife say when you told her you had won a Classic Car for a weekend?
She was very excited! Now we have to figure out if we can fit a car seat into it.

As a long-time agent specializing in the luxury market, tell us your thoughts on Carriage House?

Carriage House offers the ultimate in luxury: a boutique lifestyle in one of New York’s best neighborhoods. It’s a perfect marriage of pre-war character and modernity. Also: the amenities and finishes of the building are outstanding.

Are the other agents at Warburg jealous of your prize?

Warburg has a really great group of agents. I really felt that they were happy for me although I’m sure a few of them would have loved the prize themselves. I’ll be sure to park the car outside of the Warburg office for a few hours on the first day—just to, you know, tease them a little bit.

Is this the best prize you’ve ever won?

I’ve never really won a whole lot. I like to call the car a blessing rather than a prize!

For more information on Carriage House or to set up a site visit, please feel free to contact me at JTurken@warburgrealty.com, call 212.24 House (4-6873) or visit the website at www.Carriagehouse24.com

This will appear in the October issue of Mann Report Residential. Who knows what our economic picture will look like then.  

August 8, 2011.  A dateline is essential when faced with a 2 month advance deadline for an October publication issue—especially when it’s 3 days after Standard and Poor’s downgraded the credit rating for U.S. Treasuries from AAA to AA+.  The Dow plunged today 635 jaw-dropping points, the biggest stock market decline since December 2008.  It will take time to absorb the full impact of this unprecedented measure, and all eyes will be watching as events unfold.

For more than two years, we’ve been dealing with a “new normal”–a condition coined by Pimco’s CEO Mohamed El-Erian to describe a slow moving improvement for the foreseeable future for global markets.  El-Erian characterized an environment with higher unemployment, greater government regulation and a weakening U.S. dollar, and forecast slower growth worldwide that could last until 2014 or beyond.  With the exception of a three month wave from March through May when sales performance and prices in Manhattan were exceptionally strong and high, with a number of noteworthy outlier transactions, residential real estate activity settled into a “new normal” where prices have remained largely flat this year. 

There are benefits to slow growth in a fragile economy:  an incremental pace is sustainable, and there is less reliance on credit and debt.  But in a slower paced market, there’s less pressure for prudent buyers to act quickly, so properties remain on the market longer.  When sellers are uncertain about their future, fewer products come on the market.         

A new normal in residential real estate acknowledges some old and some new realities. 

1.  The market for affordable rentals is shrinking.   Did you know that owners of real estate in Manhattan are in the minority?  Our housing stock is separated into approximately two thirds renters and one third owners.  This year, we are experiencing an unprecedented vacancy rate below 1%.  Consequently, rents are higher than ever, and landlords have stopped offering concessions to tenants or incentives to brokers.  Savvy investors are recognizing this is a particularly good time to make a condo purchase and lease the unit.

2.  There’s no privacy any longer.  Co-op sales prices have been a matter of public record since the summer of 2006 when then Governor Pataki signed into law a bill that required the disclosure of cooperative sales prices along with details of ownership and financing.  While purchasers of condominium units may mask their identities by buying in the name of an LLC, it’s more difficult for co-op buyers to protect privacy as co-op boards for the most part require individual ownership.  With privacy jeopardized, the full details of a transaction are available to anyone who takes the time to look.  Not only celebrities are exposed by the press, but mainstream citizens are helpless and unable to protect their privacy.      

3.  Condition matters, and staging has gained increased importance.  There’s no good reason for a property not to show to its best advantage.  Armed with practical advice from brokers and tips from apartment stylists, today’s sellers understand the advantages of presenting a property for maximum visual and emotional appeal.  Staged apartments sell faster and for more money.    

4.  Pied-a-terre buyers should keep residence records.  New York State has been aggressively auditing the returns of non-residents.  Out-of-towners who maintain a residence in New York, either rented or owned, who spend more than 183 days of a taxable year in New York are required to pay city and state taxes on all income whether or not the earnings are from work physically performed in New York State.  During a residency audit, the burden of proof rests with the taxpayer.  Accountants advise that individuals record their location each day in personal diaries that are consistent with credit card receipts, phone logs and E-Z Pass registers.  According to the State’s Nonresident Audit Guidelines, revised in 2010, a day in New York is counted as a day regardless of whether it is for business, shopping, dinner, or a medical appointment. Although hospitalization does not count for statutory residency, outpatient care and visiting someone hospitalized in New York counts as days spent in the state.         

5.  The roadblocks to financing continue.  While interest rates as of this writing are still at historic lows, Fannie Mae and Freddie Mac guidelines are not very efficient for lending in Manhattan.  It’s important to be connected with savvy mortgage experts to keep up with a changing climate.  Loan approvals are averaging 45 days or longer with equally comprehensive examinations of the borrower and of the property being financed.  

6.  Phase 1 of the Second Avenue Subway is testing our patience.  Once completed, transit service will run from Harlem to Lower Manhattan.  Phase 1 excavation and construction from 105^th to 72^nd Street is expected to finish December 2016 with stops at 69^th, 72^nd and 96^th and will be a huge enhancement to the area.  Until then however, area residents and shopkeepers are dealing with a mix of issues ranging from poor air quality, compromised sanitation, safety concerns and noise.  Apartment sales along this corridor of the city are hurting, and prices have taken a nosedive. 

7.  New York is one of the most insulated real estate markets in the nation, if not the world.  Compared to the rest of the country, Manhattan real estate is holding its own.  While other markets struggle to regain their footing, New York has been demonstrating relatively stability.  Short sales and foreclosures are minimal in our borough, mainly because of the prevalence of co-ops requiring large down payments and significant post closing liquid assets.  In addition, NYC remains a magnet for the world’s super wealthy and talented labor force.  Similarly, foreign buyers continue to find a safe haven for their yen, euro and drachma.  In short, Manhattan is where people want to live, work and play.   

I am sure we all know the Chinese exhortation “May you live in interesting times.” Well, whatever else our times may be, interesting they certainly are! For many in the ranks of buyers and sellers of real estate, however, interesting, at least insofar as it means unpredictable, is not so good.  And it is hard to remember an event the results of which seem more unpredictable than the Standard and Poor’s downgrade of U.S. Treasury debt from AAA to AA+ which occurred last Friday.

The downgrade won us a stinging rebuke from China, which is understandably concerned since it actually holds so much of our debt. But beyond being a source of frustration to the Chinese, and a source of anxiety for the European Union, what does the downgrade actually bode for the future? Some economists already opine that it means little, as the other two rating agencies have not seen fit to alter their perception of U.S. debt. Some economists feel the S & P overstepped its bounds in discussing and factoring into its review the political logjam which took us to the 23rd hour (and 59th minute!) without a deal to raise the debt ceiling.

For buyers of real estate, there are likely to be some consequences, most particularly in the costs of financing. Lower bond ratings mean higher bond interest rates. Inflation, which seems to be gradually creeping back into our lives  (highly visible in the price of both food and gas), also generally leads the Fed to raise interest rates. So, much as the government may want to keep interest rates at rock bottom levels to stimulate the economy, the likelihood is that sooner or later rates will begin to creep upward.  Since monthly payments are at least as important as purchase price for most buyers, this means that the same $500,000 purchase price will probably cost more in a year than it does now.

Warren Buffett famously said, “I am nervous when people are buying, but I like buying when people are nervous.” Few of us possess the courage to act this way, but it is not a bad rule of thumb to question rather than blindly follow conventional wisdom. As life in the suburbs becomes both more costly in terms of taxes and less reliable in terms of schools, more and more people are opting to stay in the city if they can.  While our real estate, like any commodity, will fluctuate in price, it IS a hard asset and it DOES have enormous intrinsic value.  That is why we have a rental vacancy rate of under 1% and why property for sale is scarce in so many categories. And if interest rates rise, your money as a buyer will go less far, which will offset the potential benefit of price fluctuations which may or may not occur. In the last three years, our prices here fell less far and recovered more quickly than anywhere else in the nation. That tells us something about the intrinsic value of New York.

For example, meet Caroline Bell. She’s a longtime coffee connoisseur and the owner of four Café Grumpy locations in New York. Caroline’s particular passion and entrepreneurial spirit was the inspiration behind her cafés, where New Yorkers can sip lattes in a relaxed environment in the heart of a bustling neighborhood. Café Grumpy’s Chelsea location, which opened in 2006, is a popular destination for locals, tourists and coffee addicts just passing through.

Café Grumpy

224 West 20^th Street

New York, NY 1001

212-255-5511

Tell me about Café Grumpy and how it got started.

In 2005, my husband [Chris] and I opened the first Café Grumpy location in Greenpoint. Since then, we’ve added cafés in Park Slope, Chelsea and the Lower East Side.

Are you from the local area? What did you do before?

I’m from Ramsey, New Jersey. Prior to the restaurant business, I worked at a variety of different jobs, including at an art gallery. We always hang local art around the café. It’s great exposure for artists. Akane Ogura’s colorful portraits are currently displayed around the café.

How has the Chelsea neighborhood changed over the past 5 years?

I definitely feel like it’s gotten busier. There are more people walking through, especially towards The High Line. A lot of stores along the avenue have changed and there’s absolutely more places to eat.

Speaking of, what’s your favorite lunch or dinner spot in the area?

Le Zie is pretty great. They have a bar and a restaurant.

Any secret/specialty coffees that only the regulars know about?

Yeah, one drink that’s not on the menu that regulars like to order is the Gibraltar. It’s a stronger form of a cappuccino that you’re supposed to take in a shot.

How did you choose the name “Café Grumpy”?

When we were coming up with the name for the café we would talk to people who specialized in coffee and realized that they always had a little attitude. It became our joke and eventually my brother designed the Café Grumpy logo.

For more information on Carriage House or to set up a site visit, please feel free to contact me at JTurken@warburgrealty.com, call 212.24 House (4-6873) or visit the website at www.Carriagehouse24.com

It has taken me thirty years in the real estate business to figure out what real estate marketing is actually for. And over the years the notion of marketing has continued to evolve, so just when I thought I had caught it, it squirmed away. But here is what I believe today, with a little historical perspective thrown in.

When I started in real estate in the early 80s, it was ALL about the New York Times classified section. There were no giant firms then, and we all vied to see who had the largest number of columns of classifieds in the Sunday Times. Depending on how much money you were earning as an agent, you got one, two, three or more ads per week. And since there were only open listings in those days, no exclusives, you had to go hunt down the properties you were going to advertise. Then, come Sunday, you would see that other people had hunted them down too: you could always tell when someone else had an ad for the same apartment as you. Sometimes, with a newer listing, three or four people at different firms had it in the paper the same day. We knew that because every Monday the entire office sat with the Classified section to figure out what properties we DIDN’T have, so we could go get them.  But it didn’t really matter because, despite what the seller thought, the point of that ad was NOT to sell that apartment. The point was to get buyers to call you.

During the 90s we became an exclusive marketplace. Gradually, open listings went the way of the dinosaur and with them the  columns in the Times began to seem less important. The Times Magazine gained in favor. Glossies containing only social gossip and real estate ads came and went, each claiming to be indispensable before disappearing forever. And I became increasingly disenchanted with print advertising. It was all, to quote the wonderful Evelin Corsey who ran Albert Ashforth for  many years, a “sea of sameness.” How could I, who ran a smaller company, hope to distinguish Warburg or stand out in venue after venue in which all my competitors appeared as well? I realized that I needed to start thinking like a marketer, not an advertiser. Advertising properties was a means to a series of ends. For the seller, it meant their property received exposure. For the agent, it meant access to buyers. But  I was increasingly concerned with how to build the Warburg brand!

Then, as with so many things, the Internet transformed the world. We had to spend a fortune building a website, but then all of our properties appeared on it, 24/7, for minimal ongoing cost. Posting on nytimes.com was less then half the price of a classified ad. So 6 years ago I made a commitment to myself to get out of the classifieds altogether. I had never liked  them, and they seemed increasingly like a  waste of money. I wanted to spend that money on search engine optimization to drive as many people as possible to our website.  (Some things, of course haven’t changed. Agents are more inclined than ever to write ads which are too long and give too much detail. They forget that selling the property on line is not the point: the goal of advertising is to MAKE BUYERS CONTACT YOU!) And we focused in earnest on branding activities. Instead of classifieds, we take a monthly full page in the Times. It boosts our web traffic 25% on the day it appears and makes a big statement about Warburg. We found print venues (Playbill, New York Magazine) which were uncluttered with other real estate ads. And when our competitors discovered them, we moved on. And more of our marketing dollars and time went to, and go to, PR. I and many of my agents are quoted often in the media. Warburg has its gig on “Selling New York” on HGTV, which is watched by more people than I could ever even imagine. And, as you know all too well if you are reading this right now, I blog every week. In 2011, 100,000 people per month have entered our website through the blog.

One of my competitors was recently quoted saying that no one will buy a $10 million apartment because they saw it on HGTV. I agree. And this blog doesn’t sell property either. That is not the point. The point is marketing, not advertising. As we engage in more unique activities, the brand gets more widely known. It becomes more top of mind. As it becomes more top of mind, more people associate to it when they are considering their own, or a friend’s, real estate needs. And then they e-mail us. And THAT is the point!