By TERI KARUSH ROGERS
Published: March 23, 2008
THERE are many sentences that a potential buyer can utter to unnerve a broker: “I have three Doberman pinschers.” “My uncle is a divorce lawyer, and he will represent us.” “The money is in Europe.” And, at an open house: “May I use the bathroom?”
Published: March 23, 2008
THERE are many sentences that a potential buyer can utter to unnerve a broker: “I have three Doberman pinschers.” “My uncle is a divorce lawyer, and he will represent us.” “The money is in Europe.” And, at an open house: “May I use the bathroom?”
Then there is this question, often deployed after an offer has been accepted: “Do you mind if I bring my (decorator/mother/friend/boss/feng shui expert/rabbi) to take a look?”
Yes, your broker minds. A lot.
Yes, your broker minds. A lot.
“It’s the kiss of death,” said Michele Conte, the sales director at the Centurion, a 48-unit condominium at 33 West 56th Street. “Brokers fear second opinions because, human beings being what they are, people always want to justify why someone asked them to come in. So the first thing they do is look for something wrong. And they also tend to judge by their own standards. One man’s meat is another man’s poison in real estate, big time.”
Unfortunately for those selling houses or apartments, a slowing real estate market combined with recessionary fears is prompting a resurgence in outside counseling.
“There was no time 18 months or two years ago to have mom and dad take a look,” said Jessica Levy Buchman, a vice president of the Corcoran Group who works at the office in Park Slope, Brooklyn. “It was as if you had to put up or shut up, no matter what your parents or friends thought. Now, the market is a little bit more patient — we don’t have two, three or four backup offers like we used to — and it’s easier for buyers to sign another lease or take their time. Buyers need more time, and sellers are allowing the time and extra showings.”
A similar dynamic is unfolding at many new condominiums where “conversion rates” — the number of would-be buyers it takes to generate a single sale — have multiplied.
“In a hot market it was 1 for 1,” said David L. Kest, the sales director at 45 John Street, an 84-unit condominium in the financial district, where sales began last summer. “Today, a good range would be for every 7 to 10 buyers, you sell an apartment.”
Mr. Kest would not give 45 John Street’s conversion rate, but he did say this: “People are revisiting sites more frequently than ever before, as they become more cautious and conservative about their decision. They bring a second or third or fourth set of eyes.”
Brokers estimate that as many as a quarter of all buyers solicit third-party views and that 10 to 25 percent of the deals fall apart as a result. “Their job is to point out things you haven’t noticed yet, things that on a first-round presentation a client wouldn’t really notice to begin with,” said Preston Proler, a sales representative at the Setai, a 167-unit condominium building at 40 Broad Street in the financial district. “So more issues do arise — like whether there’s something a little bit wrong with the neighborhood, or the elevator is going to make too much noise next to your apartment, or is the lobby so frequently used that it will be loud, or is the roof going to be too crowded.”
Those most likely to seek outside advice are first-time buyers. Neophytes often look to their parents, who may be helping out financially.
Unfortunately for those selling houses or apartments, a slowing real estate market combined with recessionary fears is prompting a resurgence in outside counseling.
“There was no time 18 months or two years ago to have mom and dad take a look,” said Jessica Levy Buchman, a vice president of the Corcoran Group who works at the office in Park Slope, Brooklyn. “It was as if you had to put up or shut up, no matter what your parents or friends thought. Now, the market is a little bit more patient — we don’t have two, three or four backup offers like we used to — and it’s easier for buyers to sign another lease or take their time. Buyers need more time, and sellers are allowing the time and extra showings.”
A similar dynamic is unfolding at many new condominiums where “conversion rates” — the number of would-be buyers it takes to generate a single sale — have multiplied.
“In a hot market it was 1 for 1,” said David L. Kest, the sales director at 45 John Street, an 84-unit condominium in the financial district, where sales began last summer. “Today, a good range would be for every 7 to 10 buyers, you sell an apartment.”
Mr. Kest would not give 45 John Street’s conversion rate, but he did say this: “People are revisiting sites more frequently than ever before, as they become more cautious and conservative about their decision. They bring a second or third or fourth set of eyes.”
Brokers estimate that as many as a quarter of all buyers solicit third-party views and that 10 to 25 percent of the deals fall apart as a result. “Their job is to point out things you haven’t noticed yet, things that on a first-round presentation a client wouldn’t really notice to begin with,” said Preston Proler, a sales representative at the Setai, a 167-unit condominium building at 40 Broad Street in the financial district. “So more issues do arise — like whether there’s something a little bit wrong with the neighborhood, or the elevator is going to make too much noise next to your apartment, or is the lobby so frequently used that it will be loud, or is the roof going to be too crowded.”
Those most likely to seek outside advice are first-time buyers. Neophytes often look to their parents, who may be helping out financially.
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