It is real estate lore, but true, that builder Joe Farrel, rented his over the top residence for an eye opening $500,000 for a two week stay last year. But let’s say that spending that type of money sends the wrong message to the kids, well, here’s a property that offers just about everything to the nines, and only costs a small fraction. Click here for more information…
Tastefully decorated, and fully staffed, of course.
Some would argue not in this age of instant information. But in point of fact it is the opposite conclusion that should be drawn. A good agent is like a consultant who can guide you deftly through a forest of challenges and uncertainty. That is, if you value their opinion and establish a relationship based on trust. This interesting piece refers mostly to the Manhattan market but is also entirely applicable to the Hamptons. Yeah you can probably get the job done bouncing between several brokers but if you value your time and your sanity find someone you respect and trust and allow them to guide you, you’ll be glad you did…
It was bound to happen, and it finally has…the Co-Exclusive rental listing.
Here in the Hamptons, birthplace of the Co-Exclusive Sale listing, the Tri-Exclusive listing, and the rarely seen Quadruple-Exclusive listing (known as a ‘Quad” but often mistaken for an “Open”) we were recently presented with the Co-Exclusive rental listing.
Things must either be really bad, or the homeowner has been guilt tripped.
Let’s work the math.
It’s listed for the season at $295,000 and let’s pretend it rents for $275K yielding a commission of $27,500. If it is a true co-exclusive the fee will be drawn, and quartered for the two listing brokers meaning the renting agent shares $13,750 with his broker, while the two listing agents split $6,875.00 with theirs.
Odds are one of the listing agents is going to make money for doing nothing.
And therein lies the problem. Co’s, Tri’s and Quad’s are incentive killers.
We would like to wish you all the best for 2012! To everyone who has supported us in 2011, thank you so much.
Cheers!
Reshaping the Hamptons real estate market reminds us of the Greek myth of Sisyphus…doomed to pushing a rock uphill, only to have it tumble down again.
Very recently we exchanged emails with a Sotheby’s broker who advised us that no one but she could advertise her “exclusive” rental listing, and yet she was offering an 80/20 commission split to a cooperating broker who brought a deal.
This particular agent has been in the business a long time. And we really respect her. Or at least used to, (make no mistake, we will always like her.) But her thinking is clearly Jurassic in today’s world of information flow. We had no choice but to label her a dinosaur.
Here’s our question: “Why wouldn’t you want everyone to advertise your exclusive?” As an exclusive listor of either a rental or sale, what possible negative comes from having your listing advertised, promoted, pushed in as many ways possible? Even by your frienemies.
Poor Sisyphus was punished for his crime against the gods. Doomed for eternity.
At least there is logic in our argument, so it is only a matter of time until reason prevails and this form of archaic, illogical thought gives way to what clearly makes sense, for every stakeholder involved.
Today we caught our first glimpse of the new, revolutionary, www.hamptonsproperties.com.
Brace yourselves for a wildly innovative, agnostic internet portal serving the Hamptons real estate market. Advanced social networking tools, cool communications functionality, open to the industry, fully transparent, with no strings attached, at an affordable fee.
It may be premature but we complement our highly skilled staff of developers on building a lightening fast website, due to launch in February, that offers agents and brokers an alternative to the costly market leader.
We attended a jam packed meet and greet last night at Bobby Vans Restaurant in Bridgehampton, hosted by the Long Island Board of Realtors. Had a chance to talk with the new President Don Scanlon who promised that LIBOR would be making a new initiative to move east of the Canal starting with the New Year.
We also had the chance to meet several old friends who’s agencies are not part of LIBOR, everyone of whom lamented the fact that they were unable to participate in MLS.
A recent survey weighs the relative value to rental customers of real estate agents with the inside track, against those who might not even work out of an office but are simply honest. From The Real Deal, read it here.
There isn’t much to say.
Our streets are windswept, wet, and empty.
Social unrest is in the air. We saw our first “Occupy the Hamptons” sign on 27 today…
…expect a party at Stephen Talkhouse soon.
We spoke with a hopeful seller of a Watermill estate priced at $9,495,000, anxious to market to the European consumer. Here’s the video she produced…
The two mega-agencies representing her have decided to split any commission equally, regardless of who sells the property. That was a surprise to hear. Ordinarily 80% would go to the selling co-exclusive agency, 20% to the non-selling co-exclusive agency. And of course in the event a co-brokering agency sells it they get half, with the two co-exclusive agencies splitting the other half.
Whatever happened to aligning everyone’s interests? One thing’s for sure, the two brokers interests are aligned! Neither one is incentivized to sell the property. However it sells, we’ll collect!
And as far as Europe is concerned, what’s the strategy? The International Herald Tribune? Europe be damned, they are all suffering there anyway but that doesn’t preclude launching a focused and targeted internet campaign.
No wonder real estate agents consistently rank along side used car salesmen and lawyers for ethics.
George Simpson of eastendlistings.com reports that Prudential is restating earlier published market data without comment, hoping to slip it by. “Who cares?” I asked. “No one.” he answered, with a resigned sigh.
But you can’t not care about inaccurate data. Accurate information matters. It differentiates, which is why Simpson cares. And it grounds real knowledge. But it seems to hardly matter to observers of the Hamptons real estate market who are mostly interested in the last expensive oceanfront sale.
An indicator of better days ahead?
So how do you see the Hamptons Real Estate Market, everybody wants to know…
I don’t think it’s news to anybody that things are pretty bad. Notice to all sellers of the world: Brokers aren’t magicians. Your property’s only worth what someone will pay for it. Today only serious sellers need apply! Buyers are few and far between and they have the upper hand. It’s a bummer, I know. Brokers, homeowners, everybody wants transactions but they’re hard to find because there’s simply far fewer buyers in the market. Don’t despair though I think the market may just turn up, and here’s why:
Out of nowhere a week or so ago a cricket moves into my bedroom, and settles in somewhere deep in the wall behind my headboard driving me absolutely insane for two nights. You have no idea how loud these things can be! I try every type of endevor to dislodge the maddening insect but to no avail. Whenever I step away it starts to chirp again. Exasperated, I do what any sane person with a problem does, I google it. On my iPhone of course.
I’m amazed to learn that a visit from a cricket is considered good luck. Specifically, when they leave you, according to the legend, you are bestowed with a gift of some sort, often a child, or possibly a financial windfall. Well, last night, after 4 days, the cricket went away. We aren’t hoping for any more kids at this point ergo it must be an impeding financial win. If any of you homeowners I represent would like to treat this as a good sign for your own prospects of sale I say again, is your pricing right?
As if this weren’t enough of a positive, what really convinces me that something big is afoot was yesterday’s stunning rainbow over Amagansett and Springs. (Captured from Landing lane in Springs) After days of soaking rain we had that, ever so rare weather condition, when it’s still storming in the east but the sun has fully broken through to the west. It produces a vivid rainbow. So sellers take heart, things may just be looking up!
