The real estate company that I am associated with here in Charleston SC, Prudential, is becoming Carolina One Real Estate. This is exciting news for all of the agents involved. Carolina One is affiliated with the leading real estate companies of the world. This will give us a fresh marketing strategy and give us a new approach to real estate. We will have more national exposure for our listings. We will still be the largest real estate company in Charleston. This gives us more resources to buy and sell homes for our clients here in Charleston. My email will change to jcook@carolinaone.com All of my other contact information will stay the same.
One agent at Prudential writes, "Exciting business news for my company here. Prudential Carolina Real Estate -- the leader in the Charleston tri-county area by far -- is one of the top 50 (largest) real estate companies in the nation. It is about 1100 total people, with about 1000 agents. As with all Prudential franchises, it is independently owned and operated. The company is, at its heart and soul, a family business with rock solid leadership and core values. Effective 1 May, we are changing or name to Carolina One Real Estate and becoming a true independent, with an affiliation with a sort of "consortium" called The Leading Real Estate Companies of the World (LeadingRE). All the company's leadership remains, and in fact they are bringing up another corporate level manager from within to bolster the company's ability to support the 16 sales offices of Carolina One spread across our area. It is still the same good agents doing the same quality relationships-based work on behalf of their clients. We are quite excited about this pending change, and it is already making quite a buzz in the business community here. The "Big Dog" in town making a name change in the middle of what most see as a "challenging" market might seem a bit odd, but in fact the company leadership has been carefully studying whether or not to renew their Prudential franchise for about a year. They've really launched us forward with a well developed plan. In 2008 we have already picked up a few points of market share in the local real estate market, and the excitement this is creating, plus more of the corporate's overhead being able to get poured back into local marketing and advertising, should in all likelihood help us do even more for our clients, thereby giving the company an additional bump upward, as well. The Prudential franchise relationship was good for this company for the past several years. As the renewal timeframe with Prudential loomed, the company was apparently courted a good bit by most of the known real estate franchises (as you'd expect of one of the top 50 real estate companies in the nation). We think the new independent status with the affiliation with LeadingRE will be even better, though. Kind fun being involved in this kind of very positive change to an already dynamic organization."
Tuesday, April 29, 2008
Tuesday, April 15, 2008
Real Estate Market- A Self Fulfilling Prophesy
The media plays a large role in what Americans think, how they act, and what they do with their money. There are a variety of shows on television about investment, as well as a vast amount of written literature including newspapers, magazines, and online reading material. One of the current trends in the information age is the ability to independently learn about investment opportunities.
The recent problems in the mortgage industry have become a focal point for the media. Many Americans purchased homes without understanding the terms of their mortgage. Subprime mortgages are those where the borrower has less than good credit. Mortgage companies were essentially lending money to people that they knew would not be able to pay it back when rates adjusted. This has led to an enormous amount of foreclosures. California, Nevada, and Florida are the states that have been hit with the most amount of foreclosures. Charleston real estate has not been experiencing as many foreclosures, but they are having some.
The medias dramatic response to the mortgage industry has scared people who do have good credit out of purchasing a home. This becomes a self fullfilling prophesy for the market. People think that it is a, "bad Market," or a ,"bad time to buy a home," and the entire real estate market suffers. In fact, a buyers market means that it is a good time to buy. It is not a good time to sell a house for a high price, so it is a good time to find cheap deals.
This month in my office on James Island in Charleston, SC has been one of the highest volumes of sales in a year. The market activity is picking back up, so perhaps the public's perception of real estate will as well.
The recent problems in the mortgage industry have become a focal point for the media. Many Americans purchased homes without understanding the terms of their mortgage. Subprime mortgages are those where the borrower has less than good credit. Mortgage companies were essentially lending money to people that they knew would not be able to pay it back when rates adjusted. This has led to an enormous amount of foreclosures. California, Nevada, and Florida are the states that have been hit with the most amount of foreclosures. Charleston real estate has not been experiencing as many foreclosures, but they are having some.
The medias dramatic response to the mortgage industry has scared people who do have good credit out of purchasing a home. This becomes a self fullfilling prophesy for the market. People think that it is a, "bad Market," or a ,"bad time to buy a home," and the entire real estate market suffers. In fact, a buyers market means that it is a good time to buy. It is not a good time to sell a house for a high price, so it is a good time to find cheap deals.
This month in my office on James Island in Charleston, SC has been one of the highest volumes of sales in a year. The market activity is picking back up, so perhaps the public's perception of real estate will as well.
Wednesday, April 2, 2008
THE EXTRA MILE
That 6% Is Getting Harder to Earn
By HOPE REEVES
Published: March 30, 2008
IN any real estate market, the question is asked, in voices both low and loud: What exactly do those brokers do for their 6 percent commission?
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Related
Nailing Down the Loose Ends and Asking the Hard Questions (March 30, 2008)
Enlarge This Image
Michael Falco for The New York Times
Ms. Goldberg painted the house numbers on some new trash cans outside a brownstone she is selling in Brooklyn Heights.
The wondering seems especially relevant now, when both buyers and sellers are tense, not knowing if prices will continue their upward move or if they are headed down.
On a typical sale, the broker gets 6 percent of the sales price, with 50 to 75 percent of this amount going to the broker or being shared with the broker and the company representing the buyer. The remaining 25 to 50 percent goes to the company representing the seller.
The broker’s part of the commission isn’t just gravy; it is used to cover some of the selling expenses. “Our agents pay for things a lot,” said Pamela Liebman, president of the Corcoran Group. “Being an agent is really running your own business, and if you’re not willing to invest money yourself, you’re probably in the wrong business.”
Brokers say that the current market is requiring them to be more creative, to spend not only more money but also more time and effort to make a sale.
Joan Goldberg, a broker at Brown Harris Stevens in Brooklyn Heights, sees herself as a sort of broker-contractor. She has a team of people — painters, contractors, gardeners, stagers, house cleaners, handymen, haulers — at the ready to whip her listings into shape.
“People are often overwhelmed by the prospect of selling, and it’s my job to get them to see that their home will show better and sell for more if we can just take away some of the layers and layers of personal items and grime they’ve accumulated,” Ms. Goldberg said.
For the most part, she does the hiring and scheduling, and she said that she tries to get each client as fair and economical a deal as possible. Sometimes, she winds up paying for some work herself or simply doing it herself.
“I like to plant flower boxes, and I change them weekly and water them if the owner forgets to,” she said. “I often go to the flower district early in the mornings or out to the big nurseries on Long Island to get just the right thing to put in a pot on a brownstone stoop. But, then, I’m a bit of a perfectionist.”
Ms. Goldman also routinely buys new trash cans and paints the street address on them in an effort to make the best impression when prospective buyers arrive to see a listing. “Some people carry plastic bags for dogs,” she said. “I carry them so I can pass by my listings and pick up trash.”
Other brokers emphasize luxury services.
Karen Heyman, a broker in the SoHo office of Sotheby’s International Realty, always hires car services to ferry potential buyers to see her Brooklyn listings. She says it’s worth it to her, in the end, to cover this expense herself.
“The bottom line is that we’re all independent contractors,” she said. “Our offices have certain budget formulas, but I find those restrictive. If I think there’s something I can do to increase the likelihood of a sale, I’ll do it, no matter what.”
Agents also use their commissions as leverage in making deals happen.
“Say a seller’s at $900,000, and a buyer won’t go higher than $895,000,” said Michael Signet, director of sales at Bond New York, which has five offices in Manhattan. “Our broker might call the other broker and say, ‘You pick up $2,500, and we’ll pick up $2,500.’ That way we don’t lose the deal.”
Because the New York City market is growing increasingly stressful — sellers worry the peak has been reached and potential buyers are reluctant to commit for fear of paying too much — more is being asked of brokers.
Juliana Brown, the managing director of Corcoran’s office in Fort Greene, Brooklyn, said she’s starting to see a pattern, with sellers asking for more as the economy weakens. At a sales meeting late last month, she said, one agent after another raised an example of being pressured to pay for something that he or she felt was unreasonable.
“In one case a seller asked the broker to pay off a tenant who didn’t want to move,” Ms. Brown said. “The owner said: ‘Hey, you’re making all this money off me. You should contribute.’ In other cases sellers have been asking us to pay for staging, cleaning, removing clutter, things that are a little outrageous. I mean, these are things we recommend doing, but sellers are the ones who are going to ultimately benefit.”
1
2 Next
By HOPE REEVES
Published: March 30, 2008
IN any real estate market, the question is asked, in voices both low and loud: What exactly do those brokers do for their 6 percent commission?
Skip to next paragraph
Related
Nailing Down the Loose Ends and Asking the Hard Questions (March 30, 2008)
Enlarge This Image
Michael Falco for The New York Times
Ms. Goldberg painted the house numbers on some new trash cans outside a brownstone she is selling in Brooklyn Heights.
The wondering seems especially relevant now, when both buyers and sellers are tense, not knowing if prices will continue their upward move or if they are headed down.
On a typical sale, the broker gets 6 percent of the sales price, with 50 to 75 percent of this amount going to the broker or being shared with the broker and the company representing the buyer. The remaining 25 to 50 percent goes to the company representing the seller.
The broker’s part of the commission isn’t just gravy; it is used to cover some of the selling expenses. “Our agents pay for things a lot,” said Pamela Liebman, president of the Corcoran Group. “Being an agent is really running your own business, and if you’re not willing to invest money yourself, you’re probably in the wrong business.”
Brokers say that the current market is requiring them to be more creative, to spend not only more money but also more time and effort to make a sale.
Joan Goldberg, a broker at Brown Harris Stevens in Brooklyn Heights, sees herself as a sort of broker-contractor. She has a team of people — painters, contractors, gardeners, stagers, house cleaners, handymen, haulers — at the ready to whip her listings into shape.
“People are often overwhelmed by the prospect of selling, and it’s my job to get them to see that their home will show better and sell for more if we can just take away some of the layers and layers of personal items and grime they’ve accumulated,” Ms. Goldberg said.
For the most part, she does the hiring and scheduling, and she said that she tries to get each client as fair and economical a deal as possible. Sometimes, she winds up paying for some work herself or simply doing it herself.
“I like to plant flower boxes, and I change them weekly and water them if the owner forgets to,” she said. “I often go to the flower district early in the mornings or out to the big nurseries on Long Island to get just the right thing to put in a pot on a brownstone stoop. But, then, I’m a bit of a perfectionist.”
Ms. Goldman also routinely buys new trash cans and paints the street address on them in an effort to make the best impression when prospective buyers arrive to see a listing. “Some people carry plastic bags for dogs,” she said. “I carry them so I can pass by my listings and pick up trash.”
Other brokers emphasize luxury services.
Karen Heyman, a broker in the SoHo office of Sotheby’s International Realty, always hires car services to ferry potential buyers to see her Brooklyn listings. She says it’s worth it to her, in the end, to cover this expense herself.
“The bottom line is that we’re all independent contractors,” she said. “Our offices have certain budget formulas, but I find those restrictive. If I think there’s something I can do to increase the likelihood of a sale, I’ll do it, no matter what.”
Agents also use their commissions as leverage in making deals happen.
“Say a seller’s at $900,000, and a buyer won’t go higher than $895,000,” said Michael Signet, director of sales at Bond New York, which has five offices in Manhattan. “Our broker might call the other broker and say, ‘You pick up $2,500, and we’ll pick up $2,500.’ That way we don’t lose the deal.”
Because the New York City market is growing increasingly stressful — sellers worry the peak has been reached and potential buyers are reluctant to commit for fear of paying too much — more is being asked of brokers.
Juliana Brown, the managing director of Corcoran’s office in Fort Greene, Brooklyn, said she’s starting to see a pattern, with sellers asking for more as the economy weakens. At a sales meeting late last month, she said, one agent after another raised an example of being pressured to pay for something that he or she felt was unreasonable.
“In one case a seller asked the broker to pay off a tenant who didn’t want to move,” Ms. Brown said. “The owner said: ‘Hey, you’re making all this money off me. You should contribute.’ In other cases sellers have been asking us to pay for staging, cleaning, removing clutter, things that are a little outrageous. I mean, these are things we recommend doing, but sellers are the ones who are going to ultimately benefit.”
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