Open House Picks

A&H did an OH at the Vanderbilt Ave place last weekend, with their usual sign, "No brokers please." Extremely annoying and cutting off a good chunk of buyers, too.

Anyone going into a purchase without a broker on their side is entering a lion's den. The seller's broker wants only to sell you that place and is not looking out for your best interests. And dual agency is a conflict of interest that under (one of the few) NY state regulations must be acknowledged in writing by all parties. Anyone not doing this risks losing his/her license (if, of course, it's reported).

Posted by: babs at November 18, 2005 11:54 AM

And hasn't the Summit St place been featured here before? The one on Macon St. looks like it might be a pretty good price, even though it is rather far east.

Posted by: babs at November 18, 2005 11:55 AM

No, I certainly am not Barbara Corcoran, though I wish I had one-tenth of her money! And if it's true that Corcoran wouldn't co-broke the Greene House with you, I'd advise you to report them to REBNY -- as REBNY members they are REQUIRED to open all listings for co-broking within 72 hours of getting an exclusive. However, I'd be very surprised if this were true, since I know many other agents who don't work for Corcoran but have had deals as buyer's brokers for Greene House.

A lawyer is required for all real estate transactions in NY State, so you'll definitiely be using one and he/she should get down into the nitty gritty of the building's financials and physical condition, etc., as part of the due diligence.

However, your lawyer will not: spend hours and hours scouring various databases and websites looking for properties that might interest you; accompany you to open houses and sign you in with his/her contact info so that you're not harrassed by the seller's broker; answer whatever questions you may have about the neighborhood, schools, shopping, transportation, etc.; explain in detail the buying process from start to finish; assist you in comparing various properties (this one is a block closer to the subway, but this one is closer to the park; the maintenance on this co-op was just raised six months ago whereas this building hasn't had an increase in five years, so expect one soon; yes, this is a beautiful kitchen, but the last apartment was $60K cheaper and you could install an even better kitchen for less than half of that difference; etc., etc.); submit your offer when you're ready to make one, and follow up to make sure that it receives proper consideration; help you put together your board package, assuming you're buying a co-op, including providing examples of reference letters, and making up to eight sets of collated copies; co-ordinate the walk-through on the day of the closing to make sure that the apartment is delivered in as-agreed-upon condition; and tie up any "loose ends" afterwards (What's the super's name? How do I submit a bill for the funds in escrow now that the escrowed repairs have been completed?). You'd have to pay a lawyer a fortune for these services (if you could find one who'd even agree to them), whereas as a buyer you pay nothing!

Posted by: babs at November 18, 2005 4:28 PM

What would you call it? Red Hook? (And BTW, Ms. Corcoran a/k/a anon 4:38, babs is my given name. Don't worry, I would never assume anything about you!)

Posted by: babs at November 18, 2005 9:02 PM

And yes, you can do without the broker, but you're lucky you didn't have any problems -- I've heard some real horror stories. If you are relatively real-estate savvy and you have time on your hands, you can go it alone, but why would you want to, when it doesn't cost anything? And as I pointed out, you will have a lawyer (it's required by law in NYS, but no way will he/she do all the things mentioned above for you).

Posted by: babs at November 18, 2005 9:18 PM

Sorry that came out twice -- my computer has server issues (whatever that means).

Posted by: babs at November 18, 2005 9:20 PM

Columbia Heights is the name of one of the most beautiful streets in Brooklyn Heights (just off the Promenade). If people have appropriated that name for this neighborhood (based I assume its proximity to Columbia Street, ultimately the continuation of Columbia Heights), it just shows how little they know about Brooklyn.

Posted by: babs at November 19, 2005 10:41 AM

Sorry, Anon 6:58, but this is not true -- a good broker can be a very valuable asset in buying a house, because the seller's broker is NOT acting in your best interests. And as a buyer you aren't paying that 6%, so why not have someone in your corner? Check out Curbed for a lengthier discussion on this subject -- I don't feel like reiterating what I've already said there.

If you don't want to use a broker you're not required to, but many others wouldn't have it any other way.

Posted by: babs at November 19, 2005 8:23 PM

The poster I was referring to said it was called Columbia Heights. I was fearful of yet another real estate agent made up name for an area that has a perfectly good one -- I am completely aware of the Columbia Street Waterfront District, but the house in question is NOT on the water side of the BQE.

No desire to put anyone down (except ignorant real estate agents who attempt to invent high fallutin' names to boost selling prices/rents).

Posted by: babs at November 20, 2005 12:14 PM

Corcoran is co-broking the Greene House condos; this I know for a fact -- and they'd be stupid not to, considering that there are quite a few units left. Maybe it's karma -- that thing is so out of place.

Posted by: babs at November 20, 2005 12:19 PM

I don't know who your friends are, but they must not be very serious. A good broker who cares about his/her work isn't scamming anybody, but is providing a valuable resource (see my post of 11/18 4:28 for a partial list), and I ask again -- where will you find a lawyer willing to do all that (and how much will you pay him or her for it?)?

Bad brokers, on the other hand, are scammers. Fortunately they are more numerous in rentals then in sales, and they tend not to stay in the business too long -- generally speaking incompetence will out and they won't be able to make a living for long.

Posted by: babs at November 20, 2005 3:14 PM

Wow -- you are indeed lucky! Congratulations! What a wonderful story.

Posted by: babs at November 20, 2005 7:29 PM

Unfortunately, Redbone, your experience shows another reason to use a broker on your side-- after two days of non-receipt of the signed contract, he/she would have gotten on the phone to everyone -- both lawyers and the seller's agent, and would have demanded the fed ex tracking number. If none was forthcoming you would have known you had a problem! Of course you could also have done this yourself, but brokers/agents (unfortunately) do have more experience dealing with unpleasant people, and also know many of the lawyers and brokers out there, and could have told you if the seller's were on the up and up. Additionally, maybe if you weren't out there on your own they wouldn't have dared pull such a stunt.

And what was everyone thinking scheduling a closing, etc? Banks won't issue a final commitment without a signed contract of sale and a satisfactory appraisal -- maybe you were paying all cash? And how is it possible that your lawyer and the seller's lawyer went along with this charade -- certainly the seller's lawyer knew the seller hadn't signed the contract. Sounds like everyone involved has violated most professional ethics standards, or they're all just really, really incompetent.

And yes the seller's broker acted reprehensibly in this, unless the seller was lying to him/her as well, to take the exclusive away and give it to another firm (in which case he or she was really stupid or inexperienced not to have caught on).

What a mess! Presumably you at least aren't out any money. Hopefully you'll be able to find a better place for less money, while your former seller's place sits unbought for a good while, until he or she will be forced to accept an offer lower than yours was.

Posted by: babs at November 21, 2005 3:46 PM

If you're working with a buyer, your responsibility is to that person, regardless of the fact that the seller is ultimately paying you, because the person who has "hired" you is the buyer -- these responsibilities include care, obedience, accountability, and full disclosure of known facts.

Ultimate legal responsibility is governed by Real Property Law §441, "which provides, in part, that the Department of State may revoke, suspend, fine or reprimand a real estate broker or salesperson if that licensee is found to have, among other things, violated any provision of Article 12-A of the Real Property Law, engaged in fraud or fraudulent practices, or demonstrated untrustworthiness or incompetency."

So basically the buyer would have to prove that his or her broker had done any of the above for that person to be punished in any way. A situation in which a buyer's broker had failed to disclose something about a property, for example, just to get that commission, if this were proved, would be an example.

A complaint should also be lodged with REBNY, assuming the broker is a member.

Posted by: babs at November 21, 2005 7:07 PM