Real Estate Deal-Making by Email
We can still remember a Saturday afternoon in the spring of 2004 when we sat sipping beers in the outdoor bar that used to exist on Bedford Avenue and North 1st Street (what was that place called? Answer: Yabby) while trading Blackberried bids with our broker over a house on the corner of Willoughby and…
We can still remember a Saturday afternoon in the spring of 2004 when we sat sipping beers in the outdoor bar that used to exist on Bedford Avenue and North 1st Street (what was that place called? Answer: Yabby) while trading Blackberried bids with our broker over a house on the corner of Willoughby and Waverly in Clinton Hill. We didn’t end up striking a deal on that place, but that experience came back to us while reading the Times article on the subject this weekend. Not surprisingly, the practice is commonplace and has its pros and its cons: On the one hand, according to one Harvard Business School prof, communicating by email helps people be more direct about their demands; on the other, it’s very difficult to convey nuance by email. Therefore, “[email] can tend to go wrong if there’s any kind of conflict or misunderstanding, says Wharton’sG. Richard Shell. That’s why many brokers don’t like the email trend. I’m old school — I still like to hear the other broker’s voice to get a gauge of where the deal is,” says Steve Goldschmidt of Warburg Realty. “There’s no substitute for the sound of a voice.
The E-Mail Handshake [NY Times]
Oooooohhhh! Nice find, slick! Allow me to quote:
“The world, in case you haven’t noticed, is on sale. As with the stock market, which stands at roughly half its peak value, 50 percent off is a decent rule of thumb… [did they just say half off?]
…If you happen to think that the cost of goods will eventually go back up, then some sale items aren’t just discounted—they’re undervalued. But what are they worth? A free market, by its very nature, assigns prices based on what other people think. But for many goods, that system is currently busted [did you hear that brownstoners?]. People have shut down; the market is having a difficult time determining how anything should be priced. In an environment like this, you need to rely on your own sense of value. How much cash do you have on hand? What do you really want? How much risk are you willing to tolerate? Patience right now is your friend, as is the tactical lowball offer.”
That last sentence is the kicker.
***Bid half off peak comps***
brownstoner, it seems like you’ve missed this article from NY magazine:
http://nymag.com/guides/opportunists/56309/
You know, this is one of those developments that sound like it would be highly significant….but it’s not.
I’m confused. Honestly, I’d rather do things by email, *especially* when there’s details involved. Then you can both look back and say “I’m not making this up: you did agree, when we spoke, to tell the seller our bid was conditional upon … So that needs to be in the contract.”
Relax.. It’s over…
The What
Someday this war is gonna end…
This is news?
” ‘[email] can tend to go wrong if there’s any kind of conflict or misunderstanding’ ”
Well, this is definitely crap. ‘The Deal’ or bid/acceptance is nothing but a numbers game. Cash (rules everything), credit score, liquidity, solvency, net worth. Save the nuance for the contract and close.
***Bid half off peak comps***
Right! Thanks, WBer.
Yabby (now part of the Khim’s Millenium empire).
I think this is like any business dealing. I wouldn’t use a broker who wasn’t attached at the hip to his/her blackberry–but I also recognize that there are times that the phone will be better. Most people expect instant responses and email is just much better for managing that.