The Bulge Bracket Premium
One of the claims we’ve seen surrounding the full-court press on Brooklyn by the big Manhattan brokerage firms is that they can achieve higher asking prices because of the breadth of their marketing reach. We weren’t aware of many concrete examples of this phenomenon but stumbled across one today. Back in November we noticed this…
One of the claims we’ve seen surrounding the full-court press on Brooklyn by the big Manhattan brokerage firms is that they can achieve higher asking prices because of the breadth of their marketing reach. We weren’t aware of many concrete examples of this phenomenon but stumbled across one today. Back in November we noticed this 4-story Clinton Hill brownstone on the market with an obscure firm called Dwelling Research. We thought the place had good bones but worried about its $985,000 price tag given that it needed $200,000 of work. So now two months later this house has resurfaced as a new listing at Corcoran for $1,175,000. As far as we can tell from the photos, no significant work has been done, though we could be wrong. Despite the 20% hike, though, we don’t doubt that Jerry Minsky’s team at Corcoran can pull it off. They have a pretty amazing track record to date in Fort Greene and Clinton Hill. We bet they have a deal wrapped up by Valentine’s Day.
If you know of other examples of Bulge Bracket premiums, please fire away.
107 Gates [Corcoran]
Dig This Clinton Hill Brownstone [Brownstoner]
I had the totally opposite experience with the top commentors reply. Brooklyn properties I think is the most unprofessional office in Brooklyn, while A&H always returned my calls and stuck with me through thick and thin Brooklyn properties completely diregarded me as a floosey buyer. When they did call me back it was to find out if they could try to sell my house for me, I laughed and hung up; giving my listing to A&H and a friend of mine at Stribling in manhattan, A&H is the one that brought me the “highest and best offer” I’ve only heard good things about A&H and the other favorite umongst my circle is Harbor View Realty.
Whoever you go with either selling or buying just try to keep an open mind….
Regardless of what the brokers wear, their practices, or whether or not they are local or citywide, what matters in the end is how the buyers are treated. Its that simple. I was recently in the market for about 3 months and was consistently blown away by how poorly I was treated by A&H…many many unreturned phonecalls, poor information given to me on the off chance I did get a call back, and generally unprofessional treatement, especially given that I was about to pay such a huge price for a place. Given that buyers have to do most of the footwork in learning about listings and what’s available in a given price range, the brokers that call people back, have good up-to-date websites, and can get you into places at a moment’s notice are the ones that are going to win out….honestly, sellers can complain all they want about how they are treated and guilt people into going local, but buyers, especially buyers that don’t already live in the borough, couldn’t care less about these things. That’s why Corcoran is going to do well….increasingly real estate in nyc is dependent upon the internet as first gateway into a property…whichever firm wins the internet battle will have a huge advantage….corcoran by far has the best website. firms like A&H and the local crew are constantly out of date…very frustrating for the buyers.
Despite the internet however, I ended up going with a property shown to me by Brooklyn Properties….they seem to have the best mix of up-to-date internet sites, with ample pictures, and, drumroll please…..THEY CALL YOU BACK!
If I ever sell my place, A&H will be among the LAST places I would look to sell a place, given the experience I had trying to buy something through them.
Perhaps more interestingly is the pedigree of the house Corcoran is now showing. It was being shown last winter (January 2004 or so) for 800-850 (the price was negotiable) with tenants still in at least the bottom 3 units. The city records show that it was sold for in the range of 790,000 in February 2004.
At the time, the brokers (Maximus Realty, I think) noted that some work was still needed, especially on the top unit (visible in the pictures now with odd pink kitchen and the vaulted roof ceiling) but emphasized its potential
Here’s another example. 5 story 4 fam brownstown on Clermont between Dekalb and Willoughby sold for $750K in 2000. Approx 200K of TLC was applied to the property. This fall the property went for 1.5 mil. Brown, Harris and Steven or D.Elliman were the brokers. They held 2 ‘private’ open houses and after the second had multiple bids. The prospective buyers and eventual buyers ‘seem’ very upper east/west side.
BTW, if you look in FG park you’ll see more and more pedigree and exotic dogs these days. Not the shelter rescues, but the $3000 AKC papered dogs. Thats an indication of the type of buyers that the Manhanttan houses are bringing in.
I have seen the bulge bracket phenomenon. One example is the midwood street house. A small broker was listing it for 749K and then suddenly Halstead is listing it for 895K. That house is in very poor condition, most likely needs gutting. Another phenomenon I have seen is houses that have sat on the market for 6 months + and then with the new year the prices are arbitrarily raised as much as 200K + by the listing broker. An example is a house in Park Slope which listed at 1.8M (a nice, but somewhat narrow house) and suddenly I looked and it was listed for 2.045M. Another one was a house in Ditmas which has been sitting and the price was raised randomly by certain brokers.
Corcoran recently sold 356A 14th street for $1.0625M. Seems like a reasonable price for a townhouse in the south slope until you consider that the property is only 12.5 ft wide and is primarily frame construction.
They are sending postcards to neighbors touting the sale and referencing their carefully planned marketing program that resulted in a bidding war.
While it’s pure speculation, I don’t know if a smaller firm would be able to generate the level of interest that was generated in this property.