Don't Shoot the Messenger!

I've been lucky in my career that most of the people I work with are lovely, sophisticated people who have entrusted my partner and myself to work hard on their behalf. On the client/sell side, I have a fiduciary responsibility to make as much as I can for my client. On the buy side, I feel a moral obligation to help my buyer purchase something, not only for a great price, but something that will make sense for them moving forward. I've talked a lot of people out of apartments because I didn't think it was the right match. I think I've also persuaded a lot of people to jump in when they were hesitant.

Clearly, now is a time of great hesitancy and tentativeness. The pervasive saying among my real estate colleagues is that people are circling but not pulling the trigger. I'm not an economist and I won't make grandiose predictions about market liquidity, inventory, or macroeconomics. But I do know with certainty a few valid facts:

1.When sellers accept the new realities of the current NYC marketplace (meaning 25% off from the peak), they often can sell their property. If it's a special home, they will have an easier time, but even if it's special, they still have to take into account current market conditions.

2. It's not (always) the brokers fault that the price is too high or that it hasn't moved. I know lots of brokers who wanted to price more aggressively but complied (against their better judgment no doubt) with the seller. Then the broker gets stuck, and the seller gets angry. Or stubborn. Or intransigent. This is a hard position for a broker--they want to keep the listing, but they know that the price is an obstacle. The best they can hope for is that someone will make an offer and they negotiate their sellers into a place where they are happy.

3. Sometimes it is the broker. I've also spoken to several brokers who are either unwilling to admit that their listing is overpriced, or were willing to compromise their better judgment in order to get the listing in the first place. They should be careful what they wish for, because they'll end up spending a lot of time in empty open houses, staring at their Blackberry.

4. People seem to have in inordinate anger towards brokers, as if we control the marketplace. We don't manipulate it, we navigate through it. We are hardly the market makers that some would attribute to us. Some of us are underhanded, some of us are just dumb, but the vitriol I read on real estate boards is not commensurate with our ability to affect change in the marketplace.

It's also kind of creepy. I can't figure out who these angry people are--(and they are ALL ANONYMOUS....those brave souls who can say anything under the guise of a nom de plume). Are they sad, lonely and unemployed, still living in their mother's basements? Did they once date a real estate broker who broke their heart? Are they the same anonymous drones who call Rush Limbaugh?

5. Brokers can advocate extremely well on your behalf. We have knowledge of co-op boards, procedural events, networking abilities. We have long memories of who wants to sell, or who wants to buy. We know which buildings have a high maintenance, or which block has an annual Halloween party. We have access to mortgage brokers, contractors, designers, architects. Maybe the way brokers make commission will evolve, but for now, we take the commission from the seller (who is often glad to give it to us because we perform a service). Don't blame the messenger because you're angry about pricing or discounts or world affairs, or the post office. We're here to help.