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Is
Your Broker Your Friend? Maybe Not.
By the mere nature of the real estate
buying and selling process an atmosphere of potential intimacy
is commonplace. In order for an agent to be of service to
a seller or a buyer they must know many personal and confidential
facts about their client's lives. Relationships are created
and sometimes even lasting friendships --- I know because
I have been blessed to have a number of friends who started
out as clients. But it can also go terribly wrong, especially
when a buyer shares personal details with a real estate
agent and then finds out the agent has not been representing
them or their best interests. Be sure you know whose side
the agent you are choosing to work with is on before you
start telling them your life story. Here is an article that
speaks to this common dilemma.
By NADINE BROZAN
Courtesy NewYorkTimes.com,
October 4, 2004
They may come together for what seems
like a straightforward business transaction - the sale or
purchase of a home - but the relationship between broker
and client can be an emotional minefield, ripe for love
or hate, admiration or scorn, friendship or hostility.
If nothing else, it is a highly personal connection. A broker,
after all, probably knows as much about the client as any
therapist, lawyer, accountant or even spouse.
Brokers know what their clients earn and what they're worth
- they have to, in order to figure out which co-ops make
sense for them. They may know if they're planning to leave
their jobs, or their spouses. "People who are planning to
get divorced may not yet have told their friends or their
children but need an appraisal before dividing the assets,"
said Daniela Kunen, a managing director of Douglas Elliman.
"You hear very personal information."
Whatever it is, the connection is rarely tepid. Frederick
W. Peters, president of Warburg Realty Partnership, said
that he tells novice agents that they are in a business
that fosters short-term intimacy. "You are immediately plunged
into a close relationship with a buyer or seller and then
when the transaction is consummated, it is over, unless
you choose otherwise." he said.
Many people do choose otherwise, having planted the seeds
of enduring friendship in the collaboration to buy or sell
a residence, or, if they live in the same community and
run into one another in the supermarket, an ongoing acquaintanceship.
"You may be the first person in town they know," said Roberta
Baldwin, an associate broker with Re/Max Village Square
in Upper Montclair, N.J., who gives a New Year's party with
a magician and a Labor Day barbecue for her clients and
their children. "You become the person they rely on when
they need the name of a contractor or doctor."
But brokers offer more than practical tips. "For every person
or couple who buys for the first time and moves through
the process without a care in the world, there are 10 who
bring preconceived notions about what they should be buying,
what their parents and relatives think, fears they have
about their children and safety, money issues and worry
about the economy," Ms. Baldwin said.
Strong bonds in individual cases notwithstanding, as a group
brokers and clients do not hold one another in particularly
high esteem.
Preliminary findings of an online survey of attitudes of
brokers and buyers who have bought properties in Manhattan
in the last three years show that 78 percent of the 51 brokers
who responded and 69 percent of 152 buyers and sellers "strongly
or somewhat strongly" agreed with the premise, "Most people
don't trust real estate brokers or expect much from them."
The survey was commissioned by Braddock & Purcell, a real
estate consultant that brings brokers and clients together,
and carried out by Penn Schoen & Berland Associates, the
market research firm.
"You can develop a close relationship with your broker,
but it is in the context of an industry for which people
do not have a high opinion," said Paul F. Purcell, a partner
in the firm.
John Podesta, national sales manager for Osh Kosh B'Gosh,
has enough broker horror stories to keep him talking through
many a dinner party.
The broker who helped him buy his first Manhattan apartment
on 61st Street and Amsterdam Avenue, for example, spent
more time on the phone dealing with a failing romance than
she did with him during scouting expeditions. "I did a lot
of things that were her job, like looking for apartments
in the paper," Mr. Podesta said.
To make it up to him, "she took me to an expensive restaurant,
and then it turned out it didn't take credit cards and she
didn't have cash," he said. "She never paid me back." Things
got worse. He described the broker for his next apartment
on West 26th Street as a "deceitful liar who misrepresented
what was going to be done to the building and the character
of the developer."
"The lobby renovation never looked the way it was supposed
to," he said, "and neither the penthouse nor the rooftop
garden were ever built." When he put that apartment on the
market, he had a broker who arrived late for an open house.
"People were already there when he came riding up on his
bicycle with headphones on and looking disheveled," he said.
The next stop: Down Under the Manhattan Bridge Overpass,
the trendy Brooklyn neighborhood known as Dumbo. He bought
an apartment there by directly responding to a listing rather
than using a broker. But he wasn't impressed, either, by
the broker who was representing the seller. "I never heard
from the seller's broker, but she kept calling her lawyer
to find out when the commission was coming," he said.
Now he lives at Madison Avenue and 63rd Street, where, he
said, '`I had a good, diligent broker who was determined
to get the deal done and who pushed it."
Among the qualities considered essential for good brokers
are: discretion; trustworthiness; sensitivity; diplomacy;
serious knowledge about neighborhoods, buildings, boards,
management, and potential pitfalls; an ability to listen;
and strong intuitive instincts.
Intuition is particularly prized. "There is a creative component
to this, fitting a round peg into a square hole," said Rosette
Arons, a vice president for Stribling & Associates. "The
creative process comes in when you hear them say, `I need
a three-bedroom with such and such,' and that is not at
all what they want. I listen to what they want, even when
they may not know what that is, and I can tease it out of
them."
Clearly that was the case with Lisa Simonsen, a vice president
for the Corcoran Group, and Serita Winthrop, who sold her
seven-room apartment on East 79th Street and bought a loft
with soaring ceilings at the renowned Hotel des Artistes
on West 67th Street in June.
Ms. Simonsen, an occasional fitness trainer, had been exercising
with Ms. Winthrop, who has four grown children, and, she
said, she sensed her student subconsciously harbored a yen
for a new place.
"I had told her I couldn't imagine ever moving," Ms. Winthrop
said. "Then, after the second week of working out, I suddenly
said, `I want to move.' I wanted a smaller space, and with
my 60th birthday coming up, it was time to simplify. She
took a low key approach, and said, `We can always look without
buying.' "
But when they saw the duplex in the Hotel des Artistes,
"I sat down on a banquette and said, `It looks like a stage
set and makes me feel as if I were in the theater,' " she
said. "It is entirely different from anything I have ever
lived in. I began to figure out about sofa beds to accommodate
close friends or children and grandchildren."
She moved in July but continues to get together with Ms.
Simonsen. "We are definitely friends," she said as they
sipped tea together the other day. "We have introduced each
other to the people in our lives."
Timothy Melzer, a 27-year-old vice president for Douglas
Elliman, prides himself on turning customers into friends.
"By the time it is over, almost all of them call to say
they miss talking," he said.
One of those clients, Dr. Anthony W. Cincotta, was called
upon to show an unusual degree of trust when he decided
to buy a penthouse at Morton Square, the town house, condo
and rental complex at Morton and West Streets, about 18
months ago. "It is hard to trust anyone in New York, and
I am one of those types who asks people to take off their
shoes before walking on my carpet," he said.
Dr. Cincotta, a neuropsychiatrist and family physician at
Catholic Community Services in Newark, had been looking
for a penthouse with outdoor space, when Mr. Melzer proposed
the Morton Square penthouse. "I froze when he told me about
it and said, `This is $1 million more than I wanted to spend,'
" he recalled. "He kept arguing with me and said, `This
is where you have to be, this is where you will make money.'
I gave in."
After Dr. Cincotta agreed to buy it, Mr. Melzer went to
great lengths to cement the deal. "The developer was demanding
a check for more than 10 percent, $191,500, an hour after
it came on the market, so he needed his checkbook, which
was in Manhattan," he said. "I had to drive to Newark, get
his keys, drive to Manhattan, go to his apartment, get the
checkbook, drive to the sponsor's office, pick up the contract,
drive back to New Jersey, get the contract signed and the
check written. By the time I got back to the sponsor's office,
they had gotten another offer, but fortunately it came from
someone who didn't have their checkbook."
The property, which closed on Sept. 23, has appreciated
more than $1 million since the initial listing, and Dr.
Cincotta will rent it out, he hopes, for $19,000 a month,
Mr. Melzer said, and eventually live in it.
The two have been friends since. "Once you develop trust
and you talk on the phone everyday, the walls start coming
down," Mr. Melzer said.
Patricia Whitehead, an associate broker with the Corcoran
Group, considers herself something of a surrogate mother
to Jennifer Eggers, an advertising copywriter from Eugene,
Ore., who is in her 20's and just bought her first apartment
in the city. The two met at an open house. "I could see
she was taking notes," Ms. Whitehead said. "I called her
the next day and said, `Why don't you let me help you get
through the maze?' "
When Ms. Eggers's parents came to town from their home San
Ramon, Calif., "I bonded with them and they decided that
if I liked an apartment we found, that would be good enough
for them and they wouldn't have to come back," Ms. Whitehead
said. Two weeks later, they found the apartment, a loft-style
co-op with an 18-foot ceiling and spiral staircase on East
88th Street.
Navigating the co-op approvals process was intimidating,
Ms. Eggers said, "but I did feel that Patti was looking
out for me every step of the way." And beyond. Ms. Whitehead
noticed that the seller's broker was interested in Ms. Eggers
and after the closing, urged him to call her. "So far they
haven't gone out, but I keep my antennas open," Ms. Whitehead
said.
There are differences between being the broker for a buyer,
whose primary goal is to find a home, and the seller, whose
goal it to reap the highest possible profit.
There are also distinctions between city and suburban real
estate that can affect the interaction. For one thing, there
is a Multiple Listing Service that prevails in the suburbs
but has not gained acceptance in the city.
"In the suburbs, any agent can show you any property and
we discourage exclusives," said David Firnhaber, branch
manager for the Houlihan Lawrence office in Chappaqua, N.Y.
"So we tend to work with people for a long time, showing
them as many things as they could possibly want. It is more
intimate because you are not meeting someone in the lobby
of an apartment or taking a limo or taxis, but you spend
a lot of time in the agent's car. So I think there is a
stronger bond."
Not so, says Michele Kleier, president of Gumley Haft Kleier,
who started in the business when she was pregnant with her
second child and met her first clients in the sandbox. "I
always dealt with friends, and clients who were not friends
became friends," she said. "I feel I look out for people
more than strangers will."
Though she does not advocate using a broker simply because
he or she is a friend, she does expect that her friends
will call on her when they are in the market. "I am the
broker for most of my friends," she said. "If they don't
feel I am a good enough broker to be their broker, then
they are not a friend."
Mr. Purcell, whose company helps buyers find brokers who
will best suit them, doesn't think that's the right approach.
He argues that the wall between professional and personal
should be maintained. "You are not friends, you are a professional
service provider," he said. "When you are friends, the client
can believe they are entitled to special considerations
they would not get in an entirely professional relationship,
such as commission concessions."
Of course, in today's intense market, properties move so
quickly that the concept of friendship may be moot. "You
might meet a buyer once at an open house and they make an
offer," said Carolyn Meenan, an associate with Bryce Rea
Associates in Little Neck, Queens. "You don't have time
to develop relationships."
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