2009 Feb 12th

Is Toll Brothers in Trouble in Hoboken?

Brooklyn Takes a Hit – Is Hoboken Next?

Bloomberg reports that Toll has slashed prices at Northside Piers, Toll’s high rise project in Williamsburg.  Toll is now selling two-bedrooms units at Northside starting at $690,000, down 21 percent from $869,000 at the beginning of last week. Three- bedrooms now start at $860,000, down 20 percent from $1.075 million. Penthouses now cost $950,000, down $1.5 million.“We wanted to get them into a price range that made sense to people,” David Von Spreckelsen, a senior vice president in Toll’s New York City urban division, said in an interview.  I haven’t heard any news of price cuts in Hoboken yet but I’m certainly keeping my ears open.

Is Toll Desperate to Reach Out To Hoboken Realtors?

A sign that the bloom may be off the rose, I recently received an email from Toll inviting realtors to yet another lunch this week and an exceptionally generous  4% commission split.  It wasn’t too long ago that they wouldn’t give us the time of day!  Now they’re offering all sorts of prizes and gifts.  Who said there’s no such thing as a free lunch?  Here’s the email:

PLUS, PLUS, PLUS …
PROGRAM 
AT MAXWELL PLACE, HUDSON TEA, HARBORSIDE LOFTS, & 700 GROVE!

 
Curious to know what plus, plus, plus means? Then join us at the spectacular Club Maxwell on Monday, February 9 from 12:00 to 2:00 pm to find out! Don’t miss this event to learn about this fantastic new program and special opportunity to experience the fabulous Club Maxwell.
 
4% Plus, Plus, Plus Program Kick-Off Party 
Monday, February 9 
12:00 pm – 2:00 pm 
Club Maxwell 
1125 Maxwell Lane, Hoboken
 

Stop by Club Maxwell for some wonderful food, fun, and to register. Plus, you’ll learn who won the Grand Prize from the 2008 Passport Program! 

 

What do you see in Toll’s future here in Hoboken? Will the rest of Maxwell Place ever get built? Are those units worth the premium prices? I love the ones with the dead on Manhattan view. But what about buildings like 700 Grove? It seems so empty when ever I’m in there.

Posted by Lori Turoff | Currently 22 Comments »

2008 May 29th

One Hoboken Realtor May Be More Than Enough

With a Multiple Listing Service for Hoboken Real Estate, Everybody Wins

I had an interesting phone conversation this morning with a potential buyer of a Hoboken condo. He wanted to see condo properties in both Hoboken and Manhattan. I was explaining the difference between how real estate brokerages work in Hoboken (and New Jersey in general), where there is a multiple listing service (MLS), vs. Manhattan, where there is not.

If you are a Hoboken condo buyer and find a nice property on-line, say at trulia.com or notice a “for sale” sign on a building while walking down the street, chances are pretty good that the property is listed on the MLS. The agency that listed the condo has agreed to cooperate with every other agency in town to allow all agents to show that property. The more times a condo is shown to buyers, the more likely it is to be sold and at a higher price which is better for the seller. The sales commission agreed upon by the seller and the listing agent, typically 5% in Hoboken, is divided 50/50 between the listing agent and the agent that finds a buyer for the condo. If you’re a buyer and have developed a good working relationship with a particular agent, he or she can show you the place you found on line as well as any other property on the MLS. The buyer wins because the agent gets to know the buyer’s likes and dislikes, doesn’t waste the buyer’s time showing inappropriate properties, and by being loyal to that agent, he or she works that much harder to find the perfect property. After all, agents don’t make a penny working with the buyer unless the buyer actually buys a condo.

Agents Don’t “Compete” For the Buyer

At this point my caller objected. He said he would not work with a single agent because that would not be in his best interest. If all the different agents are competing with one another, he explained to me, he would pay less for his condo. Huh? I pointed out that if he were to buy a condo directly from the listing agent he would still pay the full commission. The entire commission would go to the listing agency. Listing agents don’t give up half the commission when they sell their own listings! Furthermore, I explained, the listing agent represents the seller. It is often debated whether it is a conflict of interest for a listing agent to also represent a buyer (called dual agency). How can a seller’s agent work for the buyer and act as a fiduciary of the seller with an obligation to obtain the highest possible price for the seller’s property? He still didn’t get it. If he didn’t want to work with a single agent and instead went to every agent in town telling them he wants them “to compete for him.” Outstanding agents with knowledge and skill are in high demand and don’t have the time or patience to deal with a “high maintenance” buyer who thinks he’s going to outsmart the world. This buyer may only outsmart himself winding up with an novice agent, and will end up paying the same commission anyway. The really good Hoboken agents often have more business than they can handle.

The Commission is Just “Wrapped Up” in The Sales Price

My caller may have thought that, as a buyer, he had some ability to change the commission to be paid. Maybe he erroneously thought that the seller pays the listing agent only half the agreed upon fee for selling the condo herself or that the fee varies depending on which agent he uses to find the condo – wrong again. The commission is set no matter who sells the home. Sometimes, a seller and listing agent do agree when listing the property that if it is sold “in-house” that is, by the listing agency, the fee might be 4% instead of 5%. That has to be disclosed in the listing information which every agent can see. Which agent finds the property for you has no effect on the sales price. With one exception.

An Agent’s Negotiating Skills Do Matter

When a buyer finds the condo of his dreams and makes an offer, it is the realtor who presents the offer to the seller’s agent. Although the offer is made in writing, hopefully in contract form, there is usually some verbal back and forth over the price until the offer is accepted. It is during this very important stage of offer and counter-offer that your agent’s negotiating skills are crucial. Who do you want working with you when you are a buyer – an excellent negotiator who has worked exclusively for you and know your financial constraints or the inexperienced novice agent who you just tried to scam out of a half a point? Of course, having an agent who communicates well, can express the buyer’s intentions accurately and clearly, avoids emotional entanglements like anger and disappointment, doesn’t make empty threats, and is smart and professional is in the buyer’s best interest. Negotiations can become complicated and heated, especially when there is more than one potential buyer involved. Having a good agent working for you when you find the condo of your dreams may be a great payback for having been loyal to that agent while house hunting. As for my caller, I wish him luck but I have no time for games.

Posted by Lori Turoff | Currently 9 Comments »

Copyright © 2008 Hoboken Real Estate News     Login     Sitemap