This is my first post on Active Rain. Hello.
I worked as a real estate broker at a boutique firm in NYC selling small to mid sized buildings from 1987 to 2001. The market I worked was the Upper East side.
All I did was work on exclusive listings, the sytem worked well. I sold about 10 buildings per year. However not in 1990 or 1991.
1990 I sold zero and 1991 I sold 2. I can't believe I stuck with it. In 1992 I lucked out and sold a townhouse for $12 million. No other brokers involved other tha a referral fee. If it wasn't for that sale I never would have made it. After that It got easier. The market had stabilized and the volume of sales increased. The next 8 years was solid.
It looks like the market cycle is starting over. Pricing is down though most sellers probably still are hoping for buyers who will overpay. Very few of them I'm sure. If history repeats itself it will probably be lean times for the next 2 years before the market stabilizes and prices start to increase. They will. The market always comes back.
When the market started to stabilize in th about 1992 the buyers who capitalized were the ones who knew how to add value. The pros weren't speculating on an upward price movement they were looking to add value. They knew how to see potential value where others didn't. They also knew how to create value through well managed rehabs with a sharp eye for adding curb appeal.
As a broker I frequently felt like a fish out of water when it came to rehabs. At least in the beginning. The more I learned about ways to add value the more valuable I became as a broker. This is likely what it's going to take to be be productive during the next few years. Showing sellers ideas for adding value prior to sale will help improve relationships and secure listings. In the case where the property is being sold "as is" showing buyers the hidden value and ways to increase value will definately help get deals done.
Today I run a blog called Metrocrete about how to use various products to add value to property. Though now that property values are coming down I'm getting the itch to get back in the market. The big difference today is the flow of information. 15 years ago was like the dark ages compared to today. However real estate has always been about adding value, thats the key to success.
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