Is History repeating itself in Manhattan? What else is new?
In this coming Sunday, April 1, 2007 The New York Times Real Estate section has an article by Josh Barbenel titled Listing dream in Disarray that reports that after REBNY spent weeks meeting the objections of smaller firms, the two largest brokerage companies in Manhattan, Prudential Douglas Elliman and the Corcoran Group, announced that, partly because of the costs involved, they were planning to boycott the new Web site. These two firms have more than 50% of the listings in Manhattan. Each firm has more than 1000 agents.
When REBNY first announced the search portal, the smaller member firms objected that they would be paying a disproportionate cost of joining the system. They objected that joining would be mandatory.
Now the large firms are objecting. Corcoran and Elliman officials complained that they had spent large sums branding their own Web sites and persuading buyers to look there first and didn't want to divert their marketing budgets to pay for an unknown industry site. Their brands are local, they are well known in Manhattan only.
Best Real Estate brands are ranked by RISMEDIA today in Who is Leading the race for Best real estate brand. Coldwell Banker is the #1 real estate brand and REALTOR.com is the #1 online real estate brand.
Companies are being asked to pay an initial fee based on size, $12,500 for a large company and an additional $100 a year for each agent represented on the site. Corcoran and Elliman, with the most brokers, would pay the largest bill, but they are not sure they will get their money's worth.
5 years ago when the Manhattan Association of REALTORS® was formed the large Manhattan Brokerage companies did not want to join and they still have not become members. A real MLS, a code of ethics why would they want that?
They would have to send out their listings to all other members within 24 hours. They would also have to update information in a timely manner when there is an accepted offer, contract signed and closed sales. That is how the rest of the country does business not Manhattan. Why would they want to share closed sales data with other brokers that is their proprietary information. Manhattan has coops it should be kept a secret. The city of New York put and end to that last May when they made the information public through ACRIS Automated City Register Information System on their public website nyc.gov
Because of MANAR's presence in Manhattan REBNY enacted the 72 hour rule and they now have ethics training. They have 72 hours before they have to send out a listing to other brokers. They have 72 hours to sell their own listings. The NY agency disclosure form does not have to be signed by sellers and buyers of coops and condos although the law states an agent is suppose to discuss their agency relationship with their client. I use the form. I also have exclusive and non exclusive buyers agreements. Most agents in Manhattan will say there is no such thing because they are not members of Manhattan Association of REALTORS®.
Because of my internet presence and my well known company brand west of the Hudson River I have developed a very good Manhattan relocation business. My buyers are coming from all over the world. Manhattan has never had real buyer's agents before.
Brokers who work with buyers and buyers agents have a difficult time getting accurate listing status from many listing brokers in Manhattan. Many do not return calls, and do not update listings even after they are sold. It is not in the system data we share and not on their websites. The worst offenders are usually brokers who have been in the business for 25 years. They are top producers and that is how they have always done business.
The REBNY/Trulia search engine was never intended to be an MLS. It was intended to give consumer's a searchable website with REBNY member's exclusive listings. Listings on websites are only as good as the data agents input. Since many REBNY member agents never update or change the status of their listings in the system at best it would only be an alternative website to NYTOnline. The only difference is only REBNY member's listings would be on it.
To all those who predicted the death of The NY Times, I wouldn't be putting the nails in their coffin just yet.
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