• Loy Bernal Carlos

REAL ESTATE, IT'S TIME TO WAKE UP!


Throughout my thirty years of working in real estate, leading the marketing efforts of both firms and properties, I’ve learned to pitch and catch from whatever side. But there are certain things that good brokers just don't do. Here are some real examples. For privacy sake, I've left out names or details that might indicate the person or the property. I'm not here to embarrass anyone, just merely pointing out bad practices.




THE WORST RENT & SELL STRATEGY


A broker places a property on the market for rent and for sale. Given the current rental climate with so many major landlords offering incentives and concessions, the broker doesn’t advise the client to pay for the fee. Now, that’s perfectly fine if you are confident it will rent quickly. But months go by and there is almost no activity. So they reduce. Nothing happens. They keep reducing until the asking rent is now below a 10-year low for the building. Meanwhile, the asking price for sale is at its highest ever! The unit finally gets a tenant at a low rent, but the apartment remains up for sale at the same record breaking price.


If the owner’s intention is to sell, wouldn’t it make more sense to keep the rent high and pay a fee? What investor would take a property at a high price with low rent? Moreover, as the property goes from stale to comatose on the market for sale, it is severely negatively affecting the value not only of that particular apartment, but of the entire building. Meanwhile, the broker is accumulating listings he/she knows will not sell. Why not? All he/she is doing is posting it online and on very rare cases when it needs to be shown, an assistant does so.



SOMETIMES THERE IS ONLY ONE SIDE TO A MULTI-STORY


I was showing to a purchaser a unit in a particular building that, as it turns out, had two entrances. The broker’s assistant told us to meet her on the side of the building that wasn’t impressive at all. As if that wasn’t bad enough, when we got to the appropriate floor, this particular entrance led to a long trip down several hallways bef