This Week in Comments

New discount brokerage looks to succeed where Foxtons failed
1. There is nothing new in this announcement and most brokers in New
York City will discount their fees to 5 or even 4 percent if the
apartment is priced correctly and it is a quick sale. These guys will
look to make the money up and it will probably come from the agent’s
side. No good agent will work for a start-up for less money, as they
can work anywhere at a small discount. This company will probably be
doing rentals within a few months as this business model will not work
in Manhattan.
2. In my opinion, this is not a drastic innovation that will “change the game,” for lack of a better phrase.

What kind of effect will the new NYC law to help homeowners facing foreclosure have on the residential market?
This is merely putting off the inevitable and preventing market forces
from being efficient. Everyone keeps blaming Bloomberg for the dearth
of affordable housing in the city, but it’s socialistic policies like
this that are preventing transactions, which keep prices elevated.

Do you agree with the courts decision to block the use of eminent domain in the Columbia University expansion project?
Agree. This project could have been done by Columbia if they were not so greedy. Offer the right price and the holdouts would sell. They refuse to pay up. That’s why we have eminent domain — so big corporations and developers that give political green to our politicians can steal land cheap. Stop eminent domain unless it’s for a school, hospital or road. That’s what it was meant for.

Ogilvy sues to block threatened eviction
I doubt that there are very many people looking for office space on Eleventh Avenue in the mid 40s considering the Manhattan market today. To me it looks like a lot of wishful thinking on both sides turned sour. I can see why the employees dragged to the site are not happy.

NYC sidewalk shed revamped for first time in 60 years
Of course it looks great; it costs lots more to erect. Why not spend
more money for something that will last a few months after all the
owners have lots of money and don’t need it?

Freddie: Mortgage rates fall below 5 percent
Rates will go to at least 8 or 9 percent within two years, for sure.

A.C. Lawrence ‘VOWs’ to be one-stop shop
1. Brokers are smart to get a VOW. It levels the playing field.
2. All these Corcoran, Halstead, Citi Habitats [and] Elliman offices will be gone since everyone is going virtual. It’s about time. I hope banks will do the same. We’ll finally get our city back.

Commercial brokerage firms: Who sold the most?
It would be an interesting statistic to see just how much attrition has occurred at these firms, both by number of agents and percentage of the total talent pool.