I was fortunate enough to be quoted in Business week in an article entitled Why Redfin, Zillow, and Trulia Haven’t Killed Off Real Estate Brokers. I spoke with the reporter for what seemed like a good healthy duration on where technology is taking our industry, the significance of its impact on the consumer experience and how licensees ply their trade, and the canard that access to information will somehow render real estate licensees redundant or irrelevant. After all that, here is the one quote that made the piece:
“We will never be a point-and-click industry…You will always need a trusted adviser to ensure that you get the best terms possible. The stakes are so high. If you want to do a do-it-yourself project, build a hovercraft.”
Now, I have said that 1000 times, but the other 999 times I have said or written it, I said “if you want a do-it-yourself project, build a go-cart.” The one time I say it with hovercraft, it makes the media.
And my friends all picked up on the hovercraft thing.
Hovercraft do exist. Not just the science fiction kind, but the ones you build at home from a kit. I used to see the ads for them in the back of Boys Life and comic books, and I think they require parts from a vacuum cleaner. I don’t know. I was more of a sea monkey kind of guy.
But I have seldom felt so strongly about something as to the importance of having a trusted adviser in what is typically the largest transaction of one’s life. The median price for a home in Westchester is about $600,000. Assuming a 20% downpayment and a $480,000 mortgage at 4% interest, the total payments over the life of the loan are just over $825,000. But it doesn’t stop there. The taxes, conservatively in today’s dollars at $15,000 annually, would total another $450,000. The home insurance at $1200 annually would be another $36,000. Add in maintenance, improvements, a new roof and furnace along the way, updates, and you could spend another 6 figures easily over the life of the loan. Staggering. And I didn’t even add inflation or rising taxes.
One might think I am a lousy broker for scaring off potential buyers with those numbers, but the truth is that you have to live somewhere, and that somewhere is never free. The numbers are uglier for renters, because you spend almost the same money over time, with no tax benefit (Call a CPA. I am not giving tax advice. This is a muse. Hovercraft, dammit), and at the end of the term you have no asset and no equity. Living is expensive. But it beats the alternative.
Regardless, you never undertake that kind of a project alone without some experienced advocacy to help guide you. Not all agents are created equal, and I have always stressed to consumers that they should choose their representation wisely.
But do have representation. Jokes, hovercraft and sea monkeys aside, real estate should never be a do it yourself project.










“Yours is the Hardest Business I Have Ever Seen.”
Weekends are busy in real estate, so you can imagine the feeling when my head sank into the couch pillow at 6:20pm when I remembered that I had to drive to New Rochelle meet with a client I promised to see. My client is a retiree, and straight shooter as well, and our conversations are always unpredictable. Tonight, she did not disappoint.
That is just on the part of the work that centers on client needs. The other aspects of running a brokerage, such as the marketing, administration, sales, management of people, risk, liability and time, can all be taxing. But for those of us in this industry, it is a vocation, a lifestyle, and almost an obsession. We live, eat breathe and sleep real estate. How do I relax? I end my day by reading and writing about the industry on my own platform and in social media. It is the height of irony to unwind from a long day in real estate by immersing myself in…more real estate. But I am not alone.
There is another part to running a brokerage that isn’t part of marketing, management or servicing clients. It is keeping up with the changes in the industry. The new shiny toy in 1996 was a cell phone. In 2001, it was a real estate website. Three years ago, licensees were encouraged to get involved in social media, and boy did we ever. In those and many “THE” things to do, we do it and often not well. My social media news stream is flooded with the insufferable amount of agents who use Facebook as a self promotion machine with waves of posts about their new listings, open houses, and humble-brags about what they did that day.
And when the shiny object stops being effective, they’ll say it is passe. Lately, some agents have questioned whether websites, blogs, or home searches on their sites are worth having anymore because of diminished returns. This make me laugh. In 1996 my cell phone was a game changer. But why should it be a game changer now, when everyone has one?
So here was my last update on Facebook, directed toward my colleagues who blame their websites for no longer being effective:
Our latest efforts are making sure that all of our online content and property searches are fully optimized for mobile. Who knows what it will be next week. But that is the job, and knowing what is next, just like taking nice photos or writing nice copy, is my business. Hard to do? Yes. But do I love it?
Again, yes.