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AM New York had a cover story on Thursday about how New York homes sales were sinking 20%, and possibly even more. These kinds of stories irritate me and inevitably make my life more difficult, since I work in real estate. These journalists have little idea what they’re talking about, and they churn out these pieces to sell papers and cause people to make unrealistic expectations when they look for an apartment, either to buy or to rent.
As someone who works in the industry, I can a few things with certainty:
1. First of all, few sellers ever gets their asking price. There are always negotiations, for a lot of reasons, especially in New York. People will haggle for days over the price, and even incidentals like who’s paying the flip tax on a co-op. If you’re selling a studio for $500,000, maybe you’ll get $450,000 - $480,000, depending on a lot of factors.
2. The quotes he uses aren’t really from reputable real estate professionals. Instead, they’re random people off the street yammering on about the economy or how they want to buy a place because the market seems good. Great, I hear that at cocktail parties all the time yet few people actually speak to a mortgage broker and then actually look. It’s filler and it adds nothing of value to the story and speaks volumes about this writer’s skills. It’s telling that no one from Halstead or Corcoran would comment, mostly because the basis of the whole story is bonk.
3. Yes, there are more listings these days, and many people are renting their units instead of selling them because it is harder to get financing than it was last year. Banks have stopped handing out money to anyone with a pen and an application. They did that before and look where it got us. People who are qualified will get financing, the way it should be. The people who can’t get easy credit will be calling me about renting a one bedroom.
4. And no, behind the scenes brokers aren’t saying scarier numbers, like 30 or 40 per cent lower. I’m a broker, and I sit in an office full of brokers, many of which have properties in contract right now. Some were on the market for less than a month. Some are over $1 million. And the rental market? Robust. I’m not saying the whole industry is rosy, because it’s taken a hit just like anyplace else, but it still chugs along. People have to live somewhere.
You have to understand how journalism works, especially these days. Writers are handed a press release or whatever it is, and they have to churn out a piece under a very tight deadline. There’s an old newsroom saying, “Go With What Ya Got,” which is very much true in this Internet age. Also, and this is often true with business reporters, many have no formal training in business or finance. Many reporters take the job because it pays. AM New York, incidentally, does not pay well. None of the free rags do. Consider that before you take their hackneyed real estate advice.
That said, do yourself an enormous favor and don’t take business advice, especially real estate advice, from anything you read in the media, especially AM New York. Pick up the phone and call someone who actually works in the industry. Go to the source, not the middle man.








This afternoon I went to the bank to inquire about some bizarre overdraft fees. Like 90% of the population, I monitor my account online. You can imagine my surprise this morning, when there were three overdraft fees. Yesterday, I was very much in the black.
I walked over to my local branch who would only offer me $35 back of the $105. I wanted it all back. They suggested that I call corporate and see what they would do. While I was there I noticed on the teller’s computer transactions in my account that were not on the web site. The teller’s screen was my account in real-time and the online banking services were about two to three days old. Why the disconnect?
The creepy part was that when I called the corporate offices, I got shuffled around to four different people, two of which were so rude and mocking that I actually had to write to BOA corporate and complain. After half an hour of frustration, (I had to shout at one customer service rep to stop talking, because he wasn’t listening to me and just kept yammering on about ledgers) I walked away with a $35 refund and a very bad taste of Bank of America in my mouth.
Bank Of America offers online banking, where you can, in theory, watch your account in real time. Here’s the catch: it’s pretty much just a novelty site that makes customers think they’re in control. The truth is that what you see online is nowhere near what’s really going on with your account. This is important because if you’re like me, and use your debit card for pretty much everything, you need to know what’s coming and going. Only the bank associates in the branches have access to your account in real time.
That’s a key point because when something like an overdraft happens, it’s easy for BOA to charge you, since they claim that they’ve given you the tools to manage your finances. Their tools are shoddy, and their accounting practices seem to fall into the category of "new math." When I pointed out, and rightly so, that the online banking and the in-branch ledgers offered totally different balances, the BOA reps, again, blamed me for not keeping a paper record.
I looked online and found a lot of other people who have problems with this same issue, including an entire website dedicated to BOA's poor all around service. BOA knows that their online banking services are pretty much bonk, including those ridiculous e-mail alerts that they offer, and instead of keeping customers happy and refunding fees they pretty much stole, they toe the party line and offer the same stale lines to client after client. Talking to BOA customer service was like something out of 1984. And I’m not sure that I want to go back.






Yesterday I had a student who wrote a piece about the assorted hoops one has to jump through in order to adopt a stray animal in New York. There are applications and reference checks and agencies want to know the fate of any animal you have ever had.
My student was frustrated with the process for a lot of reasons, but eventually got herself a little tabby kitten.
While I understand why agencies have to be so picky about who they give animals to (hoarders, animal torturers, etc.), I think one question they fail to ask is whether potential owners ever plan to dress up their animals in costumes If so, their applications should be denied.