Fredrik's Real Estate Game
Fredrik explains why he does understand the change at 46 Lispenard and why things can change in an instant.
I like this episode a lot, because it means so many different things to me. Real estate can be many things: a deal can be a quick, easy success and other times a slow failure. But most of the time it is something in between: extremely hard work where you get a lot, but not all you wanted. 46 Lispenard was just that for me. I got a lot out of it: six units sold in a week, $450,000 in commission, six happy buyers, a thankful developer, and I had the entire broker community talking about my quick sell-out – BUT, I did not get it all. I didn't get 11 units sold all at once.
46 Lispenard is an 11-unit building in Tribeca with a beautiful and historic cast-iron facade, all done and ready to be sold -- by none other than me! It is unusual to meet a developer who is ready to put the building on the market and go. Usually I sit in on developing and architect meetings for at least a year, working on floor plans, finishes and marketing material ahead of my sales launch, and usually selling out an entire building take months if not years. So to meet a developer who has everything ready and wants it done quickly is both good and bad: good because as a passionate broker it is always nice to get started right away, but at the same time it is never fun to have time constraints like this.
I talk a lot about momentum with my assistants and team. The creation of a momentum and the urgency for my co-brokers and my buyers to ACT is what makes me successful. To be able to sell out 46 Lispenard quickly and satisfy the developer's record high prices, I needed to not only ride the wave of momentum until the very last unit was sold, but I also had to create the wave to begin with.
My trick was an unusual one: I listed the building the Friday before a long national bank holiday, when no other broker listed units and when 95 percent of the broker community went on holiday. That very weekend there was only ONE new building on the market downtown -- my 46 Lispenard. Real estate is all about supply and demand and I made sure, in this digital world of ours, buyers and brokers alike would still get notifications from the listing systems on their phones and emails about my new building regardless where in the world they were on vacation.
And the following work week when everyone came back, the wave of momentum was building; everyone was talking about 46 Lispenard and wanted in. And I didn't let anyone in until the first broker's open, where I had an insane turn-out -- all at once.
I had multiple offers on each unit so I decided to speed-date. It was a risky tactic but it paid off. It's human nature and basic psychology: everybody wants what they can't have and what everybody else wants. Nobody wants something that is easily accessible and where they are alone in their need. So to have these brokers literally lined up with me at a table, and also bump into each other in the restaurant, created even more urgency. Act now, or you forfeit your opportunity to get this unit. AND, may I add, please pay full ask and all closing costs! No negotiations -– that is my negotiation. Honestly, THIS is what drives me, this game if you will. This urge to sell out a building at record prices in record time. I have done it 22 times now, 22 buildings in New York sold out at record prices. To do the very best I can, or anyone could ever do. To come back to my client, the developer, with full ask deal sheets ready to go and impress him so much that it would be HIS turn to full of the chair. . .
But he didn't. His reaction was far from expected. And that is an important lesson in real estate! You think you know it all, you think you have it all under control, and then suddenly the game changes. Don't forget, you work for your client -- only. And although the client had given me strict guidance to sell the building at out at these set prices and to do so fast, he has the right to change his mind at any time. Even though it wasn't something I wanted to hear. Did I get angry for a second? Yes, but only for a split of a second as I saw all that hard work and master planning unfold in front of me and vaporize. And then Jonathan came to his senses and accepted the six deals. We compromised. Had he given me another week I would have ridden the wave of momentum and finished off the 11 units. But you know what, I respect his decision and he most likely will get more money in a year for the remaining five units. And then, I will be there by his side. Wearing booties.
Love you all, and thanks for your comments to my blog. I do read each and every one of them. I read them to my husband Derek, and we smile. Because it is one thing to be able to make you laugh and have your enjoy my quirkiness, but it means so much to me when and if I inspire some of you to work harder, to wake up every morning and do the BEST you can in whatever you do out there. Be strong and see you next week!
This season is about to get very dramatic…