From Inman News Features
The New York Times Sunday Magazine devoted to style last month had the predictable array of razor-thin, big-lipped 19-something exotic and erotic models splashed across the full-page ads sporting the latest designer garb.
And then there was the ad for Barbara Corcoran, a 50-something-who-looks-40-something broker, with her blonde bob, virgin white teeth, Yoga-inspired smile and blue jean jacket on a Green Tea background. The ad was dubbed “designer real estate.”
Bold? Not really.
Corcoran is one of the smartest brokers in the country, and she understands that real estate for the average consumer is not about the brand of Century 21, Re/Max or Coldwell Banker. It is not about the best online distribution, the best technology, the best closing system or the best Web site. It is about that broker personality down the street who shows up at the same synagogue, neighborhood barbecues and civic meetings and has his or her mug plastered everywhere in the community.
It is about that person next door who is the mayor of local real estate. It is Barbara Corcoran who called it quits with her job as a waitress in 1973 and founded The Corcoran Group out of her upper east side apartment. She made an initial $1,000 investment and has since built a multi-million dollar business. With more than 25 years in the real estate business, she now wears the title “Queen of New York Real Estate.”
The machinations that brokers, franchises and online companies are going through to displace the REALTOR beast are proving to be for naught as local real estate personalities who understand the business like Barbara Corcoran does are becoming more and more powerful.
Using the Internet, more sophisticated branding and technology to drive their local market share, these super agents get it.
With the success of the last few years, the power agents are not afraid to strut their stuff. On her Web site, Corcoran is an unabashed self-cheerleader:
“Today, this self-made business baroness has done more to help New York City residential real estate clients and customers than any other person or company and is considered one of the most powerful brokers in the country.”
These power agents also are becoming more independent as the lead machine on the Web becomes more real and company brand becomes less important.
The biggest problem brokers may face in the future is not larger commission splits with top producers, but defections from these agents-on-steroids who choose to operate solo.
The unique thing about Corcoran is that she is not an active sales agent, but rather the head of a real estate company now owned by NRT, who is very smartly using personal branding for a brokerage company.
But in this way Corcoran is unique.
The challenge for other brokers and franchises is how to brand and market the local personality asset without giving the agent even more power — something most broker/owners cringe at the thought of.
Corcoran’s tips to buyers include:
• Look for the ugly ducklings. The best deals are on homes that need the most work. This way, you can spend the renovation money in stages and know when to ease up if the economy worsens.
• Do your research. Look for a home in a good neighborhood with preferred school districts. Homes with these attributes tend to hold their value in a declining housing market.
• When you buy a home, plan to own it for five to 10 years. You can ride the market and sell when it’s appropriate.
• Now is the time to borrow! Two years ago the mortgage payment for a $250,000 home at a 7.25 percent mortgage rate was $1,705 a month.
• Currently, at a mortgage rate of 6.25 percent the mortgage for the same property would be $1,539. This is a savings of $165 a month, over a period of 360 months this adds up to $60,000. You can use that saved money for home improvements and get a larger return on your investment.