Issue 107 - What Value Does a Broker Bring? Part One: The Art of Using a Listing Broker

450 East 52nd Street 11FLDP

1001 Fifth Avenue 110C

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320 East 42nd St 2403

1593 Deerfield Road

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51 Crosby Street 3

445 Lafayette 110C

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Issue 107 – What Value Does a Broker Bring? Part One: The Art of Using a Listing Broker

March 1, 2025

It might be tempting to go it alone when selling your property, but the small percentage saved on broker fees is far outweighed by the value a qualified real estate pro brings to the transaction. This is nowhere truer than in the notoriously challenging NYC market.

Buying or selling a home in NYC is a truly unique experience. Not only are both endeavors highly emotional, but they are also nuanced and can be overly complicated. From dealing with rigid co-op boards and legal intricacies to the need for savvy marketing and staging, real estate sales in NYC are no easy feat.

In addition to navigating those challenges, buyers and sellers should recognize that property transactions typically represent the most liquid and significant portion of their assets. It would be foolhardy for a novice to go it alone rather than have someone with in-depth market knowledge to advise and offer counsel.

Some sellers may initially consider doing a FSBO (For Sale By Owner) to save on costs. However, the average layperson could never extract enough online information about the competitive market. Indeed, according to StreetEasy, only 9% of NYC sellers did so without an agent, meaning the vast majority are unwilling to turn the largest investment of their life into a gamble, especially when there are people who can help mitigate all the risks.

A real estate pro can offer much value, particularly in understanding the complete picture of the market — where it is and where it may be heading, upcoming events that might impact the neighborhood, and a historical perspective of pricing in the building and neighborhood. By having access to information not yet recorded online, a broker can factor in the price-per-square-foot and monthly carrying costs in devising an asking price that brings in buyers quickly. They will also advise you on co-op considerations (if applicable). For example, boards can easily deny a sale if the proper due diligence isn’t performed to protect the value of the building overall and the other units. A broker protects against such pitfalls.

Furthermore, listing brokers ensure your property is seen in the best possible light. They know how to stage and declutter, supply high-quality photography, and get eyes on your unit in various ways —including social media, online and print advertisements, and public relations. And they offer a consistent strategy incorporating all those components with a strong understanding of the target buyer demographic.

On the other hand, a FSBO unit will not attract the attention of the primary brokerages, who will not waste their time on a listing that lacks specificity or focus in the positioning.

While putting your home on the market may seem simple, many moving parts contribute to a successful outcome. Most of all, it requires creating comfort in the minds of buyers in a market where you are competing with other sellers promising the same. Real estate pros have the experience and means to set your property apart.

Brokers will walk you through the project, from listing to closing, helping sellers navigate the paperwork, legalities, and inspections. Selling a home is indeed a full-time job: coordinating open houses, dealing with other agents to schedule appointments, sourcing photographers and stagers, conducting mailings, placing ads and social media posts, and creating and hosting a website for starters.

A recent deal provides a perfect example of a listing broker’s value: My client was considering selling his property in the middle of the summer, but I knew he could get much more when buyers flood the market in the next season. After waiting three months to list it, we sold it for 35% above his expectations. The key takeaway is that a competent broker brings discipline to the product to maximize the ROI — not just to line their own pockets but to serve the clients’ best interests.

As the saying goes, a lawyer who represents himself has a fool for a client. That same rationale applies to sellers (and buyers) in real estate transactions where you put a substantial amount of cash into an asset. Having a listing broker dedicated to garnering you the most value for your money, time, and effort is a no-brainer.

Stay tuned next month for Part Two: To Use a (Buyer’s) Broker or Not to Use a Broker — That is the Question

Issue 125 – The $5 Million Question: What’s Actually Worth Owning in New York Right Now?

September 1, 2026

The New York real estate market is entering a period where the old rules of valuation are becoming less reliable. Price per square foot and comparable sales still matter, but buyers are weighing those factors differently — rewarding some attributes while quietly discounting others. The question is no longer simply, “What did the apartment downstairs sell for?” It’s “What are buyers willing to pay a premium for now — and what have they stopped paying for?”

I could identify at least seven factors being repriced in Manhattan right now: outdoor space, views/greenery, turnkey condition, monthly carrying costs, new development versus resale, second-home ownership, and the increasingly important distinction between a great apartment and a great building.

Confusing matters for buyers is that the NYC market is sending contradictory signals. Manhattan inventory is changing by price band, mortgage rates remain challenging nationally, and NYC’s new pied-à-terre tax is creating another potential dividing line in how buyers assess ownership costs.

In the luxury zone, one way to test those shifting valuations is what I call “The $5-Million-Question.”

I can take $5 million and show clients what that buys today in six completely different versions of New York: Think:

$5M on Central Park West
$5M downtown
$5M in Brooklyn
$5M in a new development
$5M in a great prewar co-op
$5M for something compromised but spectacular

Same amount of money. Same city. Radically different value.

The questions to ponder are:

Which one would I buy?
Which one would I avoid?
Which one has the greatest upside?
And which one will be easiest to sell five years from now?

That comparison is more revealing than a market-wide statistic because it shows what the same $5 million actually buys — and what it might be worth to the next buyer.

On the surface, the questions are simple. In practice, answering them requires a sophisticated analysis — price per square foot, carrying costs, taxes, liquidity, buyer pool, neighborhood trajectory, architectural quality, and exit strategy. Buyers should seek out an expert broker not only for information but also for interpretation.

For a long time, value was assessed through familiar metrics: price per square foot, comparable sales, neighborhood, floor, light, views, condition, and building pedigree. Those factors still matter. But buyers are now weighing them differently. We are in a repricing phase — not necessarily of New York City as a whole, but of the individual components that define its value.

At Central Park West, $5 million typically trades square footage for permanence: park frontage, architectural significance, scarcity, and long-term stability.

Downtown, the same budget may secure a more contemporary product — larger windows, amenities, and outdoor space — but often at a higher price per square foot and with higher ongoing costs.

In a new development, $5 million buys condition, services, and immediacy. The question is how much of that price reflects a “new development premium,” and whether the resale market will recognize it when the time comes to exit.

In Brooklyn, the same capital can deliver scale, outdoor space, and architectural character that would be significantly more expensive in Manhattan.

None of these is inherently superior. The real questions are: What are you actually buying, and who will want it next? That second part is often underweighted: Which market is offering more rewards?

Based on buyer behavior, several attributes are becoming more defensible:

Light and views are not replicable. While layouts can be changed, exposure and outlook cannot be transformed.

Functional outdoor space is valuable. Usable terraces connected to living areas are materially more valuable than secondary or awkwardly accessed outdoor areas.

Strong floor plans are key. The pandemic reinforced that usability matters as much as size. Proportion, flow, and flexibility are now critical.

Condition has always mattered — now more than ever. High construction costs and uncertainty have increased demand for finished product. However, there is a ceiling — buyers will not indefinitely overpay for someone else’s design choices.

Low carrying friction is persuasive. Taxes, common charges, assessments, and long-term building health are now central to valuation. High monthly costs can materially impact resale liquidity.

Scarcity can be the tipping point. A strong apartment does not need to be perfect. It needs to be difficult to replicate.

So, where would I be most cautious today?

I would be disciplined about paying a premium purely for newness. New does not hold value on its own — architecture, location, and scarcity do. I would closely evaluate buildings where carrying costs are disconnected from underlying asset value. I would avoid trophy pricing unless there is a true trophy attribute. And I would be careful about pricing that is anchored primarily to renovation cost.

A $2 million renovation does not translate into a $2 million increase in value.

The market does not reimburse cost. It prices outcome.

If I were allocating funds at this level, the guiding principles should be: light over finishes, proportion over decoration, irreplaceable views over amenity packages, and ultimately, best-in-class units in proven buildings over average units in trending ones.

The strongest purchases do two things at once: they function as exceptional homes today and remain desirable assets tomorrow. That means thinking about the exit before the entry — and recognizing that New York isn’t one market, but a collection of micro-markets defined by neighborhood, block, building, floor, and orientation.

While real estate is inherently emotional, value is what remains when emotion fades.

Whether the budget is $1 million, $5 million, or $25 million, the question is ultimately the same: What is actually worth owning?

That is the question the next phase of the market will answer — and it will reward analysis over generalization.