Barbara Fox specializes in selling the luxury real estate market, including apartments and townhomes, in Manhattan: New York City’s most expensive and densely populated borough. Since New York City is a renting town, the founder of Fox Residential Group often works with first-time buyers who are entering the market to the tune of well over $1,000,000.
“I moved to New York at 22, wanting to make money, and I didn’t want anyone controlling how much I made,” she recalls. “Selling real estate was a way to be my own boss and make as much as I could, knowing I would work hard for it. Your ability to broaden the scope of whom you know, and whom they know, is critical.”
Luxury real estate market wish list
“I usually start by asking first-time buyers for a wish list,” she says. “What size do you need? What does your family consist of? What neighborhoods would you consider? What’s your price range? Then I line up all the items on the list and give them a realistic idea of what they can expect to find. Of the items on the list, I’ll usually find at least one that will make the client really like a particular property.
“The list might include outdoor space, a view, its own laundry area, proximity to a gym—that’s almost always on the list, nowadays—and above all, light. Only once, maybe 30 years ago, did a client ask for a dark apartment.”
Misconceptions about the luxury real estate market
The most common misconception among first-time luxury buyers, says Fox, is that they’re going to find exactly what they want, for the price they want to pay. They’ll always have to compromise, and they’ll usually have an inflated notion of how much apartment they can get for their money. On the other hand, their pre-conceived but mistaken ideas could prevent them from getting a great property—unless the agent sets them straight.
“People often don’t know what they want, even if they think they do,” she says. “They might tell you they don’t want to live in a specific neighborhood because that neighborhood used to have a bad reputation. But bad neighborhoods almost don’t exist in Manhattan now. Plus, it doesn’t matter where you live, because—I promise you—it will become ‘your hood,’ and you’ll learn to love it unless it is inconvenient to live there.”
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Types of properties in the luxury real estate market
In Manhattan, for-sale properties are condos or co-op apartments, or townhouses. Condo buildings usually can’t turn buyers down, so long as they can pay. Co-op boards typically require that the buyer have some financial backing over and above the purchase price and maintenance fees. Thus, Fox says, an agent who’s trying to get a client into a co-op will need to get a financial statement completed immediately and be certain that it’ll pass a co-op board’s smell test.
“If there’s financing involved, we ask that the client get pre-approval,” she adds, “to put the seller at ease. If you’re buying a townhouse, you’ll find it easier to get a loan because the buildings are so valuable.”
“You have to impress on clients that they’re making the biggest financial decisions of their lives,” Fox concludes, “so they have to work with an agent who knows what she’s doing. It doesn’t work to choose an agent just because she’s your friend. She might care a lot, but you need someone who knows the way.”
Find out more about the luxury real estate market
Are you interested in working in the luxury real estate market? Visit the Institute for Luxury Home Marketing, the premier independent authority in training and designation for real estate agents working in the luxury residential market.