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FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 383 RECEIVED NYSCEF: 05/14/2019
EXHIBIT 7
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
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Home > SmartMoney
The New Real Estate King Pins
Þ X
Hot Stock
Pick
-
HMMR
HMMR Is About To
Revolutionize The
Telecommunications Industry
Daily Stock Traders
By Alyssa Abkowitz
Published: Jan 18, 20113:38 p.m. ET
Last Updated: Jan 21, 2011 11:13 a.m. ET
0
Working for the biggest broker in Augusta, Ga., means Gardelle Lewis doesn't have to offer discounts
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF:
- 05/14/2019
MarketWatch
King
Hfatch
pick."
one they
Welcome to the age of the kingpin broker, where a select group of powerful real estate agents
- grabbed a firm on their markets. In some such brokers have become
surprisingly grip cities,
town, with a hand in a third to a half of all home sales. For brokers like these, top-dog status is
savvy and to the work they've put in to building a strong clientele. But critics say their dominance
daunting amount of leverage over their customers. Think commissions are negotiable in a soft
the biggest agents in town, who can easily have more than 100 listings and can turn down new
second thought. Have a buyer's agent and want to see a home listed by the market leader? Forge
won't split commissions; she's likely to shut you and your agent out. And who needs to advertise
might offer the home without even placing it on a multiple-listing service, the holy grail of real
everyone."
he "knows
The ranks of this have been - with an assist from the crash. Tha
group steadily growing housing
the-fittest consolidation, there are only 55,000 brokerages in the U.S. today, down from 73,000
recent study of real estate markets by professor Jason Beck at Armstrong Atlantic State University
studied had a brokerage with a market share of 30% or more, up from 16% of cities in 2007. In
firm."
oriented business like real estate, Beck explains, "30% is a really dominant (To put that in
nationwide the four largest financial brokerages in the U.S.
- combined - control less tha
level,
In all, the shift makes the real estate landscape even trickier for buyers and sellers to navigate.
have the clout and contacts to be on both sides of the deal
- both buyer
example, representing
taking home most of the commission. That's entirely legal, but competing brokers say it can kee
prosecution,"
best deal. "A lawyer wouldn't represent both the defendant and the says Douglas
attorney and executive director of Consumer Advocates in Real Estate.
For their part, top brokers argue that deals run smoother when the buyer's agent and seller's a
closing table. What's more, some say, control over a deal is a fair reward for their effort. Judy P
majority market share in her territory outside Albany, N.Y., says she's earned the right not to sh
aggravation."
brokers: "I don't have to put up with the Whatever their business philosophies, fr
Cleveland, Ohio, big brokers are finding themselves in good shape in a shaky market.
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF:
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MarketWatch
King
M/atch
BIG BROKERS: HOW THEY STAY HUGE
Howard Hanna
Location: Cleveland, Ohio
Market share: 45 percent
Comment: Much of Howard Hanna's recent growth came from the 2008
purchase of its largest competitor. Market share is even higher in some ritz
suburbs.
Houlihan Lawrence
Location: Bronxville, N.Y.
Market share: 39 percent
Comment: The firm's agents analyze internal data and share inventory with
"in-house"
colleagues to help boost sales, says Chief Operating Officer Chr
Myers; the firm can collect both sides of the commission on such a sale.
Caldwell Banker S.R.E. Realtors
Location: Starkville, Miss.
Market share: 53 percent
Comment: Owner Jean Amos Favor attributes the firm's dominance in part
slew of in-house transactions, though she acknowledges that sales in which
good"
agent represents both the buyer and seller "in some ways are not fo
sellers seeking a bargain.
Century 21 Associated Professionals
Location: Carlsbad, N.M.
Market share: 39 percent
Comment: Carlsbad's market has held up better than other southwestern
percentage"
Owner Bob Yeager says "a fairly large of in-house sales give
business a lift.
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF:
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King
M/atch
Still, it does give brokers some strong cards to play. On one recent afternoon, the affable, soft-spok
one of his listings, the $535,000 penthouse of a client whose late husband belonged to the elite
Club, then took a visitor on a tour-by-SUV of a row of stately manors that he's sold to doctors
in the majority of his transactions, he represents both the buyer and the seller, often introducing
landing a deal. Buyer and seller alike get smoother service and fewer delays, Lewis says; meanwhile
Meybohm Realtors, capture the full commission.
agency,"
Industry experts call this practice "dual and a dominant local brokerage might do as m
Brokers who rely on it say the practice can eliminate the miscommunications and jockeying bet
office,"
a home purchase into a slog. "There's no substitute for the flow of information in an says
operating officer of Houlihan Lawrence, an agency with a 39 percent market share in Westchester
consumer advocates argue, however, that dual agency doesn't provide any incentive for the age
sale price or cuts in commission. For their part, Lewis and other Meybohm brokers say they cons
while the average commission nationwide is 5.36% - a difference of about $8,200 on
re-sales,
clients who are underwater on their mortgage or facing another hardship, like a major illness,
But otherwise, his web of connections, including repeat clients, means he seldom has to compete
class?"
price. And if a would-be client objects, he points out, "Why wouldn't you go first
Driving with Judy Phetteplace around the hilly streets of Amsterdam, N.Y., a town of 18,000 ne
that,"
forgiven for thinking that she's the only agent in town. "I sold she says, pointing at a modes
that." owner"
champagne-colored Mercedes, "and that and Spotting a "for sale by sign on one
as and intense as Lewis is and relaxed
- makes a note to come back
fast-talking back-slapping
listing with her instead of going it alone. Chances are she'll get what she came for: Phetteplace's
now has nine agents and 55 percent of the listings in her local market, and it has been the top p
Adam Kaufman of the Cleveland area and Claire Stone of Augusta.
Phetteplace owes some of her dominance to a somewhat controversial tactic. She's leaned heav
listing."
brokers call "pocket Most agents register every home they try to sell on a multiple-listing
database that any agent or broker can see, as long as they pay a fee to join. But once a broker u
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF:
- 05/14/2019
MarketWatch
King
Hfatch
founder of Consumer Advocates in Real Estate, says it's simple economics: "If you limit the supp
down."
Ginny Edes thinks those forces worked against her when she listed with Judith-Ann Realty; ove
says, she and her husband got only two buyers to visit their four-bedroom house in Amsterdam.
to another broker, who put the home on the multiple-listing service and agreed to split commissions
places,"
house within six months. "I know they sell a lot of Edes says of Judith-Ann Realty. "But
me."
for
Phetteplace acknowledges that the Edeses were displeased with how things played out. But sh
"cobroking"
is rooted in hard experience. Almost 35 years ago, she says, not long after she decide
give real estate a try, a broker she was working with shafted her on a deal, refusing to pass along
The lesson learned: Other real estate agents were a waste of time. Some agents say that unadvertis
another edge: It's harder for buyers to learn details about a home's history, including how much
market, that could encourage a lowball bid. Phetteplace disagrees with that notion, but admits
way," do?"
going to satisfy every client. "I've lost some gems along the she says. "What can you
For Adam Kaufman, an agent in the ritzier suburbs of Cleveland, there's no substitute for an ob
Monday night, you can spot his black Range Rover outside the Cheesecake Factory in Lyndhurst,
the bar and showers strangers with business cards. At 40, Kaufman isn't married or even dating,
distraction."
"relationships are a And his all-day-every-day motto produces results; the 6-foot-4
transactions in with the average sale price around $650,000 - and he says his
2009, hovering
80 percent in upscale enclaves like Moreland Hills. But given his seemingly voracious appetite
when Kaufman reveals one of the keys to his success: dumping clients when a relationship gets
consuming. It's something he doesn't do very often, but still, he says, "In this business there are
them."
your energy. You have to drop
Kaufman's approach reflects a broader truth about dominant brokers: They can afford to be se
disagrees with them about selling strategy, they can cut their losses. In practice, this often mean
making some of the biggest decisions about how to market a house. For Kaufman, deal breakers
that he advertise each week in the newspaper, which he says can often be a waste of money, an
the list price (a no-no in today's market).
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
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7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF:
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Watch
. . . .
Photographs by Matthew Mahon.
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FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 383 RECEIVED NYSCEF: 05/14/2019 EXHIBIT 7 FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF: - 05/14/2019 MarketWatch King M/atch 15-Year Fixed 3.88% Today's Mortgage Rate 30-Year Fixed 4.35% . 93 3 0 5/1 ARM 4.00% APR $225,000 (5/1 ARM) $1,074/mo $350,000 (5/1 ARM) $1,671/mo Terms & Conditionsapply. NMLS#1136 Home > SmartMoney The New Real Estate King Pins Þ X Hot Stock Pick - HMMR HMMR Is About To Revolutionize The Telecommunications Industry Daily Stock Traders By Alyssa Abkowitz Published: Jan 18, 20113:38 p.m. ET Last Updated: Jan 21, 2011 11:13 a.m. ET 0 Working for the biggest broker in Augusta, Ga., means Gardelle Lewis doesn't have to offer discounts FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF: - 05/14/2019 MarketWatch King Hfatch pick." one they Welcome to the age of the kingpin broker, where a select group of powerful real estate agents - grabbed a firm on their markets. In some such brokers have become surprisingly grip cities, town, with a hand in a third to a half of all home sales. For brokers like these, top-dog status is savvy and to the work they've put in to building a strong clientele. But critics say their dominance daunting amount of leverage over their customers. Think commissions are negotiable in a soft the biggest agents in town, who can easily have more than 100 listings and can turn down new second thought. Have a buyer's agent and want to see a home listed by the market leader? Forge won't split commissions; she's likely to shut you and your agent out. And who needs to advertise might offer the home without even placing it on a multiple-listing service, the holy grail of real everyone." he "knows The ranks of this have been - with an assist from the crash. Tha group steadily growing housing the-fittest consolidation, there are only 55,000 brokerages in the U.S. today, down from 73,000 recent study of real estate markets by professor Jason Beck at Armstrong Atlantic State University studied had a brokerage with a market share of 30% or more, up from 16% of cities in 2007. In firm." oriented business like real estate, Beck explains, "30% is a really dominant (To put that in nationwide the four largest financial brokerages in the U.S. - combined - control less tha level, In all, the shift makes the real estate landscape even trickier for buyers and sellers to navigate. have the clout and contacts to be on both sides of the deal - both buyer example, representing taking home most of the commission. That's entirely legal, but competing brokers say it can kee prosecution," best deal. "A lawyer wouldn't represent both the defendant and the says Douglas attorney and executive director of Consumer Advocates in Real Estate. For their part, top brokers argue that deals run smoother when the buyer's agent and seller's a closing table. What's more, some say, control over a deal is a fair reward for their effort. Judy P majority market share in her territory outside Albany, N.Y., says she's earned the right not to sh aggravation." brokers: "I don't have to put up with the Whatever their business philosophies, fr Cleveland, Ohio, big brokers are finding themselves in good shape in a shaky market. FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF: - 05/14/2019 MarketWatch King M/atch BIG BROKERS: HOW THEY STAY HUGE Howard Hanna Location: Cleveland, Ohio Market share: 45 percent Comment: Much of Howard Hanna's recent growth came from the 2008 purchase of its largest competitor. Market share is even higher in some ritz suburbs. Houlihan Lawrence Location: Bronxville, N.Y. Market share: 39 percent Comment: The firm's agents analyze internal data and share inventory with "in-house" colleagues to help boost sales, says Chief Operating Officer Chr Myers; the firm can collect both sides of the commission on such a sale. Caldwell Banker S.R.E. Realtors Location: Starkville, Miss. Market share: 53 percent Comment: Owner Jean Amos Favor attributes the firm's dominance in part slew of in-house transactions, though she acknowledges that sales in which good" agent represents both the buyer and seller "in some ways are not fo sellers seeking a bargain. Century 21 Associated Professionals Location: Carlsbad, N.M. Market share: 39 percent Comment: Carlsbad's market has held up better than other southwestern percentage" Owner Bob Yeager says "a fairly large of in-house sales give business a lift. FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF: - 05/14/2019 MarketWatch King M/atch Still, it does give brokers some strong cards to play. On one recent afternoon, the affable, soft-spok one of his listings, the $535,000 penthouse of a client whose late husband belonged to the elite Club, then took a visitor on a tour-by-SUV of a row of stately manors that he's sold to doctors in the majority of his transactions, he represents both the buyer and the seller, often introducing landing a deal. Buyer and seller alike get smoother service and fewer delays, Lewis says; meanwhile Meybohm Realtors, capture the full commission. agency," Industry experts call this practice "dual and a dominant local brokerage might do as m Brokers who rely on it say the practice can eliminate the miscommunications and jockeying bet office," a home purchase into a slog. "There's no substitute for the flow of information in an says operating officer of Houlihan Lawrence, an agency with a 39 percent market share in Westchester consumer advocates argue, however, that dual agency doesn't provide any incentive for the age sale price or cuts in commission. For their part, Lewis and other Meybohm brokers say they cons while the average commission nationwide is 5.36% - a difference of about $8,200 on re-sales, clients who are underwater on their mortgage or facing another hardship, like a major illness, But otherwise, his web of connections, including repeat clients, means he seldom has to compete class?" price. And if a would-be client objects, he points out, "Why wouldn't you go first Driving with Judy Phetteplace around the hilly streets of Amsterdam, N.Y., a town of 18,000 ne that," forgiven for thinking that she's the only agent in town. "I sold she says, pointing at a modes that." owner" champagne-colored Mercedes, "and that and Spotting a "for sale by sign on one as and intense as Lewis is and relaxed - makes a note to come back fast-talking back-slapping listing with her instead of going it alone. Chances are she'll get what she came for: Phetteplace's now has nine agents and 55 percent of the listings in her local market, and it has been the top p Adam Kaufman of the Cleveland area and Claire Stone of Augusta. Phetteplace owes some of her dominance to a somewhat controversial tactic. She's leaned heav listing." brokers call "pocket Most agents register every home they try to sell on a multiple-listing database that any agent or broker can see, as long as they pay a fee to join. But once a broker u FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF: - 05/14/2019 MarketWatch King Hfatch founder of Consumer Advocates in Real Estate, says it's simple economics: "If you limit the supp down." Ginny Edes thinks those forces worked against her when she listed with Judith-Ann Realty; ove says, she and her husband got only two buyers to visit their four-bedroom house in Amsterdam. to another broker, who put the home on the multiple-listing service and agreed to split commissions places," house within six months. "I know they sell a lot of Edes says of Judith-Ann Realty. "But me." for Phetteplace acknowledges that the Edeses were displeased with how things played out. But sh "cobroking" is rooted in hard experience. Almost 35 years ago, she says, not long after she decide give real estate a try, a broker she was working with shafted her on a deal, refusing to pass along The lesson learned: Other real estate agents were a waste of time. Some agents say that unadvertis another edge: It's harder for buyers to learn details about a home's history, including how much market, that could encourage a lowball bid. Phetteplace disagrees with that notion, but admits way," do?" going to satisfy every client. "I've lost some gems along the she says. "What can you For Adam Kaufman, an agent in the ritzier suburbs of Cleveland, there's no substitute for an ob Monday night, you can spot his black Range Rover outside the Cheesecake Factory in Lyndhurst, the bar and showers strangers with business cards. At 40, Kaufman isn't married or even dating, distraction." "relationships are a And his all-day-every-day motto produces results; the 6-foot-4 transactions in with the average sale price around $650,000 - and he says his 2009, hovering 80 percent in upscale enclaves like Moreland Hills. But given his seemingly voracious appetite when Kaufman reveals one of the keys to his success: dumping clients when a relationship gets consuming. It's something he doesn't do very often, but still, he says, "In this business there are them." your energy. You have to drop Kaufman's approach reflects a broader truth about dominant brokers: They can afford to be se disagrees with them about selling strategy, they can cut their losses. In practice, this often mean making some of the biggest decisions about how to market a house. For Kaufman, deal breakers that he advertise each week in the newspaper, which he says can often be a waste of money, an the list price (a no-no in today's market). FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF: - 05/14/2019 MarketWatch King Watch . . . . Photographs by Matthew Mahon. SPONSORED CONTENT $56 | Quay Australia Sunglasses By smartbuyglasses.com These authentic Quay Australia QC-000268 HIGH KEY MINI BLK/FAD Metal frames and are available online... WE WANT TO HEAR FROM YOU Join the conversation COMMENT MARKETWATCH PARTNER CENTER MOST POPULAR Here's the updated list of 78 stores Sears is closing in September Mark Mobius: Trump will win the trade fight with M China - and here's how to play it FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF: - 05/14/2019 MarketWatch King Watch #BoycottWalmart campaign to protest 45' 'Impeach T-shirts SPONSORED FINANCIAL CONTENT A Simple Way to Stop Picking Losers and Gain a 186% Advantage... True Market Insiders - This Will Collapse 70% on August Chart Proves Stocks by anyan Hill This (84% Accurate) Options Trader's Video just Went Viral ...Again Investing Daily Wall Street Guru: "This will create world's first Tril!!cmire" Angel Publishing SPONSORED RESULTS 1. List of Real Estate Agents 5. Real Estate Sales Contract 2. Real Estate & Homes for Sale 6. Real Estate Investment Group 3. Local Real Estate Listings 7. Real Estate Database 4. Commercial Real Estate Bro... 8. Real Estate Auction Compan... FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 7/3/2018 NO. 383 The New Real EstateRECEIVED Pins NYSCEF: - 05/14/2019 MarketWatch King Watch MarketWatch MarketWatch ADVlc Joanna Gaines Welcomes Baby No. 5, but That's Not All These two firefighters are blazin That's New dominated profession realtor.corrr moneyish SPONSORED FINANCIAL CONTENT This (84% Accurate) Summer travelers love This Chart Proves Losing Money Trading Options Trader's Video these credit cards. Stocks Will Collapse by Options? Get The 3 Just Went Viral ...Again CompareCards.com 70% on August 1 Options Trigger Banyan Hill Blueprint Investing Daily TradeWins BACK TO TOP A Copyright © 2018 MarketWatch, Inc.Allrights reserved. By using this site you agree to the Terms of Service, Privacy Policy, and Cookie Policy.