NYC's top brokers reveal secrets for cashing in on new developments at REBNY panel; Real estate experts Fredrik Eklund, John Gomes, Dorothy Sexton, Samantha Sheeber and Sean Murphy Turner discuss recent trends, risks and common pitfalls in new development

The Real Estate Board of New York's (REBNY) residential broker members recently came together at REBNY's Mendik Room to hear from a power panel of top brokers to discuss trends, risks and common pitfalls in new development. The panel, "The Secrets of Top Brokers and Industry Leaders - 2014: Cashing in on New Developments," included Douglas Elliman Real Estate team Fredrik Eklund, Managing Director and John Gomes, Executive Vice President, stars of the New York City edition of Bravo's Million Dollar Listing; Dorothy Sexton, Vice President of Sales, Macklowe Properties LLC; Samantha Sheeber, Esq., Starr Associates, LLP; and Sean Murphy Turner, Licensed Associate Real Estate Broker, Stribling & Associates. The conversation was moderated by Diane Ramirez, Chief Executive Officer of Halstead Property. When asked why he and Gomes spend ninety percent of their time working on new development, Eklund explained that while being involved in new development has its risks, it provides the opportunity to build customers for life and put a stamp on NYC real estate. "I find that time is better spent pitching a developer (to become an exclusive leasing agent for the whole building) versus pitching one buyer on one apartment", he explained. "When I started my career in New York City, I wasn't excited about posting a listing and waiting for the doorbell to ring. I wanted to be able to point out to my future children, which buildings I played a part in developing." One of the night's hottest topics was about the relationships between brokers who represent buyers and those who represent developers. Gomes advised brokers representing buyers to build their relationships with brokers in new developments. It was suggested that an agent be proactive in building such relations which may in turn, help their buyers to get a better price. Turner stressed the importance of letting the on-site agent explain details about the property versus jumping in to lead the conversation. Sexton agreed and advised brokers to know in advance what questions they should be asking the on-site agent. For re-sales, Sexton urged brokers to know the sponsor's plan on renovation and ask how many units are being renovated, how much of the building is being renovated, and if any units will still be occupied during renovations. Turner described this as "being careful of who you get into bed with" for the sake of your buyer, being sure that the sponsor knows what they are doing and that they will stick to the plan. One point stressed repeatedly by the panelists was the importance for brokers to get their hands on the Offering Plan as soon as they are involved in new development project. Sheeber, the attorney on the panel, stressed the need for brokers to immediately look at the key parts which include: the special risks section, Schedule A on purchase prices, Schedule B on the project budget, closing costs and adjustments section and the description of the property and building condition. Sheeber explained, "It is your duty to be familiar with the project and give your client all the information you can, so that when they come to an attorney, there won't be any surprises." The conversation continued with the panelists discussing trends in inventory. Many agreed that the resale market is healthy despite low inventory and prices for both new development and re-sales will continue to rise. In terms of new inventory, Gomes pointed out that there are almost no studios or one-bedrooms coming on the market. His team at Douglas Elliman is pitching developers on making smaller units to capture this demand. The evening closed with questions from the audience which raised the topic of safety in new development, particularly in high-rise buildings. The panelists agreed that safety in new development today is top-of mind and has been furthered by technology and product material advancements.