Yesterday it was simply the word on the street, today it’s been confirmed: One Rincon Hill is now offering brokers 4% commissions through the end of the year. Just something to keep in mind should your agent suddenly seem a bit more bullish on The Hill.
Well, that would excite me if it meant the obnoxious and egotistical sales team at ORH received less commission; but they are probably salaried (that’s a blind guess, so feel free to correct me).
But it just adds to their egotism & lack of respect for buyers that they’d choose to give incentives to brokers rather than purchasers.
I feel bad for the brokers that represented all those people that ran away from their contracts. Now instead of not getting 3%, they won’t be getting 4%. ’tis a pity.
Lame. Reduce your prices.
What an obnoxious advertisement. This alone makes me think we will see the end of the real estate industrial complex in our lifetime. Someday, buyers in America will demand what Europeans already enjoy, which is COMPLETE access to all listings and sales histories on the internet, and realtor fees that combined do not go above 2% of purchase price.
I love that SocketSite almost always leaves us with a juicy morsel to ‘discuss’ as we head into the weekend. 🙂
Agree with all of the thoughts above (especially transparency and fee caps), though for the sake of balance, I would point out that this (basically) just matches what a seller’s broker selling any other property would expect to receive. To the degree it works that way in reality, I don’t see a big issue; to the degree it causes a buyer’s broker to push this overpriced inventory at the expense of the buyer, it’s a big problem and should be required to be disclosed to the buyer in advance of seeing the property (in my opinion).
But to close, just as bit of troll bait for the weekend… how’s that Nov07, err Dec07, err Feb08, err Aug08 tower 2 groundbreaking going?
Yeah, thought (and said) so… 😉
Have they even finished the hardscapes and landscaping yet? (or the lobby areas for that matter?)
3 years later, they are just getting around to planting the trees. Webcor won’t be working for me!!
Am I allowed to conclude from this that buyers aren’t exactly busting down the doors at ORH? Maybe delaying that second tower was a godsend.
Remember when we heard all that talk about how cancellations were being resold at HIGHER than contract prices? Somehow, I doubt it.
I bet 2RH goes up el cheapo (much more proletarian chic) in a few years with average $psf prices 30-50% less than tower 1.
If it follows the same pattern as everywhere else the progression is; first broker incentives, then comes the free upgrades, then the reduced prices.
“Just something to keep in mind should your agent suddenly seem a bit more bullish on The Hill.”
Very naughty, Socketsite! TGIF!
On the other hand, I am surprised that real estate professionals have not been all over this already.
The “FSBO” posting at 4:41PM was not me. (Although I do favor direct price reductions instead of gimmicks.)
– The original FSBO
Speaking of new SOMA condo towers, did we ever see any followup to this cryptic comment left last week?
https://socketsite.com/archives/2008/02/infinity_update_closings_moveins_and_even_kitchen_cabin.html
“I don’t know what’s going on at the Infinity sales office. I have been trying to get a hold of the sales office for the past month and just recently got a call-back. I have been trying to work with the sales office to close escrow on my unit and they would not call me back. When they finally did, they notified me that everyone that hasn’t closed yet will be dealt with on a case-by-case bases through arbitration. I was like, “WTF”? Try calling people back! I will definately be seeking legal counsel — ridiculous!
Posted by: FDAnonymous at September 15, 2008 11:19 AM”
I’m sure a licensed real estate professional would *never* let such an incentive affect their honest and unbiased advice.
Of course, ORH must think differently…
@ diemos
That IS a cryptic comment, and makes no sense (not calling back, THEN threatening them with arbitration?)
I know the sales office was recently remodeled and moved around, maybe that has something to do with it. Who knows. But it would be interesting to get some details on that.
I cant help but agree with above. Maybe they would sell some units if they had the building in move-in condition. Hardly anything is done, and seems to be moving at a snail pace.
Also agreed is first comes broker incentives, then comes free upgrades, then comes price reductions! I am guessing by the end of the year we will see some advertised MLS listings for what ever remains at some heavily dicounted prices. Not making 2006 prices look so good after all is it?
I would be very interested to see some clarification by FDAnonymous. Arbitration only occurs where there is a breach of contract. The comment seems to indicate that the Infinity is giving notice of its intent to breach. I am having trouble thinking of a reason why such a move would be in the developer’s best interests particularly where the contract was entered a year or more ago. Presumably the contract price is more than the current fair market value.
how can a buyer not feel like a sucker, knowing his agent is making $40,000 for an average unit in the building. and it’s not like most buyers doesn’t already know about this building, it’s the most high-profile development in town.
When the rain starts falling, so will the prices….
Also agreed is first comes broker incentives, then comes free upgrades, then comes price reductions! I am guessing by the end of the year we will see some advertised MLS listings for what ever remains at some heavily dicounted prices. Not making 2006 prices look so good after all is it?
First they have to get the suckers, I mean the contract holders, to close. Then they’ll start to drop their prices. If they drop prices now, the remaining option holders won’t close and they’ll have that much more inventory.
Until then, it’s nothing other than fantasies of high profit resales, including the resale of the first unit via the MLS that I never believed for an instant wasn’t “assisted”, as well as stories of resales for more than the contracts that people gave up.
All real estate is Theater. Hold on to your wallets.
@FDAnonymous is hard to believe. I know of someone who is closing at Infinity who has had no problems with the sales office in terms of communication or service. (She did sell her home in Virginia for a large amount of money so has had no problems coming up with financing and deposits.) Unless there is more information given regarding FDAnonymous’s comment, I think it might very well be a 1RH owner in disguise who is trying to do the old, “Hey, Look over there!”.
Mystery Realtor,
Are you commenting on just this building or in real sf in general?
It has been a month since I have driven by the entrance to 1RH Tower, but the plaza and landscaping in front of the tower are beyond a failure. Here you have a major new urban tower and I think they could have made up for the location by creating something unique, but it is not even as creative as some corporate plazas. Since everyone has to valet their cars, the entry plaza could have been a real dramatic memorable experience that could have helped with current owner’s values, but instead it is a flop. If I owned at 1RH, I would gladly pay a special assessment to redo the plaza, landscape and lobby asap.
Too bad I can’t just show up, be my own broker, and get 4% off the price!
hmmmm, you can.
You’ve got to be kidding. SOMA condos need to come down to 800 per square feet and then they might be stable. The ignorance of these sleazy marketing offices really astounds me. Units have not been moving for months and they think an extra percent is going to help. Try 20%
If you want to grab that extra percent:
Don’t tell your clients that 70% of the occupied units are occupied by… RENTERS!
Are lenders still financing there with that ratio?
Hey B of A… how do you do it?