I am looking to move house in Schenectady. Coldwell Banker Prime Properties (hereinafter CBPP) has…read morea co-op share listed that is as close to perfect as one could want, and my wife (not readily convinced) concurs. I put out the word and the first respondent was a Ms. Frith of CBPP. I had not registered the fact that CBPP was also the listing agent, possibly a mistake on my part.
I arranged to see the apartment that was part of the co-op share, and it was indeed close to ideal. The price was consistent with our means and we found a compatible banker -- not a small matter in rural parts, where co-ops in particular are intellectual mysteries. We are ready to make the offer.
Ms. Frith sends along a document for me to sign and return with a check for $1,000. It is a contract to purchase real estate. A contract -- not yet vetted by my lawyer. To purchase real property -- but co-op shares are personal property, a very different kind of deal. Alarms are flashing. I ask a competent attorney; he is puzzled.
I tell Ms. Firth this is wrongheaded & mistaken, even sending sample co-op share sales contracts and steps that take place before that stage. Ms. Frith tells me she doesn't know, but that Patsy Whitney (who admits she's never done a co-op deal, also true for the rest of the office, per Ms. Frith) wants it done this way. I am increasingly leary of this full court press and walk away.
I have since made further inquiries. This is the second time this property has been listed, and it has been on the market for about three months -- surprising given a very desirable address and some very real plusses. It appears that Patsy Whitney, the listing agent, has put too high a price on this co-op share. The median price per square foot in that area is $85 (range $70-$100); she is asking $110. Moreover, co-op shares are notoriously illiquid; this is particularly true in the Capital District, where most banks will not make a purchase loan on them, and this negatively affects the market price. Finally, market prices, particularly in that part of town, are depressed, likely to stay that way.
In short, the real patsy here is the guy trying to move this property. Ms. Whitney has promised him a price he's not likely to see, and Ms. Whitney's associate, Ms. Frith, appears willing to accede to this dubious promise. In aid of this, Ms. Frith -- ostensibly representing my interests -- allowed herself to be suborned by Patsy Whitney and other senior colleagues at CBPP. These two sought to pressure me into a deal -- Ms. Frith in this instance doing so while ostensibly being my agent and supposed to be acting in my interest. Fortunately, even in my dotage, I am not quite so foolish where money is concerned.
Two observations:
The Coldwell Banker name was once a brand of impeccable real estate brokerage practice. I grew up on stories of deals done back when the firm was a model of how to broker commercial real estate. Clearly, CB's Prime Properties franchise in Niskayuna, fronted by the Whitney and Frith women is destructive to that once proud brand.
Wisdom suggests, if CBPP is one's choice as an agent, one should hold them on a short leash, to be sure the firm's staff really does act in the patron's interest, not just that of the agent. Having good legal counsel at every step is prudent.
The horrible part from my perspective: If the trustee for the owner had an adroit agent, I would gladly find the right price with him -- even perhaps a (modest) premium above market.