Foxtons Real Estate Lives in Manhattan
September 28, 2007
Indeed, Foxtons is alive and well in Manhattan - as an umbrella for a fruit stand. The title had you going didn’t it? Anywho, I’m sure you’ve all heard the news that Foxtons has let go of 350 people and is filing for bankruptcy. Hmm, I wonder why?
It has long been known that their business model was just not sustainable. Many, including myself are surprised they lasted this long. The carrot that they offered home sellers was a lower commission - 2%. Later, their model changed to 3% plus a salary for the agents. Most traditional agents had some issues showing homes listed by Foxtons. I remember hearing that there just wasn’t enough of the pie to go around. But that’s a whole other story.
The Bloomberg article had this interesting quote:
“I’m amazed they lasted as long as they did,” said Kathy Platt, a real estate agent in Bergen County, New Jersey. “They don’t provide any service.”
The lack of service sentiment was echoed by countless home sellers. Some of the stories were remarkably the same. The agent would come to the house in their Mini Cooper, show them the comps on their wireless laptop, price it any way they wanted as long as they signed the contract. After that, virtually nothing. Some would say they were pretty much order takers.
One little birdie once told me that their brokerage added legal language to their contracts specifying a reduced co-brokerage commission to Foxtons agents who brought qualified buyers to their exclusive listings. I guess what’s good for the goose is good for the gander.
I spoke to the owner of the fruit stand who wanted to remain nameless and asked her if she knew about Foxtons. She did not. When I told her that they were filing for bankruptcy she laughed and told me a story of how she acquired the Foxtons umbrella. Apparently, “they”, not sure if it was Foxtons or and umbrella vendor, paid her $10 to use the umbrella. I told her she had a collectors item on her hands and asked if she would consider selling it. She said make me an offer. I offered her $11 for the Foxtons unbrella. She said she’d consider it and asked me to stop by another day for her answer. I will.
For a boatload of links about the Foxtons story, see what Marlow Harris’ Blog - 360 Digest.
My Previous Foxtons Post:
Inman News - Real Estate Branding
Technorati Tags: Foxtons, Real Estate, Manhattan, Kiosk Realty
Posted by Rudolph D. Bachraty III | Filed Under NYC Photos, Real Estate Blog
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Rudy - I can’t wait to see if you get that umbrella - bet we’ll have lots of “collectibles” in the real estate / mortgage industry a year or so from now - what do you think? - Cyndee Haydon
i’m heading over to get me some fresh fruit on monday….i’ll see if she accepted my offer - contingency free
i have some zillow memorabilia - a handy little key chain light which i have on my - you know - key chain. also a redfin sign and the last redfin polo with their old logo - is that money or what?
p.s. not suggesting that their going under or anything.