From the Times Record Herald:
Discount real estate broker Foxtons pulls out of mid-Hudson
Foxtons has moved out of the mid-Hudson.
The discount real estate company laid off between 20 and 30 agents Saturday and has stopped taking new listings in Orange, Ulster, Sullivan, Rockland and Putnam counties.
The company plans to concentrate its efforts on its “most favorable market areas,” including New York City, southern Westchester County and most of New Jersey, according to a statement yesterday afternoon.
Foxtons will maintain its current listings in the mid-Hudson, according to the statement. It wasn’t immediately clear who would service those listings.
“I feel bad for all those people who have their homes listed and don’t know where their agent is,” said one of the laid-off agents, who asked not to be named.
Roughly two dozen agents were summoned to an office meeting Saturday morning where they were asked to turn in their cell phones, laptops and company cars, according to the unnamed agent and other sources aware of the meeting.
“They had arranged to have a cab service there, and that’s what took everybody home,” the agent said.
Foxtons built what local following it had on its cut-rate commissions and its promise to leave more money in sellers’ pockets.
But the company’s level of service left something to be desired, customers and agents with other firms said.
In the end, the company’s low commissions might have been its undoing, because there wasn’t enough money to attract buyers’ agents.
Ok, Booya Bob- Let’s hear it. JM
Only a matter fo time before they pull out of north Jersey too.
In the end, the company’s low commissions might have been its undoing, because there wasn’t enough money to attract buyers’ agents.
From what I have heard, they (Foxtons) never call back the buyers’ agents. They have been doing so recently. They want a pre-approval and if you were to call them directly (which is what they REALLY want) they’ll have you go through THEIR mortgage company for pre-approval.
Rich
IT’S JUST A SHAME THAT SO MANY SELLERS LOST VALUABLE TIME IN GETTING THEIR HOMES SOLD WHILE BEING DISILLUSIONED INTO BELIEVING THAT FOXTONS WAS THE ANSWER. WHILE THEIR (FOXTONS) LISTINGS SOLD STATISTICALLY FOR SUBSTANTIALLY LOWER PRICES, IT WAS DIFFICULT TO GET PEOPLE TO UNDERSTAND THAT THEY’D BE NETTING MORE MONEY WHILE PAYING A HIGHER COMMISSION AND LISTING WITH A FULL SERVICE BROKER.
The post at 4:17 pm cannot be left unchallenged. Foxtons did not succeed because it was frozen out by traditional brokers; this is hardly a secret and I’ve spoken to several who made no apologies for doing so. If you wish to confirm, check the comments to the cited article by the overjoyed trad brokers.
If you’re interested, google Federal trade Commission (or Justice Department)real estate for further for fun reading concerning anticompetitve practices.
RE the comment by Rich in NNJ, please note that Foxtons (unlike Coldwell Banker, e.g.) does not have a mortgage arm.