Agents and consumers agree: system doesn't work.

A groundbreaking study commissioned by braddock + purcell shows that New York City real estate agents, buyers, and sellers believe that the process of buying and selling residential real estate is broken and in need of fundamental reform.

The consensus found is that most people "do not trust" their agents. This was agreed upon by both the agents (78%) and consumers* as well (69%).

Q: Please agree or disagree with the following statement: Most people don't trust real estate agents or they don't expect much from them.

Agents Buyers/Sellers

Agree        78%   69%
Disagree     11%   24%
Don't know   11%    6%

"The fact that the residential broker community reveals they're not generally trusted by the consumer demonstrates there is a major disconnect in the process and that the matching of agents with consumers is random at best," said Kathy Braddock, a partner in braddock + purcell.

The survey also found that three in four agents and consumers agree that the process of buying and selling apartments is fragmented and needs a guide.

Q: Please agree or disagree with the following statement: The whole process of buying or selling an apartment in Manhattan is fragmented and needs a guide.

Agents  Buyers/ Sellers

Agree        73%   74%
Disagree     27%   26%
Don't know    0%    0%

Surprisingly, 43% of agents agree with consumers that their industry primarily supports the hard selling of apartments rather than actually meeting all of the customers' needs. Only 20% of buyers felt that agents were meeting all of their needs.

"We believe that there are many outstanding agents that are worth their weight in gold who put the consumer's needs front and center throughout the transaction," Paul Purcell, partner of braddock + purcell and formerly president of Douglas Elliman.

"It is our job at braddock + purcell to ensure that the selection of an agent is not done randomly and that the consumer is matched with the absolutely best agent for their individual needs."

As mentioned above, about 7 in 10 consumers polled said that a primary reason for their agent dissatisfaction was that that agents were "just trying to sell apartments" rather than trying to meet their needs.

When this same concept was asked about in another way, the result was even more striking. While 9 in 10 agents believe their firm provides a wide range of services, less than half of consumers feel the same way.

Agents  Buyers/Sellers

Wide range             89%  47%
Just sell apartments   11%  49%
Don't know              0%   4%

Said Purcell, "Unlike other major markets in the United States, New York City does not have a Multiple Listing Service (MLS). This makes the selection of an outstanding, capable agent significantly more important to the successful outcome of the transaction."

"At braddock + purcell, we act as the consumer's consultant, counselor, matchmaker and defender," said Kathy Braddock, "so we ensure that people understand all possible lifestyle options available to them."

Paul Purcell added, "The results of this comprehensive survey underscore our firm's innate value proposition. By not having any exclusive relationship with any one firm or service provider, we truly are able to offer our clients the right options for them."

The braddock + purcell survey also revealed a significant gap in the services that agents say they are providing and the services that consumers say they are receiving.

Both agents and consumers were asked whether they provided or were provided with ancillary services including attorney selection, financing guidance, or recommendations regarding renovation and decorating specialists or moving companies.

While 86% of agents polled said they recommend real estate attorneys, only 40% of consumers say they are receiving this counsel. Additionally, 86% of agents said they recommend financing channels for their clients, while only 36% of buyers said they were advised on this. 57% of agents said they provide counsel on renovation and moving company firms, while only 9% of consumers were offered advice on renovation companies and just 7% were offered moving company recommendations.

One of the key measures about how satisfied clients are, is how likely they would be to use the same service or buy the same product again. Using that same standard for real estate, it is clear that consumers are very dissatisfied with the process as it works now.

Q: How likely are your customers and clients to use your services/your broker's services again? Are they/ you?

Agents           Buyers/Sellers

Very likely       86%   55%
Somewhat likely   14%   24%
Not Likely         0%   17%
Don't know         0%    6%

Penn, Shoen and Berland conducted interviews with NYC real estate agents and residential customers who had bought and sold real estate within the last several years. Interviews were conducted with 152 customers who bought and sold Manhattan real estate and 51 agents who sell Manhattan apartments.

braddock + purcell matches clients with real estate agents and other service providers at no additional charge to the consumer.