Upper East Side Resident
March 1-23, 1994

A revolutionary cost-cutting approach has been introduced here by Principal connections Limited (PCL). PCL eliminates brokerage commissions by custom matching buyers with sellers directly through a computerized database.

“It’s time to break the brokers’ monopoly on the power of technology,�? says PCL founder and president, Lan Lan Wang. We don’t need the costly, traditional approach to apartment sales anymore. We have the technology to reduce transaction costs by thousands and even tens of thousands of dollars.�?

Noting that brokers have been computerizing listings for many years, Ms. Wang says, “It’s absurd that the advantages are denied by the buyers and sellers who comprise the market, in order to protect the domain of the go-betweens. The traditional 6% brokerage commission eventually will be another casualty of the computer age.�?

Ms. Wang, a former banker and an MBA graduate of Harvard Business School, observes that a broker’s commission burdens the buyer as well as the seller, since “the commission is built into the price to whatever extent market conditions will allow.�?

She asserts that the brokerage system is especially vulnerable in today’s New York City market because “for many owners who bought in the latter half of the ‘80s, eliminating the commission can make the difference between getting out whole and sustaining a sizable loss.�?

In the PCL system, sellers provide detailed information about their apartments, while buyers complete a form on which they specify their requirements. The database then generates “match reports,�? which, together with floor plans, enables buyers to “preview�? seller’s apartments. Buyers contact the apartment owners directly, making their own arrangements for viewing and conducting their own negotiations.

As part of its full-service approach, PCL views all apartments registered for the database and provides buyers and sellers with personalized, step-by-step assistance, not only in completing the PCL form, but also in other key aspects of consummating a transaction. A referral service also is offered to help buyers find professionals needed to close a transaction. “On a $300,000 sale, a broker typically is paid $18,000,�?

Ms. Wang says. “How can that figure be justified, in an age when customized software and appropriate counseling can achieve the same results at a fraction of the current cost? “We have a service that can benefit individuals, owner/developers and institutions alike,�? she adds. “It’s logical, its practical, and it works.�?

Persons interested in additional information are asked to call Ms. Wang at (212) 249-9654.

No Comments »

Trackback URI | Comments RSS