Allan Zapadinsky describes himself as a “boy from Brooklyn, born and raised”. Or at least he did, until he moved to New Jersey.
Even then, as a real estate agent at Keller Williams, he focused on Manhattan, Brooklyn and the Bronx. But when the coronavirus pandemic hit and he noticed shoppers moving around the tri-state area, that also changed.
“I still love the city. Don’t get me wrong, we are still doing a lot of business there, ”Zapadinsky said. “It’s just that some priorities have changed for me personally, and I want to be able to help people who also see their priorities change. “
Zapadinsky is one of the many New York brokers who recently decided to get licensed in another state.
Many just follow the money. As New Yorkers seek more space, the suburbs have seen increased demand – and not enough supply to keep prices from rising.
The median New Jersey home selling price in July was nearly 8% higher than a year ago, while supply was 42% lower, according to the New Jersey Indicators Monthly Report. Jersey Realtors.
“New York City has been going through a very strange time for the past year or two, and it looks like the tri-state area is just waging war after war,” said Rachel Kelly, a Keller Williams agent pursuing a license in the New Jersey. “So I probably needed a second stream of income. “
Some had already planned to obtain a license elsewhere. Daniel Blatman of Triplemint was considering opening an office in his home state of Ohio. However, after some clients lost faith in the stock market and decided to invest in housing in New Jersey, he began to study.
“I’m looking for how can I really help all of my clients create their wealth solution in the best possible way. And I saw New Jersey create a unique opportunity to be able to help all of my customers at different price points, across different demographics, ”said Blatman.
Although Blatman lives in Manhattan, he considers driving to New Jersey to be office time. He plans to split his week between New York and New Jersey and make calls in the car.
Other brokers have more distance to go.
Florida has seen an increase in license applications – 5,936 in July, for example, up 29% from 4,613 in the same month last year, according to the Florida Department of Business and Professional Regulation.
While it’s unclear what percentage are from the city, New Yorkers are in the mix.
Kobi Lahav, senior managing director of Living NY, described the fatigue of referring more and more clients to brokers in other states.
“It made me look around and say, ‘You know what? There are a lot of opportunities, ”Lahav said. “Many of my clients with a second home [in Florida] will probably need to sell it and buy something more serious ”if they make Florida their primary home.
Bonnie Brown, a Bond agent, didn’t expect to apply for a license in Florida. The New Yorker was in Florida planning to sell a Florida home she inherited when the pandemic hit. But after talking to agents in the area, she decided to spend her winters working in the Sunshine State.
“It seems like the stars are all telling me something,” Brown said.
But Mark Chin, CEO of Keller Williams, warns that without the right support, agents can feel overwhelmed by expanding into a new market.
“You run the risk of doing a pretty poor job in two places instead of a great job in one place,” Chin said.
However, he said, if the agents can put together the right team, “it’s an incredibly profitable business.”