Often when speaking with nationally acclaimed brokers, which is a benefit of being on the East End since there are so many here, their advice tends to blend into a similar message that has become de rigueur in the Hamptons. Then there’s Saunders & Associates’ Ed Bruehl. He is a luxury real estate advisor and will tell you exactly what you need to do in every kind of market.
Coming from a finance background, he understands generational wealth and how to grow it. Because of this, he’s a godsend for real estate investors in particular. Sometimes it means not selling your Hamptons home, the opposite of what many brokers tell their clients to do. Bruehl is working on how to benefit his client and sometimes that means being a buyer’s broker, not a sellers, if it is what needs to happen in order for his client to succeed in the long run. We were fortunate to ask Bruehl the questions that are dominating real estate media and we’re grateful that he’s always pumped to share his vast wisdom.
Ed, you’re originally from California and worked in finance in New York City. How did you find yourself on the East End?
[My wife] Mariah and I moved to the Hamptons after 9/11 — she helped start a private school and now runs Playful Learning Studio in East Hampton. I feel a deep connection to the land out here. I’m more passionate and satisfied about sharing Hamptons real estate than I ever was selling stocks and bonds. We loved raising our kids on the East End and we’re recently thrilled that our second daughter is going to Tulane, after dropping our first daughter off for her sophomore year at the University of Miami. They both graduated from East Hampton High School.What are you really excited about right now?
I am the exclusive broker for the Water Mill Crossing townhouse development and I am thrilled with the interest so far! Jennifer Wilson and I have done 16 deals — that is a huge amount of business for a new development, which perfectly speaks to my previous comments about the new year-round buyer. I’ve really been getting a clear picture of who the new buyer is on the East End. And, that said, these townhouses are not just beautifully built and conceived — they are a really smart investment, no matter how you look at it. You may regret not looking at this unique opportunity seriously — before we sell them all.
You’re known as an advisor for real estate. What are some of your flows, or methodologies, when taking on a home for sale?
I always think of the customer or client’s needs or position first. Before anything else, I always consider myself a friend as I firmly believe that, whether buying or selling a home, great work is only accomplished together. This is a team sport with you and your broker.
Putting their needs ahead of mine — usually makes me more of an anti-broker as I often suggest that they NEVER SELL their Hampton Home. The reason I do so is that I believe the underlying asset is more profitable to the family by putting it into an LLC and turning it into a performing rental property. This is one of the best ways to preserve generational wealth and it’s fun to build a Hamptons real estate portfolio that earns positive cash flow.
You were in NYC finance — how do you think this helps you as a luxury real estate broker?
I think it helped me tremendously. Granted, it’s night and day working in finance in New York City versus selling land and houses out here. I am confident those skills have helped me on literally every deal I’ve ever been involved in. I am always thinking and critically analyzing properties mathematically — exactly like my clients do. It’s funny actually, as a majority of the customers and clients I end up working with are either in business/finance and/or have young kids. I think this is because I’ve raised my kids here and the fact that I have been in finance allows me to think and analyze properties the same way they do. I’m never looking at a property as, “this is a great house for you guys.” I’m looking at a property and making sure that the underlying asset will perform. I will analyze the street, the comps, the rent roll, its cap rate on a rental, and any opportunities for improvement that will add to its future value. I treat real estate transactions and ownership more as a performing financial asset than a buy-it-and-forget-it transaction. So, yeah, I am sure that is the financial advisor still in me.
Being contemplative about what we went through during the pandemic, how do you think you grew as a broker through all that?
Covid has changed the East End for the better in multiple ways, here’s how: the Hamptons used to be known more for fancy summer soirees and raging share-house parties than as a family-centric year-round community. But that is changing. Or, already changed, depending on who you ask.
As of now, most new buyers are choosing to make their new Hamptons home their primary residence. This is a big pivot and I think only the beginning. Actually, a complete 180-degree turn. The people who are staying after Covid are often people who wanted to live here year-round anyway and now they can — thanks to Zoom or the gig economy. I always joked that “I love to sell luxury bunkers.” Now, after and because of Covid, the Hamptons home is no longer second fiddle. It’s where people feel the safest. So, indeed the luxury bunker is now properly supplied for a new year-round lifestyle and I love this reality — even if it makes for more traffic.
Watching the news, there is such an emphasis on mortgage rates and a sense of anxiety around the business right now. Do you think the luxury market will be affected by the news?
This is one of those national data points that I think hold weight in the macro environment, but not necessarily in the Hamptons — especially if you are working with a broker who knows the market and can help identify opportunities within your niche search criteria.
There has been a shift in real estate that it is a commodity, many times purely an investment. With the prices so high, do you think that it’s still an investment on the East End or do we wait for prices to settle down?
Never wait and always be watching — the market always knows best. So, know the market. Hone in on your specific niche search criteria and you’re thinking long-term. The trick is to stay hyper-attentive to every available offering and those that just went into contract and/or are coming onto the market. The deal flow changes within each hamlet of the Hamptons and during each quarter of the year. If you stay attentive you’ll find price reductions or new offerings that will help you find exactly what you are looking for. The goal is to find a deal within your price parameter at that moment in time, and there is always a deal to find. Always. But, you have to do your homework and work with an experienced broker that you enjoy working with. Trust me, it matters!
How do you think this last quarter will close and what are your thoughts about 2023?
I assume 2023 will have fewer transactions than Covid mania, but don’t let the headlines fool you — this market is very active with both year-round rental customers and year-round home buyers. This is a super important data point to understand. It’s a very different market out here now with a completely different and very active buyer pool. I do not think this demand goes away anytime soon. That said, sellers will soon be forced to price their houses more realistically since the Covid premium is no more and the buyers want to pay fair market value. Yep, the beginning of the switch from seller’s to buyer’s market is happening now. I predict that by the end of the year we will be in a buyer’s market, as I am seeing signs of some more desperate sellers and the poorly priced sellers are being forced to price properly or they will hear no offers. Such is the real estate cycle. I love it!
How do you facilitate work/life balance? Does it exist?
I’ve come to the conclusion that I work all the time and I’m off all the time. When I’m in the middle of multiple intense deals I find very little free time — but I always find a way to leave it behind at the end of the day. I am no complainer and I love what I do and who I get to do it with! I will admit that I have some of the coolest and smartest clients who are a joy to work for and with. So, yeah, real estate is a lot of work but I love to do it!
What are ways that you relax and unwind?
Golf, surf, ski, and long walks with Mariah. Date nights at great local restaurants, of course. Current favorites include, Le Bilboquet, East Hampton Grill, Nick & Toni’s, and Bistro Ete.
To learn more about Ed Bruehl click here.
