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Second-Opinion Business Started to Protect Tenants From Making Hasty Decisions

NEW YORK CITY-Real estate veteran Peter Pattison says he has devised a business model that provides tenants with a second opinion before closing a lease in an effort to check the work of the broker.

By Anthony Garritano | Updated on February 07, 2001

NEW YORK CITY-Peter Pattison of Peter Pattison Ltd., a real estate consulting firm, says that after 40 years in the industry, he believes that certain real estate practices are flawed. One such flaw, according to Pattison, is the drive by brokers to get the largest commission possible while still posing to get the best deal for the client, a clear conflict of interest. To resolve this situation, Pattison tells GlobeSt.com an outside firm should be brought in by the tenant to provide a second opinion on the deal.

“If you sat across from your doctor and he told you that you needed a serious heart operation, the first thing going through your mind is that you need a second opinion,” theorizes Pattison, “and that should be a valid practice in choosing real estate as well. This is particularly the case given the propensity of brokers to be optimistic about transactions where they get paid more.”

“There has always been this inherent conflict in this business where someone is representing the tenant and getting paid from that same person only if a deal is signed,” he continues. “Therefore, we have conceptualized what we are calling our second-opinion business where we, because of this conflict, provide major companies with a second opinion, as an outside, independent group that has no stake in the deal because we get a flat fee any which way.”

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