Bucking the old guard: Hamptons brokers answer questions about staying power

Though the Hamptons are known for big names and big deals, heading there is a gamble for any broker. The area’s small size means only a few hundred contracts are signed in a given year. Seasonal ebbs mandate patience — and party-going. 

But in the past decade, a new generation’s found the market hard to resist and has swept in. This wave crested during the pandemic rush and has hung on during the slowdown that’s followed. Now, with high prices and low — though recovering — inventory, The Real Deal spoke with members of this group about how they’re making good on their own bets in a notoriously niche market. 

Preston Kaye co-founded Hedgerow Exclusive Properties with Gary Cooper after a split with Bespoke in 2020 and just as New York City residents were flocking out east. Kaye and his team, including longtime agent Terry Cohen, also focus on the most expensive listings.

How has business changed since the rush of 2020?

Since 2019, we’ve set new highs in the marketplace. The market has certainly shifted since peak Covid. But because we have so much velocity and there’s so much necessity to enter our marketplace, basic supply and demand drove the price of homes much higher. 

How do you work with new players who’ve come to this market?

We certainly welcome them. It creates new opportunities as well for us to differentiate ourselves. We listed a property in Sag Harbor village. It was a co-exclusive between Hedgerow and Douglas Elliman [and had] a fantastic result. It was the highest trade ever in Sag Harbor village. We went to contract in less than three weeks, and it sold for close to half a million dollars over our asking price. 

What are those points of differentiation?

I think collaboration is very important. Teamwork, working together to provide as much value to the client as possible, differentiates us as a firm. 

Have you seen a rise in off-market deals?

Since we opened our doors the summer of 2020 — so approaching almost four years now — we’ve done a little over $650 million worth of these off-market deals, [based on] some internal stats. A lot of brokers say they have a private market database. The reality is, we have pioneered that segment of the market.

Why?

Off-market transactions certainly help shape the high end of our market. When you’re dealing with unique and special properties on the ocean, there’s a certain trust and confidentiality that’s [required]. It’s a pillar of how Hedgerow was created and how we’re perceived in the marketplace. A lot of the new entries, as far as the brokers and the community is concerned, come direct to us.