J. Philip's Westchester Real Estate Blog: November 2009

How not to price your home:

1. Take your mortgage balance.
2. Add your credit cards.
3. Throw in your cars.
4. Add a generous portion of all the money you borrowed from relatives. 
5. Pile on your down payment for that other house you have your eye on.
6. Last but not least, give yourself an extra 50 grand just for being you. 
7. Get a blank look on your face when you are told that the buying public doesn't care what you owe. 
8. Wait.
9. Wait some more. 
10. Decide you'll stay after all. 

1. Find out what homes like your have sold for in the past 90 days
2. Price the house at that number or 5% less. 
3. As my son's teacher says "you get what you get and you don't get upset."
4. Pack your bags.

The buying public is utterly ambivalent about what you owe to whom as it relates to pricing your property. They only care about their own needs. What you need isn't on their radar, and if you aren't priced in line with the current perception of value, your listing will get stale and sit unsold for months as you chase the market. 

Chasing the market is always being one price point behind what the public is willing to pay. You enter the market at $599,000 when you really ought to be at $549,900. You lower to $575 when the market for the house is $525,000. By the time you hit $499,000, it could be a year later and the public isn't willing to pay more than $450,000. Each price drop seems harsh, but your real enemy was starting out too high. 

Sellers are in a war of attrition with buyers who lurk before they call, call before they look, and look at everything before they buy. You won't get a call, look or offer until your price conforms to what the public deems fair. The only offers overpriced homes get is low ball offers from bold types who wouldn't pay as much as fair minded people would on a fairly priced home. The only way to win the battle is to price as aggressively as possible and not allow your ego or personal preferences to cloud your objectivity. 

Easier said than done!

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

Happy Thanksgiving to all who read this. I hope the holidays bring you peace and abundance, and may 2010 be filled with health, happiness and prosperity. 2009 has been a challenge, and my experiences with many of you have made the year easier. For that I am truly thankful. 

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

As happy as most of us seem that the housing stimulus was extended, I have heard and read a number of individuals express an opinion to the contrary. There are two main objections to the stimulus, and both are, in my view, fallacious. Let me preface my words by stating I am a free market entrepreneur who doesn't really like government involvement in commerce, but I am also a pragmatist. Here are the objections the "purists" offer:

• The Stimulus is artificial. Fine. Let me ask you a question: If you were about to go out to a formal affair with your better half, and she came downstairs in sweats with her hair in curlers, you wouldn't like that, would you? You were kind of looking forward to that little black dress, weren't you. But there she is, in sweats and curlers. Just her. No make up. None of that Eau De Whatever that drives you nuts. No artificial accouterments. No fake anything, that's her with no external additions. Disappointed? Why? It's the same with the economy. Don't sit there and tell me you've ever said no to a legitimate sale because you didn't like what motivated the people. You don't object to cashing a check. The point of a stimulus is to stimulate. People buying homes now and not later because they want to take advantage is real commerce, with real revenue, and circulates real money. They are going to buy real washing machines, real lawnmowers and real rugs. And that's the point. Money flowing sparks the recovery the same way the cocktail dress and fab perfume get your mojo going. 

• The stimulus is really Socialism. I'll admit it is a provocative word, but as much as the USA is built on free enterprise and free markets, we are not an unfettered free market by design of the founding fathers. A few examples and the non-free market institutions we espouse and hold dear which are actually socialized are: The US Military, Public Schools, our System of Roads and Highways, and the Postal System. And in times of crisis, I see no issue with us as a collective society doing what can be done to adjust, improvise, and adapt to weather the storm, and ultimately overcome. Free Enterprise is not a suicide pact where we eschew solutions because they don't conform with our philosophical preferences. We have to do what must be done to get through, solve and get better. If part of the solution is collective, so be it. I'm about getting there and not what car I drive.  

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

According to today's Standard & Poor’s/Case-Shiller home price index, US home prices remain unsteady with more declines expected in some areas. Of the 20 areas examined, almost half experienced falling prices, including New York. While this is not good news, it is news and should be interpreted by our profession (and trade organizations) without rose colored glasses. You can read the NY Times article on the report here. 

We shouldn't be surprised. The economy remains very slow, unemployment has probably not peaked, and the flood of foreclosures clogging the inventory will suppress prices for years to come.

Have you ever solved a problem without acknowledging that it exists? I never have, so the NAR should humor us with some all-too-rare candor. Just once, I would like to see the NAR announce something that isn't Pollyanna about the crisis we are in. Is it a good time to buy? No, it is a great time to buy. Agreed. But it is a down market, and any suggestion that it is getting better anytime soon is not only disingenuous, it is seen as a credibility buster by the public. 

So if you are going to buy, buy and hold. You aren't going sell again in 12 months and make $100,000 unless you hit 1 in a million circumstances. This is not 2005, and anyone who says those times are coming back anytime soon is selling a bridge, not a home. Yes. Buy. By all means, by because you should buy low. But buy for the long term, not the short term. And remember, unlike other investments, you will get utility from your home. You will live in it. 

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

We often give clients a subscription to Westchester Magazine after they close on their home. The publication comes out monthly and does a good job of selling the county (and a great job of selling cosmetic surgery).

52 Reasons to Love Westchester is this month's cover story, and here are a few of my favorites. My yapping is in italics:

4. Because we're not New Jersey or Long Island. Many a  truth was spoken in jest.

7. Because Carvel started here. Yum, right on Central Avenue!

40. Because the Drapers live here. Boy Howdy!

There are plenty of good ones in the other 49, but I don't want to give them away. Suffice to say that there is far more to Westchester than subdivisions, good schools and plastic surgeons.

I spent 15 years finding my way in life after leaving for college. I lived in Philadelphia, New Orleans, Boston, Maryland, New Jersey, Texas and Rochester. When it came down to choosing where I wanted to live out my years I came home.

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

I have listed two houses in a day before, but in 13 years I have never seen such contrast in a day.

10am: Listed a double wide mobile home in Middletown, NY for $39,900.

4pm: Listed a 3,500 square foot 6 bedroom English Tudor in New Rochelle for $975,000.

Two different counties, two altogether different communities, and two radically different homes on opposite ends of the pricing spectrum. We serve everyone.  

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

Now is a great time to buy real estate. I was quoted 3.75% on a 7/1 ARM today (great if you are putting a lot down and plan to move in 5 years or less), and 30 year fixed are getting deliciously close to 5%. The high inventory and low prices are all in the buyer's favor. I see homes off 25-30% from their peak in some very nice areas, and even more in some parts. Sellers want to make a deal too, and I am seeing them do things they never would have done even 2 years ago: include furniture, help with closing costs, eating the difference in low appraisals, and even agree to significant repairs. All this points to a strong buyer's market. 

Yet some buyers are frustrated. Why? Because all this talk in the media has them thinking that if they offer $400,000 on a gorgeous $500,000 home in a prime location that the seller will fall down and kiss their feet! Worse, when someone outbids them for that gorgeous, well appointed home in a prime location they are perplexed! Prices are down 50% in Shamokin! I should be able to get something in White Plains or Scarsdale for 25% off! Isn't a buyer's market a license to steal?

Of course it isn't. A buyer's market isn't a flea market. That $500,000 house was selling for $650,000 4 years ago. That's your discount. If I am your buyer agent, you might get it for $460,000 or $475,000. And the seller may throw in the deck furniture, the snow blower and the breakfront you liked. But a market, by its very definition, is not where theft occurs. It is only a good deal if the seller goes for it. And until we are able to hypnotize the seller, their agent, their lawyer and Uncle Vinny, you aren't gonna raid the neighborhood like an invading Visigoth. 

Moreover, in those perplexing cases where you are outbid, you have to understand that if you adore a fantastic place that is aggressively priced, then someone else will probably love it too! Hot properties still have a larger audience. So happy househunting for you brave, smart people out there actually looking in earnest, and do remember that a buyer's market is distinct from a hold up.  

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

A home buyer found me on google and wanted to pick my brain about a short sale she was purchasing. She already had an accepted offer with her sister representing her as her buyer agent and wanted the opinion of a 3rd party with knowledge of the subject, and she found my blog.

Evidently, the listing agent told her that since her relative was representing her in the purchase of the short sale, that she was not entitled to the commission.

This is 24 karat nonsense. The agent did the right thing in disclosing the relationship. She has no ownership interest in the property, so how could she not qualify for the commission? Moreover, what sort of moral degenerate or dumb bell would utter such malarkey? To another agent's client, no less?

I set the lady straight, but I am disturbed that there is a rogue agent out there with such a deficit of ethics. If you are buying a short sale and are represented by a relative, there is nothing that disqualifies your agent from getting paid like any other agent.  

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

I may be in New York, but I know the exact Philadelphia neighborhood where the guy in this article in today's NY Times lives. He's in Frankford, off Roosevelt Boulevard, and about 10 blocks east of St Martin of Tours Catholic School. The City of Philadelphia has instituted a program that, while not perfect, is making a difference for people facing foreclosure. Basically, the city is forcing lenders to sit down with the borrowers, who are represented by volunteer lawyers, and work out any deal possible short of foreclosure. It isn't always successful, but according to the piece it also results in a more dignified exit in the cases where the people can't stay. 

I always considered myself a free market capitalist who abhorred government meddling in commerce. That is true in most cases. However, capitalism and free enterprise are not a suicide pact. This isn't a day at the office, this is triage on a national scale. We can't allow people like Chris Hall (and the millions like him) to go down the drain out of loyalty to a philosophy. We have to do something collectively, and as much as I dislike many of the Administrations policies, I have to admit that the climate of aid for struggling homeowners would not exist otherwise. Philadelphia is an overwhelmingly democratic town, so this initiative isn't surprising to me. I give the democrats (and republicans who support it) credit.

I'd rather aid Chris Hall and other honest, hard working regular people than watch the big banks take my tax money and then thumb their nose at me. Call me crazy.

I only wish I saw more of this. I know nothing of this on a local level in New York, and that is a shame. So I tip my cap to Philadelphia, my former home of almost 10 years. New York may have the better baseball team (sorry. I had to get that in), but in helping homeowners, Philly is the true champion.

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

It was a bizarre phone call this afternoon. The lady on the phone swore that her home had just come off the market with another broker, but I couldn't find it on the MLS. I changed statuses, spellings of the address (1st? First?), and anything else I could think of. Nothing. The home is in Yonkers, so I asked if it could be on a corner and have another address. Nope, middle of the block. 

I asked who the broker was, and she didn't know. Her brother and co-owner was handling that. Then, she finally gave me the clue I needed. The broker was in Queens. After a quick check, I had my answer.

The broker listed her Yonkers home on the Long Island MLS. Yonkers is not in the Long Island area. It belongs on the Westchester-Putnam MLS. 

No wonder there were no calls. No wonder there were no showings. The house was, for all intents and purposes, not listed, at least not on the local market. It might as well have been on the California MLS.

So, if you are selling your home, I guess you need to add to track record, references and other advisable queries, if the agent will actually put the property on the correct MLS. Not that you want the local brokers and buyers to be aware of it. I mean, if you did that, it might actually sell.

Oh, and here's another little detail. The house doesn't expire on the Long Island MLS until August, 2010!

Next! 

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission