J. Philip's Briarcliff, Ossining & Westchester Real Estate Blog

Upon occasion, we get calls from people that see an ad or sign but they don't know the address of the house. They can give a color or a landmark, but the ad ID number wasn't written down. What then follows is an excercise in forensics and trianglulation which can take away from more pressing matters. In rare occasions, we get a wiseguy to say some version of "how can you not know the house? It's your listing." Some of those people are serious.

This is especially problematic with an ad, but rather than complain, I'll offer this advice to the buying public: if you see a house in person or online, write down the address, MLS ID or any other identifying feature of the home so that the person answering your call or email can get you better information faster. It isn't easy to do when driving, but if you can write the phone number of the yard sign down, just takle another moment to write the address or description down. Online ads are easier, because they usually have the address and MLS number.

Help us help you! The more information you have about what house you are inquring about the better we can help you. Moreover, anyone who calls our company to get a price or description is not given the cat-and -mouse give us your life story in exchange for the details. We know that if we give value, people will use us.

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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

I received an email yesterday from someone I showed some houses to this past summer. I didn't remember him at first, but he had some questions about a property. I reached out to the listing agent for answers, and before she responded, I got another email from the guy today. " I didn't hear from you yet," he said. "Maybe I should call <another agent>." I remembered the guy now. He ran my wife and I around in circles getting forensic information about homes he found online for a week, then disappeared after looking at 2 homes with me. He had resurfaced, wanted me to do more research, and was already threatening to sack me.

So I sacked him.

Here's the point: real estate professionals aren't waiters. We don't do free research for just anyone who rings or emails us, and like any normal person, we are a bit sketchy about people that make us jump through hoops and then then disappear. That time we put in with those people could have been better spent with more sincere clients or our family.

On the other side of the coin, consumers are suspicious about agents. Too many people have a bad agent story to tell, so they often fend for themselves before investing time and hopes into another agent who will disappoint. It's like a big game of chicken. Niether side wants to devote time or commit to someone who might let them down. Here's what I say: If you, the consumer, want heat from that stove, how about throwing in a little wood.

Here are a few things home buyers can do to ensure that they get the most from an agent.

1. Get pre-approved. I shouldn't have to explain this. The housing industry has been bent like a pipe cleaner the past 18 months. A pre approval older than 90 days is worthless, and no pre-approval disqualifies you from being taken seriously by a seller. . It takes 10 minutes to speak with a lender and get a free updated pre-approval that shows you are ready, willing and able buyers.
2. Practice monogamy. Often in New York, some buyers think that they can get a batter deal if they work with more than 1 agent or deal directly with listing agents. Both of these notions are not only false, they can be expensive mistakes. If your agent catches on to the fact that you are playing the field, he'll start hedging his bets also, because nobody wants to devote time to a buyer file that might not close because you are looking in another town with another broker. 
3. Figure out what you want. Some agents get understandably frustrated when they spend a Sunday morning looking at town homes and Tuesday evening walking through Victorian colonials with the same buyer. I can almost intuit what some buyers want after spending time with them. However, if you are too whimsical, I might get the sense that we're just unlocking doors so you can satisfy curiosity. 
4. Return our calls. Sound familiar? Do you like it when you can't reach an agent for 3 days? It is the same here. Buyers who drop out and resurface without explanation are deemed unreliable and risky. It is only fair; stay in touch.  
5. Take our advice. The reason I give people 3 lawyers, 3 home inspectors, and 3 mortgage firms is not because I get a kickback, it is because I know that your union attorney won't return calls, an Internet bank can screw you, and your uncle Mel is not a licensed home inspector. I cannot compensate for their deficiencies. I am more effective with a cooperative team.  
6. Sign a buyer representation agreement. This tells the agent "you are hired. We won't use anyone else." You risk nothing by doing this, because if someone is hired, they can be fired if they stink. Establish performance criteria, have a 3 strikes and out rule or reasonable exit clause, and the agent is now at your service. 

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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

As many people outside New York may know, lawyers handle the contracts in the purchase and sale of real estate in this market. That little aspect of the industry has created more than its share of animosity because of the extra layer of red tape it adds to a transaction and because, well, they are lawyers. 

Very recently, on a co op transaction where I was representing the buyer in her purchase, I got a panicked phone call. My client had seen her prospective new home advertised on the Internet as available, when she had, in fact already signed the contract. When I checked the MLS, I saw that the status showed "back on market," and that the contract was cancelled on that very date. It was 8 o'clock in the evening. I put in a call to the buyer's attorney to leave him a voicemail asking him if he knew something I didn't. I also called the listing agent, who had been annoyed with me a little earlier over something trivial. Had they cancelled the transaction over a silly spat? Were we being sandbagged for another offer? Was it an in house offer? My mind raced about having to start over looking again, my client's broken heart, and a thousand other crummy things. 

After I left a voicemail for the listing agent to see what the issue was, I got an unfamiliar number on my caller ID. Thinking it was the listing agent, I answered. 

It was my client's attorney. He was calling me back after 8pm. I brought him up to speed (after thanking him profusely for unprecedented responsiveness) and he explained to me that he was in close communication with the seller's attorney that very day and he knew nothing of any issue. He promised to get me an update first thing in the morning.

It's funny how luck has momentum whether it is good or bad. After I hung up with the attorney, the listing agent called back. It was an innocent issue- the seller had not counter signed yet and they had to change status back from "under contract" until they signed. No crisis, no bad news, mystery solved.

As good as the news was, the thing that stuck with me was that in 15 years I have never had an attorney call me back after 8pm, let alone 5 minutes after I left them a message. This guy will get moved up the speed dial. If you do business in New York and want his contact info, drop me an email.  

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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

This is an important clarification for all home buyers who want that tax credit: While everyone is talking about the April 30 deadline for qualification, there is another deadline to be aware of, and that is July 1, 2010. You have to be in contract to purchase by April 30, 2010 and close by July 1, 2010 to qualify for the tax credit. 

April 30 and July 1. Remember those dates. 

This is the link to the NAR brief on the 2010 home buyer tax credit. 

The important thing about this to buyers in my own market of Westchester and surrounding counties is because that gives you 60 days to close, which, in New York, should be enough time if there are no snags. 

Repeat: You do NOT have to CLOSE by April 30, you just have to be IN CONTRACT by April 30 and close by July 1 to meet the deadline for the home buyer tax credit. 

Do your homework, find the right place, get those contracts executed by April 30, and close by July 1 and it pays you $8000. Not a bad deal. 

Forewarned is forearmed! There is still time (about 90 days realistically) to find that home!

Get a head start on finding your home before April 30 with a FREE Listingbook account. Search the MLS database just like a broker. 

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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

One of the most common questions I get from buyers about an area they are considering is the following:

How good are the schools? 

It is a fair question. It factors in to their quality of life, the future welfare of their children, and resale value of the home they are considering. I also can't answer the question. It is a fair housing issue, and licensees who recommend one town or district over another may in engaging in illegal steering.

So what are we to do? Well, silly as it may sound, while licensees ought not compare school districts, we can give our clients sources of the information they seek. It actually makes some sense; we don't answer legal questions either, but we can refer people to a lawyer.

Here are some good sources of information on school districts: 

• Westchester School District Report Cards- published by the State of New York.
• National Center for Education Statistics- published by the US Department of Education
• Westchester School District Profiles- map based, put out by the Westchester County government. Mostly census data. 

• School Digger
• Public school review
• New York Public school rankings

If you Google school rankings there are lots of results, but I'm not sure of their data source. Caveat emptor. I'd start with the first three.

 

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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

Terms are often overlooked because people are so preoccupied with price in this economy. However, they are, in many cases, just as important as price. I often have buyers question what difference the size of their down payment makes to the seller, since the money is just as green if it comes from the lender is it did their bank account. In a zero sum world, this is true. But context is important, and there is an immutable law that cannot be avoided:

Guarantees cost money. Certainty costs money. 

If you are going to put 20% or more down on a house, your lender will not require you to pay for mortgage insurance (PMI). If you put less than 20% down, PMI is required. PMI hedges the bank's bet that the loan will perform. But it is more than that- the bigger the down payment, the more likely the loan will get approved. The reason for this is simple: the less value of the home is borrowed, the more likely the borrower will repay. Therefore, a low LTV (Loan to Value) is attractive to loan underwriters. The lower the LTV, the lower the risk. 

So the size of the down payment will determine the peace of mind of the seller and their confidence that they are dealing with a qualified buyer. The ultimate down payment is 100% down. From there certainty erodes. So if you are buying a home in Westchester or the surrounding counties with 3.5% down, you ought not balk if the seller is concerned. Selling a home is tough these days, and it would be tragic to have a house off the market under contract for 60 days only to have the deal fall through. Big down down payment deals seldom fall through. 

I am a big fan of FHA mortgages, not because they are common in Westchester, but because I did dozens of them in Rochester. However, until recently, FHA mortgages in Westchester County were as rare as hens teeth because the FHA loan limit was so low there were few Westchester homes that were eligible. With the changes to FHA loan limits and the fall of prices, they have become common, but agents and sellers alike are still not yet used to them. I have seen sellers take a deal 5 or 10 thousand less because of the larger down payment. Again, certainty costs money. So if you are going FHA on a Westchester County home, keep that in mind when you are formulating your offer. Terms matter, and down payment is a big factor. 

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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

After 3 days away this week there is nothing like being back home. My kids, my wife, my dog. Ann's chicken thingies with the bread crumbs. Yummy. Last night was the first really cold night of the season, so I lit a good fire. 

I have to say that my fireplace is one of my favorite things in my home. There is no place on Earth, no amenity elsewhere, no 5-Star hotel that is as welcoming as my own home and hearth. I fell asleep in the couch with my laptop and that fire cooking with Max, my German Shepherd, sawing wood 5 feet away. 

That contraption you see is a cool system for blowing fire-heated air into the living room. It helps with the heat and keeps us toasty. 

A fireplace was on my "must have" list when Ann and I bought our new home in 2007. I also had to have a basement. I got both. Things like this make me mindful of my clients' "must have" list when we are out looking. 

Be warm. 

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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

Let me preface my remarks by stating that when I act as a buyer agent I truly enjoy negotiating the best deal I can for my buyers. But make no mistake; we make a deal. I'll explain after I list a few examples of what I don't mean:

• On a $450,000 listing, an offer of $400,000 comes in with a remark on the cover sheet: "Buyer is unable to be very negotiable with this offer."
• On another listing, the buyer agent tells us that their buyer has been looking for a home for 2 years. 2 years. After I get the seller to accept their offer, the buyer walks. We took too long.
• In a multiple bid situation, we ask each party to make their highest and best offer. One party withdraws, not wanting to get into a bidding war.
• In about a half dozen aborted deals in the past 3 months, I have been told by either the buyer or their agent that they are looking at homes they do not qualify for and that they just make 80-85% offers because they want to steal something.

None of the buyers in the above examples bought anything! All they did was go from property to property bullying and posturing, and they still live in their in-law's basement. And with an $8,000 tax credit, insanely low rates, prices down to 2003 and 2004 levels in some places (and lower), and sellers willing to do more to cut a deal than they have in years, if you still live in that basement apartment, you missed out. It takes a special kind of obtuse to be a buyer in a market where so much is done to help you, and still not actually buying anything in multiple attempts. My advice? Go to the corner store and buy some gum. Prime that spending pump. Then work your way up.

A buyer's market gives buyers an advantage. Buyers are getting better deals now than they have in the past 20 years. To take advantage of it, however, the buyers actually have to BUY SOMETHING. Beating the crap out of a seller and then walking away because they didn't throw in their 17 year old daughter is not making a purchase, it is being a serial haggler. Now, some seller's are unreasonable. But if you are on your 3rd offer, it probably isn't the seller.

It isn't a "haggler's market." You have to be a buyer to take advantage of a buyer's market. To be a buyer, you must actually buy something. Otherwise, all these incentives and advantages are just words on paper. I'll tell you what isn't words on paper- living with your mother in law.  

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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

I have been on both sides of an offer in multiple offer situations. Whether I am the listing agent or buyer agent I often see buyers view the news of multiple offers with incredulity. More often than not, they just don't believe it. If they think that the news is just a trick to get them to raise their offer and they hold firm, they often lose the house. 

While I don't dispute the existence of dishonest licensees who fabricate competing offers, in my experience the overwhelming majority of multiple bid situations are legitimate. There are two main reasons for this:

1. If you like a well priced, well cared for, updated house in a good location, then the chances of someone else liking it are fairly high. The notion that a buyer's market is devoid of anyone actively looking but you is inaccurate. This is still the USA. There are still people looking to buy a home. 
2. The consequences of fabricating a false competing offer are catastrophic. Suppose the agent lied about another offer to get you to raise your bid and it backfired-instead of raising your offer, you instead withdraw it. That agent just lost their commission, and will look pretty silly when the house never goes under contract in the MLS. Few listing agents would risk losing their entire commission and reputation when a solid sale is within their grasp. Moreover, if the seller found out, they could rightly get the agent in huge trouble with the law and real estate board. It makes no sense to take that risk, even if you don't have scruples. 

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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. 

 

• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• Read my short sale blog here. 
• 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'm hiring agents. 
• Agents: Subscribe to the 40 Somethings Group. Reach Phil at (914) 723-8900.

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