J. Philip's Westchester Real Estate Blog: New York

I have often said that nearby Pleasantville is aptly named. It borders Briarcliff Manor to the east and is idyllic: a picturesque, charming little village on the Harlem line of Metro North with shops, eateries, and culture. The latest feather in the village's cap is that GQ magazine voted it the second best smelling city in the world. 

Good for them. I'm no expert on aroma but I can tell you that living in Pleasantville would never stink. My first job ever, which paid for my junior prom in 1984, was washing dishes at Pace University. When I took a year sabbatical from life in 2000 before I got married I tended bar at Mediterraneo. As a matter of fact, I proposed to Ann over a nice meal from Mediterraneo, but it was takeout. They still get credit. I meet every other Friday at Jean Jacques with my networking group. And the Jacob Burns Center is Westchester County's premier theater for cultural films. 

We love to do business in Pleasantville. Stephanie Solano, one of our top agents, lives in Pleasantville and is a local expert. 

In 2011, 47 homes sold in Pleasantville at a median price of $495,000. 
There are currently 40 homes for sale in the Pleasantville school district at a median list price of $649,450.  

It is a great time to be a buyer, and if central Westchester County is a good location for you, you should check Pleasantville out. Better yet, reach out to Stephanie. (914) 645-2433

Previous posts on Pleasantville.

View homes for sale in Pleasantville with or without registration. 

Pleasantville Named Best Smelling 'City': MyFoxNY.com

For the third time in the past 4 weeks, I have been contacted by a buyer who chose to call me directly instead of having their agent call me because their offer was not accepted. In each case, I have told the agent-and the buyer when they called- that I'd be happy to know what comparable sale they used to justify their price. In each case, I have heard the same thing in lieu of any other fact: It is a buyer's market.

This is what I wrote earlier this week on the "buyer's market:"

 the "buyer's market" phrase was thrown around as if it were some childhood game wildcard phrase that granted immunity from logic or true market forces.

In other words, there were no other sales they could use to justify their price- it was just a speculative pipe dream. 

One of the properties we are dealing with is a condominium in Chappaqua in the Old Farm Lake complex. Even though the 4th quarter of 2011 was not good and prices across the Westchester market were down about 5% from last year, the condominium market in Chappaqua is actually up. Here are some facts:

• In 2009, the median price of a condo in Chappaqua was $453,000. 
• In 2010, the median price of a condo in Chappaqua was $467,000.
• In 2011, the median price of a condo in Chappaqua was $505,000. 

With apologies to Bill Clinton. 

My firm sells a wide range of properties: upscale 7 figure estates right over to a $7500 trailer. Among our niches is the area broadly described as the distressed property market. This could vary from short sales to bank owned foreclosures to property that is owned free and clear but in poor shape. The latter category could be an estate home or a house that sustained fire damage. Westchester has tons of pre-war builds, and we never seem to run out of this inventory. It is often a very good opportunity. 

Virtually all distressed property, especially bank owned and short sales, is sold "as is." Even a neophyte buyer seeking something they can fix up can deduce that if they want the fixing done before they buy that it really isn't a fixer upper anymore.

With the new year and new freshman class of buyers entering the market, the definition of "as is" appears to be subject to a nuanced interpretation that challenges the meaning of the word "is." A contributing factor to this trend is a pool of licensees who say they are buyer agents but seldom do more than unlock doors and act as carrier pigeons for uneducated buyer clients they do not have the intestinal fortitude to advise. 

If you seek to buy a distressed home sold "as is" that means that you are buying it subject to much of the following:

• Code violations
• Old open permits
• Non conforming work, such as illegal baths, decks, or additions
• Environmental issues like mold, radon, and submerged oil tanks 
• Shag carpeting

Tonight was the installation party for the Hudson Gateway Association of Realtors. Executives and directors of both HGAR and the Empire Access MLS (EAMLS) were sworn in for 2012, along with drinks, dinner and dancing. This will be my 3rd term as MLS Vice president, and it doubled as date night for me and Ann. 

One of my agents took the initiative to attend, and being a newer agent, she took it all in with great interest. It was a chance to be in a social atmosphere, but of course the chat always veers toward business. Barbara, my agent, brought up a deal she is about to have clients sign contracts for on a condo worth over $700,000. Even in Westchester, that is pretty good, and I told her so. 

She kidded me "You blew it by giving me those buyers!" and we had a giggle about that. I explained that I actually didn't blow it- she made the sale. Had I taken it myself, not only would I parhaps not make the sale, but it would take me away from running the company. 99% of buyers are given to the agents like her, and my efforts have to be more toward listings and overseeing our growing team of 25 agents. That is how we are building the company.

If I were to cherry pick high dollar buyers and throw the scraps to the team, I'd lose. Not only would it sow discontent with the team, it would take my eyes off the ball and the plan which has enabled us to progress these past few years. When I am running around with one buyer, I am being an agent. I have to be a broker and get more buyers to my agents- not keep them for myself. When my team wins, I win. I remember my first boss out of college in another industry telling me "Rich people cash big checks, truly wealthy people write them." I never  forgot that. 

If she keeps getting accepted offers like this one, I am only too happy to blow it more often. 

Month by month, I have watched the 2011 Westchester Real estate market in comparison to the same month in 2010 to see how we'd stack up. Would values rise? Would transaction totals improve? 2011 started out behind the curve compared to 2010, but my theory was that 2010 started out artificially high due to the housing stimulus which ended at the end of April 2010. Going into November, it looked like we'd at least catch up to 2010 if we could hold serve in the 4th quarter. 

We did not hold serve. As a matter of fact, the 4th quarter of 2011 was behind that of 2010 by over 40 transactions and over $50,000 in median price, which was a very disappointing finish. I have my theory about that, but first the numbers:

In 2010, a total of 4018 single family homes were sold in Westchester at a median price of $630,000.
In 2011, a total of 3839 single family homes were sold in Westchester at a median price of $600,000.

Overall, transaction totals were down 4%.
Overall, median price was down 5%.

While these are not cataclysmic declines, they do speak to the malaise that continues to dominate the housing market. Moreover, they do point to 2010 being somewhat of a dead cat bounce after the nadir of 2009, when only 3358 homes sold at a median price of $580,000. A "dead cat bounce" is a brief bounce up not unlike a "dead cat" bouncing after impact with the terra firma. 

The good news: We are indeed up from the lowest point.
The bad news: The market remains flat. And that will most likely be normal for the foreseeable future. 

So why did we trip over the finish line? What contributed to the poor 4th quarter when so many forces would want to close out the year, and the pipeline was swollen with homes under contract? 

The pipeline was swollen with homes under contract. It still is, with almost 700 homes under contract or pending sale. Here is what I wrote in November:

October sucked. The sad thing isn't that buyers aren't buying. They just can't get to the closing table for a variety of reasons. The data on pending sales shows a ton of deals on the 1-yard line that can't get into the end zone. 

...

I hate to be right, but we still have 674 deals under contract or pending sale at that same median price of $499,000. 190 of them are pending, meaning they should close in the next week or two. But they won't. 

And that is exactly what happened. Between short sales that weren't approved or mortgages that didn't get commitment or clear to close, the pending deals killed the recovery in vitro. 

Until we see a commitment on the lenders part to part with their delinquent loans via short sale and an equal commitment to loaning money without borrowers having to regain their virtue while standing on their head spitting nickels, the market will sputter. 

Consider this: Two weeks into 2012, we are down 45 sales and almost $100,000 in median price. That's not a big sample, but it's not encouraging either. 

I'd rather be a buyer than a seller! 

This home we just listed in Port Chester was appraised a few years ago at over $500,000. It is now on the market for $360,000. 3 bedrooms, 2 baths, fireplace, garage, den, 1st floor laundry, and 2400 square feet. Not bad. Now THAT is a buyer's market. 

To take advantage of the low prices and rates, get yourself a free Listingbook account and search the MLS like an agent. 

What is market share in real estate? 

Market share could mean percentage of closed transactions in a given area. 
Market share could mean the percent of closed dollar volume in a given area.
Market share could be the amount of inventory for sale in a given area. 

At around 11am today, market share took on a different meaning. Even though I am based in Westchester County, I have three listings in Highland, New York in Ulster County. And as a working real estate broker with a family, there are times when the best way to balance things out is to multitask: we pile the kids in the car and have them come on a business-related trip. It could be to put up a sign, install a lockbox, or open a door for someone. I had a little bit of everything today. And once I was finished with my brief Sunday morning appointment, it was made known to me by my beloved that our children were in need of, um, facilities. 

Our little blessings are 9,8,7 and 4. Taking them to a restaurant is not fun. And we're a solid hour from home and hearth. Ann suggested perhaps heading back our listing that I was just in, but it was winterized; you never use the bathroom of a winterized house. What to do? 

But wait! I have other listings in this town! And one, whose owner I just spoke to on Friday, was close by. The owner was out of town for the weekend, so I gave her a quick call. A teacher and a lovely woman, she laughed heartily and gave her porcelain blessing. The kids were on the their best behavior, I checked on my listing, and the drive home was devoid of panic or bladder-driven drama. 

So that's not a bad litmus test. If you are in a town and you have a choice of three clients to call for a little help if nature calls, you've got yourself a little bit of market share. 

Incidentally, the house we were in was pretty awesome: a pre- war Victorian with amazing charm and woodwork- here is the link to see the photos on Homespotters. 1 Tillson Ave Highland, NY, 12528

What can you buy in Yonkers for $350,000? So glad you asked. I happen to have a fresh example of just such a home that closed earlier today for $350,000 right in Yonkers a stone's throw from Bronxville. The property is a charming Tudor with loads of awesome, pre-war appointments like leaded glass windows, classic molding, pretty hardwood floors, and awesome curb appeal that. 

The home has 3 bedrooms, a full basement, a detatched garage, a rear patio, a walk up attic, formal dining room, first floor den, and a woodburning fireplace. The location is also wonderful, literally minutes from the Bronxville train station.

J. Philip Real Estate listed the property and brought the buyer as well- we wish both our seller client and buyer customer nothing but the best in their new surroundings. Total time on market from listing to closing: 86 days. This one went fast with multiple offers. But we have more- just log onto WestchesterDreamHome.com to find one of your very own. 

It is always interesting to shift gears from figuring out a way to get my listings on page 1 of Google for certain hyper local keywords frequented by consumers in 2012 to a question straight from 1995. Specifically, I was contacted by someone whose house recently expired unsold and we discussed their options. As they picked my brain about how I sell my listings, the question was posed "do you have an office?"

Now, this is not a dumb question. It is actually an understandable question. Having worked from home for some time and then opening up our brick and mortar office, I did see a difference in perception from colleagues and consumers alike. Office space can make a difference. That said, if your home is unique and appeals to a more uncommon, specific niche buyer, the real question for me is "what are you going to do that my last broker couldn't?" or "how will you market the home differently to make it stand out?" Those are the crucial questions, because when you've been with a fancy big name office with national advertising and gourmet coffee in the lobby and still failed to sell, you start to realize that walk ins (i.e., folks window shopping who literally "walk in" to the office intending to speak with an agent) aren't your bread and butter.

I'll repeat it here: When Ann and I started the firm in 2005, we had a desk in my parents' old bedroom. This was the same room where my crib was in 1967. It had a desk, a fax machine, a desktop computer, and a broker who planned world domination through an Internet presence that made the public percieve us to be larger and more more established than we were. That was the plan, and it worked well enough for us to open up on North State Road in 2007. We now have a small branch office in Upper Manhattan on Amsterdam Avenue as well. 

So yes, we have an office. It is at 522 North State Road in Brarcliff Manor in a brick professional building with a mansard-style roof and lots of parking. Italian food is walking distance in both directions (I wouldn't have it any other way).  And from this office we manage 25 licensed agents and sell homes all over Westchester, the Hudson Valley, and even the boroughs of New York City. From this office I sell condos in White Plains, homes with acreage in Dutchess County, REOs in Staten Island, co ops in the Bronx and Queens, stately colonials in Pelham and Armonk, ranches in Nyack, and tons of other property. 

And none of that closes because of our office or because we were "in the neighborhood." We get the job done because of how we ply our trade. We live in the question of how to market our listings better, how to help our buyers get better deals, and how to increase our stature online. And while we do get the occasional walk in, we don't depend on them to pay the bills. The plan to leverage consumer friendly technology from day 1 has been followed religiously, streamlined, and improved month after month, year after year. This is why we have grown, and this is why 2012 will be a breakthrough year for our client family. 

Pop quiz:
In the State of New York, if I as the listing agent bring my own buyer to the closing table, does that automatically make me a dual agent?  

If you answered "yes" you'd be wrong. If a New York real estate agent sells their own listing to their own buyer they are NOT automatically a dual agent. As a matter of fact they probably shouldn't be.

Dual agency is one of the most misunderstood and controversial topics in the real estate industry. Part of the problem is that even professionals can't agree because the rules vary greatly across state lines. Earlier today, on a discussion board on improving industry standards and practices, a licensee from another state wrote that if a buyer who had no agent called to buy one of her listings that she would refer them to another agent. In her state, she would be doing the right thing.

I would assert that in Westchester County where I work, if a buyer were hot for one of my listings and I did anything short of scheduling a showing with the intention of producing an offer for my seller, that I would be acting contrary to what my seller client hired me to do. My seller want me to get that buyer to commit. As a matter of fact my seller client should want me to bring my own buyer. And not because of the urban myth that there will be a commission savings. 

The reason my seller should want me to sell their listing myself is, pure and simply, advocacy. The seller hired me to sell the house when they list. They are the client. I am their advocate by statute. If we get a call on a sign or Internet entry on a listing, that guy is a customer. He didn't hire me. I am not his advocate. He just wants to see the house and doesn't have an agent. I owe him fairness and honesty. But I don't work for him. When a buyer deals directly with me as the listing agent, he has no advocate. 

What are the advantages to the seller? 

• There is no buyer agent. The buyer has no counterpart to me working for him. 
• There is no buyer agent. I don't have to call that agent for an update and wait for them to call the buyer and then call me back. I just call the buyer. 
• There is no buyer agent. There is no one with MLS or broker access to the comparable market activity to educate the buyer. 
• There is no buyer agent. The buyer is negotiating the largest transaction of his life with me (and my 500 transaction background) with no professional help. 

Are you getting the picture? This is why we tell buyers they need an agent to represent them, because the listing agent may well eat their lunch! But when a guy walks in cold off the proverbial street to see one of my listings, that act alone does not hire me as his representative. He is a customer. The seller is the client. This makes exclusive buyer agents and consumer advocates cringe, but the consumer I work for is the seller client. If the buyer chooses to not be represented, he does so at his own peril.