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

From 1945 until 1984, 60 Main Street in Sleepy Hollow (then known as North Tarrytown) was a battery factory operated by Duracell. It was a Superfund site due to toxic contamination, but was then de-listed after a 1993 cleanup. The village bought it in the 1990's for $1 from Gillette, who had acquired Duracell in the interim, and the acquisition was not without controversy- the then mayor was opposed by the village legal team and the planning board, especially in light of the fact that there was not a thorough environmental vetting of the site, which is now a parking lot. 

Fast forward to 2008, and the area's history is still not lost on area real estate buyers, one of whom had the soil tested on a home they were considering purchasing on the south side of the property. Mercury levels were measured at 5 times the acceptable level, and lead was high as well. 

The village is now facing an environmental cleanup that may exceed $1 million, a massive amount of money for a village of 7000 people. Why? Because Gillette hasn't owned the property for 7 years, and the responsibility may lie in the lap of the village. 

One can only wonder why the mayor would buy that land without an extensive environmental due diligence study. One can only wonder what the contamination did to residents, who may have severe health consequences that have yet to manifest themselves. Sleepy Hollow now either has to pay a massive legal bill to get Gillette to pay up, or pay a massive cleanup bill themselves. 

And to think it all started with a home purchase soil test. 

Well, it's Halloween, so why not a report on Sleepy Hollow? Yes, there is a Sleepy Hollow, and yes, Washington Irving is buried here. There is an Old Dutch Church, a Sleepy Hollow Bridge, and the high school's mascot is the Headless Horsemen. Old Sleepy Hollow road is VERY spooky at night, winding along covered by trees which almost create a corridor as you drive down the road at night. A few times in high school we'd turn off the car headlights to magnify the effect. 

But is Sleepy Hollow a haunted, scary place? Residents laugh at the notion. It is a charming river village on the banks of the Hudson, and thanks to the location of Phelps Hospital, it is also where I was born. Of course, back then it was known as the more benign North Tarrytown. The village changed its name to Sleepy Hollow in deference to history in 1996. They do an outstanding job of observing Halloween every year, but beyond that there aren't many spooky things to speak of. 

The Tarrytown school district serves Sleepy Hollow and the village of Tarrytown as well, and the high school is known as Sleepy Hollow High School. The village is nestled between Mt Pleasant and Pocantico to the north and east, and Tarrytown to the south. Briarcliff Manor is just a stone's throw to the north. 

5 single family homes sold in the school district in October of 2010 at a median price of $575,000. 

7 single family homes are under contract as a median asking price of $645,000.

42 single homes are available and active on the market, and the median asking price is $674,500.

The area also has a significant amount of multiple family dwellings, co ops, and condominiums. The first sale my company ever closed on in 2005 was a condo in nearby Tarrytown by the Tappan Zee Bridge. 

If you want to check out available homes in Sleepy Hollow and Tarrytown, get yourself a free Listingbook account. 

I still recall the instructor from my original 1996 license course admonishing our class that agents never give legal, accounting, or any other advice that is beyond the scope of our duty. We were even coached to repeat the phrase "I cannot give you legal advice." Wise words.

In New York, the real estate transaction involves many professionals: agents, lawyers, title company, appraiser, home inspector, lender, loan officer, and so forth. While we do not operate in individual vacuums and there is some cross pollination of duties (I might provide an appraiser with comparable sale information, for example), by and large everyone plays their position. When one professional tries to wear that hat of another, it is an invitation for problems.

On a recent home inspection, my agent reported to me that the inspector advised the buyer that the presence of electrical fuses instead of a circuit breaker panel could cause problems with the mortgage lender. I have sold real estate for 13 years and originated mortgages for another 7; I have never heard of this. I asked Tom Ginis, one of the managers at Residential Home Funding if he had ever heard such a thing or if he was aware of any underwriting guideline to this effect. He had no idea where the claim could come from. He also wondered aloud why a home inspector would make such a foray into underwriting.

The problems that can arise from this sort of thing are numerous. First, in our marketplace inspections are done before contracts are signed. After a spirited negotiation on price and terms, this can muddy up the waters. Now our buyer, who is putting down a substantial amount on a conventional loan, has a new worry. If the reason were legitimate, fine. But no professional I have asked (myself included) agrees with this guy. We now have to devote time and energy to reassuring the buyer and researching mortgage underwriting to prove that she won't have a problem getting approved. This is to say nothing of the fact that I have closed two recent FHA transactions on homes with fuses.

I have since heard that he sells insurance and moonlights as a home inspector. Now he's underwriting loans in in basements. How silly! We should all play our position. Otherwise, the domino effect adversely affects both clients and colleagues. Buyers: Don't work with part time professionals one of the biggest transactions in your life.