J. Philip's Westchester Real Estate Blog

Westchester Home Sales Steady

J. Philip Faranda (J. Philip LLC) Westchester County NY — Sat, 04 Sep 2010 09:57:19 -0400

In all the panic about the drop in sales nationally this past July, few news outlets made much mention of the fact that Westchester's real estate market went up. Now that August is past, how did we do as a follow up?

Good question. In short, the answer is "steady."

In July 2010, there were 449 closings with a median sales price of $799,000.

In August 2010, there were 424 closings with a median sales price of $715,000.

In August of 2009, there were 430 closings with a median sales price of $644,250.

From July to August of 2010, transaction totals were down 5.6%. That median sales price of $799,000 was utterly unsustainable; $715,000 is still remarkably robust.

Comparing this August to last August is more relevant in my view, as the business is cyclical. Transaction totals are down just 2% from a year ago at this time, and median price is up a whopping 11%.

Overall, there has not been much of a drop in transactions worth speaking of, and values are steady if not healthy. But in historical terms were are still in a malaise.

Some context: at the peak of the market locally in the summer of 2005, the August totals were 852 transactions (which is why we call it a "peak") and the median sales price was $732,500. In August of 2000, there were 752 transactions with a median price of $447,000.

Westchester is doing better than most areas, overall. But there are still plenty of people hurting. Those 300-400 sales not being made are rough on the sellers, many of whom are distressed.

Note: all information is taken from the Westchester-Putnam MLS and is for single family home sales only.

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

Would You Get on the Roof in a Home Inspection?

J. Philip Faranda (J. Philip LLC) Westchester County NY — Thu, 02 Sep 2010 22:26:41 -0400

I saw something today I never witnessed before. It happened when I was covering a home inspection for one of my agents (Yes- I know. What a great guy I am). A home inspector brought the buyer onto the roof to show him something. I was so surprised to see this that I snapped a picture of it on my phone. Now, this was the first time I ever met the inspector. He was a sharp guy, handled the buyer's 3-year old son like a champ, and from everything I saw made a thorough, straight inspection. He even had one of those infrared thingies that can detect moisture and rodents in the walls. He really was very good in every other way.

However, I know inspectors who wouldn't go up on a roof themselves. It's part of risk management. I have often said that New York is a shark tank of liability, and many inspectors don't feel it wise to climb up there, opting instead to making a visual inspection , even using binoculars. But they don't go up there.

We can argue whether or not that is right or wrong, but I have never seen an inspector take a buyer up there with him. The buyer is a young guy, ostensibly fit, flexible, and coordinated. But gravity is gravity, and I really wonder if the inspector's insurance, let alone the home owner, would be comfortable with such a thing.

I am not trying to give the inspector a hard time, or impugn his judgement, but I really do have to wonder if that move is very wise.

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

That Which Does Not Kill Me Makes Me Stronger

J. Philip Faranda (J. Philip LLC) Westchester County NY — Wed, 01 Sep 2010 09:03:49 -0400

OK, maybe Nietzsche is a little bit heavy for breakfast, but the theme of many blog posts I have read lately from my colleagues around the country is that this industry, which was never a walk in the park, is a real test of endurance, strength, and fortitude on both a physical and mental level.

When I was on the college rowing team we had a race with Princeton University, which was a far higher calibre of program. They were Ivy League, which is the top of the heap in crew. We were a club. The race was at Carnegie Lake in Princeton, New Jersey, and we got pasted. This was not unexpected. What I recall even more vividly than the whooping we got was the message on the bright orange T-shirt every Princeton oarsman wore that day:

That Which Hurts Me Only Makes Me Stronger

Our T-shirts said things like "Villanova Basketball" and "Nike." Our coach was furious with us after my boat's race, not because we lost, but because we didn't row well. And instead of going straight back to campus, we stayed on that nice lake and had a rare, post race practice session. It hurt. Our boat made the finals of the Dad Vail Regatta (small program championships) later that spring, where we missed a bronze medal by a few feet. In doing so, we beat several other crews whom we lost to earlier in the season. Not bad for a club program.

Hopefully, that is a lesson that will carry over.

We work long hours, fight more buyer resistance, seller grief, and lender red tape than probably anytime in modern history. Transactions are mine fields, not the rocky, negotiable paths they once were. We are travelling that field of peril while multi tasking with new regulations, new technologies, and unpredictable news which can scuttle the already fragile mindsets of those whose cooperation we desperately need. Some clients are unreasonably obstinate; other are paralyzed with fear; getting both buyer, seller, lender and two lawyers to cooperate in a transaction is like conducting a symphony on a high wire these days, yet we have to keep our cool.

The industry was already one rife with rejection, competition, and the odd unscrupulous agent. Now we have, thanks to layers of meltdowns, burst bubbles, collapse of massive institutions, recessions and a shell-shocked public to deal with an unknown frontier to conquer. And you thought getting a real estate license was a good idea.

Anyone who can survive and thrive in this environment will prosper incredibly when stability (and, I'll whisper: prosperity) returns. They also have my respect.

If you are a consumer, consider these things when choosing your advocate.

If you are a licensee, take heart.

This too shall pass, and we'll be the better for 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

A Clever Invention I Don't Think Will Catch On

J. Philip Faranda (J. Philip LLC) Westchester County NY — Tue, 31 Aug 2010 18:03:40 -0400

Just because you can multi task doesn't mean you should multi task!!

The things we real estate brokers see out in the field. I don't think an explanation is needed, the video tells it all. Suffice to say that I was showing clients a home in Westchester County, NY and we came upon this particular comode with an unusual characteristic. While it technically should be ingenious, it still clicks the "gross out" circuit. We got a great laugh out of it.

Would you use this toilet in your home? In your master bedroom? Does multitasking this particular way appeal?

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

Down Payment Assistance Programs Coming to Westchester County

J. Philip Faranda (J. Philip LLC) Westchester County NY — Tue, 31 Aug 2010 17:23:47 -0400

Both state and county are getting the word out that downpayment assistance and grant money is being made available to Westchester and surrounding county home buyers. Some highlights of state programs include the following:

Veterans assistance
Remodeling purchase money mortgages
Down payment assistance loans
Construction incentives
SONYMA low interest and low down payment programs

These programs do have certain loan limits and income requirements.

County programs are also available both through the Westchester County Division of Housing and Community Renewal (up to $30,000) and a $7500 first time home buyer incentive.

Bronx, Dutchess and Putnam also have first time home buyer assistance programs.

I will blog about specifics as details become available.

I am NOT an authority on these programs, but I WILL point you in the direction of loan officers and mortgage firms who participate in these important programs which will bring responsible home ownership for Westchester first time home buyers, veterans, the disabled, and other groups who may be marginalized by the current economic climate.

If you are or considering being a first time home buyer in Westchester, you may not be relegated to having to save 20% down in order to buy your first 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

Do I Stink?

J. Philip Faranda (J. Philip LLC) Westchester County NY — Tue, 31 Aug 2010 16:35:23 -0400

Imagine a buyer looking online for a home. They examine the inventory, veto the ones they dislike, dutifully check off their favorites, and compile a list of homes they'd like to see. It has taken over an hour, but final choices are made and one of my listings made the cut. They like the photos, the property description is enticing, and the house looks like a winner. The buyer want to see my listing!

Next, they call their buyer agent and request to schedule a showing.

I have succeeded, right? I am bringing another set of eyeballs to my listing thanks in no small part to my marketing prowess. We are one step away from selling a house.

Are my sellers happy? I think they should be.

YET...

Some sellers, for reasons I still have yet to grasp, are critical of their listing agent when they themselves have not shown the house themselves! On a number of occasions, I have actually had clients criticize me because I didn't show the house. Leaving aside the irony that many of these same people are vocal about not wanting dual agency, they just feel as if the listing agent is not earning the paycheck unless that listing agent also showed the house.

I have sold many a listing where I never got a call on it. And it was ubiquitous- enormous exposure on all the websites, enhanced and featured in many, and copious, quality photos in tandem with written descriptions that make the mouth water.

But no calls to my office. Other agents have shown it plenty, but not me.

Am I am bad agent?

Am I not doing my job?

Am I lazily sitting back and waiting for the cooperating agents to "do my job for me?"

Or...is it possible, that if a listing is getting showings-just not with me- that the serious buyers in the market already have representation and choose to call their agent instead of me?

Is there any marketing out there that is actually good enough to make someone approach the largest transaction of their life without an advocate?

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

Why Your Westchester NY Home Expired Unsold

J. Philip Faranda (J. Philip LLC) Westchester County NY — Mon, 30 Aug 2010 14:52:55 -0400

While Westchester County has remained a sought after destination for home buyers and 450 single family homes closed in July, there were still an enormous number of homes that quietly came off the market this August, unsold. While it would be easy to dismiss the results on the poor market, even a casual examination of the homes that the public threw back reveals more than the seller might think they know.

If one were to compare the sales with the expired listings, I see trends too considerable to ignore. While success always leaves clues, so does failure. It isn't just Murphy at work- it is an unwitting conspiracy between agent and client that contributes to many of the duds.

MLS Photos. The Westchester -Putnam MLS allows for a maximum of 30 photos for a listing. While you don't need to hire a pro, I see some regrettable blunders that I am amazed the sellers missed- out of season (snow/leaf covered) photos, no curb view shot, one crummy photo, and other fumbles. While I blame the agent, the client has the capacity to check this online and should have their agent accountable for good pictures.
MLS Description. Of the 50 expired listings I surveyed, 2 had no marketing remarks at all. Many had one sentence, including one being sold by an agent selling their own house. The Westchester-Putnam MLS allows 500 characters, or a decent paragraph, to describe the property. I could get a 3-ring binder for a $35,000 car; a decent paragraph on a $500,000 house isn't too much to ask.
Price goofs. Pricing is always a bone of contention with sellers and their agents, and I sympathize with sellers who don't want to lower their price into the 3rd ring of Hell. Point taken. But hanging out there at $504,900 while you fly under the radar of everyone who isn't looking at anything higher than $500,000 is a fatal mistake. Price points matter to the public.
Ridiculous showing instructions. No showings Saturdays? No showings after 5pm? Really? Did your agent tell you than many Westchester buyers are Manhattan people up for the day or evening and they don't have much flexibility to accommodate you? There is no tomorrow if you live in another city and are only in town for a few hours.
Overall neglect. Buyers gauge motivation, and spelling errors that remain for 6 months send a message you will regret.

Nothing can guarantee a sale in this economy, but in the ultra competitive Westchester real estate market it pays to mind your Ps and Qs. Everything matters. Handling these mistakes maximizes your chance at getting shown, getting offers, and getting packed.

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

Speechless Sundays: White Plains, NY- Martin Luther King Jr Plaza

J. Philip Faranda (J. Philip LLC) Westchester County NY — Sun, 29 Aug 2010 22:47:10 -0400

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

Do It Yourself Hell

J. Philip Faranda (J. Philip LLC) Westchester County NY — Sun, 29 Aug 2010 22:31:14 -0400

I don't have any issues with For Sale By Owners. It is a free market. I equally have no issue with FSBOs who pay a fee to enter their home on the MLS and then try and act as their own listing agent. What I do have a problem with is people who distrust agents because they paint us with a broad brush in the lack of integrity department but then turn around and misrepresent themselves. That wastes my time.

Today I walked through a home which was billed as a "totally renovated home." It was not. It was an incomplete, sloppy, half finished do it yourself job of dubious quality. What I observed was a patchwork of poor workmanship, probably illegal (which is to say, no permits) "improvements" and a desk in the basement covered with indications that the owners were unskilled weekend warriors.

We saw:

Exposed wiring everywhere
Missing molding and sloppy finishing where it wasn't missing
An incomplete kitchen with a CURTAIN for a sink cabinet door
An incomplete master bath
A finished basement with a 6-foot ceiling -which couldn't be legal in their wildest dreams
An HVAC unit in a basement closet with hanging wires and ductwork that was separated and leaning

The MLS marketing remarks were written in language and copy worthy of my best effort, and I've done some good write -ups. Concise, a vivid word picture, inviting, convincing, and great economy of words. It was fantastic. The only problem was that it couldn't be for this house.

I suppose I shouldn't have a problem with these people. They make the best argument for the necessity of accountable brokerage.

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

The Story of the Closet

J. Philip Faranda (J. Philip LLC) Westchester County NY — Thu, 05 Aug 2010 22:48:14 -0400

I'm going to indulge in one of my real estate pet peeves. Thanks in advance for your patience.

Imagine you are buying a car. You sit in the driver's seat, smell that indelible new car smell, and the sales associate dangles the keys in front of you as you prepare for a test drive. Then, just before you put the key in the ignition, the salesperson begins a 5 minute soliloquy on the glove compartment. After enduring that little, strange episode, you start the car and roll 5 feet, just as you begin to pull out of the spot, the salesperson asks you to stop. Popping open the trunk, he then begins a tutorial of the rear storage as the car idles and you tap your feet awkwardly. You just want to get this thing on the road and see if it's for you.

Finally, getting back in the car, you roll toward the parking lot exit and he stops you again, this time to explain, with granular specificity, the storage compartment between the two front seats. How does this guy make a living selling cars? Short answer: he doesn't make a living, because if he only talks about what is important to him, he's not going to last. He doesn't grasp that if you like how it drives, short of a dead guy in a bowling bag back there, you don't care about the trunk.

The same goes for homeowners who show their house to their prospective listing agent. I recently had this sort of person walk me through his modestly sized house, and it took nearly 20 minutes to walk through a home I could have walked through in less than 5 minutes. The cause of the delay was the guy's insistence on giving me the historical abstract of every room, what he had or hadn't done with it, why that was so, and what he'd do if he were to keep the house instead of selling. For an ADD guy like me, it was like watching paint dry while I listened to the wa wa wa of the grown-ups on a Peanuts cartoon.

I'm a professional; I know what a closet is, and I know the pros and cons of a half-finished bathroom. How the bathroom came to be half finished or why you chose to take the hanging rod out of the bedroom closet and put up shelves instead is not terribly important, at least not for every..single...room...in..the..house.

It all boils down to the stark fact that most homeowners are lousy salespeople and need to slowly step back from the person looking at the house. If it feels like home, they ask questions. If it doesn't, they won't buy if you showed them where you stored the dead sea scrolls in the attic.

Leave out the closet story. Stop expecting the showing agent to put on a horse and pony show. Homes are bought, not sold. I never spoke to anyone and had them say "the agent" or "the owner" as the reason they chose their home. A good agent will assist you in presenting the home, staging it, marketing it to the right prospects, and dealing with the people carefully who walk through. We know when to question; we know when to shut up; we know when to let them soak in it; we know how to sell. You don't, and if you did, you aren't objective. People know what they are looking for. We help them find 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

Banning of Yield Spread Premium is Death Knell for Mortgage Brokers

J. Philip Faranda (J. Philip LLC) Westchester County NY — Thu, 19 Aug 2010 11:19:15 -0400

I originated mortgages full time for 5 years in the early 2000s. I worked for both mortgage brokers, who place loans with 3rd party lenders, and, as they are termed in New York, mortgage bankers, who are direct lenders. Up until recently, it was hard for a guy off the street to distinguish between the two- the mortgage application verbiage used and process, to the borrower, was pretty much the same. Even as a loan officer, I saw enormous parallels: the qualifying software was the same, and the rates and pay structure were similar. We either earned money on the front end paid directly by the borrower, often referred to as "points," or were paid on the back end by the lender in the form of a Yield Spread Premium (YSP) for brokers or a Service Release Premium (SRP) for bankers. The nomenclature differed, but the net effect was the same: the higher the interest rate, the higher the commission (premium).

When the Subprime Meltdown hit in 2007 and the Financial Crisis hit in 2008, mortgage brokers carried the PR chum bucket for bad loans. Even though Ameriquest, Countrywide and dozens of other major players who were direct lenders failed, it was mortgage brokers, and their yield spread premiums that were often the culprit in both the cyber world and polite company. There were arguments over the true purpose of the YSP.

The banking industry and major media, in their best mad as hell voices, lobbied hard for YSP to be outlawed, and this past week, they succeeded. Yield Spread Premiums are now against the law.

From the Fed:

Today, lenders commonly pay loan originators more compensation if the borrower accepts an interest rate higher than the rate required by the lender (commonly referred to as a "yield spread premium"). Under the final rule, however, a loan originator may not receive compensation that is based on the interest rate or other loan terms. This will prevent loan originators from increasing their own compensation by raising the consumers' loan costs, such as by increasing the interest rate or points. Loan originators can continue to receive compensation that is based on a percentage of the loan amount, which is a common practice.

As with many governmental "solutions," this is outwardly politically expedient but will only hurt the public in the end. Why? Because the playing field is now completely tilted in the favor of large lenders, who keep their version of YSP. Smaller lending entities who previously dealt with brokers will be elbowed out of market share, and mortgage brokers now play by rules so severely tilted against them that they will go out of business. The baby has been thrown out with the bathwater, because brokerages, for all their flaws, were serving a need the bigger banks would often not.

The Service Release Premium, the banker's equivalent to the Yield Spread Premium, is still legal. Direct lenders get to play by their own rules now. Whether you agree with the YSP or not, banks still have the back end option with SRP. Brokers, who often had the capacity to place a loan with literally dozens of lenders, do not. Whatever abuse there was with YSP is still available to lenders in the form of SRP. The lobbyists saw to that. It wasn't enough that YSP was required to be disclosed on the HUD-1 while the bankers SRP was not; they had to kill it, and cut the jugular of brokers. Who needs competition?

Here's how it plays out for the borrowers in 2011: If you have good credit and are a W-2 employee, you can call your own shots the same way it has always been. But if you are self employed, have less than great credit, or need a niche product in our diverse society, you'll have no mortgage broker to find that specialty loan. Instead, you'll have your choice between a large, monolithic lender's single portfolio and a small community bank, both of whom will scoop the cream off the top and throw the rest back, with the exception of their Community Reinvestment Act requirements. There will be no mortgage broker to find your niche product because they won't be able to operate profitably.

Banks already adjusted to the stupid things they were doing 5 years ago. Underwriting a loan now is as hard as it ever was prior to the Federal Housing Administration's genesis in the 1930s. We are rapidly heading toward a world where large big box lenders will be like huge telecoms, with consumers choosing either their loan portfolio or renting. Smaller community banks will be there for well credentialed people, and ironically, the folks who screamed about killing those evil brokers who were opening doors the big banks wouldn't open, will lament their extinction. Who loses? You. Big banks just did an end around past their most egregious offenses and the government played Washington General defense for us.

Happy?

My prior posts on Yield Spread Premium

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

Large Associations and Large MLS Systems

J. Philip Faranda (J. Philip LLC) Westchester County NY — Thu, 26 Aug 2010 08:31:22 -0400

Inman had news yesterday of REALTOR association mergers, and posed the question of the value of such moves. Given my involvement in a large territory spanning half a dozen MLS systems and many more boards, I feel that I should weigh in on the matter.

I am a big fan of large MLS systems, but not terribly jazzed about big boards. Ths state of Connecticut aparently agrees with me- aside from Fairfield County, they have a statewide MLS but have retained local boards, often on a town level. More on that later. Big MLSes are good, but so are smaller boards.

If you didn't click on the link, I favor large MLS systems because it is silly to have to pay separate fees to cross county lines or, in some cases, town lines. I could drive 35 miles and pass through 4 MLS areas. That is madness. It is data, and even if you don't have my business model why should you have to have 2 different sets of overhead because you straddle a boundary?

Large Realtor Associations, however, have different problems. Associations exist, in large degree, to oversee the membership and enforce the Code of Ethics. Small boards have the resources to oversee their town or county. Big boards simply do not have the resources to enforce member conduct. LIBOR, or the Long Island Board of Realtors, has the government intervening on both ends of their territory: In Queens, the state has issued a cease and desist order in a large area because of agent misconduct. On the East End, the Department of Justice is examining anti-trust practices, where brokers flaunt their antipathy about the MLS. My own experience confirms the problems of oversight in Queens. I have blogged about my frustration with agent conduct in the boroughs in the past. In some parts, it is the wild west, and the board is not effective in reigning in misconduct. Where the board fails, the government intervenes.

Connecticut, on the other hand, is a different universe from Long Island and the Boroughs. By and large, Connecticut agents and firms are as professional as I have found, and there is almost never an issue with cooperation, fair play, professional standards, or collegiality. It is no coincidence that they have small boards. My own board recently consolidated with another county's association, but have retained a regional office in each area. I am on the board for the MLS, which is growing, but I hope the association does not absorb any other boards.

The arguments for large boards include buying power and bulk discounts for membership, and I suppose that is nice. However, we have to choose our priorities, and in my view professional standards and oversight have to supersede getting a good deal on a rental car.

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

Wordless Wednesday- New Listing?

J. Philip Faranda (J. Philip LLC) Westchester County NY — Wed, 25 Aug 2010 15:49:02 -0400

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.
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Westchester County Bucks Downward Trend in July

J. Philip Faranda (J. Philip LLC) Westchester County NY — Wed, 25 Aug 2010 08:25:53 -0400

By now the whole country is talking about the over 25% drop in sales this past July in the wake of the stimulus. Here in the state of New York the sales were down 34.9% overall. Locally, Rockland County was down about 27% and Putnam was down 30.6%. But Westchester County was up, a surprisingly strong 8.7%, with a median sales price of $799,000 (source: Journal News). It just goes to show that all real estate is local.

But why would Westchester buck the trend? How can a county next to other counties with declining numbers have such healthy results? In my opinion, Westchester benefited at the expense of the neighboring counties. In the past, people were often priced out of Westchester and saw a move across the river or north to Putnam or Dutchess as their most affordable option- a Westchester lifestyle if only with a longer commute. With home prices down 20-25% since the peak of 2005, those home buyers are no longer forced to leave the county; why move 45 minutes north or across the bridge to Rockland if Westchester home prices are within reach?

Why indeed. Proximity to friends, family, work, and yes, that big Apple just below is economically feasible again. So, many stuck around and bought locally instead of moving out of county the way they might have over the past 5-10 years, and the money stayed in Westchester. It remains to be seen if that trend continues, but I don't see conditions changing from where I sit. The outlying counties will recover organically, but only when they adjust their prices even more than they already have. Call it shrinking pains.

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.
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Sign Prohibitions and the First Amendment

J. Philip Faranda (J. Philip LLC) Westchester County NY — Mon, 23 Aug 2010 22:43:13 -0400

The New York suburbs are often funny about real estate signs. One town won't allow a sign with a company name, allowing only "For Sale By Broker" or "For Sale By Owner" on the panels. Another municipality prohibits anything bigger than 12" x 12". Some places ban signs altogether, while others have rules rendering them useless, such as one that will only allow them in a front window. On a set back home that does nothing. One local city is OK with "For Sale" signs but outlaws "Sold" signs.

In every one of these municipalities, I have seen chintzy yard signs that remain up for weeks and sometimes months by home improvement companies, painters, fence installers, garage door technicians, and many other trades. I have never understood why they are permitted and my sign is not. Actually, I do understand, and it is not cool.

It amazes me that a municipality-the government- can abridge what I put on a sign or can restrict me from having a sign at all. It is absolutely contrary to the first amendment, and makes these towns more like patriarchal fiefdoms than governments that are out for the highest and best for the citizenry. Now, there may be a few who find real estate signs to be distasteful or clutter the view. But the constitution doesn't exist for them to have a good view or have environs that conform to their particular taste. It exists to protect my freedom of expression and ensure that commerce can be promulgated.

Big companies with large market share in these areas have no desire from what I can see to change the law. It enables them to keep status quo. If I busted my hump and a few of my signs sprang up it might shift the balance of power. They can't have that. Homeowners probably like the law too, because yard signs can distract, or because their absence makes it appear that nobody wants to move from their idyllic 'burb. Gag me. That doesn't make it right.

The right to self expression and to post my message without the state's interference is not something that can be voted on or zoned out. It is an inalienable right. The "tyranny of the mob" does not grant or deny rights. Rights are rights. And you can't bestow a right on a garage door guy and deny it to a real estate broker. I know of no sign restriction that ever held up in court. They exist because we are too busy earning a living to have our day in court. For now.

Yes, some of the local towns are funny about signs. But I'm not laughing.

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