Archive for April, 2007

Sellers- No Kidding, We’re In A Downswing.

April 30th, 2007 category: Real Estate News, Real Estate Philosophy, SellersNo Comments »

Timing is everything in real estate. The good news is, the market will be back. The bad news is that we appear to be in an extended downswing. For those of you that are comfortable and in it for the long haul, you’ll be rewarded. For those of you that need to sell, it’s critical that you be cognizant of the fact that the market is lower, period. As a result, you need to be very discriminating when developing your own comparable analysis- emotions have to be discarded at the beautiful new front door that isn’t going to pay you back. But it may get someone into the house favorably.

Buyers are still going to operate on emotion. The difficulty is in determining what motivates them.

It’s their ball field now, and they are being encouraged to find the home run. Unfortunately, part of the hunt is the price, and they are not going to pay what they feel is “too much”. They are looking at statistics themselves; they are reading the paper. The multi-list service is readily available, and they can come to their own “give or take” conclusions through that venue, or any number of emerging websites. A few years ago, a seller could price it at the highest point, get it, and regret not waiting a few months for a further increase.

If you purchased your home before 2003 or thereabouts, you caught the tail end of the lower pricing..

For example, on the North Fork, which includes Riverhead, Jamesport, Baiting Hollow, Aquebogue, Laurel, Mattituck, Cutchogue, Southold, Greenport, East Marion and Orient, if you purchased a modest ranch in an area of Southold, and it had 3 bedrooms and 1.5 baths, you’d likely paid in the 289-320k range. At peak, this same ranch may have appraised at 510k (with updating done- 50k deducted from 510k). It is now down to the mid 400’s, with time on the market.

Our experience with buyers has demonstrated that if a home is priced appropriately, competitively with all that are available in that range, you’ve got a great start. While staging is emerging, it will continue to do so. In order to keep your home at the top of homes available in your range (example: one standard ranch, redone- 420k: new kitchen cabinets, an updated bath, new paint, roof, furnace; another ranch, not redone:400k- a loss of your updating investment ) staging demonstrates professionalism in presentation.
Home builders know this. Buyers love the model homes- minimalism. It may be worth it to to spend a few hundred dollars to investigate it and get direction.

Another huge presence? The Internet. Homes are being shown now at numerous venues with the advent of such ingenious sites as Zillow, Trulia and Craigslist, among many others. In the numbers game of real estate, this kind of exposure has become as necessary as all other exposure. You’ve read the reports- some 80% of real estate buyers check out the Internet first.

Another aspect that comes into play is presentation of your home to buyers. Getting buyers focused on the things that they’ve deemed important to them- not to me, not to you.

You need correct pricing, Internet presence to bring it to the top of the heap, a professional opinion on the impression of the home (a staging consultation ), and exceptionally strong human presentation. It’s that kind of market.

Next blog: Waterfront Properties: Exempt From the Market Woes?

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I Just Bought My Dream Home. I Hate It.

April 27th, 2007 category: Buyers, Real Estate PhilosophyNo Comments »

 While locating a great home can be exciting, there are things to keep in mind that might assist in the final decision making process- things that have very little to do with the actual home, but everything to do with your day to day life. Below, a few suggestions gained from friends of mine, my own experiences, and observance of hundreds of buyers that have made my time selling real estate worthwhile.

1. Visit the grocery store that caters to your potential neighborhood. This is the place that your family will spend time, quality or not. It is a great way to observe the neighbors that call this area home.

If the store is limited on your favorite items, are you prepared to travel to a better-stocked store on a regular basis? Are the lines always long? Is the parking adequate? I had a friend who was considering marrying a man that lived in a retirement community. When I asked her why things didn’t work out, she said that she just couldn’t stand the smell of mothballs at the grocery store.

2. Visit the local school AFTER school hours. Schools provide tracks for running, and often an area for dog walking. Are you comfortable there? Is it well lit for evening walks? If you are uncomfortable with seclusion, does it abut homes, or woods? If you prefer privacy because your dog is rambunctious, are there too many other walkers? I disliked one neighborhood because no one could decide, on a large circle track, which way to go, and my boxer got too interested in passing dogs to actually walk calmly. I stopped taking her there.

3. If you have children, discover locations for their activities. Is the soccer field in one part of town, and the dance studio the other? Is there available day care that operates within a reasonable distance from home, with hours that are convenient? Spending time battling traffic with one child in one location and the other waiting to be picked up across town can be draining. Screaming in the car due to stress (yours or theirs) takes the fun out of activities.

4. If you attend church, go to a service before committing to a home. Do you like the flavor of the service, and the message delivery? If not, locate the church that appeals to you and consider the distance. While it may only be a weekly destination, friendships that develop can extend beyond the services, and visits to a different location to see new friends can be time consuming trips.

These are just a few suggestions to consider before you fall in love with that gabled roof, or huge family room, or perfectly wonderful back yard. While the house itself is critical, you are also buying a lifestyle that should be comfortable and happy for you and your family. Moving because of preventable investigation is not fun, but can be avoided.

Next time: tips on finding the right vacation home. Nothing is worse than a pre-teen with “nothing to do”…

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Wish you had 57 Million reading your blog?

April 27th, 2007 category: Real Estate News, Real Estate PhilosophyNo Comments »

Here’s an compelling statistic that came through my mail yesterday.

“Out of 174 million adult Internet users, 57 million read blogs, and 12 million keep a blog – according to the 2007 Digital Marketing and Media Fact Pack. Recently, blogs have gained popularity as a useful tool that has made a big impact on the business world.”…
-Brought to you by MLS Products and Services – Dana Nowick

It would be interesting to know how many of those 57 million Internet users read Real Estate Blogs. More research on this landed me here.

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BUYERS: Are You Jeopardizing Your Purchase?

April 26th, 2007 category: Real Estate News, Real Estate PhilosophyNo Comments »

Purchasing a home is a huge financial obligation. You know that.
Purchasing a home comes with complications- if you don’t know that, you’re about to find out.

Purchasing a home can be a JOY, or it can quickly turn into a bad experience, then a joy again, then an issue, etc.

If you drive around, see a Realtor Open House, and decide to stop in, keep this in mind: The moment that you conduct any conversation with respect to that property with the agent, you are jeopardizing your opportunity to be represented by a real estate agent hired BY you, to PROTECT your interests. This was not your intention- you were simply curious. Understanding the basics of buyer agency is an important part of any home buyer’s strategy, and an unintentional action on your part shouldn’t cost you financially, but it can.

A BUYERS AGENT is an individual hired by you, with an agreement that your best interests are the job description for this individual. It is incumbent upon this agent to oversee your purchase and make certain that you are treated fairly, provide all available impactful information, and LOCATE THE PROPERTY OF YOUR CHOICE FOR YOU.

For this service, the agreement that you sign will include a commission amount due the agent upon the closing of said property- it is a contract between you and the agent. It does not involve any party on the selling side until a property is located by your agent, you sign a purchase agreement for said property, and the seller agrees to pay the fee that is your obligation under the buyer agency contract. Typically, the listing agreement signed at time of listing includes a fee to cover buyer agency- it’s common and normal practice. If you don’t involve a buyer agency in the transaction, and utilize a sellers agent, the same fee is paid by the seller of the home.
Sound easy? It can be, and for you, it absolutely should be. Problems arise, however, when sellers agents observe that you arrived unrepresented, developed an interest in the property, and (unfortunately, without your written consent) waived a buyers agency fee that their seller would have paid. How did this happen?

When your buyers agent was not present, an important inclusion to your contract was also not present- buyers agents are responsible for locating a property for you. The contract has been compromised in the eyes of the selling agency. They would prefer to keep ALL of the commission on the transaction than split it with a buyers agent that had nothing to do with locating the property- YOU found it, driving around, maybe seeing the ad that they paid for. It’s business- and whether it’s fair or not, the new can of worms that has been opened is WHO PAYS THE BUYERS AGENT in the transaction? This is when the fingers start to point at YOU, the buyer…

There was a definite missing link to the purchase in this scenario- your buyer agency may not be enforced. Any attempt of enforcement of this by an agent that you hire is compromised by the circumstances. The fact remains- regardless of the squabbling between the sellers agent (NOT the actual seller of the home) and your hired agent, you now do not have representation in this transaction from a your Realtor. Not an outcome that makes anyone happy (except the selling agent).

As a buyer, DECIDE as soon as you start looking IF you want representation from a buyers agent. If you do, be aware of potential scenarios that may jeopardize your representation, and avoid them. If you see a home that you love, resist the temptation to call the sign, or be present at an Open House without your agent. They’ll drive fast and furious to accommodate you- let them. If they don’t, they know the rules.
If you are considering a new home, do NOT VISIT the sales center without your agent. If you just absolutely can’t help it, let the person on-site know that you have a buyers agency, and tell them that you will not purchase without assistance from your agent, who will be paid by the builder. Be up front, and if they suggest that you return with the agent, once again, call and tell them to meet you…now.

While it might sound drastic, it is what it is. Real estate agencies can decide to kink your buying experience, through nothing more than following the legal documents and contracts signed by you. Just READ THEM, and make your own decision about what’s best for YOU and your situation.

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Zillow in the Desert

April 26th, 2007 category: Real Estate News4 Comments »

For those of you that are unaware of the latest in real estate website technology, there is a fabulous site available for home viewing voyeurs - www.zillow.com. It’s a fascinating site, with aerial photos, property statistics, and general information. It also provides to its fans what it refers to as a “Zestimate”- a ballpark figure for those wondering about the value of their home.

The state of Arizona has filed an injunction against Zillow. It is their contention that Zillow is providing unlicensed appraisals to the general public in the form of the Zestimate. While true to the extent that Zillow offers its estimate, there is a disclaimer allowing for error. The harm in that, as I am interpreting the actions of the state, is that unsuspecting people will take the Zestimate as Gospel, and list their house according to this figure, without benefit of a “real” appraisal.

COME ON. This is a changing market, with the news alerting EVERYONE to dropping prices and an overabundance of inventory. The notion that Zillow would impact the market negatively is a questionable. If the overabundance of inventory is any indication, there should be an injunction filed against every real estate agent, and every For Sale By Owner who have overpriced their homes. Cease and desist.
Real estate doesn’t stand still. Just as we are in a downswing right now, so will we experience an upswing in the future. There are very few people who would take one market analysis of their home without looking into a second opinion- just ask all of the competing real estate companies. A “second opinion” is encouraged in all areas of importance, and obtaining a home value is no different.
My annoyance with the action filed by the state of Arizona is that there is an assumption that sellers are ignorant, and need the state’s protection from Zillow (or any other remarkable real estate site). It is illogical to imagine a prospective seller sitting at a computer (having not spoken to anyone in the real estate community)and deciding WITH THEIR LARGEST ASSET, to **LIGHT BULB** list it there, expecting without question the provided Zestimate. People will list their homes there after doing a bit of work to establish pricing, provided that they are serious about selling. If they are less serious, perhaps they’ll try it with the Zestimate as a guide, knowing that all it takes is a small investment, and if it doesn’t sell, they’ll try the traditional method. SO WHAT?
Personally, if someone is considering selling their home at an inflated price, and willing to take the gamble and take the time, GOOD FOR THEM. They might be lucky people, and get it sold. If not, we’re here to help.
In any case, it seems completely irrational to create problems for a superior web site that offers assistance to people selling homes, buying homes, or simply checking out the market. As a member of the Realtor community, it allows me to avoid the pitfalls of overpricing for a client- appraisals for buyers can’t be ignored, nor can the resultant annoyance of potential buyers wondering WHY I’m showing them an overpriced house. Better to have an avenue for people that would like to try high for now, and adjust later. Just in case.
I like Zillow for listings from Realtors- it’s another opportunity to show off a property to someone that might know someone. While it is only one of several internet opportunities that we utilize, it does no harm to expose a property on a site that entertains BUYERS AND SELLERS AND OTHERS INTERESTED IN REAL ESTATE. Talk about a captive audience.
While the jury is certainly out on the effectiveness of Zillow with respect to actually SELLING homes, for now it’s a very entertaining and interesting opportunity to check out real estate. We don’t need Arizona, or any other state, to “protect us” from OURSELVES with regard to Zillow.

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Is Reydon Shores Bayview’s BEST Neighborhood?

April 21st, 2007 category: North Fork Neighborhoods, People and Places, Southold Real Estate2 Comments »

It was dark, and the dogs needed a walk, so we set off. Just around the corner was a long, wooded street. There were no streetlights, so the feeling was eerie- akin to that childhood adrenaline rush when playing hide and seek with flashlights. A “Lions and tigers and bears” experience. We KNEW that we were being watched. In a whisper speed , blinkandyoumissit moment, a herd of white tail deer appeared in front of us, crossing the street before us in silence, only to become invisible again.

Reydon Shores is a neighborhood with architectural integrity.

Reydon Shores is a neighborhood in Bayview that we accidentally “found” when we first moved to Southold.

Interested in seeing this neighborhood in the daylight, we returned the next morning. This is a neighborhood of small hills, lots of old trees, and the bay as its hidden treasure, complete with small marina for the boating crowd.

It was impossible not to be completely charmed with this diverse neighborhood- small, lovely older cottages with an occasional buoy yard ornament sit beside newer homes- well built, good looking, and respectful of the early architecture present in the area. While each house is completely unique, and the ages vary greatly, there is an integrity to this area. The yards vary significantly as well, yet the tie in seems to be the care taken to preserve this beautiful area. This is a neighborhood that is involved in maintaining the charm.
On the same day, we walked again at twilight. Kid’s voices, some happy, some frantic, accompanied us at various points, adding another special feature of this neighborhood- the presence of summer homeowners, giving their kids a fabulous vacation. Reydon Shores has an intimate feeling, set back enough to enjoy a wooded entrance, with the bay beckoning on the other side- a summer paradise for families.
The halfway point, before returning home, is the bay itself, available to all of the homeowners. There is a great beach area with ample room to enjoy North Fork afternoons, as well as a boaters paradise of dock space. Absolutely beautiful, especially if the sun is setting…

There are currently no homes for sale in Reydon Shores. With only 100 or so possibilities, the availability is limited. We are actively working on obtaining homes for sale in this neighborhood, so please contact us if this sounds like your own paradise. Home prices range from approximately $490,000. to the million plus range. We are happy to contact you when a home becomes available for sale…if we don’t buy it first! Please go to the contact page to request information about availability in Reydon Shores.

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Understanding Real Estate Fees

April 19th, 2007 category: Real Estate News, Real Estate Philosophy4 Comments »

With an abundance of choices, sellers are finally able to gain control of the costs associated with selling their home. So, what is the best program for your situation?

Traditional Real Estate Brokers: There are many fine choices for the east end of Long Island. You see the ads in local papers, sometimes with an entire page devoted to listings. They are on the Internet, utilizing realtor.com and (finally!) the MLS. Because this option is costly (typically, the broker insists that the salespeople stick to the traditional 6%) it is very important to differentiate marketing skills and strategies- ARE YOU GETTING MORE, as you PAY MORE? Is your home immediately entered into all Internet avenues? These are appropriate questions to ask, as the difference in cost should be readily justified. Typically, the listing period is six months- does this work for you? Are you permitted to end the listing should the marketing not be as represented? Again, these are appropriate questions to ask, in light of your investment.

Discount Brokers: This avenue would include FSBO sites, and flat-fee MLS sites. Are you prepared to sell your home without the benefit of a representing Realtor? While it may seem difficult, more and more people are giving this a try. You are able to offer a “co-op” fee, inviting the real estate community into your home, bringing potential buyers. While this may seem ideal, keep in mind that there are agencies that prefer NOT to participate in a FSBO (or similar) program- the absence of a listing representative forces the agent to operate both sides of the coin, often for less in compensation than they would receive otherwise.

In Between: There are companies available that have decided that real estate fees are simply too high. The motivation is to provide full service to sellers, but simply CHARGE LESS. You receive the benefit of your own Realtor, full presentation on Internet sources, ad time in the paper, showing feedback, open houses, an available conduit between yourselves, your attorney, the home inspectors, the co-operating agency- full service. The cost for this service is typically 3%-4%.

SO, WHAT TO CHOOSE? When investigating your options, take a good look at what is available. There is no magic wand that will sell a house- it’s all in marketing. Do you have a comfort level with the broker? Once that is established, you can then pursue the marketing strategy presented to you. When determining pricing, permit each office to provide your anticipated sales price without disclosing the price suggested by another office- this will encourage inflated pricing at your expense. Take a good look at the current market, but allow room for error. Either begin with a shorter listing period, or insist that an escape clause be made available to you if the representing company does not perform marketing as promised. Often, Realtors are at the direction of their brokers, so regardless of the charm or ability of the Realtor, the bottom line is office policy.

We’d love to have you review our pricing at Options Realty- simply click on the seller tab, or give us a call. We offer our services to all of the North Fork- Riverhead, Jamesport, Mattituck, Laurel, New Suffolk, Cutchogue, Southold, Greenport, East Marion, Orient, Baiting Hollow, Aquebogue- and our mls service is available to all of Long Island!

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MLSLI Tied to High Blood Pressure!

April 18th, 2007 category: People and Places, Real Estate News, Real Estate Philosophy3 Comments »

Why is MLS Long Island (MLSli) limiting access to its Stratus database to just� Internet Explorer browser?� The “forces that be”� are alienating many subscribers that use Apple Macintosh computers.� � Why do� important segments of the real estate industry still refuse to upgrade their� technology?� � Every visit to the site is a� reminder� of the refusal to update current technology.� It’s antiquated,� like going back in a time machine 10 years!� Is this� what happens when a monopolistic organization has a corner on the market for Realtors, but little interest in the future of internet marketing� which impacts MY BOTTOM LINE?
My blood pressure just skyrockets each time I log into Stratus!

Why is MLS Long Island (MLSli) limiting access to its Stratus database to just Internet Explorer browser? The “forces that be” are alienating many subscribers that use Apple Macintosh computers. Why do important segments of the real estate industry still refuse to upgrade their technology? Every visit to the site is a reminder of the refusal to update current technology. It’s antiquated, like going back in a time machine 10 years! Is this what happens when a monopolistic organization has a corner on the market for Realtors, but little interest in the future of internet marketing which impacts MY BOTTOM LINE?
My blood pressure just skyrockets each time I log into Stratus!

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Fifty Five and…BETTER! A Lifestyle Change

April 18th, 2007 category: North Fork Neighborhoods, Real Estate News, Real Estate Philosophy, Southold Real EstateNo Comments »

Recently, I have been employed with a highly respected national home builder. This builder specializes in luxury condominium communities for those fortunate enough to be fifty-five or… better. I was close enough to the action to become involved in a very intimate purchasing decision from the fastest growing buying population- the tidal wave of baby boomers looking for a simpler existence.

I observed that people in this demographic are often unsure. There is confusion about a retirement community as opposed to an active adult community. The notion of a truly premature deliverance to a retirement “home” is unthinkable to this group. They are still YOUNG. To clarify:

A retirement home often has facilities for assisted living, in addition to medical alerts. I have the most youthful of mothers, but having been diagnosed with a brain malfunction, she is living in an environment that offers ASSISTANCE. Living independently, but having available emergency help on site. For a North Fork assisted living community, try Peconic Landing. For nursing care, check out San Simeon on the Sound, in Greenport, NY.

An active adult community has facilities for tennis, swimming, working out, and socializing. Socializing with people close to their age range or those that may be older and are active people. Active adult communities do not offer “assistance” because it is not anticipated. Fun is the agenda, and active adult communities offer an amazing environment for the owner’s visiting families. Often you’ll find a gated entry, and Friday night get togethers where news of children, grandchildren, and past indiscretions are shared. After all, these are the teens of the 50’s and 60’s. Encore Atlantic Shores is a current offering by WCI, located in Eastport, NY - close to family in the North Fork.

For those less inclined to go “fancy”, there are other wonderful alternatives on the North Fork. In Southold, there is an adult community that goes by the name of Founders Village. While this community has amenities, the true charm lies in the location. It is a short walk to downtown Southold, where residents can often be found on warm summer evenings watching local bands perform in a central park, or enjoying the numerous summer events that Southold offers. As with the other communities, no work is required in the way of landscaping or maintenance, thus affording time to enjoy the area, do some traveling, and take advantage of the freedom that these communities offer. Prices range from the mid 300’s to low 400’s- to view, click on the tab button above for MLS, and request townhomes in Southold.

For additional NEIGHBORHOODS, we’d love to hear from you. Let us know about your North Fork community, whether it’s 55 and better, or just a terrific gem. We will continue to spotlight OPTIONS for the fifty five and better home buyer in future blogs.

NEXT TIME: HOW TO PREPARE FOR THE MOVE…WAYS TO SCALE DOWN!

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2% Real Estate Transfer TAX Going Statewide in New York?

April 14th, 2007 category: People and Places, Real Estate News, Real Estate PhilosophyNo Comments »

The New York State Association of Realtors (NYSAR ) Government Affairs update from April 13, 2007 reported the following:

“Real estate-related legislation introduced – While Legislators are observing the Easter/Passover holidays, bills are still being introduced in the capitol, including the following real estate-related measures:

Community Preservation Legislation – ‘Community preservation’ legislation approved by the New York State Assembly in 2006 was reintroduced in that house this week.

The bill would allow cities and towns to impose a real estate transfer tax of up to 2 percent on the transfer of residential and commercial property without approval from the New York State Legislature.

The proceeds of the tax would be dedicated to a fund that would be used to ‘preserve community character.’

Approval of the tax would be subject to a mandatory referendum in any city or town wishing to impose the transfer tax.”

Click here to view a copy of this legislation.

This is what John Klassen at Countrywide Home Loans had to say right here.

And keep in mind that towns that put the tax to a referendum vote and it pass it will only be creating more power for politicians and local governments to play with. Doesn’t sound too keen to me.

By the way, isn’t “Community Character” subjective?

The Citizens Campaign for the Environment weighs in on the subject also here.

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