Archive for July, 2007

Understanding Real Estate Terms

July 31st, 2007 category: Real Estate News, Real Estate Philosophy1 Comment »

Terms in real estate are widely misunderstood. While often the result isn’t clear, the best approach in the current market is to make decisions based on a complete comprehension of the verbiage.

OFTEN USED REAL ESTATE TERMS:

Agency: this is the legal relationship established when one party (seller or buyer), called the principal, authorizes another (the real estate broker/agent) called the agent, to act in the principals behalf. Exclusive agency: A listing in which the seller gives one broker authority to procure a buyer for the property, but also retains the right to sell the property without the broker’s services.

Exclusive right-to-sell: A listing in which the seller gives one broker authority to procure a buyer for a property, but the broker is entitled to a commission if the seller procures the buyer.

In the above agency agreements with the seller, the listing broker will either be a Realtor, with access to the mls system and an open door policy to Realtors that bring buyers, or the broker will sign up your house as an exclusive to the listing company, in which case only the agents in the office are able to show and sell the property. While efforts may be made to provide exposure, the commission to you, the seller, typically remains the same in either agreement. In the first scenario, you are reaching hundreds of Realtors with buyers; in the other, a handful by comparison.

FIDUCIARY RELATIONSHIP:

If you have signed on with a broker that displays the Realtor logo, your agent has agreed to operate in a fiduciary relationship with you, per the National Association of Realtors requirement for membership.

The fiduciary relationship is very simple: the agent has agreed to operate solely in the best interests of, and on behalf of, you, the seller (principal). Simply put, the only agenda that matters financially is YOURS, the seller. This includes exposure for your home; marketing of your home; negotiating that occurs with your home.

Why Do Real Estate Signs Often Have The Words “Exclusive” On A Sign Rider? An Exclusive sign rider is cause for confusion. The sign that you have in your yard has nothing to do with the agreement that you’ve signed with your broker, short of providing a conduit for interested parties. Prior to the Multi List Service coming to the North Fork, many listings were “exclusive listings.” Consumers realized that being denied full internet access, such as the MLS and Realtor.com provide, was NOT in their best interests. As a result, the North Fork recently jumped on board with acceptable marketing. The result was an effective end to “exclusive” listings. Unless you have signed up with one company doing the listing and selling, you should not have an “exclusive” sign rider. An “exclusive” sign rider could also confuse potential buyers and other Realtors, who may wonder, is this an “exclusive” (no outside participation). The listing agent that you’ve chosen to sell your home has a fiduciary relationship to you, the seller, to determine the best possible listing agreement for you. What Is Buyer Agency?

The buyer of your home has no representation (becoming a customer of your listing company) or has signed a buyer agency agreement with a Realtor. A Buyer Agency means that the broker for the buyer has a responsibility to the buyer to act as his principal, in much the same way that your listing agency represents you, the seller. Either way, the commission that you, as a seller, pay remains the same. If you want your home sold, think hard about excluding the important contingent of “buyer agents”.

In the interest of maintaining integrity in the industry for BOTH sides, BUYER AGENCY is becoming an accepted method of providing a buyer for your home. That their own real estate agent represents them does not harm you, the seller. As it stands in New York, both sides have attorney representation. The buyer compensates their own Realtor through the commission that you have offered the real estate community via your listing company. It is typically split between the two brokers.

Deciding how to list is entirely up to you, the seller. If you believe that the more prospects that visit your home, the more likely an offer, sign up for an Exclusive Right To Sell with a Realtor that participates in the MLS service. If you have been talking with people about your home, write into the listing people that are yours (if they buy, you pay no commission).

What Is A Pocket Listing?

One last real estate term: “Pocket Listing”. If you expect that your home will be in the MLS, request a copy of the id # within three days. A pocket listing is a listing by which the selling agent holds off on exposing your property to other Realtors by not entering it in the MLS in hopes of locating a buyer that will provide them with both “sides” of the commission.

definitions provided above are courtesy of Real Estate Law, authored by James Karp and Elliot Klayman.

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MATTITUCK LAUREL HISTORICAL SOCIETY THROWS ANOTHER BIGGIE!

July 20th, 2007 category: People and Places, Real Estate NewsNo Comments »

For those of you fortunate enought to be waking up on the North Fork on Saturday, July 21st. from 9-5, the Mattituck Laurel Historical Society is hosting another fabulous show and sale. On the agenda for Saturday is a display of antique furniture, available to admire or buy. If you love antiques, THIS IS THE BIGGIE!

Their ANNUAL ANTIQUE SHOW AND SALE. Exhibitors will offer antique furniture, Americana and much more. Indoors, at the Cutchogue East Elementary School on Main road, Cutchogue. Rain or Shine. Donation $6.00. For information call (631) 298-0020.

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Oh, LOOK At the Deer- Aren’t They Cute?

July 17th, 2007 category: Real Estate NewsNo Comments »

Deer are part of the North Fork, Long Island landscape. The proliferation of this hooved species has provided all of us with more than a glimpse of nature at its finest.

As a community filled with woods, and dotted with green lawns, locating a deer is not challenging. Maneuvering at dusk down windy roads can be compared to the dunk machine at the office picnic- waiting for that one “hit”, while the senses are maxed anticipating it, and dreading it.

I don’t like it. Don’t misunderstand- I enjoy nature. But what I am observing on the North Fork is a bit unsettling- our deer, when we come into view, don’t gracefully disappear into the underbrush. While I’m certain that they used to, they don’t now. Rather, they remain still, looking, and waiting. For a handout?

My neighbor, Gladys, doesn’t put out lovely flowers anymore. Not a one. The deer, in their eagerness to get to know the neighbors, happily welcome themselves to all colorful edibles, with nary a thought that perhaps this isn’t FOOD, this is decoration. While we ourselves put the colorful decorations as close to the front door as possible, in order to discourage these visitors, the closer we put them, the closer the deer get. I guess it’s a simple equation, but I repeat: I don’t like it.

I would like to see the deer proliferate. What I would like to NOT see are hand fed wild animals. In addition to the tics, the nuisance that they present is a danger to themselves. Not all people are the way that I am, or you might be. There are sinister people who REALLY don’t like them, and in their zeal to play the hunter, basically shoot these creatures in much the same way that the saying goes- fish in a barrel.

I look forward to the day where seeing a majestic herd of deer is accomplished with many “shhhhh” sounds, silencing the human element, so that they don’t hear me, because if they do, they’ll run away in a whoosh of grace. For now, they just look at me, and I at them- mutual curiosity, but better left to nature.

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New York & Long Island Realtors NOT in Control

July 11th, 2007 category: Real Estate News, Real Estate Philosophy3 Comments »

This is a request to the New York real estate community to assist me in understanding one thing:

Why is the New York real estate community run by lawyers, and not the real estate community?

I WAS STUNNED TO READ A 10 YEAR OLD NEW YORK TIMES ARTICLE THAT YOU CAN LOCATEHERE.

What prompts this question is the following short group of scenarios:

1. Having received a binder on a house a week and a half ago, it’s not under contract.

The contract hasn’t even been started by the lawyer. It could have been written by the broker, and submitted for attorney review a week and a half ago, which assists both the buyer and seller. That’s OUR JOB, as the real estate agents involved in the transaction.

2. I just finished up working with a national builder, and executed over 40 contracts myself on Long Island- no attorney present. All docs were faxed to the attorneys involved, with the information that NO CHANGES CAN BE MADE. Two attorneys resisted; the end result for their clients was that they lost the properties. While one returned later and purchased a second choice home without the changes requested by their attorney, the other did not return.

New York real estate community, not only should you be preparing the paperwork, but it should be acceptable WITHOUT an attorney review (which, per the current leash laws, is not permissible). All contracts need a time of essence clause, which will permit the sellers to anticipate a day to close, without scheduling issues that have nothing to do with the buyer or seller.

Am I to understand, as an individual that has been in real estate for 20 years in a state that didn’t utilize the legal contingent, that in New York, the legal contingent has decided to “protect” the consumer by offering a “fill in the blanks” contract for the real estate community of brokers, with the attorney having the final say on the terms, including the ability to change (without notice to the broker) terms that the attorney dislikes? This seems rather like putting the consumer through one hurdle, only to anticipate another- by an individual that was not present during the negotiations.

Please. Why on earth are New York Realtors running scared of the attorney contingent? And why, with so many New Yorkers that purchase out of state (or even upstate) without an attorney, does the consumer put up with delays that provide the buyers additional time to look around out of frustration, and walk away from a binder?

I understand that in New York, having a piece of the real estate pie is important to the legal contingent. Here’s the thing: have your pie. Leave the rest alone. Make suggestions; review the contract and offer input; but be part of the team. Your job is to review paperwork - we all know that the title companies provide just about every guarantee needed to close a house. Review it expeditiously, be thorough, and be grateful that your spot in the New York real estate market exists, because it is LARGELY ABSENT EVERYWHERE ELSE, and houses are closing every day.

Just like the real estate contingent, your presence is largely determined by the consumer. It is not YOUR time frame that the consumer is concerned about, and it shouldn’t be. Having you involved is a good thing, if you choose to make the effort to be professional and courteous. Accept agent generated contracts with a professional attitude (not annoyance), review them, make your suggestions, and let’s get the house sold for them. That’s what we’re here for - we sell it, you review it. Three days, max.

If an offer is lost due to not performing expeditiously in providing a sought after contract, you are not protecting your client. Isn’t that what we are here for, to accommodate the consumer?

Offering opinions is what Options Realty is all about. Now, I need a GREAT New York attorney in order to get some houses sold. Any takers, New York?

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Get Out, Already…It’s Not Your Life, Anymore…

July 6th, 2007 category: Real Estate News, Real Estate Philosophy, Riverhead Real Estate, Southold Real Estate4 Comments »

 Having had the distinct pleasure and (let’s be real) challenge of working with the “Active Adult” set, I’ve made many observations that make me dread 55, the AGE.

HERE’S WHAT OFTEN HAPPENS TO THIS POOR CONTINGENT OF MISPLACED 55 and better NEIGHBORS IN A NOW STRANGE NEIGHBORHOOD,full of tricycles and mini basketball hoops made of gray plastic, and a strange helmet clad contingent, complete with participating parents (OUR KIDS NEVER HAD HELMETS) riding safely down the previously less traveled-by- strangers cul-de-sac…the neighborhood looks oddly the same, but different. Friends have moved, citing reasons like an out of state child or “too much yard work”…some neighbors want to travel, now that the kids are grown.

After an unnerving accident running over the neighbor’s soccer ball (good thing the pads were on the kid) the 55 and better thinks, “THAT’S annoying.” While at the same time wondering when their first grandchild will rock their world…

They start “investigating.” This is the hardest time- the exploring. As in, unload the house with memories, and lock into a “lifestyle” change. The new house is secondary to the first dilemma, by a long shot. Neighborhood of kinship is first. The kind with the clubhouse, neighbors that are on the same page (especially during cocktail hour, when recounting their own reasons for change)…and, an indoor and outdoor pool, great for the grand kids and family…and NO YARD-WORK. And often enough, LESS MONEY. But also, LESS ROOM TO BRING ALL THE STUFF. The accumulated…stuff.

This is the difficulty, the BIGGIE. Contemplating all of the accumulated stuff. But that soccer ball has made the 55 and better consider that selling all of the stuff (or giving it away) is cheaper than the subsequent lawsuit over accidentally squirting the neighbors wild toddler with a garden hose…when did kids start eating flowers? And, since when is squirting one by mistake a crime?

Landscape free, in neighborhood clubhouse, parties, new friends, or…getting rid of a few dust collectors. The progress of freedom is a long one, when a person sells new construction. Let me just say, having enjoyed the last year and a half watching all of the heartbreaking decisions, whether you bought one of the homes or not…THANK YOU! I felt your pain!

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Alzheimers And Real Estate

July 4th, 2007 category: People and Places, Real Estate News, Real Estate Philosophy, Southold Real Estate2 Comments »

One of the most difficult diseases for families to accept is Alzheimer’s Disease. It is also common enough to wreak havoc on the best of financial situations if denial is present. Having experienced it first hand with my Grandmother, I’d like to share an exceptional book that will guide you through the maze. Additionally, some pointers learned the hard way.

The book is titled, “The 36 Hour Day”, authored by Nancy L. Mace MA and Peter V. Rabins, MD. Some pointers (learned the hard way, in my own experience):If behavior becomes odd- repetitive communication, name confusion (in our case, Grandma would answer the phone, “hi, LyLauriSu”- a combination of all of our names) start paying attention. Alzheimer’s creates a “void” in the memory bank. Just imagine a space in your brain that is suddenly blank. Nothing there when called upon to remember. For an interesting view, please link to: http://www.alz.org/alzheimers_disease_4719.asp

Purchase the book to have all aspects of the disease illustrated. The purpose of this blog is to assist you with the real estate end of this devastating disease. If you REMOTELY SUSPECT that your loved one is dealing with this affliction, I cannot emphasize enough the importance of making sure that you are in possession of a DURABLE POWER OF ATTORNEY . This document CANNOT be procured once the victim is unaware of the implications, so act early. What many people do not understand is that a simple power of attorney is void if the individual is deemed “incompetent” with respect to decisions being made on their behalf. A durable power of attorney permits you to assist them regardless of their mental capacity.

HERE IS WHAT OCCURRED WITH MY OUT OF STATE GRANDMOTHER:Because of the insidious gradual nature of the disease, while things seemed odd, she was able to “fool” us for a time. Unaware of her day to day, the phone calls (while occasionally alarming) were often enough normal that we delayed action. Unbeknownst to us, the predators were in full swing in her daily life. Her “lawn guy” discovered that if he brought a full bag of leaves to the door, she’d pay him. He figured out that whatever afflicted her, he could bring the same bag to her door several times a day, and she would pay him again and again. Terminix, the pest control company, was employed by her to rid her of pests. The individual employed at the company (I’ll never forget his name on all of those checks- Robert Auvil) returned several times a week, and informed her that she still had “snakes in the crawl space”. At 400-800.00 a pop, he had the checks made out to himself, several times a month. Her banker became alarmed when she appeared at the bank to withdraw a large amount of money for new siding on her house- he was aware that just a few short years earlier,Unable to stop her, it was re-sided.All the while, the alarm increased as she repeated, over and over again, that it was sweltering hot, and that Readers Digest was going to be arriving any minute with the Grand Prize. Day after day.The end result was to put her in an environment that created safety. For most families, this is the most difficult decision- after all, if her memory was leaving, pulling her out of her home would surely create further damage, wouldn’t it?

We were absolutely shocked when she not only forgot all about “home”, but embraced the new living environment. Shocked.WE DID NOT HAVE A DURABLE POWER OF ATTORNEY. In order to provide her with the best care, her house needed to be sold, and the proceeds put into an account for her care. Without the durable power of attorney, control over the sale price, and the proceeds, fell to the state of Virginia.While this in and of itself was not impossible to work with, what was enormously stressful for my mother was working with the time line. The government is not known for speed. Documentation, court appearances, the sale of personal items via auction (all proceeds recorded and reported) and the ultimate sale of the house went from simple to extraordinarily complicated. All the while, Grandma was safely ensconced in her new environment, but the bills were piling up.

For the families going through the difficulty of the disease, the hours spent dealing with the system in place adds enormous stress to an already heartbreaking situation. It’s not necessary to go through the legal aspects if you get a durable power of attorney early enough in the progress of the disease. For anyone in this situation, my heart goes out to you. You’ll get through it, and have some surprises with your loved one that you never expected- I don’t recall ever laughing with Grandma as hard as I did during one of my last visits to her house. She was hilarious, despite the disease, and enjoyed roaring with laughter.

IF YOU SUSPECT THAT A FAMILY MEMBER IS IN THE EARLIEST STAGES OF THIS DISEASE, GET A DURABLE POWER OF ATTORNEY IMMEDIATELY. IF YOU FIND YOURSELF WONDERING IF THIS MIGHT EVER AFFECT YOU, PROVIDE A DURABLE POWER OF ATTORNEY TO A TRUSTED FAMILY MEMBER.

Speak with your attorney to assist you with the decision. Some available resource links:

http://www.oag.state.ny.us/seniors/pwrat.html

http://docs.google.com/Doc?docid=dgps2bbf_45d4qfmp&hl=en_us

http://www.alz.org/living_with_alzheimers_legal_issues.asp

Real estate is often the source of funds for future care. Don’t find yourself at the mercy of a state entity to make decisions that you would be able to resolve with integrity yourself. Having the benefit of fast action, if necessary, is paramount for the safety of your family member.****This is not to be construed as legal advice. This is a real life situation that became complicated due to ignorance of the disease, and available options. Talk with your family lawyer about preventative solutions.

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