Unlike many parts of the country, home sellers in Westchester and the surrounding counties (all of Metropolitan New York, really) are actually a long way from signing contracts. When I sold in upstate Rochester, we’d go to contract the same day in some cases, with broker prepared templates written and approved by the local Bar Association. There were attorney approval and inspection contingencies, but 24-72 hours was the norm. Once the attorney approval and inspections were done, all contingencies were met except for the mortgage, which is normal anywhere. 

Not so in Westchester County. Once you get an offer here, there are still mountains to climb before buyer and seller sign contracts. 

1. Meeting of the minds. Obviously, an offer often has to be negotiated, especially in a buyer’s market.
2. Home Inspection.
3. Memos or binders.  
4. Attorneys prepare the contracts. Not as simple as it sounds. 
5. Once “contracts are out,” then the rain dance between attorneys often (not always) begins. Buyer attorney marks it up and send revision back to the seller attorney, who has to clear the changes with the seller. This has taken weeks in the past. Sellers have to tell their lawyer to get on the phone with the other lawyer and iron out the issues expediently. 
6. Once verbiage is agreed upon, the buyer signs and makes their deposit with the seller’s attorney holding the down payment in their escrow account. 

I had the privilege yesterday of attending a reunion of my former co-workers from the position I held prior to my career in real estate. It was the first time I had seen some people in 15 years. It was sales in a different industry and we were all managers. The work was difficult (what sales job is easy?), but to a man we credited it with preparing us for our next job or career. 11 of us met for dinner at the famous Sylvia’s in Harlem, where we caught up and shared memories of our time in the trenches. 

What struck me was the large proportion of us who entered the real estate industry. I am a broker, 2 are investors, and a 4th is a mortgage loan officer. That is over a third of us! As I have said before, real estate is not a career many college students state as a goal. There was no real estate degree at my college, and most people I know in the industry found ourselves in the business after other careers. Yet I would be astounded if 1/3 of former teachers, nurses or cops get into housing. Perhaps it is a coincidence, but perhaps great minds think alike. 

The other 7 of us didn’t do too badly either. Dan Meltzer (lower left) is a radiologist, as a matter of fact. I am proud to say that I hired him right out of college. My old boss took the cake. Ananta Alva (standing, striped shirt) lives full time in Guyana where he runs a cooperative project to help at risk teens. Given the nature of our old work (literacy, programmed instruction, educational publishing) this is perfectly aligned with his values. The project is an awesome undertaking and got the attention of Unicef. I’ll post about it at a later time- everyone should know and appreciate what my friend is up to. 

That said, there are very few Alva’s in the world. Many of the rest of us chose this very noble profession of real estate, and I am glad to be one of them. 

There is no typical day. Consider Friday: 

2am: Finished blog post “J. Philip Real Estate is Growing.”

2:30-7am: Sleep

7am: School morning scramble-Luke, Catherine and Gregory on the school bus by 8am.

10am: Meet with client in Manhattan. Photos taken of new co op listing.

12 noon: Lunch in Queens, handle a call where an agent cannot confirm a showing on my listing. 

1pm: Meet with new client and an attorney in Flushing. They are in serious default and must file to block an imminent foreclosure sale. Once the stay is granted Monday, I will activate their listing. I have to sell it in 90 days or more legal fees. 

3pm: Meet with a prospective new agent and her husband, who is a loan officer. We inspect office space for a future branch if she joins the firm. This would give us a new presence in north Manhattan.

<3:30 call interrupts our meeting- accepted offer for one of my buyers.>  

5:30: Pre-close walk through in White Plains with first time home buyers. There is no lockbox when we arrive. Listing agent saves the day in 5 minutes. Seller has not yet removed furniture. Closing is imminent. 

7pm: In Poughkeepsie to meet with homeowners about selling their house. 

8-9pm: Long discussion with buyer clients on way home to discuss strategy on negotiations on their recent offer on a home. 

9pm: Home. 3 of 4 children still awake-hey, it’s Friday.

9:30-1am: Blog, comment, update website, answer emails. 

Miles driven: Approximately 100

Incoming cell calls: 54

Emails: 100

I am worth every penny. 

I awoke this morning to the typical Saturday morning pandemonium. So I went right to my home office and fired up the computer. Ann came in to talk, so the horde followed and decided to climb Mt. Dad (not an ambitious project). There is something very wonderful about being physically covered with your children. I look like hell in the morning, but you are probably no prize either. Ann caught this “office meeting” on my phone camera- the good one was out of reach. The only thing missing is Luke, our oldest, just out of frame. Otherwise this would be perfect. 

Gregory found a bag of Doritos and decided to feed me, and soon all three got into the act. I am now covered in orange. 

As we enter the last month of 2010’s first quarter, I am happy to observe the growth the company is experiencing. A few facts:

• The firm now has 15 licensed agents living in 6 counties spanning from Long Island to Dutchess County.
• We have as a company over 50 active listings. 
• As of today, with our first Manhattan listing inked in Hudson Heights, our inventory of homes includes listings in 3 of New York’s 5 boroughs, Nassau and Suffolk on Long Island, Fairfield, CT, Westchester, Rockland, Putnam, Orange, Dutchess and Greene Counties. 
• A new agent is projected to join the company this month. 
• I am hiring. We still have openings for new team members who want to grow in our system. New or experienced alike are welcome. 
• We have over 10 pending sales in the pipeline with the busy Spring cycle beginning to heat up in spite of the cold weather. 
• The fastest growing source of clientele is our Internet presence, especially the company website and blog. 

Not bad for an operation started in ’05 in a bedroom with a fax, cell phone and a few ideas. 

Although people don’t realize it, Westchester County does have plenty of homes with wood stoves. Many are decorative, some are even antique cast iron parlor stoves, but most can and do augment the heating of the home. There is nothing like walking into a toasty, warm living room with the thermostat down to 60 degrees and the owner smiling that the heating bill will be low. Since we bought our home in 2007, one of the things on the short list for improvements was a wood stove insert for the fireplace. It hasn’t been done yet. However, I do possess a gorgeous antique parlor stove that is not hooked up, but will be at some point. 

Until it is installed, it keeps me company in my home office. I actually bought this on eBay in early 2008. I had to drive to Vermont to pick it up, and the owner had used it as his primary heat for his home. It is a nickel-plated beauty. When the time comes, it will be set up in the corner of the basement and go back into service. I remember how it’s owner, a New Englander, expected the Patriots to kill the Giants in the Superbowl. Funny how these things stick with you. 

I have another one in my office, which gives it a very homey feeling (good for a real estate office). It isn’t as elaborate, but these things weigh a ton, and I choose my back over anything too fancy when it comes to moving them. I also have a small 6-inch antique replica (salesman’s model) I keep on my desk. It is quite the conversation piece, and it always reminds me of warmth. People kid me about this stuff, but I love those old wood stoves. Max does too, as his bed is often nearby. I haven’t the heart to tell him the thing isn’t lit. 

One misconception regarding the desirability of cash buyers is that because there is no mortgage, no appraisal is needed. Anyone who has ever done a few cash transactions, however, knows that people who are writing a check often do as much or more due diligence than a lender. They have a right; it is their money. 

In 2006, when there was still plenty of irrational exuberance in the market, I had a cash buyer check for mineral rights prior to closing, much to the consternation of the seller. It still closed in 30 days, which is a heartbeat for New York, but those 30 days were intense. Even after 10 years in the business I felt as if I were being schooled firsthand in due diligence. 

While mineral rights are a stretch, an appraisal is not. The purpose for a lender appraisal is to ensure that the collateral they are loaning money on is worth what the terms dictate; an 80% “loan to value” mortgage of $400,000 requires a $500,000 home. Problems arise when that $500,000 home appraises for $475,000, knocking the ratios off kilter and causing a dilemma between buyer and seller. While this is unfortunate, the lender has to protect their interests. They are loaning the money.

So it goes with the cash buyer. There is no government program, no mortgage insurance, and no safety net if they misjudge the value. On several occasions, I have had cash clients buy unique homes which did not have many easy or obvious comparable sales. In each occasion, the homes were over-improved: phenomenal kitchens, amazing staging, knockout landscaping and other bells and whistles which obscured the fact that, hey, this is still a raised ranch, just with a $50,000 kitchen. Having an objective, unbiased 3rd party give a dispassionate, market activity based assessment of value brings a cooler head to the table than a proud, heavily invested seller and a buyer with stars in their eyes. 

If the appraisal indicates that the value is in line with similar homes, fine. If the appraised value is higher than the purchase price, mazel tov. If, however, the appraisal indicates a value lower than the purchase price, it is a sobering moment for all parties. The buyer is certainly not going to want to pay more than that number in all but rare cases. The seller has to grasp that they are selling real estate, not chattel. The key word is location location location, not viking stove viking stove viking stove, or finished basement finished basement finished basement. Should the seller “eat” the difference? Consider this; if they rebuff the cash buyer, the next buyer is probably getting a mortgage. Since mortgages require appraisals, history will repeat itself. 

In cases where a cash buyer’s appraisal comes in low, the seller should get their own appraisal to ensure that the buyer’s report is accurate. They then need to weigh their options, and, often, those options include renegotiating price to bring the real estate they are selling in line with the current market. . 

I got an email earlier this evening asking for a release from a seller client because they aren’t happy with the job I’m doing. They want to fire me. The house isn’t sold, and I have not shown it myself. Since 2005, I have cancelled a handful of listings, giving unconditional releases to problem clients just to get rid of them. However, in this case I am undecided as to whether or not I’ll grant their wish. I would never be spiteful, but in the same vein I feel I should put my foot down. Of the 23 requests to show the home since January 1st of this year ( 1 showing every 2.6 days), they have agreed to fewer than 10 actual showings. 

Just so you know, 23 showing requests in 60 days is pretty awesome, especially with the awful weather we’ve had in our area. The fact that I haven’t brought a prospect myself is a red herring; serious buyers often get picked up by agents quickly around here. My marketing must be working because buyers are calling their agent to see the house.  

How can people buy a home that won’t grant them access? There is more than one owner, but only one lives in the house. She declines appointments the way Elvis popped pills. It makes no sense. They want to sell, they need to sell, but they don’t confirm appointments. Fantastic marketing is getting squandered. So why not just let them go? Perhaps I will. But first, I’m going to meet with both owners and go over the showing reports. I want one to see how many appointments her co-owner is declining. Maybe it will be a teachable moment. I hope it is. If it isn’t, I may just shake their dust from my shoes and focus on clients who appreciate my efforts.

I’ll be brief.

I wrote a version of this for my company agents to inspire them to get busy here, and I’ll share it with my colleagues:

1. Get found. By buyers, sellers, reporters, other agents with referrals.
2. Get followed. Why you want your blog to be engaging (sticky)- Not everyone who finds you is ready to act now. If you keep them coming back, they’ll use you when they are ready to roll.
3. Get referred. Active Rain allows agents to search for good people to serve their clients moving out of town. The more you contribute, the more prominent you’ll become.
4. Get educated. Knowldge is power. The flow of ideas, stratgies and insights from the membership is awesome -and lucrative-brain food.
5. Get inspired. We experience rejection for a living. There is nothing better to recharge your batteries than the huge numbers of triumphs and challenges posted by your colleagues all over the USA and Canada.
6. Get acquainted. Yesterday I was in contact with fellow ‘Rainers from around the country via phone, email and text. Ohio, California, Massachusetts, you name it. The earth has shrunk to the size of Cheers.
7. Get support. I have seen members share tales of special needs children, loss, death of a loved one, abuse, and more. Short of a big fat hug, a few blog comments of solidarity make a difference.
8. Get hired. Moving to a new brokerage? Need to change scenery? Nothing tells you more about a firm than what they blog about. On the broker side, it is a great recruiting tool that has attracted good agents to my firm.
9. Get it off your chest. Purge, baby. I have availed myself of this a few times.