Company News • Pimpage • December 31, 2013

State of J. Philip Real Estate 2013 Edition

by J. Philip Faranda

I am happy to share that 2013 was perhaps the best year in the company’s history. Not only did we crush our 2012 numbers, but J. Philip Real Estate exceeded some lofty goals I had set a year ago.

2013 was the first year that the firm closed over 100 transactions. That was my most ambitious pipe dream back in the first quarter, and we finished so strongly that we actually blew past 100 all the way to 116 deals. This very nearly doubled last year’s production. While the market improved overall, it didn’t double, so we beat the trend soundly. I am very proud of my team for doing so.

Transaction total was not the only piece of good news. Overall dollar volume was also nearly double that of 2012, as the combined volume exceeded $30 million for the year. In 2012 we closed just under $16 million.

Another wonderful breakthrough was the number of agents who sold more than $1 million grew to seven (7) outside of myself. The best we ever did in the past was four (4) Million Dollar plus producers. This was consistent with my stated goal the past 2 years to have my own share of company production shrink while the company grew. That did happen. I did close 30 deals for $10 million, but I was less than 25% of the brokerage’s transactions. My goal last year was to be less than one third. I therefore wish to extend hearty congratulations to the following associates:

Jenn Maher
Tom Ricapito
Cristina Gameiro
Barbara Bartell
Melanie Bell-Kirk
Linda Polay
Ellise DiRoma

Overall, in an MLS of about 900 companies, our firm ranked 42nd in closed deals, putting the company in the top 5% of our market.

2013 had more to smile about than just closings. In July I was nominated as a finalist by Inman News, the industry news source, for Innovator of the Year. I completed my fourth term as Hudson Gateway Multiple Listing Service Vice President. I was the New York State Association of Realtors Vice Chair for Technology. The firm benefited from its continued membership in Westchester Real Estate, Inc. I also served in my second year as a member of Zillow.com’s Agent Advisory Board.

There is more good news as we go into 2014. We have a healthy pipeline of pending transactions under contract. Our membership has swollen to over 40 licensees with another dozen primed to join us in the first quarter of 2014. After 4 years as MLS VP, I will be the Hudson Gateway MLS President starting in January. I will also be the Chair of the NY State Association of Realtors Tech Forum. A property management division is in the plans, and our rental division will be official in another week or two when 914rentals.com goes live. NYMetroRentals.com is not far behind. Overall, our web presence, especially our mobile capability, is flourishing. More tech tools for our agents to make them even better equipped to help clients are on the way as well.

The company is continuing to grow and diversify. Jenn Maher and I have formed J. Philip Commercial Group, a separate brokerage company devoted solely to Jenn’s expertise in commercial real estate. The firm will open its doors in Mahopac, New York in the first quarter of 2014 with Jenn as the Managing Partner. The location will also serve as a branch office for our residential division, dedicated to serving the needs of Putnam County home buyers and sellers. We are also in discussions on a southern Westchester branch in 2014.

Christmas party

Jenn has been a rock star. She’s been integral in the expansion of the firm’s YouTube channel collaborating with me on a number of industry related videos, she has done yeoman work on bringing more licensees aboard our company, orchestrated team meetings and training, and was my conciliere of sorts on many occasions. If the firm gave out an MVP award, Jenn would be the recipient.

In short, we are no longer a mom and pop firm. We are a strong, growing concern that worked lean and mean through the housing crash and has come into the recovery primed to make a strong mark. I am incredibly gratified to work with this team of professionals, and as crazy as it sounds, I am confident that at the end of 2014 we could well have 100 agents and 4 branch offices with production more than doubled again. It goes without saying, but I’ll say it anyway, that I am forever grateful to Ann Faranda for her hard work, her patience, and her support.

Buying • Commentary • Market • November 25, 2013

The Most Compelling Economic Indicator for Real Estate on Earth

by J. Philip Faranda

As the real estate market cycles into a recovery, talking heads are discussing what index will be the most accurate predictor of the 2014 market. Will it be new housing starts? Employment? The DOW?

I beg to differ. In 2014, we’ll be busier than any year since 2005 due in the largest part to one index they never talk about but is more compelling than any other:

The Uterus.

Pent up demand from 5 and 6 years of putting off their lives will have more families out looking for a new nest than any year since I started my firm 8 years ago. It won’t matter if interests rise or fall, or if the economy is growing, or if the Middle East triples its tensions. People aren’t going to delay their lives, putting down roots, or going to new digs for growing the family any longer.

In 2007, when the first sub prime domino fell, millions of would-be home buyers transitioned overnight from irrational exuberance to incredible caution. By 2009, I saw dozens of examples in my own practice where perfectly qualified buyers held off on making a buying decision due to lack of confidence in the future (I know; don’t get me started. The future is happening no matter what).

But you can only live with your parents for so long.
There’s a limit to your tolerance of staying in that cramped apartment one more year.
Your wife will agree to hold off on having a baby for a finite period of time before she says “enough.”
People want to get their lives in gear.
No more waiting.

The public now understands that the sky isn’t falling, and that it is time to start living their lives again. No more delaying, no more putting off, no more waiting and seeing. The time is now. Millions of people who would have already otherwise acted in 2009, 2010, 2011, and 2012 are now ready-more than ready, eager– to put down roots.

Interest rates were 18% 20 or more years ago and people still bought a home because they wanted to participate in the American Dream. People have bought homes through past recessons, world wars, and other trying, challenging times. The Great Recession is over. “It is now our time” is a thought echoed by more people now than ever.

“She’s not waiting any longer” are words uttered to me in private by husbands quite a bit lately. Their wives want to start the family. It was OK to hold off a few years ago. But they aren’t delaying things anymore. The writing is on the wall, and the indices I am seeing aren’t published in the Wall Street Journal or Bloomberg.

More young families have had enough with waiting and are poised to act no matter what the circumstances.

By the first quarter of 2014 we’ll have over 40 dynamic licencees ready to serve their needs in acquiring a new home for the next chapter in our clients’ lives.

And believe me, nothing is going to get in the buyers’ way. It is time to stop waiting and start living.

Company News • November 11, 2013

My Return From Blogging Hiatus

by J. Philip Faranda

While I never intended to take a formal break from writing, one day a guy wakes up and sees that he hasn’t posted an update since August. It wasn’t planned; nothing bad happened to me. I have just always felt that I would never “force it,” and I had nothing to say for a while. More accurately, if I did have something to say, I jotted a few notes for the day when I’d actually have the time to do it justice. And so here I am, hunting and pecking again.

While I took off from writing, Lord knows I didn’t take time off from working. Quite the contrary- things have progressed such that my return post tonight will get you up to speed on all the news around here. I have been busy.

First things first: Business is up. Year to date, transactions total is up 41% over the same period in 2012. Dollar volume closed is up 83%. You read that right- we have closed nearly double the dollar volume in 2013 that we closed last year for the same period. That keeps a broker busy.

The team is growing, in more ways than one. Entering 2013, we had about 32 licensed agents with the brokerage. A handful hung up their licenses, but we’ll hit 40 associates by the end of the year because we have more than replaced them with some excellent, talented professionals who have joined the firm.

J. Philip Commercial Group, LLC is born. My partner in crime, associate broker Jenn Maher, is a commercial specialist. In looking at the landscape of the local market, we felt that there was an opportunity to do more than just take on some commercial business. We saw an opening for a stand alone brokerage we can run together that does commercial business exclusively. And that’s just what we did. J. Philip Commercial Group will open in Mahopac on January 4, 2014. You don’t start a new company lightly. We saw a confluence of opportunity and our own resources, planned thoroughly, and we expect good things.

We have an REO division. Associate broker Michael Fradianni is our new REO manager, in charge of the sale of Bank owned forecosures. This is an exciting development. Michael is a great guy and has tremendous experience in this very specialized field.

914Rentals.com is almost out of beta. We have some agents in the firm who have asked to start a rental division, and work has begun in earnest. It will be up and running by the end of the fourth quarter of this year.

2014 MLS President. After 4 years of serving as Vice President of the Hudson Gateway Multiple Listing Service, I have been confirmed as 2014 President. I look forward to serving my colleagues in this capacity, and I hope to make a difference in what is a changing industry.

Other good things are in the pipeline and until they are solidified I will refrain from making any formal announcement. Suffice to say that much of our growth is fueled by good talent joining the firm, and we have been approached by some great people about expansion in the form of branch offices and even a property management company. You don’t dive into these things without good planning, so until arrangements are made concrete I’ll leave you with that teaser.

So yeah, I’ve been busy, and haven’t had much time or inclination to write as I have worked on these things. However, I was inspired to write tonight, and I expect to do so again very soon.

Pampage • August 28, 2013

Greg Fischer on Moving

by J. Philip Faranda

I seldom “curate” content of other blogs but this is too thought provoking and insightful to not share. Greg Fischer, a pretty profound real estate broker in Fort Worth, Texas penned an outstanding piece on moving entitled Moving the feelings|Sometimes boxes are the easiest things to pack.

VERY good stuff, and while you are there (why are you still reading this?) consider that a really good licensee knows all too well that the hardest part of moving is often not the physical labor.

Buying • August 23, 2013

Why You Can’t Steal a Co-op

by J. Philip Faranda

While the real estate market here in Westchester and the Hudson Valley is certainly on the mend, one vestige of the old buyer’s market, the would be-buyer with the low ball offer, is still with us. Typically, the justification for the low offer is one of two things: the property is unsold, or the property needs work. In cases where the home is unsold, well, duh. If it were sold you wouldn’t be considering it for purchase. In cases where the place needs work, the agent population has done a poor job of educating the public on the adjustments for improvements needed. For example, while a new kitchen might certainly cost $20,000 or more, it is not always valid to make a $20,000 adjustment. Why? Because the current kitchen is not worth $0, that’s why.

Still, lowball offers do persist, mostly on the wishful thinking speculation of lookers playing the numbers game and hoping they can catch lightening in a bottle. One sector of the market where such a practice is more futile is the cooperative apartment. While a low offer might have a 1 in 50 or 1 in 100 shot in the case of a single family home or condo, with co-ops the odds are almost impossible, even if the seller were to agree. The reason is simple: the co-op board can reject the purchase on the grounds of the price.

From the New York Times last October:

Co-op boards are rejecting sales outright if they deem the price of the apartment to be too low.

Some boards are so determined to hold the line on prices that they are unswayed by buyers’ offers to place years of maintenance fees in escrow, to increase the down payment and even to pay in cash.

Co-op purchases are subject to co-op board approval. The board can reject a perfectly qualified buyer with no reason given, and they can also reject a sale for being too low. In technical terms, they are doing so to preserve the share prices of the complex. In a co-op transaction, the purchase is not really of real property, but of stock in a corporation, and instead of a deed, the new owner (still often referred to by many co-ops as a lessee) get a proprietary lease.

Now I certainly understand how someone from Ohio or Nebraska would read this and shake their head. I have often said that if co ops were introduced in 2013 as a new form of home ownership they would be dismissed as a scam. They are whacked. But they are also very common in New York, and not just Manhattan. Westchester has long regarded co-ops as the “starter home of Westchester” because there really isn’t any other type of home you could commonly buy -and live in- for under $150,000 and often under 100k. But low offers persist for a variety of reasons.

Co-op board have one mission: to preserve, protect and defend the share prices. They therefore evaluate the financial qualifications of the prospective buyer closely to ensure they can pay their common charges and be a responsible member of their cooperative with great scrutiny. But it doesn’t stop there. They can, and do, evaluate the purchase based on the price. many sales have died because of this, but many of those contracts should never have been submitted. Forewarned is forearmed. If you are in the market to buy a co-op, do understand this fact: many boards will not approve a price if it is too low.

Industry News • August 19, 2013

ZtreetEasy: Zillow Buys StreetEasy

by J. Philip Faranda

The casual consumer may not find this subject terribly interesting. Market watchers and industry people will be talking about it all day.

Earlier this month, President Obama was interviewed by Zillow CEO Spencer Rascoff on the state of housing in the United States. The National Association of Realtors, feeling snubbed perhaps (although they shouldn’t. The White House is reaching out to private industry, and NAR is a trade organization with an active Political Action Committee, RPAC), issued an embarrassing statement referring to Zillow as a “housing entertainment website.” NAR members like myself were not too happy with NAR’s response, considering it far below the largest trade organization in North America and the voice of real estate.

Well, that “entertainment website” just bought StreetEasy.com, and the acquisition presents a tectonic shift in the largest real estate market in the USA one half hour south of my kitchen table, Manhattan. Ironically, Manhattan is the one place in the USA where NAR’s presence is all but irrelevant, as the area is dominated by the Real Estate Board of New York or REBNY. REBNY split off from NAR in the mid 1990’s. With some clear market overlap with Westchester and the suburbs, this affects me and many of my colleagues. The ripple effect with New York has always been clear.

What does it all mean?

Zillow and StreetEasy come from opposite ends of the real estate world. Seattle based Zillow has been fighting hard for years to make sure their data accuracy is improved. Given that Zillow now ranks ahead of Realtor.com as top site in consumer traffic, it is a priority. As a Zillow Agent Advisory Board member myself, I know this firsthand. Zillow gets their data from many different sources, mostly 3rd party systems, and that has posed a challenge and caused tension with the brokerage community.

Complicating matters for Zillow is the fact that Manhattan has no MLS the way most markets know a Multiple Listing Service. REBNY does have their own database, known as the RLS, but it is not on any uniform platform. The Manhattan Association of Realtors operates an MLS, but its market share is small. There are therefore few, comprehensive “go-to” sources for Zillow to draw Manhattan housing data.

Manhattan-based StreetEasy, however, is considered the defacto MLS for Manhattan, supplanting REBNY’s own public portals and the long-revered NY Times as the conduit of choice for consumers. I do some business in the very northern part of Manhattan toward Inwood and Tryon Park, and StreetEasy has served us well. Manhattan brokers swear by it. It is the toast of the town.

A move like this is, arguably, a bigger coup than the President Obama interview in terms of impact on the New York market. They have leapfrogged to the apex of both broker and consumer choice for online home search in a very unique, peerless market. Last year Zillow purchased Buyfolio (now known as Agentfolio), a very good home search interface for brokers and their clients, so this is not Zillow’s first effort to beef up their involvement in the New York City market. It does put them on top convincingly.

So, what Zillow has basically done is purchase Babe Ruth. And every New Yorker knows what that means.

Market • August 8, 2013

What Can You Buy in Ossining for $675,000?

by J. Philip Faranda

What does $675,000 buy in Ossining, New York?

I’ll tell you.

$675,000 just got someone a 2004 built 3600 square foot 5 bedroom 3.5 bath colonial with a killer view of the Hudson River from the rear deck. The Birch Court neighborhood is on the old grounds of the Briar Crest nursing home, and the whole street is lined with picturesque colonials. The one we listed back in April also had a full, finished walkout basement, a sweet rocking chair porch, a 2 car garage, open floor plan, and a phenomenal kitchen with a huge island.

The Metro North train is minutes away, as is shopping, schools, and just about every village amenity you can think of. The home also had almost a half acre lot. One of the more recent sales on Birch Court was in the low 500’s. I listed this house on April 25th and in about two weeks we had a contract at over asking price after multiple bids. It closed July 9th, 74 short days after I listed the property.

My clients had a cool idea when we first put the home up, which was to have an open house one evening just for the neighbors. We got an offer so quickly that it turned out to be more of a farewell bash, and I had the chance to chat with my clients’ son about the sale of the home. he told me he loved the place, and that someday he would buy the house back.

Yes. It was that nice a home.

If you want a nice home in Ossining like this one, we’ve got others!

[idx-listings city=”Ossining” minprice=”625000″ maxprice=”725000″ statuses=”1″ propertytypes=”2467″ orderby=”DateAdded” orderdir=”DESC” count=”10″]

Market • August 8, 2013

What can you buy in Ossining for $260,000?

by J. Philip Faranda

What does $260,000 buy these days in Ossining, New York?

I’m glad you asked.

Interesting story: I was referred to a very nice couple who had a cute little cape in the Campwoods neighborhood that had just expired off the market after being listed by a major franchise in our area. They were assured by our mutual friend that I could sell their home, which was priced at $250,000 when their term was up with their former brokerage. Campwoods, for those not fortunate enough to live in our area, is a fantastic, mostly pre-war neighborhood with oodles of local community goodies within a few blocks: grocery shopping, the awesome Wobble Cafe, Campwoods Grounds, and other neat stuff.

It was on the market 9 months twice, didn’t sell, and they wanted to move back to Queens. It was a charming 3 bedroom cape, shiny hardwood floors, a wraparound porch and cool, window seats, built ins, and other classic appointments. They had a first floor laundry, a formal dining room, and lots of light. As appealing as the property was, after almost 2 years of unsuccessful efforts to sell, conventional wisdom would be to lower the price.

In reviewing the local activity, I recommended that they raise the price by $15,000 to $265,000. Within 2 weeks we had a buyer, and by the end of the month the home was under contract for $260,000. It closed the week before last 74 short days after I took the listing.

That’s what $260,000 buys, and if you want a place here too, we’ve still got others.

[idx-listings city=”Ossining” minprice=”225000″ maxprice=”275000″ statuses=”1″ propertytypes=”2467″ orderby=”DateAdded” orderdir=”DESC” count=”10″]

Commentary • Industry News • Market • Market Statistics • July 30, 2013

A Tale of Two Tweets: AOL Real Estate Schools Forbes

by J. Philip Faranda

I follow both Forbes and AOL Real Estate on Twitter. I have always viewed Forbes as the standard of excellence in financial journalism, but in my view, this morning they got schooled by AOL in responsible reporting. Both linked to recent stories on the real estate market on Twitter this morning, and both could not have reported things in a more polar opposite manner. According to Forbes,

After months of encouraging signs, the housing market is starting to lose steam. The National Association of Realtors said pending home sales, which track houses under contract, dropped 0.4% in June, after rising 6.7% in May.

It was as if AOL was reporting about real estate in another planet:

Sales of new U.S. single-family homes vaulted to a five-year high in June, showing little signs of slowing in the face of higher mortgage rates.

The Commerce Department said Wednesday sales increased 8.3 percent to a seasonally adjusted annual rate of 497,000 units, the highest level since May 2008.

Both reports are within a few business days of each other and address the June 2013 market. Why the different conclusions? More importantly, who is right?

I believe that Forbes dropped the ball. Real estate is a seasonally cyclical market. Any period is evaluated responsibly by comparing it to the same period the prior year. You don’t compare bathing suit sales, for example, from December to July. And you certainly don’t compare retail sales in February when returns are high to the crazy period in December around the holidays. You compare apples to apples.

Forbes was factually accurate in reporting that June sales were down less than half a percentage point in June 2013 from May 2013. But their conclusion, that the market is “losing steam,” is misleading, because the spring market always tails off as summer comes because of market cycles, just as retail sales peak in December and tail off in February.

AOL made the accurate call. In responsibly comparing June 2013 to June of 2012, they tell the real story: Sales are up almost 40% from the same time last year. That does not speak to a softening market in my opinion, it speaks to a market that is still undeterred from the rate hike and may in fact still be too hot.

I’m actually surprised that Forbes would blow it like that. Who compares May to June? I have spoken with my share of real estate reporters, and by and large they understand the market cycle and how statistics can be interpreted. Forbes, of all media outlets, should know better.

AOL Real Estate 1, Forbes 0.

Company News • July 16, 2013

J. Philip Real Estate Welcomes Emilia Csak!

by J. Philip Faranda

It is with great pride that we announce our newest associate to the firm, Emilia Csak. One of the great things about my life is the opportunity to work with people who bring things to the table that I do not possess. In the case of Emilia Csak, that is a pretty long list.

In her first 6 months in the industry (and at a time when the market was extremely weak), Emilia inked a transaction of over $4 million. Now a veteran of multi million dollar property closings, she has also earned the prestigious Certified Luxury Home Marketing Specialist (CLHMS) designation. Having known her for several years and watching her develop her career, I truly believe that there is no limit to what this talented, passionate and intuitive professional can achieve.

A native of Romania (and Hungarian herself (from Transylvania!)), Emilia first came to the United States in 1997 and began to build her business acumen. She completed her Bachelors degree at Mercy College, and gained valuable experience running her own company prior to making her entry into the real estate industry. Emilia is fluent in Hungarian, Romanian, and of course, English.

What has always struck me about Emilia is how comfortable she is in her own skin; I have never seen anything knock her off her focus. That focus, by the way, is why she’ll make an awesome fit in our business family: Emilia is a staunch advocate for her clients, living and dying with getting an outcome for them that is in their best interests. That has always punctuated out interactions, and she lives in the question of what more she can do, and how best to abide by her client. I love that. Lots of people have talent, but not enough people truly care. Emilia cares.

Emilia specializes in upscale properties all over Westchester County, and is currently marketing an exceptional home in Harrison for $3.75 million that will take your breath away. To reach Emilia, simply call (914) 960-1712 or email her at emilia@jphilip.com. You can also connect online at www.EmiliaCsak.com.

State of J. Philip Real Estate 2013 Edition

The Most Compelling Economic Indicator for Real Estate on Earth

My Return From Blogging Hiatus

Greg Fischer on Moving

Why You Can’t Steal a Co-op

ZtreetEasy: Zillow Buys StreetEasy

What Can You Buy in Ossining for $675,000?

What can you buy in Ossining for $260,000?

A Tale of Two Tweets: AOL Real Estate Schools Forbes

J. Philip Real Estate Welcomes Emilia Csak!

Home

Properties

About Me

Blog

Neighborhood News