Commentary • For Agents • September 15, 2012

STOP Posting Your Listings on Social Media for the Love of God

by J. Philip Faranda

I just discovered Sulia, a this cool, channel based social media platform that allows people to follow subjects instead of people. It is a phenomenal idea. Clicking on the real estate channel, I found the same social media fail by my esteemed colleagues that plagues every other platform: spam. They think people will want to see their advert for a home they have listed. Forget that the offending party doesn’t disclose the name of their company or that they are a real estate broker, which is compliance 101. It speaks to the tone deaf obtuse nature of real estate firms who consider “exposure” in any form, to be good marketing. It isn’t.

When a real estate agent lists a property, they become just the second person on the planet to care in an invested way about that property: it is now them and their client. In their quest to find that third person, the buyer, some licensees make the mistake of pushing their listing in inappropriate forums when they should be pulling. You do not push in a pull world.

I’ll repeat: Our job is not to push. It is to pull. Do we have an obligation to give our listings vast exposure? You bet we do. Does that mean we pass out flyers at cocktail parties, send out spam email or post spam? No, because all that does is annoy people. No one ever said “I am going to log onto Facebook and search for a house.” People go to Facebook to catch up, socialize, look at kittens and huff at political rants. They don’t care about a 4 bedroom colonial 5 states away. You don’t solicit there. You don’t advertise there.

The way you sell real estate is to make sure it is everywhere people who are looking for real estate would find it. If a platform is where people go to search real estate, then that is where you put your marketing. You never post on social networks unless it is a company page. Doing so is spam, it is annoying, and it undermines the very presence you are trying to build in the social media word. Oh, and it is against the Terms of Service on every platform I know of, and that can get your account suspended.

There is business, and there is social. They don’t mix. Posting your listings on social media is spam. Just say no.

Mortgages • September 13, 2012

How Will The Fed’s $40 Billion Monthly Bond Purchase Affect Westchester Real Estate?

by J. Philip Faranda

Perhaps you’ve heard the news that the Federal Reserve announced today that it will buy $40 billion per month of mortgage backed securities to keep rates low. Lots of terms have been thrown around, like quantitative easing, QE3, short term rates, and I even heard one guy mention Malaysian nutmeg, but I think he was talking about his lunch. But the fact remains that the news, which sounded good, is still difficult to understand for many.

That is why I am in your life. I make the complex incredibly simple. So here’s the deal.

For decades, banks would loan money in the form of mortgages and then sell the loan to GSEs, or Government Sponsored Entities, like Fannie Mae and Freddie Mac. Then, in 2008, when the financial crisis hit, many large financial entities failed or were gobbled up in government brokered acquisitions. The government passed the TARP bailout bill which was supposed to inject close to a trillion to bail out many banks and enable them to continue to loan money. Regardless of what your opinion of that move is, the money supply suffered greatly, and the banks became historically stingy.

As an aside, if they were 10% as careful in 2004-2005 as they were in 2008-2009 after the crash, we’d be in a far smaller mess than we are now.

The banks raised the bar so high for mortgage qualification that the housing market suffered a double whammy- the market was flooded with foreclosures, and many people who wanted to buy simply couldn’t because of the new crazy standards. Things have loosened up since then, but the Fed’s move today is actually a step in the right direction. In 2008-2009 when Fannie Mae and Freddie Mac teetered on insolvency, banks didn’t loan enough money and the recovery was sabotaged. Now, the Fed is committing to buy more mortgage backed securities-enormous amounts- and the money supply will benefit.

Now, to do this they will pretty much just print money, which causes inflation, but they have promised to monitor things to make sure that events can be controlled. We’ll see about that.

This will keep rates low and it will ensure that the mortgage industry has a more liquid money supply. Some of this is my own interpretation, and there are those who will believe that anything done under President Obama is wrong no matter what happens. These are the same people who would have praised the move if it were made by a Republican administration.

This move, coupled with the shrinking inventory and flattening out of the market, will be seen in future years as an aid to the recovery.

So how will this effect Westchester? As I said above, it will widen the pool of borrowers and make those who are currently qualified jump through fewer hoops to get their loan approved. More qualified borrowers leads to more ready, willing and able buyers, and that leads to more homes sold. Expect things to slowly improve. We are entering a flat period and exiting the annual declines which were so emblematic of the past 4 years.

Market • Market Statistics • September 3, 2012

August 2012 Westchester Real Estate Market is Strongest in 5 Years

by J. Philip Faranda

August of 2012 will be remembered for the completion of the first two thirds of a year which has been the first upward year in sales totals since the boom. According to the Hudson Gateway Multiple Listing Service statistics for single family home closings in August, we saw the highest sales volume since 2007.

Here are the breakdowns for numbers:

August 2012 had 575 single family home closings at a median price of $650,000;
August 2011 had 512 single family home closings at a median price of $724,000;

Year to date through August 2012 had 3,053 single family home closings at a median price of $610,000;
Year to date through August 2011 had 2,663 single family home closings at a median price of $635,000;

The decline in median price is almost meaningless, as the average home sold in 2012 was smaller than the average home sold the year prior. This tells me that the buyers are trending toward smaller homes, more often first time home buyers entering the market again, which is having a clear ripple effect across the board.

We are seeing a 15% increase in sales volume year to date and a 12% increase in August over the prior August.

More positive news:
987 homes are under contract or pending sale. Last year at the same time only 732 homes were under contract.
The median price of $549,000 is indicative of the smaller home trend, with the average square footage at 2100 square feet compared to over 2400 year to date.

3518 single family homes are for sale, which is actually a lower number for the same period from years past. More sales and less inventory pushes leverage in the direction of sellers. It remains a buyer’s market until prices rise again, but it is no longer the severe unbalanced buyer’s market from years ago. Well appointed, aggressively priced homes will sell faster and for more money than they did in the past in these conditions.

Bank owned foreclosures are down, and lenders are lending again, albeit more sensibly.

What can I say? I have been bearish all year, refusing to be a Pollyanna about the market. But you can’t argue with the facts on the ground- this market is getting healthier.

Community News • August 27, 2012

An Artist’s Legacy

by J. Philip Faranda

I’d like to take a moment from real estate and discuss art, beauty, and things that endure. After a terrible accident Sunday, our community lost a very good man when Noel DeGaetano very tragically died this past weekend.

I knew Noel from our BNI group, and got an opportunity to visit his studio in Tuckahoe earlier this year. When one is about to go to where an artist does their work, the preconceived notion is that of a fragile gallery with paint, canvas, and soft light. I was, instead, met with the tools of real manual work: anvils, chains, torches, and other things one might expect at a mechanic or engineer.

Noel worked in varied media, and among his most impressive works was sculpture. One such work, a man in a martial arts posture made of broken shards of mirror, was the center of this studio and workroom. I don’t possess the gift of seeing a bucket of shattered mirror and envisioning a 6 foot man in a tai chi position; Noel did. Soft spoken as he was, his hands did awesome work, and his heart spoke even louder after a lifetime of pursuing beauty and art instead of material gain. He possessed the smile of a man who did what he loved.

Noel’s father and late mother were noted local real estate brokers, and when I connected the dots we both laughed at what a small world it is.

While Noel is gone from us, his work is not. As I type this, in New Rochelle at the transFORM gallery, Noel’s work is featured among his peers at the Artwardly Mobile exhibition until October 20. I would encourage you to check it out. Go for whatever reason you wish- to support local artists, as Noel has a number of contemporaries as well present there, or to enjoy yourself. As for me, I’ll go to remind myself that while Noel is no longer with us, the beauty that he loved and worked with daily does endure.

For Agents • August 26, 2012

For Real Estate Agents: How to Communicate with Your Broker or Manager

by J. Philip Faranda

A small, benign event occurred recently that made me dust off a list I have been compiling as a broker who has had his share of communication fails over the years with the real estate agents in my brokerage. You might be going out of town, need help with a file, or just want to give us a heads up. Regardless of the reason, there are some definite do’s and don’ts in making sure that what you have to say is understood and acted on the right way. The assumption of everything herein is that you are not standing in front of me or sitting at my desk.

Don’t use a text to announce your time out of town or similar matter. A phone call is better, an email and call is best. Text is more casual or conversational discourse. It isn’t easily transferred to the official office agenda, and no one else reads my texts to back me up. An email, on the other hand, is a permanent record and if I answer it, it probably means I am at my computer and have access to the calendar.
Don’t assume that something mentioned weeks or months in advance in casual conversation will be recalled with complete accuracy and acted upon. This prevents situations where an out of town buyer is standing in front of a house wondering where I am, and when I call, you answer from that wedding in the Finger Lakes. Ok, I made that up. But it could happen, and the Finger Lakes are lovely this time of year.
Don’t assume that something said to one manager is automatically known by another. In my own case, I have a co-owner, my wife who is on the administrative side of things. If there is one chronic issue is my own firm, and thank God it is a minor issue, it is when an agent will say to me “but I told Ann,” as if saying something to her transferred by osmosis to me. With over 30 agents, sometimes as many as 60 listings, almost 20 deals under contract, and 4 children aged 5-10, we simply can’t debrief each other on everything agents tell us. Sometimes we haven’t even spoken since you spoke!
NEVER assume that something said to me while I am driving gets past the dashboard. You beeped in on the tail end of a prior conversation, I hung up with you to answer another call, I am driving, and I can’t write anything down. I just talked a client off the ledge, put out your fire as best I could, and then dealt with a lawyer on something right afterward. Follow up. That is your responsibility.

Now, here are some Do’s.

Do have the address and other agent/firm on hand when you call about a particular transaction you are working on. Context is everything, and understanding who and what is on the other side of a problem is a big part of getting to a solution. There is a big difference between a co-op in Scarsdale and a relocation deal on a colonial in Chappaqua. I need the 411 to give you the 911.
Do bug, bother, disturb and otherwise interrupt me. If there is a problem and you are afraid you’ll interrupt my off or family time, it is a far more welcome disturbance than the same problem 24 hours later. Un-addressed issues are the worst. Err on the side of contacting me.
Do call meetings. Being proactive and planning is better than putting out fires that planning could have prevented. I am eager to help you get out ahead of your active clients and pending transactions so you can minimize drama and do a phenomenal job. To their credit, this is something where my team does a tremendous job.

The term for this is “managing up.” Helping your broker or manager help you is almost always a function of good communication. You avoid problems this way, do a better job for your clients, and learn a ton more than the trial and error that comes with poor communication. All too often, it is the clients’ who carry the water for that, and around here we prefer smoother sailing.

Market • August 18, 2012

What Does $475,000 Buy in West Harrison?

by J. Philip Faranda

What can you buy in West Harrison for $475,000?

One buyer recently closed on a beautiful 3 bedroom 2 bath cape in Silver Lake for $475,000 this past week. The home had great hardwoods, a bright, airy sun porch, a full walkout basement and a garage. It also had a large eat in kitchen, plenty of closet space, a large living room, and great landscaping outside. The property enjoyed a great location, minutes from the Cross Westchester Expressway (I-287) and all kinds of shopping in White Plains. Silver Lake has plenty to offer as well right in the neighborhood, with parks, dining and shopping.

There were multiple bids on the home, it sold for full price, and was under contract within 24 days. We wish the new owners many happy and healthy years there. We also congratulate our clients on preparing the house for sale, making it available for all showings, and working so hard to help us make the sale a reality. We’ll stay in touch.

There are still plenty properties active and for sale in West Harrison. Feel free to check them out for yourself.

[idx-listings city=”West Harrison” propertytypes=”2459″ orderby=”DateAdded” orderdir=”DESC”]

Commentary • August 15, 2012

On Powerful Women in Real Estate

by J. Philip Faranda

I was raised by a very strong woman. She was not simply a high spirited person, she changed things. My mother had her own quite distinguished career, spearheaded changing the school’s then “mothers guild” to the Parent’s Guild in the 60s, and became a leader in most of the things she devoted her energies to. And because she is my mom, I have always regarded “powerful” and “woman” as very congruent terms. I was raised by a powerful woman, I married a powerful woman, and as I look out at my efforts, I am building my company in large part with powerful women. Hell yes.

I am building my company with some powerful women. Mothers, daughters, wives, and sisters. It is funny how real estate is one of a very few industries where top producer, leader and agent are not automatically masculine terms. Our producers, leaders, and agents are often the fairer sex. I could really care less about the old explanations like the hours or the ability to work from home. When and from where don’t matter to me. In my firm, powerful women cause great results and ecstatic clients from hard work and effectiveness.

I am building my company with powerful women. Of our 34 team members, 20 are women. Of our 6 associate brokers, all 6 are women. There are only 3 executives with the firm. Two are women. But that isn’t why I am confident about our future.

I am confident in our future because we aren’t joined at the hip to a patriarchal paradigm.The women in my firm see things I don’t see. They ask questions I wouldn’t know to ask. They often come from a different point of view with a better long term ecology. The strengths that cause people to excel in our industry are up a powerful woman’s alley. They have empathy, they have compassion, they grasp subtleties, they read people, exercise caution, and when they lower their eyebrow, you had better get out of the way.

Their stories are incredible. They have raised remarkable kids. Tackled special needs. Adopted at-risk kids and caused nothing short of amazing results in both health and academic achievement. Executives in other industries. Teachers. Nurses. Lawyers. Entrepreneurs. And most humbling to me, they have chosen our firm to create their next victory.

I truly believe that when the most pressing challenges that face our world are finally overcome, it will be because of women. They don’t shoot first and ask questions later. And when they do “shoot,” they have better aim. They ask for help when they need it. They pay better attention to detail. They ponder consequences. They wonder how this will affect others. The differences between men and women is so far beyond plumbing it is ridiculous. They simply see the world differently in so many ways, and that dovetails so very well with what works in the real estate industry.

Yes, I will continue to build my company with powerful women. Some men have a problem with a strong woman. I am not one of those guys- to the contrary, I am more comfortable with a woman of strength because that was how I was brought up. I was raised by a strong, assertive woman, and I married one. We are also raising a strong young lady; maybe someday she’ll choose to work in real estate as well. But in the meantime, let me assure you that when I write more good news about our firm, it will often be sourced by a powerful woman.

Buying • Market • August 14, 2012

What Does $245,000 Buy in Greenburgh?

by J. Philip Faranda

What can you buy for just under $250,000 in Greenburgh? I’m glad you asked.

$245,000 buys you a 3 bedroom condo in Granada Crescent in White Plains with 2 full baths, a balcony, and a beautiful swimming pool right in the middle of the complex like the one we just closed on last week. The unit was 1300 square feet, had a bar built into a closet, a large eat in kitchen, and a master bedroom/bath separate from the other 2 bedrooms.

The building was a charming Mediterranean villa style garden apartment with a stucco exterior, and the taxes were under $6000. The location of the complex was moments from highways and shopping, making it a phenomenal commuter location. 3-bedroom condo apartments are rare at this price, and it did have multiple offers.

This one is gone, but there are dozens of other homes for sale in the zip code and we can help you see any of them.

[idx-listings zip=”10607″ propertytypes=”2459″ orderby=”DateAdded” orderdir=”DESC” count=”25″]

Company News • August 12, 2012

J. Philip Real Estate Welcomes Angela Johnson!

by J. Philip Faranda

Sometime back in 2006 I was in Otisville, New York working with a buyer client who wanted information on some new construction she couldn’t afford and she insisted that I call the listing agent. I was in a foul mood, an hour away from home, and I think it was about dusk on a Sunday. I was tired, alone, hungry, and cranky. And I did not want to call the listing agent on a new build my buyer could not afford. But I called anyway, and ended up having a wonderful conversation with an broker who didn’t particularly want to answer the phone late on a Sunday herself. She was also from Westchester, and thanks in large part to social media, I remained in touch with my reluctant compadre through the years. I respected her more each time I got to know her a little better at industry events.

Fast forward to 2012, and it is with immense pride that I introduce Angela Johnson as J. Philip Real Estate’s first Vice President. She will be in charge of development, recruiting, and helping our growing team of 30+ licensees to become better in all facets of the business. They could not be in better hands, and I could not have gotten a better first officer.

I have great respect for Angela. She’s an attorney, a very experienced associate broker with a solid record of performance, a great writer, and knows how to grow a real estate organization in the 21st century. If you saw her resumé you’d see a body of work that has taken apartment complexes, businesses, law firms and real estate brokerages to the next level, sometimes saving them six figures. I am humbled that a professional of her caliber would join our brokerage.

Oh-and she loves German Shepherds. That’s another plus.

I have given Madam Vice President vast authority and discretion to implement what she feels will make us the best real estate brokerage in Westchester. I want nothing less. I have told her to regard the firm as her lab of sorts, because I am confident that her ideas and talents will benefit us greatly. As she adeptly put it recently, she’ll be using her superpowers for good. I love it.

I look forward to the coming days.

Commentary • August 5, 2012

The Transformed Real Estate Agent

by J. Philip Faranda

One of the more unflattering stereotypes of real estate agents is that of a passive, uncommunicative person who does not carry their own weight in the transaction. It is, sadly, rooted in actual events, and I have head my share of these folks in my own deals all too often. You probably know the type. He or she disappears after contracts are signed. They are hard to reach, are never proactive, never volunteer an update, and never seem to break a sweat. They say things like “let the lawyers work it out” or make excuses instead of work on a solution when a problem arises.

Little can be done in the current state of the industry. The Realtor Code of Ethics doesn’t really address it, there is no law against being a passive, unresponsive jerk, and being frustrated with one’s counterpart in a deal is often chalked up to the cost of doing business.

There is one phenomenon that does occur on occasion where the lame agent suddenly transforms into an inspired powerhouse. On the day of closing, these feeble people suddenly rise from the ashes of mediocrity and transform into an absolutely determined zealot for a piece of paper known as the “lead -based paint disclosure.”

It is a sight to behold. Instead of hiding behind their voice mail greeting or ignoring their emails as they have done the months prior, they become the pursuer, hunting down this piece of paper as if it were the Holy Grail or the antidote for some virulent poison they just ingested. The timber of their voice changes, they give you eye contact, and there is even a detectable measure of irritation in their voice if they perceive any lack of urgency on your part about the matter. Pure, determined hustle.

You see, the “lead based paint disclosure” is an item that must be submitted to their firm or they can’t get their commission check.

Once procured, they revert back from the Hulk to Bruce Banner. So long as the compliance model of many companies is simply the withholding of pay until a form is submitted rather than truly training agents to spearhead transactions professionally, competently and with initiative, this will always be with us. Except in homes built after 1978 when lead paint stopped being used. No transformation with those homes.

STOP Posting Your Listings on Social Media for the Love of God

How Will The Fed’s $40 Billion Monthly Bond Purchase Affect Westchester Real Estate?

August 2012 Westchester Real Estate Market is Strongest in 5 Years

An Artist’s Legacy

For Real Estate Agents: How to Communicate with Your Broker or Manager

What Does $475,000 Buy in West Harrison?

On Powerful Women in Real Estate

What Does $245,000 Buy in Greenburgh?

J. Philip Real Estate Welcomes Angela Johnson!

The Transformed Real Estate Agent

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