Active Rain • July 9, 2011

7 things you can do on Google + that you can’t do on Facebook

by J. Philip Faranda

You can edit posts later- add/remove links, photos, and fix typos.
You can “follow” people (like on Twitter) without having to be friends.
If someone posts a bummer update, you don’t feel like a schmuck when you click “+1” to be supportive the way you do with “like.” You can’t “like” that a guy’s dog dies or they took his grandmother off the ventilator.
If you have an Android phone and take a picture, it automatically posts to a private album for sharing later if you choose. No work. No uploads.
Privacy and groups, which are a Rubik’s cube on Facebook, are automatic, intuitive, easy, and the first step thanks to the circles concept, which takes 3 seconds to learn.
You don’t have to feel bad by not reciprocating an add the way you do with a Facebook friend request.
If someone does add you on Google+, their basics aren’t hidden behind paranoid privacy settings because the G+ setting are so much easier.

Bonus: You can go away and return without finding out you were added to some group or spammed with Mafia Wars, Farmville, or other intrusive outside application.

That last point, which I thought of after first posting this piece, is huge. Google+ is permission based. Nothing happens without your consent. With Facebook, I have to go clean the mess. As Tim O’Reilly says, Facebook doesn’t get permission, they get forgiveness. That means undoing alot of crap you would never have consented to if their settings were reasonably easy to manage.

I guess my opinion is showing!

Active Rain • July 9, 2011

Loving my Team

by J. Philip Faranda

A short one this evening, but worth sharing:

I have been having challenges keeping up lately. A reality of my position and how the company is growing is that I really can’t devote as much time to buyers as I once could. Today alone a three headed monster arose: one timeslot, two buyers wanting to see homes, and a 3rd appointment needing my attention. I could only do one.

I took the non-buyer appointment and brought in two of my newer agents to match up with the buyers. One wasn’t available tonight but I was able to re-schedule the client. The second agent met up with the client for a showing and did a great job- so good, as a matter of fact, that the buyer thanked me for the matchup! She felt very comfortable and they bonded. In one showing. That is awesome.

Now, if a guy is going to get fired, that is the way to get fired. It is a good feeling knowing that when I make a client handoff that the people are in good caring hands.

I love my team!

Active Rain • July 8, 2011

Just Because Your Neighbor…

by J. Philip Faranda

I had an appointment this morning where I was reminded of two cornerstone laws of real estate:

Unrealistic people tend to remain unrealistic no matter what evidence is brought before them.
The price one asks for their house and the price one gets are two entirely different animals.

As for part 1, my colleagues know the drill: you walk into a home that was, at one time, a show stopper. It’s like a Jane Russell house- amazing 60 years ago, today, not so amazing. But the owners, who bought it when I was in high school, insisted that it appraised for $1 million in recent years, and they turned down an offer for $850,000 a few years prior. Today it is hardly worth half a million. When I opened my laptop and showed them market data putting their home’s value so much lower than their expectations, I was met with a chorus of disagreement.

I no longer argue; it isn’t worth the stress. So I asked the folks where they got their value opinion from. The answer was a passionate rendition of all the neighborhood homes currently on the market, some for hundreds of days, for vastly higher prices.

None of these homes were sold or reported under contract. The actual highest closed sale was under $400,000.

Market value is what the buying public is willing to spend. Just because a neighbor -or three- are asking inflated prices for their homes doesn’t add a cent of value to your home. The same goes for when you log online or look at print ads (!) for homes with high asking prices. They can ask for a billion trillion gazillion. It doesn’t mean they are going to get it. The only numbers that matter are those that closed with ready, willing and able buyers.

The high bidder gets the house. All too often, the highest bid comes from those who already own it.

If you’d like to see what is actually selling in Westchester County, get yourself a free Listingbook account.

Active Rain • July 6, 2011

Wordless Wednesday: Good Advice

by J. Philip Faranda

Active Rain • July 5, 2011

12 Thoughts as I Start Summer ’11

by J. Philip Faranda

Back to the zinc mine after stealing some rest over the July 4th weekend. A few thoughts thus far as I rely on “mental muscle memory” to get going:

To my colleague agents who email me their listings: cut it out. I read the hotsheets and I have amazing technology to match buyers and sellers. You do it to pacify your sellers, but why don’t you educate your clients instead. It is carnival barking, and it antogonizes.
Note to Self: Slim-Fast shakes should replace breakfast, not be an apéritif.
Summer camp has started. Alleluia, Alleluia, let a thousand legions of Cherubim and Seraphim sing praises to the Almighty.
On that note, my daughter officially has the shoe thing going on. The rhinestone sparkly pair she insisted on wearing to camp confirms it must be an evolutionary thing.
People who add me on Facebook but have all of their information under lock and key will not be confirmed. The huns will not kidnap your daughter and pillage your home if you tell me where you work and what you do, since you probably have that on 10 other sites not called “Facebook.”
Google+ probably won’t supplant Facebook in the next year, but I don’t see how LinkedIn can survive. Getting all your friends from high school to migrate will be no easy feat, but tech savvy people in the Industry are already there or will be as soon as it is out of beta.
To the guy who emailed me yesterday and said “I’ve emailed you three times.” C’mon. It was July 4th.
Hydrofracking sucks. Energy companies by definition cannot be trusted to clean up after themselves, and when a process introduces compounds to the ground water designed to dissolve rock we are asking for trouble.
Some people get a tattoo when they are drunk. Others buy puppies.
No, I don’t have any updates on any files since the last time you asked me late Friday.
“I can’t reach you” is feeble and lame. If you call me Friday evening after 6pm and it went straight to voicemail, burn another half a calorie and send a text, email or smoke signal before you vent on Saturday.
I hope you have as good a summer as I did in ’85 between high school and college.

Selling • July 4, 2011

Compelling Reason to Price Your Home Right from the Start

by J. Philip Faranda

I review market statistics ever quarter, and since we just passed the halfway point of 2011 I found some very powerful data on the relationship between percent of asking price that Westchester County homes sell for and how long they have been on the market. As the table from the Empire Access MLS below illustrates, the percentage of asking price a home sells for decreases the longer the home sits on the market, all the way down to a whopping 7% average loss for older listings.

The sample size, over 1700 closed single family homes in the first half of 2011, is plenty large enough to draw accurate conclusions. The longer your house is on the market, the less you can expect to net.

0-30 Days. There are very few home on the market 30 days or less. Even in a cash transaction, closing in 30 days is not easy. But of the handful that did close, they averaged above asking price by more than half a percentage point.
31-60 days. This is also considered a fast closing, and the home would probably have to sell in the first week or two to close this quickly. Obviously, these homes were priced right. And in a severe buyer’s market, they averaged well over 97% of asking price.
61-90 days. This is a larger sample, and represents over 12% of the market. These homes did sell quickly, and just over 96% of asking price was the average closing result.
91-120 days. There is only a small difference, but still a difference, for the homes that took up to 4 months to close. This is just under 96% of list price, and represents almost 18% of the market activity.

Drum roll…

120+ days. This group represents virtually two thirds of the market, over 1100 closings. Homes that were on the market over 4 months averaged only 93% of asking price. In a county where the median sale price is almost $600,000, that equals about $40,000. The chief reason a home takes longer to sell is that it is priced too high. How ironic. The people that tried for more ended up with less.

Many of these homes were on the market longer. This simply represents their latest listing contracts with the broker that sold them, so regardless of how long they were on prior to the data recorded, once their price was right they sold.

There is another rough fact behind the numbers that isn’t obvious from the table. If overpriced homes take longer to sell, then it becomes clear that the homes on the market for longer than 120 days may have had price reductions along the way! I’ve seen homes sold in the low $500s that started out asking over $700,000! If they had started out realistically, they very well may have sold for mid or high 500s! Asking for more and chasing the market cost the sellers upwards of $50,000! How ironic! In a high cost place like Westchester, real estate mistakes are very expensive.

Pigs get fat, hogs get slaughtered.

Price it right from the start and you’ll net more. Be objective, think like a businessperson, and base your decisions on market data and not sentiment. The statistics aren’t kind if you don’t.

Post Script:

The following chart was posted on my old blog by Debe Maxwell, an agent from Charlotte, NC. It also tells a compelling story.

Active Rain • July 4, 2011

Declaration of Independence July 4 1776

by J. Philip Faranda

IN CONGRESS, July 4, 1776.

The unanimous Declaration of the thirteen united States of America,

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, –That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good.
He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.
He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only.
He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their public Records, for the sole purpose of fatiguing them into compliance with his measures.
He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.
He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the Legislative powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.
He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.
He has obstructed the Administration of Justice, by refusing his Assent to Laws for establishing Judiciary powers.
He has made Judges dependent on his Will alone, for the tenure of their offices, and the amount and payment of their salaries.
He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance.
He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.
He has affected to render the Military independent of and superior to the Civil power.
He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:
For Quartering large bodies of armed troops among us:
For protecting them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States:
For cutting off our Trade with all parts of the world:
For imposing Taxes on us without our Consent:
For depriving us in many cases, of the benefits of Trial by Jury:
For transporting us beyond Seas to be tried for pretended offences
For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies:
For taking away our Charters, abolishing our most valuable Laws, and altering fundamentally the Forms of our Governments:
For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.
He has abdicated Government here, by declaring us out of his Protection and waging War against us.
He has plundered our seas, ravaged our Coasts, burnt our towns, and destroyed the lives of our people.
He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.
He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands.
He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

Nor have We been wanting in attentions to our Brittish brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which, would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these United Colonies are, and of Right ought to be Free and Independent States; that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.

The 56 signatures on the Declaration appear in the positions indicated:

Column 1
Georgia:
   Button Gwinnett
   Lyman Hall
   George Walton

Column 2
North Carolina:
   William Hooper
   Joseph Hewes
   John Penn
South Carolina:
   Edward Rutledge
   Thomas Heyward, Jr.
   Thomas Lynch, Jr.
   Arthur Middleton

Column 3
Massachusetts:
John Hancock
Maryland:
Samuel Chase
William Paca
Thomas Stone
Charles Carroll of Carrollton
Virginia:
George Wythe
Richard Henry Lee
Thomas Jefferson
Benjamin Harrison
Thomas Nelson, Jr.
Francis Lightfoot Lee
Carter Braxton

Column 4
Pennsylvania:
   Robert Morris
   Benjamin Rush
   Benjamin Franklin
   John Morton
   George Clymer
   James Smith
   George Taylor
   James Wilson
   George Ross
Delaware:
   Caesar Rodney
   George Read
   Thomas McKean

Column 5
New York:
   William Floyd
   Philip Livingston
   Francis Lewis
   Lewis Morris
New Jersey:
   Richard Stockton
   John Witherspoon
   Francis Hopkinson
   John Hart
   Abraham Clark

Column 6
New Hampshire:
   Josiah Bartlett
   William Whipple
Massachusetts:
   Samuel Adams
   John Adams
   Robert Treat Paine
   Elbridge Gerry
Rhode Island:
   Stephen Hopkins
   William Ellery
Connecticut:
   Roger Sherman
   Samuel Huntington
   William Williams
   Oliver Wolcott
New Hampshire:
   Matthew Thornton

Active Rain • July 4, 2011

Chappaqua Real Estate Market, 2nd Quarter 2011

by J. Philip Faranda

This is the market report for Chappaqua, NY for the 2nd quarter of 2011. It covers single family homes in the Chappaqua from April 1, 2011 to June 30, 2011. All data is from the Empire Access MLS.

In the 2nd quarter of 2011, Chappaqua had 35 closings at a median sale price of $745,000.

In the 2nd quarter of 2010, Chappaqua had 37 closings at a median sale price of $773,000.

Volume and prices are quite steady compared to the same time period last year. They are down just a little bit, but they remain steady.

There are 42 homes currently under contract at a median asking price of $899,000. This is $100,000 more than the median sale price, so higher end inventory is moving.

There are 186 active listings at a median asking price of $989,000. Higher cost homes take longer to sell, and while Chappaqua is quite healthy, it isn’t immune from the overall trend. That’s why there is over a year’s worth of available inventory. We just closed on a beautiful listing here in the Spring and are working to help the clients find a new home.

This is a renowned community with renowned residents (the Clintons live here, as does Vanessa Williams), and some of the available properties are multi million dollar, breathtaking places. If you are looking in this price strata and you prefer northern Westchester, Chappaqua could be on your short list.

Previous posts on Chappaqua Manor are here.

Search Chappaqua homes like an agent with a free Listingbook account.

Active Rain • July 4, 2011

Briarcliff Manor Real Estate Market, 2011 2nd Quarter

by J. Philip Faranda

This is the market report for Briarcliff Manor, NY for the 2nd quarter of 2011. It covers single family homes in the Briarcliff from April 1, 2011 to June 30, 2011. All data is from the Empire Acess MLS.

In the 2nd quarter of 2011, Briarcliff Manor had 7 closings at a median sale price of $650,000.

In the 2nd quarter of 2010, Briarcliff had 10 closings at a median sale price of $667,000.

Volume is down some from the same period last year, but prices are steady, actually up a tick.

There are 15 homes currently under contract at a median asking price of $824,000. This bodes well for healthy property values going forward in the area.

There are 40 active listings at a median asking price of $997,500. Higher end homes on the price scale are moving slower. If you are looking in this sector, you might get yourself a deal.

There is plenty of inventory in Briarcliff, and some of it is quite upscale. I live in Briarcliff, and I can tell you that the quality of life in this village is wonderful. This is where we choose to raise our family.

Previous posts on Briarcliff Manor are here.

Search Briarcliff homes like an agent with a free Listingbook account.

Active Rain • July 4, 2011

Ossining Real Estate Market, 2nd Quarter 2011

by J. Philip Faranda

This is the market report for Ossining, NY for the 2nd quarter of 2011. It covers single family homes in the Ossining School District from April 1, 2011 to June 30, 2011. All data is from the Empire Acess MLS.

In the second quarter of 2011, Ossining had 28 closings at a median sale price of $374,250.

In the 2nd quarter of 2010, Ossining had 44 closings at a median sale price of $443,000.

This is a significant drop in both volume and price, and speaks to the decline of the market we are witnessing both in Ossining and other parts of Westchester County. This is great for buyers, but it is tough on sellers.

Currently, there are 31 homes under contract at a median asking price of $375,000. This shows that pending prices are virtually pinned to within a few hundred dollars of last quarter’s median. At least it is consistent.

There are 161 active listings at a median asking price of $440,000. The reason volume is so swollen is that prices remain higher than buyers are willing to pay. Lower your price, get an offer.

I had a client make an offer on a nice home in the village last week but we couldn’t get the seller to come down. They are asking the same price as they paid in 2004. They’ll never get it.

It’s a great time to be a buyer in Ossining!

Previous posts on Ossining are here.

Search Ossining homes like an agent with a free Listingbook account.

Active Rain • July 3, 2011

Speechless Sundays: Family Tree

by J. Philip Faranda

Active Rain • July 3, 2011

Forbes: List with the Guy Driving the BMW

by J. Philip Faranda

Forbes.com has published one of those silly For Sale By Owner glorifying articles we sometimes see and the advice in it is so poor it borders on comedy. I’ve blogged before on the trainwrecks I saw when I ran a flat fee MLS for sale by owner assistance business, and I feel quite qualified to answer.

They start with Exhibit A, Barbara Marquardt, who estimates that she’s saved $30,000 in commissions over 20 years selling her homes herself without a broker. I firmly believe that this is the truth. Ms. Marquardt has indeed avoided paying $30,000 in commission. When I ran my FSBO firm we had dozens of people not pay hundreds of thousands in commissions as well.

Note that I said “not pay.” I didn’t say “save.” Because regardless of Ms Marquardt’s case, which has no evidence but her own assertions, the transactions I saw varied from passing gas in an elevator on a first date to full-blown train wrecks. Selling a $500,000 house for $465,000 with a drama-filled 4 month contract period isn’t saving money. And that was on the kinder side of typical transactions we saw.

The next jewel of advice came from the article author, conceding that some properties, such as an upscale, 7-figure home should have a broker. The criteria for hiring an agent? They needed to drive “a Lexus, Cadillac, BMW or Mercedes.”

Wow. Not have experience, references and a proven track record. Just be able to avoid the repo man. Great advice.

There were other golden nuggets, such as reducing brokers to middle men, which, as I commented, belies a fundamental misunderstanding of the industry that is so terrible it really didn’t edify the Forbes platform.

The only piece of advice worth taking was the sage thought that sellers have to view the transaction objectively, like a business transaction.

That’s the trick isn’t it? If there is a challenge even the best broker faces, it isn’t unlocking doors. It is unlocking the mind of a biased seller who may be sophisticated at computer programming, testifying before a grand jury or removing a cancerous tumor but only sells a house once in 20 years and is out of their depth, much as they might hate to concede it.

Hardcore FSBO s are all too often more committed to a suicide pact of avoiding a commission rather than seeing the big picture. They’ll avoid help which could net them tens of thousands more with the same obstinacy that my 7 year old daughter dispays when she wants to braid her hair all on her own. They don’t care if they look like a dyslexic Princess Leia after she lost a fight with a hair dryer. It’s their party, and they can trash it all they want.

Carry on.

Active Rain • July 3, 2011

Croton on Hudson Real Estate Market, 2nd Quarter 2011

by J. Philip Faranda

I have stopped doing monthly market reports in favor of quarterly version in the hope of smoothing out the data and minimizing anomalies. Even so, the results of this quarter’s data for Croton-Harmon schools are impressive. All data is taken from the Empire Access Multiple Listing Service.

In the 2nd quarter of 2010, 17 single family homes sold at a median price of $486,500.

In the 2nd quarter of 2011, 14 single family homes sold at a median price of $592,500, over $100,000 more than the same time period last year.

They are down three sales, but that is a massive jump and can’t be attributed to just one strange month. That is for three whole months. That speaks to the fact that Croton is attracting higher priced buyers seeking more expensive homes than years past. Upscale housing is more common now than it was before, as newer subdivisions attest. Activity there raises the median price.

16 homes are under contract with a buyer at a median asking price of $479,450, so prices appear to be coming back in line with history, and that punctuates the strong quarter the area just enjoyed.

59 homes are on the market at a median asking price of $529,900, or about a year’s worth of inventory. If you’d like to search Croton’s available homes for sale like an agent, get yourself a free Listingbook Account.

Previous posts on Croton on Hudson.

Active Rain • July 2, 2011

Fireworks on the Historic Hudson

by J. Philip Faranda

They did a fireworks show on the Hudson River this evening right on the Ossining, NY waterfront. The kids lobbied hard to go, and even though I was kind of tired and we can sort of see it from our upstairs rear window, I gave in. Up close was much better. I’m glad we went.

There is something really cool about watching Independence Day fireworks on the historic Hudson River from a vantage by Sing Sing Prison, which dates to when the country was young. This video captures the finale of the show, and my kids’ reaction. After the fireworks were over, you could hear car alarms all over town. They were that powerful.

I never published any schedule for fireworks this year, so I thought I’d bring them to you!

Active Rain • June 30, 2011

Wordless Wednesday: Freedom Tower

by J. Philip Faranda

Active Rain • June 29, 2011

Little Blessings (twitch), Little Blessings…

by J. Philip Faranda

There are some periods of the market cycle that don’t appear for everyone. For example, if you’re in Florida, you don’t blog about the time of year when the ground gets frozen and you have to break out the hammer and chisel to install a yard sign. This week is also an annual milestone for us, as school is over and camp has yet to begin, leaving us with 10 consecutive days of our 4 kids at home while we are in the busier time of the market.

Fun!

If you don’t know, Ann and I have 4 little ones, aged 4, 6, 7 and 8. Three boys and a girl. Camp starts Tuesday, and school was over last Friday. We are quite busy this time of year, but we adapt because I can work from home quite a bit and we rotate some so the kids are occupied and engaged with productive activities while we still get things done. Yesterday, we went out for ice cream but multi tasked and installed a lockbox on a vacant listing. Ice cream came after, so if you ever show one of my listings and there are sprinkles on the key, don’t blame me.

It is work, and quite a bit of it at times, but we are also cognizant that time flies, and every moment with them is one we will never get back. Truthfully, I am in awe of my kids. For example, they made a mess in the master bath yesterday that defied Newtonian Physics. I’d ask them how, but I prefer that some of life remain a mystery.

So what’s the real estate angle? Right here: Your agent, whoever they are, is a flesh and blood human being just like you. Unless they are a clone, they have a family and a life of their own, along with headaches, logistical challenges, and they can (and this may sound nuts, but it’s true) get tired. Isn’t that crazy? Your agent isn’t a robot! They may not be able to get that listing or answer for you in 5 minutes! As for me, I may still answer the phone, but I would ask that you ignore the background noise. It may be noise, but it is my reason for working so hard.

Active Rain • June 28, 2011

Caveat Emptor – Let the buyer beware – and due diligence

by J. Philip Faranda

I seldom reblog, but Ruthmarie Hicks has written an excellent piece on the importance of buyers needing to do their homework before just gallivanting all over the county looking at homes they might never buy if they knew better.

Ruthmarie then goes the extra mile in giving resources where buyers can go online to get information that we as agents cannot give due to fair housing laws and other restrictions.

In my book, a buyer that expects all this information from an agent is not a serious buyer. As the commercial says, an educated consumer is our best customer.

Via Ruthmarie Hicks (Keller Williams Realty):

When home buyers engage an agent they often expect us to be the repository of any and all neighborhood information. They often don’t see the need to do their own research because they can just pick the brains of their buyers agent.   But the truth is far more complicated than that.   Steering Laws prevent me from divulging anything about following:

Demographics – for example – I can not answer a questions like “Does this neighborhood have a lot of young families?”

Schools – for example – I can not address whether a school district is good, bad or anything in between.

Crime Stats – I can’t answer your questions about whether or not an area is “safe.” In truth you could be walking into a neighborhood rife with gang warfare – but I’m not allowed to discuss it.

Due Diligence is the home buyers responsibility:

The law says that I can not discuss these matters or offer an opinion on them. However, the law does not prevent me from providing the tools to help buyers find the information for themselves. So here are some links and phone numbers.

Why I’m insisting on due diligence BEFORE I show a lot of homes:

Right now we are in a market where some buyers seem to be literally all over the map. I’ve had buyers wanting to see homes in as many as six or seven different towns – some of them covering an area that could create a tour of 60 miles or more. Many seem to think that needing 50 or more showings is necessary before making a decision – and then it is sometimes a decision not to buy!   With a little research – that list could be pared down to something far more sane.   The problem isn’t with any one buyer – it is the cumulative effect of too many buyers doing the same thing. An unfocused rudderless buyer who is all over the map takes time away from buyers who are focused and ready to pull the trigger. In the end – this isn’t fair to my other buyers who are ready to buy and have done their due diligence.

The fact of the matter is that very often buyers want to see things that I know they will never buy once they have done their due diligence. I can’t tell them that though, but its frustrating because this situation creates a colossal time sink for many parties. For myself – the setup can take as long or longer than the tour itself. For the showing services, its tons of phone calls. And let’s not forget the sellers themselves who have scrubbed, cleaned, dusted, tidied and fluffed and vacated their home to accommodate someone they hope will make an offer. What goes on behind the scenes to make these showings work is far from trivial.

So when buyers are literally all over the map – and seem to be in “no hurry” to buy – I will insist that they do some necessary legwork first. The fact is that vast swaths of homes can be eliminated simply by digging a little and using the information that is at the buyers fingertips.

Here are some ways to dig a little deeper – before picking up the phone and requesting a showing.

Demographics:

Trulia has some demographic data as well as data on crime stats.   Click here for New York State – and plug in the zip code or town of interest.

Another good site for demographics is City Data. Once again you can just plug in the zip code or town and go.

Neighborhood Scout is a site that you have to pay for to see the good stuff. But I’ve heard that people find it worthwhile to subscribe while they are in search mode.

For all the general information available – nothing beats being in the area and spending time there. Going out for dinner on the weekend – taking in a movie…but spending time in the area is very helpful.

Schools:

The best resource for schools online appears to be Great Schools.

However – scores can be deceiving. Home buyers should not reject a school system based solely on scores. Scores often reflect the affluence of an area more than they do the actual quality of the school system. I wrote about this in a previous blog about the “The Great School Debate”. The best way to judge a school system is by visiting the area schools are going directly to the administrative offices for information. This may sound very time-consuming – however this is where you are thinking of living for a long time and it is worth the effort.

Since this blog covers a large portion of Westchester NY – providing links to all the schools in the area would be prohibitive. Googling the school in question will bring up the site. Just be sure to include NY or you may find yourself in White Plains Georgia or Larchmont Virginia.

Crime:

Neighborhood Scout (you do have to pay for this ) and Truila will give you some of what you are looking for. But in this case – as in the case of the schools – the best way is to call the local authorities directly.   Below is a partial list of phone numbers for the local police. These are non-emergency numbers.

One of the problems with the on-line data for both demographics and crime is that some areas are Post Office addresses don’t relate to the same municipality. The data may be skewed by the PO. Remember that these are national maps and the nuances of let’s say Scarsdale the town and Scarsdale the PO – which covers a much bigger area may be blurred.

If all this sounds like a lot of work….

You would be right – but buying a home IS work. These are the basics that buyers need to do when picking a neighborhood where they will be living for years to come.   I have also found that buyers who aren’t willing to do this – really aren’t buyers.

© 2011 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Active Rain • June 28, 2011

Lenders LOVE Paperwork

by J. Philip Faranda

A quick perusal of my inbox confirms the fetish-like obsession that lenders have with paperwork. They just love it when a tree dies.

Case 1: An active short sale file with a 2nd lender is about to go under contract with a buyer, thank goodness. For the past few weeks, a lady at that lender has been sending me emails for a 12 point checklist of things like the seller’s bank statements and a showing log every Friday. The bank doesn’t own the house. My client owns it. Yet the bank lady is acting like an asset manager, threatening to close the file if I don’t send her the TPS showing log each Friday. What file? There isn’t a buyer until we have a contract!

Case 2: A newish short sale listing client is getting contacted by his lender and a preservation firm. Again, more dislosures and bank statements (which will expire, then they’ll need more) while we chase our tail explaining to the preservation company that the man LIVES IN HIS HOUSE and does not need it winterized,-re-keyed, or otherwise tampered with. But the client doesn’t know this, and wisely asks me if he should jump through all these hoops. I told him it is as needed about as much as he needs his locks changed.

Case 3: The new asset manager on a supposed REO that I have now submitted three BPO reports and several occupancy checks wants… another set of photos and a new BPO. When I submit it, he writes back about a comp that is not on the MLS that an investor told him about. I asked for an address. I am still waiting. At least with this the bank does in fact have a deed in lieu process going, but agents doing paperwork all day have skinny kids.

More and more, we are contacted by middle managment grunts at lenders giving us busywork “for the file.” This busywork is just homework some suit in another state needs to reshuffle to justify their job. To sell a short sale, you need a buyer. Nobody appreciates the importance of a complete short sale package than I do, but without a buyer and contract all that busy work does is waste time and paper and create a thicker file then need be.

Save the trees, and let’s not waste time on unproductive work.

Active Rain • June 28, 2011

What Can You Buy in Shrub Oak for $350,000?

by J. Philip Faranda

$350,000 just bought a beautiful 3 bedroom, 2 updated bath dutch colonial with an newer stainless steel kitchen in Lakeland schools on a level acre of land. It also boasted a sun room with sliding doors to a deck, central air conditioning, and a full basement.

What is really great about this closing was that it was a short sale that closed 115 days from the day we listed it! The home was listed March 4, contracts were signed April 20, and it closed today. The seller client received a complete waiver of deficiency as well. We congratulate our own Vivian Morales for taking such fantastic care of the seller client and for getting the job done far faster than expected.

We have a great company that produces results because we have great people like Vivian.

Active Rain • June 27, 2011

Speechless Sundays: Only in New York

by J. Philip Faranda

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Loving my Team

Just Because Your Neighbor…

Wordless Wednesday: Good Advice

12 Thoughts as I Start Summer ’11

Compelling Reason to Price Your Home Right from the Start

Declaration of Independence July 4 1776

Chappaqua Real Estate Market, 2nd Quarter 2011

Briarcliff Manor Real Estate Market, 2011 2nd Quarter

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Speechless Sundays: Family Tree

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Fireworks on the Historic Hudson

Wordless Wednesday: Freedom Tower

Little Blessings (twitch), Little Blessings…

Caveat Emptor – Let the buyer beware – and due diligence

Due Diligence is the home buyers responsibility:

Why I’m insisting on due diligence BEFORE I show a lot of homes:

Demographics:

Schools:

Crime:

If all this sounds like a lot of work….

Lenders LOVE Paperwork

What Can You Buy in Shrub Oak for $350,000?

Speechless Sundays: Only in New York

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