Commentary March 24, 2012

No Officer, Despite What Zillow Says, it is Not My Listing

Full disclosure: I am a Zillow customer, as well as a paying customer to Trulia and Realtor.com.

Our office received a phone call from the town of Kent Police yesterday to inform us that there was some undesirable activity at  my listing. Of course, the only problem with that- aside from youths partying at a vacant house in town- is that the listing isn’t mine. It was listed by one of my agents and expired 2 years ago. But, hey, it said it was my listing on the Internet, so they reached out to me as the broker to see if I could secure the property. I cannot; my firm has not had any authority to market the property since 2010. Despite what the Internet says, I cannot help.

The nearby city of Peekskill contacted me a few months ago on another of “my listings,” and in this case it was a complaint from a neighbor about debris on the property. I never heard of the place. When I asked the lady at the city building department on the phone how they came to believe it was my listing, she said that they looked up the address on Zillow. I explained that Zillow sometimes makes errors. She was fairly understanding, but not happy that she wasn’t any closer to solving the issue than she was before calling me.

Now, I can sort of hear what some of my friends at Zillow might say: “Hey! sell her a house!”

Um, no.

When a cop or a building department official calls me about a problem with a property, they are about as likely a prospect as the person behind the counter at DMV when I am renewing my license. They are at work and have a problem to solve. They don’t want to get pitched, and it wouldn’t be terribly responsible to try either. They are cops and code enforcers. They are on the clock. As a tax payer I wouldn’t want them listening to an agent pitch anymore than I’d want them perusing an Avon catalog.

It isn’t just a Zillow issue, as other aggregators have all kinds of accuracy issues. Yet because Zillow has risen so high in search engine results, they bear the brunt of the issue. Does that mean I should give them a break? No.

To Zillow I would say, with great power comes great responsibility. I don’t want to hear “Phil, all you need to do is log on to Zillow, edit your listing and …” because the problem is not that I am neglecting my own listings. The property in Peekskill was not my listing. The house in Kent was not indicated as being for sale, but the public doesn’t always see status of the listing clearly on these sites.

There is a lot that I am leaving out of this post. I won’t go into all the rude calls I get from frustrated people screaming “don’t you know your own listing?” into my ear over a home I never saw where I am listed as a contact. I won’t go into the odyssey I had with a utility company over an old listing I had that was now vacant and abandoned.

The controversy and tension between Zillow and the brokerage community, well documented elsewhere, is one reason why I am sure they are hiring well regarded people like Jay Thompson as the outreach guy to brokers like myself. That is all well and good, but right now there is a data problem that has to be fixed, and I am tired of PR-spun answers. It would be refreshing to get some accountability that does not involved me logging onto their site and doing free work to solve their data problems.

Community News March 24, 2012

Ossining Chosen as Best Place for Architecture by Westchester Magazine

I may be biased; I was raised in the Indian Village in Ossining and I love pre war buildings, so I totally agree with Westchester Magazine’s selection of Ossining as the best place in the county for architecture admirers. Ossining has some absolutely beautiful structures, both buildings downtown and homes around the town. I have posted previously about the stunning beauty of Ossining’s churches  as well.

I have sold homes all over the county. Pelham is fantastic for Tudors. Bedford had some amazing contemporaries, and estates to die for. Peekskill has some great Victorians. Bronxville has a downtown that is iconic. There is phenomenal architecture all around. But for one town, Ossining does indeed take the prize in my opinion as well.

In between appointments today I brought my camera and took a few shots to illustrate why they made the right selection.

This is the Mundet Mansion on Osage Drive in the Indian Village. I grew up across the street. It is now an apartment building and has been restored gloriously since being bought in the 1970s.

Downtown. The Bank for Saving has an ornate copper trim that gives it a regal aura.The spires of the First Baptist Church are in the background.

Upper Main Street, Ossining. The buildings were rundown when I was a kid in the 1970s. Virtually all have been renovated and renewed in the past 10 years.  The architecture and design have been preserved.

This is a classic Mansard roof. Ossining has quite a few of these beauties, and many homeowners dote on their treasures, painting the trim in flattering fashion. I love the design of the multi colored scallop roof tile on this one.

The judge’s house on Belleview Avenue. I listed and sold this gorgeous home in 2006. The home was built by a judge in the 1920’s with stones  from the shore of the Hudson. It was the village speakeasy, and the tavern remained in the basement for over 70 years. I get a kick out of the fact that the judge ran a speakeasy. Peter Faulk of TV fame grew up a few blocks from this home on Prospect Avenue.

A picturesque Tudor on Browning Drive, a street with its share of lovely homes.

Maryknoll Mission. Built in the 1920s, it has been the home to one of the world’s largest Catholic foreign missions in the world. The entire campus, half of which is in the town of Ossining on the New Castle border, is all stone and appealing. But the jewel on the crown is the main building, modeled as an Asian Pagoda.

See what I mean? I live 5 minutes from every structure in this article. And they are all more beautiful in person. Take a drive over and see for yourself. While you’re here, get some espresso at Tuscan Grille or some sushi at Okinawa Hibachi. You’ll thank me.

Company News March 19, 2012

J. Philip Real Estate Welcomes Mary Kingsley!

8 years ago when I was in the mortgage industry, I helped a nice lady refinance her home. She had two beautiful children, worked as a nurse and teacher, and she was an awesome client. I still remember the bank attorney closing the deal at her kitchen table- that was a first. Another thing I recall was that her toddler son loved to play in one of those jumpy swing apparati where the kid can jump like a kangaroo without getting hurt- we bought one, and subsequently wore it out, with our own.

Mary and I remained friendly and in touch. A year and a half back, she got her real estate license and announce on Facebook that she had joined another firm. I remember my jaw dropping. I would have hired Mary in a hot minute had I known she was looking to get into the industry. I was bummed!

So I watched as she seemed to take to the industry, which was no surprise whatsoever. Smart, caring, independent thinking people do well in real estate.

That is why I am REALLY excited and proud to welcome Mary Kingsley to J. Philip Real Estate as our newest associate. I now understand that Mary was an agent in Orange County in a past life, and that experience, along with her natural gifts, make this so exciting an addition for Ann and me. Mary is just an awesome person. Her adoptive son, now 11, has significant special needs as a toddler when I first met him. The updates on his progress I get now are nothing short of miraculous. Only extraordinary people do that. His older sister is an honors student. Not surprising.

There is a special feeling I have with all new associates when I order their cards and set up their back office and email. With Mary, the feeling was electric because I have known her for 8 years and I know what a quality person she is. I know for a fact her clients will be in the best hands they could ask for. If you want a professional who will watch your back like family, who is intellectually agile and committed, you’ll find your match with Mary Kingsley. She serves much of southern Westchester County and the Bronx. Call Mary at (917) 292-5378 or email her at marykingsley@jphilip.com. Then you’ll know why I am so honored to call her an associate.

Commentary March 15, 2012

On the End of Encyclopaedia Britannica in Print

Encyclopaedia Britannica announced yesterday that they would no longer print their reference library, opting instead to have it be available in online digital form only. Just a week or so ago, I wrote a post on my past life in the educational publishing industry, albeit nothing about the books and selling them. But I feel that my 7 years working for a company that was a Grolier distributor and a competitor in many levels with Britannica gives me some insight into the end of that line of books in print.

It should go without saying that this is a trend that affects more than encyclopedias; thanks to e-readers and computers, my grandchildren may never know what it is like to turn the pages of a book. Britannica was also not the first reference set to go out of print. As  a matter of fact, they were the last of the Big A-B-C sets to stop killing trees. Colliers ended  in 1998, and Encyclopedia Americana was last printed in around 2007. Only World Book, the set I devoured as a child, remains in print.

Having said all that, I do believe that the end of high end encyclopedias in book form was largely self inflicted and under discussed. I believe that, had they changed their model of distribution, Americana, Britannica and Colliers would still be in print in a sustainable way.

Virtually all high end educational references were sold the same way: a salesman would come to your house and sit at your kitchen table. After about a 90 minute pitch, you’d be informed that the whole thing would cost over $1,000, often far more. And if you didn’t buy today, the price would jump and the offer would expire when the representative walked out the door without a purchase offer. With each “no,” they’d throw in more books: children’s books, great classics, you name it, soon people would have a wall of books they’d never finish in a regular life span. It is called a one-call close, and the sales force was a transient, not terribly educated group that was on straight commission.

I know. I hired and trained hundreds. And I was one of them, initially as a trainee and all the way up to a regional manager overseeing the sales in 4 cities. I thrived selling our system, with Grolier’s New Book of Knowledge as the centerpiece of a $1,400 or so set. I was a cowlicked kid right out of college, I believed I was spreading the gospel of literacy, and I knew how to get people to say yes and sign their name on a contract and a check. I closed about one in three people I met with.

However, even I saw the writing on the wall, and in the post I link to above, I explain why I left the company and the industry. The firm closed its doors in 2000; one of the partners now originates mortgages and I have run into him at industry events. He went down with his ship, believing that a 1950’s model for sales would work in the new millennium.

I’ll cut to the chase. In the information era, you can’t generate sustainable revenue having a sales force of clip on tie wearing transients with high pressure schlocky pitches telling people that if they don’t spend $1400 right now, tonight, that they can’t have it. Not when they can Google anything for free or look it up on Wikipedia. Are there some people out there that would happily spend money on a printed encyclopedia? Hell yes, and far more than the 8,000 that Britannica sold of the 2010 edition. People may not buy a Stephen King or Harry Potter in print, but a reference library is still special to many.

The encyclopedia industry never adapted. That print is going away in all books is not the prime reason. People just don’t buy in the 21st century the way they did when I got started in the 1980s. Publishers should have realized that they could sell far more books far more profitably for far less money in perpetuity had they stopped the kitchen table sales and gone with Amazon, Barnes and Noble, and  other distributors. Without paying those $250 commissions, rent on offices and phones, and all the other brick and mortar overhead, they could have priced the sets at a fraction of the cost and sold more-far more- for less money. And they could have thrown in an online password for updates to keep current for literally nothing and never worry about anything going out of date.

It is a lesson in failing to adapt that other industries should see as a cautionary tale. There are still enough people who appreciate print. But nobody appreciate a high pressure sales pitch from an individual who isn’t credible, and that was always a problem the industry never addressed.

Now there is no industry. A cautionary tale for the rest of us, whether we are in real estate or not. Change or go extinct.

 

Buying March 13, 2012

Real Estate Attorneys: Choose Your Lawyer with Care

Upon occasion, an attorney will “kill” a deal. It is part of the business, and I have seen my own client’s attorneys pull the plug on a transaction when things did not look like they were going in the best interests of our client. The attorney’s job, after all, is to handle the contract portion of the transaction, and as they say, the devil is in the details.  New York is unique in that it is one of the few places where lawyers are so integral to real estate. In many other states, they are not involved. In Westchester and the surrounding metropolitan area, the contract phase can last a week or more as the lawyers iron out details and verbiage. Two things are done at contract: the principals sign, and the buyer makes their first down payment, or good faith deposit. In our area, a 10% deposit is quite common. I have seen more. I have seen less.

No sooner did I pen this post on Patch about the importance of having a good real estate attorney, I spoke to a prospective buyer on one of my own listings who had recently signed the contract to purchase the home. He informed me that his attorney- with an office 2 counties away- advised him to not bother with the 10% deposit; 1% would do.

1%.

His lawyer did not clear this with our lawyer. No explanation was given.

And with that little maneuver, this lawyer put her client’s purchase in jeopardy.

We see this all too often. Real estate sales is not litigation. There shouldn’t be much arguing. But when a lawyer unilaterally changes terms on a contract by ego, fiat, or simple stupidity, weeks of work on both sides can go down the drain quickly. The house goes back on the market, and the buyer has to hit the streets again seeking another property. Will we save this deal? Perhaps, but there is a backup offer, and if the current buyer does not get their act together, they’ll lose the place for good, as the next buyer probably won’t make the same mistake.

The takeaway here is simple. A chain is as strong as its weakest link. You can have the greatest agent in the world, a fantastic lender, and a world beating home inspector, but if your attorney doesn’t grasp basic protocol or understand local practices, you are not getting the advocacy you are paying for. We advise clients to look for three things in their attorney: specialization in real estate, a strong understanding of local practices, and a commitment to communication.

BuyingMortgages March 9, 2012

Down Payment Assistance in Westchester County

Down Payment Assistance for Westchester CountyIn a high cost area like Westchester County, one of the biggest obstacles to home ownership by otherwise qualified  buyers is saving for a down payment. With rates so low, it is a shame for some people to be forced to wait to save, only to have rates and affordability negatively affected by the time they have their money saved for the down payment. What most home buyers don’t know is that there are resources available to them for a large choice of programs which may help them buy now instead of waiting, through a variety of assistance programs for down payment, grants and loans for first time buyers, and other assistance for applicants who qualify.

The Down Payment Resource program has a wealth of resources for consumers seeking anything from zero and low down payment mortgages, grants, loans, credit counseling, government programs, and other programs offered by private and non profit organizations.

The Hudson Gateway Association of Realtors has met with officials of Workforce Resource, the organization that has created the program, and instituted a system where we have all listed properties that may qualify marked with a seal to notify agents that this house meets the criteria. The Empire Access MLS therefore has information on all homes listed in Westchester, Putnam, Dutchess, and Bronx Counties that qualify for assistance and grants. The system does not specify what program the home qualifies for until the match is made with the buyer and more scrutiny is given the circumstances.

So what does a buyer do? Well, like any buyer, you contact a broker (like, um, J. Philip Real Estate for example) and find out what program is a fit. Then we match you with qualified properties. Click on the link to get started. All your information is kept confidential.

If you were wondering about buying a home but weren’t sure if you had the down payment or if you qualified somehow, this is a good place to start.

Community News March 6, 2012

Hmart has Arrived in Westchester -at Long Last!

You may have never heard of Hmart. So I’ll tell you why Ann and I are excited.

Hmart is an awesome Korean supermarket chain that we  occasionally drive to Queens or New Jersey to patronize because their food (and prices) are so good. There aren’t many options for Korean food in Westchester, so if Ann has a craving for kimchi or tofu, or w want to get some Choco-pies or Deok (a yummy ricecake), we either go without or make a trip of it. When you are self employed, the trip may not fit in.

Well, at the end of the month, all that will change. Hmart is opening their newest store right in our backyard in Hartsdale at 371 Central Avenue. All those Korean delicacies, seafood, treats, and other fare will be a short, convenient drive away. We couldn’t be happier.

Ann grew up in Rego Park, Queens and Korean food was always a short walk away (along with anything else-it’s New York!). Moving to Westchester meant that Korean food was no longer a walk- it was now a planned trip. That was just the way it was. We had a daydream that they’d open an Asian grocery nearby, but an Hmart in Hartsdale was really a pipe dream. Not anymore!

I can guarantee you we’ll be there opening day. Awesome, well priced produce, seafood, noodles, kimchi, spices, tofu, you name it, it will be Heaven.

Market March 5, 2012

February 2012 Westchester Real Estate Market: Transactions Up, Prices Down

According to Empire Access MLS data, the number of Westchester County single family home closings for February 2012 was up by three deals over that of February 2011. After a weak start in January, this is welcome news. Not all the news is rosy, however, as median price is still down significantly over the number from a year prior.

The results are as follows:

February 2012: 228 closed transactions at a median sale price of $500,000.
February 2011: 225 closed transactions at a median sale price of $621,500.

While this does not mean that a house bought last year for $621,500 is now worth $500,000, it does mean that inventory that the public is buying trended toward lower prices last month. The higher cost homes were a softer side of the market.

People who sell a lower priced home are often “move up” buyers of more expensive homes, but the drop in median price may point more to the fact that in February,  a higher percentage of sales end up being expatriots from New York who migrate to the sunbelt. As the Spring approaches, the trend will be more sellers staying put as part of the great Spring rush to be in new digs by the summer in anticipation of the new school year. As that occurs, expect higher priced homes to experience a resurgence.

The data supports this view- currently, there are 792 single family homes under contract or pending sale in Westchester, and the median list price of those homes is $592,500, almost a 19% higher price than February’s median of $500,000. Not everything sells for full price, but expect a higher number in March.

The available 3438 homes on the market represent a 15 month supply of active inventory, and that number will swell as more sellers list their homes for sale in the Spring. Buyers have a decided advantage, and with interest rates as low as they are, those looking to purchase are in the driver seat. The takeaway for sellers is to price realistically, because buyer have lots of options. For buyers, it might be time to make a decision about moving to take advantage of the favorable conditions, because they won’t last forever.

Active Rain February 29, 2012

Why Your Market Report Stinks

After a discussion of market reports in a real estate discussion group geared at forwarding the industry, I am prompted to revisit what makes a market report good or bad in terms of consumer response. 

First, if what you produce gets no consumer response, you need to change what you write. If what you do works, keep it. 

Consumers basically want to know three things from a market report, and the more simply and elegant it is presented, the better. They want to know

  • If the local market is up or down. 
  • What prices are these days. 
  • An example of what is available or recently sold. 
To the above points, you should add your thoughts. Commentary, as well as an example of a home, are crucial.  
 
Peekskill Real EstateMarket reports with too many graphics and charts-especially in the absence of thought out commentary- lose most people. One chart or graph might be useful, but only if you interpret it intelligently. Otherwise you have peacock plumage that makes most consumers eyes glaze over,  is useless to search engines and doesn’t even make you a better source of knowledge. I’ll explain. 
 
When I do a market report, I simply write what the median sale price is for that period in the locale, the number of closed sales, the number of homes under contract the amount of available inventory, and my thoughts on the meaning of the data. A light month that has lots of pending sales is no big thing. A heavy month with few pending sales means we blew all of our ammunition. There are hundreds of variations. But after writing market reports for a locale I have the trends and data down cold.
 
No software chart generator implants knowledge in your brain the way producing commentary does. Explaining the data, prices results and trends positions you as the go- to authority for a marketplace. It has gotten to the point where if I am speaking with a consumer in Peekskill, for example, about what I see, I can tell them what I think, why I think it, and what that means for them without hesitation. That makes an impact. 
 
Moreover, charts are a yawner for search engines. If you do a search for “Ossining Real Estate” on Google, there are 5 images on page 1 from my blog. 4 of them are houses. One is a chart. Nobody clicks on the chart. They click on the houses. Consumers want to see homes. So I post images of homes I have either listed or sold. That makes the numbers come alive. Homes resonate with consumers. Graphs alone don’t. Google spiders respond to words. MLS or software generated graphics don’t make sthe same splash with Google or consumers. 
 
It isn’t rocket science. The basics, 5-10 sentences on the meaning of the basic data, an example of a home for sale or sold by you, and then your home search close by as a call to explore further. It works. Fewer peacock feathers, more thought from you. 
 
Active Rain February 25, 2012

The Day When When REO Agents Have To Work With The Rest of Us Again

Those of you who know Paul Slaybaugh know what I am talking about. Those of you who don’t can thank me later. Paul is a writer of uncommon talent with a wit that I adore. He quasi graduated from Active Rain and now self hosts his own platform at Scottdale Property Shop, and his latest article is not only very funny, it is very true.

Over the past 4-5 years I have often wondered aloud what it would be like for a certain segment of REO agents when the gravy train of cheap, bank-owned foreclosure listings go away and things like collegial treatment of fellow agents and basic giving a crap would matter again for them. Not all REO guys; just the ones who haven’t returned a phone call since 2006 and whose assistants tell you-ASSURE YOU- that the 180 day old listing is “fully available” at 10 am, then say with a straight face at 3pm that contracts are out.

Yeah. Those guys.

Paul has penned (typed) an awesome piece you should read.

Go. There. Now.

Welcome Back, REO Agents!