CommentaryReal Estate Tips July 8, 2024

When and When Not to Set Ultimatums in New York Real Estate Transactions

Contractual deadlines and “by when” dates are baked into industry practices. Listings have expiration dates. Buyer agreements do also. Purchase and sale contracts have mortgage contingency dates, closing dates, and other structures of fulfillment that are terms for principals to abide by. Deadlines are not exclusive to contracts. There is a reasonable amount of time to expect a response to an offer. The seller might set a date and time for all parties to submit their highest and best bids.

Sometimes, especially when you are waiting on a lender and all the red tape that comes with that, deadline dates are not met and extensions need to be executed. Some types of sales, such as short sales and lately assumptions, the wait can feel unreasonably long.

Frustration at the “hurry up and wait” stage of transactions is magnified by the unfamiliarity and stress of the sale. This is not a frequent exchange. Huge amounts of money are changing hands. There are scads of moving parts to manage, and all of them have consequences on where one will live, when they move, and other matters of long term importance.

It is no wonder then, when the stress and tension of the process take their toll, that it seems wise to impose an ultimatum on the other party to perform by a certain date and time or the deal is off. I am not exaggerating when I say that 90% of the time when a client brings this idea up that it is an ill-advised strategy. There are many reasons why ultimatums should only be a last resort.

  1. First and foremost, an ultimatum is almost always perceived as adversarial by the receiver. Transactions have a presumption of good faith. That presumption seems to be disposed of once a hard, extracontractual deadline is imposed, which can taint the proceedings from that moment forward. If other options for expedience exist, they should be explore first.
  2. The source of the delay is not due to the efforts of the principal. They could be waiting on a lender’s underwriter for sign off on a condition they’ve satisfied. They could be waiting for an approval from a loss mitigation or assumption department. Simply put, if red tape from a lender, local government office (like a building department), or a co-op board is the source of a delay, more effort will not speed things up and can in fact cause more delay.
  3. There is a perception filter that consumers often get in the stress of a transaction that, rightly or (more often) wrongly feels like the other side is playing games or stalling from some undisclosed  reason. I’ve often been asked by clients what the other side is trying to pull or some derivation of that question, and the answer more often than not is “nothing.” They have jobs, families, commitments, and other things going on that won’t allow them t drop everything and triage something that the other side wants addressed right this second.
  4. Consumers often aren’t prepared for the worst-case scenario outcome, which would be the other side calling their bluff and terminating the transaction. I’m thankful that this has happened to me very few times in my career, but reporting back to a client that their strategy backfired is not a happy discussion to have. It is of paramount importance that if a client insists on issuing a deadline that they include their attorney in the decision, and that they are prepared for the deal to cancel if the other side fails to comply.

There is one attorney issued ultimatum in New York known as a “Time of the Essence” letter, typically issued when the other side has either satisfied all contingencies and still fails to perform, stops communicating in good faith, or both. Lawyers use this approach sparingly and with great caution. I don’t think that I have brokered more than 10 transactions since 1996 when this was deployed. A good attorney will recognize that the “nuclear option” should only be used when no other viable alternative exists.

One of the triggers for ultimatum requests is insufficient communication from one side. Timely updates, answers to email and text messages, and returned phone calls keep stress, skepticism and doubt at bay. Once communication gets spotty, people start to assume the worst. When that happens, consumers often feel that an ultimatum should be issued. I’ll be the first to agree that poor communication should be addressed, but that doesn’t mean a threat is appropriate.

Due discretion is a must. In short, ultimatums are best used sparingly, when all other options have been exhausted, and, most importantly, when the client involves their attorney and understands that a possible worst case outcome is the termination of the transaction.

MarketPimpage July 6, 2024

Here’s What $2.9 Million Buys in Bedford, NY

If your budget is in the range of $2.895 million, a recent sale by our company can illustrate what that will buy quite clearly. As the MLS description says,

Welcome to the epitome of Bedford living. Meticulously crafted, this estate redefines opulence. Indulge in a serene exclusive haven offering 6 bedrooms, 8 baths and over 9400 plus square ft. set on 4.67 acres. This home boasts a grand foyer w/flowing staircase, LR w/fireplace, gourmet kitchen, butler’s pantry, formal dining room, private library/office w/fireplace, 1st floor ensuite, billiard room w/fireplace, gym, wine tasting room, media room, sauna/steam/shower area and a 3-car garage. The primary suite features a fireplace, custom walk-in closets, high ceilings, ample windows and a Juliet balcony. This estate is the pinnacle of luxury living where every detail has been designed to exceed your expectations.

The home was built in 2005. Congratulations to Carol Court and Jayne Morelock on a successful listing sale. This one is gone, but they can help you find another. Call Carol (914) 557-3287 or Jayne 914-774-9244 and they will take great care of you.

For Agents July 3, 2024

The Care and Feeding of Brokers and Managers, Revisited

13 years ago I wrote a post entitled “How Salespeople Can Prevent Their Broker From Premature Gray Hair.” It was a fun piece on things that licensees do that range from driving their managers crazy to working smarter and not harder. With the evolution of the industry and technology, I’ve decided to update the list. While I’m mindful that this is primarily a consumer-faced platform, consumers should know that we work hard and are always striving to do better. The better we are, the better the consumer experience.

So here goes an updated list on “managing your manager”:

  1. Texting is not for complex questions. The more detailed the scenario, the more important the context of a conversation becomes.
  2. Your manager is not your secretary. If you need a piece of paper, ask the admin. If it’s after hours, maybe plan better. And of course we’ll help in a pinch.
  3. Your manager is also not tech support. We have a fantastic support staff for all things tech and you should have them on speed dial for those matters.
  4. If, after a training session your only feedback is that you tried that long term strategy for 2 weeks once and it didn’t work for you, perhaps consider a career in another industry. If I give you advice and you tell me that you tried that in 2014 once and it didn’t work, you’re focusing on the wrong thing.
  5. If you have to ask whether or not you should tell a client something, the answer is yes; we are obligated to disclose anything that impacts them.
  6. PLEASE refresh yourself on the Code of Ethics. Just because an agent on the other side of a transaction does something you don’t like, it doesn’t mean they are unethical. They don’t advocate for you, and competing interests can be involved. You should be fluent in the code anyway.
  7. There are no stupid questions. Schedule a meeting if necessary, but ask the question.

I think the bottom line here is that my value as a managing broker is far more in the realm of professionalism than administrative assistance.

Community NewsCompany News June 14, 2024

New Yorktown Office is Coming!

First, some backstory: When I joined Howard Hanna Rand, I had been based in Briarcliff Manor for almost 20 years. My company had other office locations in Pelham and Carmel, but I hung my hat near my home. This past December, I was asked to move a bit north and manage the Yorktown and Carmel offices. So far it’s been a wonderful experience. The agents are committed professionals, eager to learn and up their game, and they’ve made me feel warmly welcomed.

One of the plans I inherited was a short relocation to a storefront down the block, and we will be cutting the ribbon on that next month. There were a number of reasons for the move, but one fringe benefit is that we will be next door to the Bagel Emporium and all its delicious goodness.

Yorktown is a wonderful community. The business scene is vibrant, the neighborhoods are almost all idyllic, and it’s got a great proximity to anything you might like in northern Westchester. It’s got a 55 and over community, a newly-refurbished Jefferson Valley Mall, and one of the county’s largest parks at FDR Park.  The town also has farms of many types, including equestrian venues. One of my very favorite things about this place is that Yorktown is the home of Guiding Eyes, the wonderful folks who train seeing eye dogs. I see them walking the fur babies in this neighborhood all the time.

I’ve done business here since opening my doors in 2005, and while my drive to the office is slightly longer (15 minutes! Oh my!), I drive all over the place anyway, and it’s closer to Carmel. I checked my stats and I’ve actually brokered 150 transactions here over the years. I had some input into the layout, and I’m excited that the setup will be optimized for training of the agents, which is a big priority for me. The move to a shiny new location with an upgraded physical plant is a clear commitment to build our brand in this community, and I’m honored to lead the charge.

 

Market June 6, 2024

Here’s What $410,000 Buys in Patterson, NY

The quality of life in Patterson is mighty nice, and I’m sure our clients will agree after closing on this awesome townhouse for $410,000 last week. This 1700+ square foot home was technically listed as a one bedroom, 2.5 bath but it lives like a 3 bedroom with a 2nd quarters on the second level and a terrific 3rd quarters with it’s own full bath en suite in the finished walkout basement. It has a rear deck overlooking nature, a small front porch, and maintenance free siding as well. The complex also has a clubhouse, community pool, and ample parking. Our clients are ecstatic about their new home. If you love Patterson living, let us help you find your next home there by calling me at 914-450-8883. Many thanks to listing agent Stephanie Way of EXP who was a total professional and a pleasure to work with.

Market June 6, 2024

Here’s What $580,000 Will Buy You in Mahopac

$580,000 will go far even in this market, as this 4 bedroom, 3 bath raised ranch demonstrates. Set on a pretty 1.1 acre lot, this 1991 build has a two car garage, a rear deck overlooking the yard, and a wonderful primary suite. The remarks on the MLS said the following:

Contemporary flair in this appealing Raised Ranch on a wooded acre! Super convenient location to train and highways. Main level living room has vaulted ceilings and Skylights, leading to a formal dining room, then a large eat in kitchen with more natural light and sliders to the rear deck overlooking nature’s splendor. 3 good sized bedrooms with master suite that has a shower and generously sized tub. Lower level has a summer kitchen, rec room and additional quarters currently used as a 4th bedroom, and sliders to the patio and yard. Gorgeous rear yard back up to walking and bike path. Wonderful lifestyle at a fantastic price point you do not want to miss!

This one is gone, as we had it under contract in 24 days, but we can help you find one for yourself! Just call me at 914-450-8883 and the team will take great care of you.

Commentary May 20, 2024

NIMBYs and the Damage They do to Communities

NIMBY is an acronym for “not in my back yard.”

It is a pejorative term, and, as I will explain, that is for a good reason. Real estate professionals with any involvement in their community will inevitably get exposure to NIMBYs, and, in my view this should be viewed as an opportunity to show some backbone.

Resisting change is a natural human behavior. Skepticism about proposed additions to the community is not only understandable, but a vital check and balance to progress and the democratic process. Once the process is followed, however, in some instances the opposition to the proposed development or addition dig in their heels. The outcome is in those cases is not the best side of humanity in my experience.

I’ll preface the rest of my thoughts with a few facts:

  1. Communities cannot have leper colonies where anything outside of single family homes with picket fences is forbidden. Healthcare facilities, halfway houses, group homes for the disabled, and related entities are why special use permits and variances exist.
  2. Fear on behalf of children’s safety should never be weaponized. The overwhelming majority of underage abuse victims suffer at the hands of someone they know or are related to.
  3. I am the father of two sons with autism who will never be able to take care of themselves. My brother was hospitalized for a year at age 4. So I have more than my share of experience with people who benefit from some of these facilities.

Some years ago I was asked to speak at a town hall meeting on behalf of a proposed group home for men in recovery from addiction. The facility would require a special use permit, variance, or some other type of approval from the town, and the hearing was to give the public an opportunity to make comments.

There was a vocal opposition to the project. People are entitled to support or oppose matters like this; the issue I witnessed was the lengths some will go to have their opinion dictate the town’s decision. I heard quite a bit of ugliness in that meeting, and when I spoke in support of the project I had a few hecklers ask how much I was being paid to speak. The answer was zero; many real estate agents will steer clear of discussions lie these because taking sides will alienate potential clients in their community. But I felt that I had to speak up, because the data is pretty clear- group homes neither adversely affect property values.

Moreover, the safety concern is also overblown. As I stated above, the vast majority of crimes against children are committed by people they know, not strangers jumping out from behind the hedges.  Of the thousands of child abductions occurring every year in the USA, only a few hundred are committed by strangers.

I wrote recently about another NIMBY situation, that time about the expansion of a children’s hospital. At that time, assertions that property values would plummet were refuted by the fact that values actually doubled, along with a higher sales volume.

NIMBYs are for some agents a touchy subject but not for me. 99% of the time I think they kind of suck. I understand the resistance to change, and a healthy dose of skepticism applied to new projects is healthy. But once the facts are on the table, doubling down on misinformation, baseless assertions, or hijacking the legitimate concerns about the safety of nearby residents and environmental concerns undermines legitimate cases where exploring alternatives should occur.

Recently, an acquaintance expressed to me a concern about the possibility of building a new school in their neighborhood. They said, and with solid evidence backing them up, that the roads were insufficient to service the two nearby schools that were there already. In that instance, I think they had a point. Moreover, their plan was simply to move away if the initiative passed.  That is a far cry from scorching the earth at town planning meetings.

No community can be just cute neighborhoods and a quaint downtown commercial center to the expulsion of other societal needs. Communities needs sewage treatment facilities, school bus parking, recycling plants, public works and garbage trucks, storage for asphalt, salt & sand, hospitals, industrial areas, and yes-affordable/subsidized housing and facilities like group homes and halfway houses for the people who can’t live in picket fence suburbia.

The protests that granting permission for some of these facilities is social engineering seem to miss the point that municipalities that only zone for single family homes on acre lots is in itself a form of social engineering.

Some of the damage caused by the pushback is as follows:

  1. The Streisand Effect: Many prospective home buyers lurk in community social media groups to get the vibe of their possible future home. When this ugliness comes out, it tends to amplify the community in an unattractive way that isn’t truly indicative of the lifestyle there.
  2. When NIMBYs get their way, essential services become hard to get. You may think a medical open door is a magnet for undesirables, but the day you or a loved one has to drive 45 minutes for a service that could have been around the corner, you’ll feel differently. Meanwhile, another town gets the jobs and commerce you could have enjoyed.
  3.  It promotes segregation and de-facto redlining. These services have to be rendered somewhere, and if enough places reject them, we are back to the same problems we faced before equal housing became the law.
  4. The Law of Unintended Consequences. Westchester County has more than its share of communities that appear to be residential utopias, but that comes at a cost beyond mere inconveniences. Among those consequences are children raised in communities where they have no experience knowing people that might look or speak differently than they do. Growing up in an echo chamber is tragic.

I totally understand the resistance to change many have, and I relate to skepticism about new plans for change in a community. But once the facts are presented, all parties need to know that while they are entitled to their own opinions, they are not entitled to their own facts.

 

Home Improvement Real Estate Tips May 17, 2024

Why Homeowners Should Keep Their Agent on Speed Dial

I get an apologetic phone call from clients now and then, and I think its kind of sweet. They don’t want to transact but have a question they know I can answer, and feel like they are imposing. Post sale service is a legitimate thing to me, and I always tell them that their call is a welcome one. Every agent wants to stay top of mind with their past client if they have half a brain, and these “impositions” are anything but.

So if you own a home and you have a question that you think your real estate agent can answer, please don’t ever be shy about asking just because you aren’t calling them to buy or sell right now. It’s more than fine, a good agent will want to help in any way they can.

A few good reasons to call your agent, even if you are years if not decades away from listing your home for sale are as follows:

  1. Getting your home value updated. I’ve said this before, but knowing your home’s estimated value is good for more than putting it on the market. You might want to grieve your property taxes. Knowing your equity position for a line of credit is always a great idea, especially if you are considering home improvements.
  2. Home Improvements Return on Investment. The idea of renovating, expanding, or otherwise improving your property will likely raise your value. Your agent can give you a sense of how much that value potentially is, and weigh it against the time you plan on staying and the expense of the work.
  3. The Golden Rolodex. Over the years I have had savvy clients pick my brain about referrals for non- transaction related services, and with good reason. I know the contractors. I know the lawyers. I know all the good places to eat, shop, and who’s who in the community. I have referred  clients to all kinds of  contractors, estate planning attorneys, auto mechanics, wedding venues, and all sorts of community services from Little League to Meals on Wheels. A good agent always has a guy for that.
  4. Finding other agents outside the market. Smart clients of mine have often asked me if I know a good agent out of state for a friend or relative considering moving. Without exaggerating, I have probably played matchmaker to grateful strangers in at least 30 of the 50 states over the years. I’m in a number of networks outside my own sphere to fill in the gaps but I’m proud of the connections I have facilitated.

There are plenty of other reasons, but I think you get the point. A friend once told me that real estate agents are the welcome wagon of most communities, and I totally agree. You real estate agent is a valuable resource, and you should never hesitate to reach out to them if you think they might be able to shed some light on anything for you.

BuyingPimpage May 10, 2024

i-Movied! 29 Deans Bridge Road Somers Walk Through Video

This was fun to make. I did it for fun on my iPhone, and I used iMovie to edit. You can’t ever go wrong with Mozart either, although this style might match better with Rossini.
29 Deans Bridge Road in Somers is now $849,900. Someone is going to get a wonderful house at this price, and they will be glad they did. There is more information on the property here. It is a 3500 square foot Mediterranean with 3 bedrooms, 4 baths, and a lot with over an acre of land.

Market May 10, 2024

What Does $330,000 Buy in Patterson, NY?

You can still buy a nice 3 bedroom home in Putnam County for under $350,000 like the one our buyer client closed on last week. It is a fully renovated 1100 square foot 3 bedroom, 2 bath bungalow on a level lot with parking for at least 4 cars. The siding, roof, HVAC, walls, kitchen, and baths are all new. It is in the Putnam Lake community, so the property has lake rights- as a matter of fact the water is only about 500 feet from the front door. Putnam Lake (or “Put Lake,” as the locals and agents affectionately refer to it) is a woodsy, sleepy community of tidy homes that tend to be on the smaller side, so it is a great place for starter homes for anyone who likes lake living. There is shopping and food nearby, and the area is served by the Brewster school district.

The house is quite turnkey, and the rear yard is fenced off which is great for anyone who has pets. This one is gone, but my team can help you find one like it. Hit me up by call or text at 914-450-8883 and we will hook you up!