Let me preface this by saying I have no beef with the folks at DocuSign. They have an excellent product. This may not even be their doing, 

But it is now day III of “what are you thinking?” and I have yet to even get a response to an email I wrote them on the matter. Here’s the faux pas (with my own commentary added to the left), courtesy of Active Rain Ambassador Jo Soss:

There are some things you don’t joke about. Cancer. The Holocaust. And I would characterize the phrase “Freedom isn’t Free” as one of those things best left untouched, especially if you are looking for a cute play on words for an ad campaign. The phrase is a direct reference to the cost, mainly in lives, we have paid to enjoy the free society we have. 

Many of us have been touched by the ravages of war. I am the son of a veteran of both World War II and Korea, and since Memorial day I have had a pro-bono offer for a needy vet in the footer of my blog. My father was in one piece but clearly had undiagnosed PTSD. He won a bronze star but could never talk about it. You might know someone who lost a leg. Or their hearing. Or their life. All in the name of our freedom. If you know me, I like to kid around and I am a hard guy to offend. But this is stupid, and after emailing the lady who is Docusign’s presence here on Saturday with no reply, I am dismayed every time this ad pops up. 

My hypothesis is that some young copywriter and distracted supervisor rushed this to the sidebar without asking many opinions. But for many who plant a flag on the memorial of a loved one who died overseas or deal with catastrophic disabilities, this is kind of stupid stuff to put out. I guess it went through the Active Rain filter too. No matter, we are bringing it to your attention, so at least answer us. NAR should pay better attention as well. If my name were on an ad I would check it out really thoroughly. 

Here’s a thought: take it down and replace it with something not quite so offensive , then we’ll call it a day. It is a good product whose time has come, it will only grow, so why piss people off.

The 3rd quarter of 2011 was better in volume for single family home sales than the 3rd quarter of 2010 from a volume perspective, according to the data I found on the Empire Access MLS. And in comparing the years to date,  2011 is still “catching up” to 2010 and may indeed do so by the end of the year. 

If you have been following my observations of the market, you’ll know that 2011 started out far behind 2010 because of the bloated results of last year’s stimulus. However, I have postulated that because things fell off so precipitously after the stimulus ended in 2010 that 2011 could catch up with consistent production through the end of the year. 

Here are the breakdowns, both quarterly and year to date:

In the 3rd quarter of 2010, there were 1220 closings with a median price of $730,000.
In the 3rd quarter of 2011, there were 1326 closings with a median price of $684,005.

Obviously, median price is down, but I view $730,000 as an anomaly borne of both the stimulus, which had a closing deadline of September 30 last year.

In the first three quarters of 2010, 3178 homes closed at a median price of $645,000. 
In the first three quarters of 2011, 3039 homes closed at a median price of $630,000.  

Year to date, prices are down about 2%. At the mid point of 2010, we were behind 248 closings. At the end of the 3rd quarter, that number has shrunk to 139 transactions. There are three months left to close the gap, which would take about 46 closings per month. A whopping 656 homes are under contract or pending right now, but the median asking price is $499,000. If only half of those close, 2011 will easily surpass 2010 in transaction total but take a body blow with median sale price. I’ll bet the lion’s share of those 656 deals are actually short sales. If so, that could clog up the timeline. 

Some perspective:

In 2001, the first three quarters had 4216 closings at a median price of $459,000. 
In 2005, the first three quarters had 4762 closings at a median price of $680,000.

While a case could be made that median price reflects a correction of an irrationally exuberant spike and that values are where they probably ought to be, which is still considerably above that of a decade ago, transaction totals are down 25%.  That 25% decline is where housing decline lives. And yes, while median price is indeed rather healthy looking, how do you adjust for the 1000 people that got $0 for the homes which remain unsold? You can’t. We aren’t out of the woods yet, and it remains a buyer’s market for the foreseeable future. 

And for you lucky buyers, here’s what I’d do if I wanted to find a nice home somewhere in our fair county: Get yourself a free Listingbook account or log onto WestchesterDreamHome.com.

Update: The Meetup is set for Tusday, December 6 at 6pm at Toga Bar, Caesar’s Atlantic City!

For those of you in New York, New Jersey and Pennsylvania, the annual Triple Play convention will be held this December 6-8 in Atlantic City. I have gone to the last two and just registered for this year’s event. In light of the success we’ve had with the recent Active Rain meetups, the fun we had at AC Raincamp, and since catching up with each other at these events is usually a bit tricky, I am wondering if it wouldn’t be easier- and far more fun- to have our own event on the evening of the 6th or 7th? 

All we’d need is a room, which they have plenty of in Atlantic City, and maybe some help with food and refreshments. It would be great if we could get a sponsor to help with the arrangements. It doesn’t have to be anything fancy; just having a designated place (even a predetermined bar for that matter) one evening where we could all make an appearance, reconnect in some cases or maybe even meet in person for the first time would be an excellent addition to the itinerary. As a matter of fact, it might even make the difference in going to the convention or not for some if they knew that they would press the flesh with fellow active rain participants. 

The convention is huge- thousands attend, and there are events in the evenings that range from black tie galas to informal meetups at a watering hole. Frankly, wine and cheese with strangers isn’t my cup of tea. I’d rather hang with my peeps at least once in between all these events. Let’s make it so. Game? 

#ARTP11

What can you buy in Ardsley for $250,000? How about a nice condo at Ashford Court? The building was once a school that was converted to condominiums in the 80’s with splendid results- the old school yard is now a huge parking lot with 2 spaces per unit, and the structure has mad character and charm. The units enjoy high ceilings, individual heating and central cooling, LOTS of windows and natural light, and it goes without saying that they are in the Ardsley School District. 

The unit our client just closed on was a corner unit with a rear view, a very large living room, and a master walk in closet that deserves its own zip code. It is 940 square feet and has a very reasonable comon charge of only $308 per month. It is walking distance from downtown as well.

We wish Julie and Leah, who are friends and colleagues as well, many happy healthy years in their new home.

Find yourself a home in Ardsley or the surrounding areas with a free Listingbook account and search the MLS like an agent.  

Buyers in this real estate market enjoy many more liberties and advantages with sellers than I have ever seen since I was first licensed in 1996. Not only do they have the lowest rates in half a century, they have far more bargaining power, and in Westchester County, where a starter home can cost $500,000, that is huge. It is a great time to be on the purchasing side. The one thing they don’t get to do, however, is consider themselves exempt from reasonable scrutiny regarding their qualifications to buy. Simply put, I as the listing agent have to verify things, and no amount of annoyance or insistence to the contrary can change that. 

I have written previously how cash buyers simply have to show proof of funds if they want to be truly taken seriously. Today, I will reiterate that fact for buyers getting a mortgage. If you are going to submit a pre approval, or in today’s case, a prequalification, it is part of my job to verify things, and that goes beyond your agent’s “cross my heart” reassurances. It means in many cases calling the loan officer on the pre qualification letter and asking questions. Here are some that I would ask:

• Have you verified the borrower’s credit?
• Have you verified income and employment? 
• Have you run  the borrower through your underwriting software (an industry standard)? 

Today, we had an offer where it was disclosed that they were in the process of selling their current home, it was submitted with a pre-qualification from a mortgage broker, not a direct lender, and the amount on the letter was less than the offer. My question to the buyer agent was shrugged off with a reassurance that all would be fine because they had extra money. Perhaps that is all true, but my job is to verify, not take assurances blindly. Like I said, in Westchester, with the competing number of homes for sale, real estate mistakes can be very expensive. Having a deal die can cost my clients tens of thousands of dollars. 

SO…I called the listing agent on the property they were selling (under contract, strong buyer) and I also spoke with the loan officer. I heard what I needed to hear from those I needed to speak with. Without getting into too many details, this did not sit well with the buyer, who actually called me directly. 

Sorry, but that is how it is today. I have to verify the qualification of buyers before I can advise my client to accept an offer. Spending months off the market under contract with a buyer who cannot close is not acceptable. Buyers are the belle of the ball now more than ever, but they don’t get a mulligan on basic due diligence from the listing agent. It is my job to verify, and the notion that I am invading their privacy is fallacious. It is absolutely our business to ascertain that the buyer can perform. If I wanted to take some perverse pleasure in sticking my nose in someone’s personal business, I’d watch reality TV. This is business, and should never be taken personally. 

One of the risks a real estate broker like myself incurs when commenting on the market is the perception that we as licensees puff things up to make the climate seem better than it really is. Given that we are entitled to our own opinion but not our own facts, I’ll lead with the numbers on Croton’s 3rd quarter real estate market.  

For the 3rd quarter of 2010, the Croton-Harmon school district had 15 single family home closings at a median sale price of $425,000.

For the 3rd quarter of 2011 which just ended September 30th, Croton had 18 single family home closings at a median sale price of $492,500.

Transaction totals are up, and median sale price has improved by almost 16%. It is an improvement. However, before we all jump for joy, consider that in the 3rd quarter of 2005, Croton had 36 sales with a median price of $600,000. We are a long way from recovered. We can take some measure of encouragement that we are headed in the right direction. This is especially the case when you consider that the housing stimulus closing deadline was over at the end of September 2010.

Looking ahead, Croton has 13 homes under contract or pending sale at a median asking price of $375,000. 54 homes remain active and for sale at a median asking price of $587,450. What this says to me is that the higher cost properties are not selling at the rate that less expensive homes are. While this does not mean that everyone should necessarily lower their price, we should note that the average days on market statistic for the homes currently for sale is 164 days, or 5 1/2 months. 5 months is a long time, especially when you consider that some of these homes are not on the market with their first listing contract.

All real estate is local, and while we are fortunate in Westchester to be relatively insulated from the catastrophic declines in the sunbelt and mid west, we are still a price sensitive market with low consumer confidence. Therefore, some homes will have to reduce their price in order to sell in the next 90 days in Croton. Failing that, inventory will bloat this coming spring and oversupply could supress prices again.

To find a home in Croton, register for a free Listingbook account. 

Previous posts on Croton. 

Here are a few useful tips for all agents, both new and old, in the proper care and feeding of the guy who owns and runs the brokerage where you ply your trade. 

I will be quick to add that many of the things I suggest here are things my team already does well, and it is rare when I have to practice tough love. But I certainly talk with my share of fellow brokers, owners and managers, and premature gray or the odd eye twitch are certainly a problem for the ones who care. 

So consider this a  guideline for keeping your broker, be it myself or anyone else, a little happier, a little saner, and a lot less stressed. 

• When you are emailed a customer or client inquiry, acknowledge getting it. A quick email back that says “got it” or “thanks” or even “got it, thanks” will do. 
• Check your email. There may be an opportunity waiting. 
• Check your voicemail. There may be an opportunity waiting. 
• When you go out of town, get someone to cover for you. 
• We’re probably friends on Facebook. HINT HINT 
• When you screw up, tell me. It is better for me to hear it from you than another broker, another agent, or the nice folks at the board (which has never happened to my guys). 
• Learn the paperwork and fill it in completely. 
• When you need help, ask for it. 
• If there is an accounting issue, do your best to resolve it quickly. Never let that sort of thing hang in the air for days or weeks. 
• If another agent, customer or client mistreats you, tell me immediately so we can address the issue. Otherwise, it defines matters the rest of the time you deal with them. 
• Kidding us about what we did to earn our split is as gauche as members of the public who tease you about yours. Moreover, you might not get how hard we work behind the scenes. 
• Nothing happens automatically. You have to make it happen. And NEVER shrug your shoulders and say “let the lawyers work it out.” Lawyers don’t work things out. Their solution is to have the brokerages throw money at a problem.  

Our team is growing, which is good, but the quality of people we are adding to our family of producers is very high, and that is great.

Anton Gromov has joined our team, and he’s not your average story. Anton is from Russia, and is therefore fluent in Russian. He’s a new licensee, and when he was researching firms to join, came to conclude that he should talk to me about our brokerage. We clicked. Anton is a family man with two young ones, and cut his teeth in Manhattan property managment for the past decade. It is not surprising that he’d gravitate toward the investment property niche, an area that is near and dear to my own heart as well.

Husband, father with youngters, investment properties…yeah, I’d say we could relate to each other.

Anton will cover Westchester County residential real estate and is a great resource for anyone seeking a Russian speaking real estate agent. We look forward to watching him grow a book of happy buyers, sellers and investors.

To reach Anton, call him directly on his cell at (212) 300-5115 or email him at anton@jphilip.com.

 “How to succeed in the real estate business without even trying…”
How to succeed in the real estate business without even trying. Yeah. You let me know if there is a way to succeed in the real estate business without even trying and I’ll be your best friend. There is no easy way to succeed, you have to work hard and long to get big, especially if you want happy, satisfied clients who will refer more business your way.