$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.
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:
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.
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.
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:
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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!
Decades ago when I was tending bar, we always knew to avoid any discussion of politics or religion because it was a powder keg. In real estate, that would also include any discussion involving Zillow, dual agency, and square footage.
Ah…square footage.
Where do I start? Broadly stated, residential square footage typically includes finished living space. If we want to get more specific, it is finished living space at or above grade. A finished basement can be included in square footage if it has a certificate of occupancy, but it is easier to justify including basement area that is above grade, for example a walkout basement with a slope to the rear yard that doesn’t require stairs as part of the egress. Appraisers have a harder line on this than agents, but in general if there is a CO for the finished living area, we include it in the square footage.
Measuring the SF can also result in variations. For example, a builder will measure the area from corner to corner of the structure, whereas some people will measure the interior dimensions of the rooms, which will exclude the area inhabited by walls, closets, stairways, and so forth.
Raised ranches always include the lower level or basement, and because they are so commonplace they are all an apples to apples comparison.
This is important, and I want it to be the final takeaway: the final authority on verifying square footage is always the municipality building department. In other words, when I am doing my due diligence as either a listing agent or buyer agent on a property, I will go the the building department in Ossining, White Plains, Scarsdale, or wherever else the property is and get the property card. Whatever the building department has on record is the official square footage of the home.
Appraisers and agents can field measure a home. Tax assessors often have square footage on record for taxing purposes, but they are NOT where you go to verify square footage, and there are two huge reasons why that is so.
The assessors office may not have the exact same information as the building department. That may be because they didn’t confirm that finished area was legalized, but they tax on it anyway, or
Some assessors only tax on the above ground living area for assessment purposes and exclude legalized, finished area in the basement.
Simply put, you verify the true property tax with the assessor and the correct legal square footage with the building department. It is analogous to going to a dentist for your teeth and a proctologist for your caboose. They will both tell you not to put things in there that don’t belong, but beyond that they have different roles.
The building department will also be where you verify bedroom and bathroom count, the legality of improvements like decks, pools, and finished basement, and all other physical characteristics of the home, even violations filed.
Why am I so fired up about square footage? Well, aside from the aforementioned passions it inspires in industry discussions as it is, I have recently discovered that agents don’t understand this basic underpinning of due diligence. Recently, a transaction died an untimely death because an agent advised her client to verify the square footage themselves with the assessor. Let’s put aside the fact that the agent should be doing this, not their client. The assessor only quoted the person the square footage they assess on, excluding the finished, legal walkout basement that made up more than 600 square feet. Not realizing the rationale for the exclusion, the prospective buyer flipped out and walked from the deal.
The seller was disappointed, but it was really that buyer who lost out, all because their agent didn’t do their job. Just remember this: for all things taxes, it’s the assessor. For square footage, get thee to the building department.
Escalation clauses are sometimes included in offers that essentially state that if the offer being presented is outbid by another competing offer that the buyer will raise their number by a set amount over the higher competing bid. Sometimes they are clever due to the confidential nature of closed bids in New York real estate, but they are not the cure all that some agents think they are.
The first escalation offer I can recall was a sale I made in 2012. The house was a rare offering and the market was, at long last, recovering, and the winning bid promised to be $2500 higher than any superior offer. The listing was sold for about $40,000 over asking, and that clause made the difference for the buyer who ended up getting the house. That buyer was paying cash, so it was a particularly strong proposal in the terms category as well as price.
When the market heated up around 2020, escalation clauses became far more common. Not many listing agents understood them well enough to properly convey the message to their seller clients as effectively as they could have, but by 2021 most agents grasped the mechanics.
Unfortunately, some agents know them a little too well. Yes, escalation clauses are no longer viewed as obscure or a gimmick, but they aren’t always the answer. Here are a few scenarios where they just don’t work the way the presenting agent thinks they will:
Multiple escalation clauses. If a property has multiple offers and more than one has an escalation clause, it can create too much noise for the seller. Yes, one escalation clause can promise $10,000 more than the competition whereas others are $2500 or $5,000, but that does not negate other terms. Speaking of other terms…
When other terms like down payment are not competitive. If the seller of an $800,000 house has a $825,000 cash offer and a competing offer has an escalation clause of $10,000 over best but their down payment is only 5 or 10%, that bump up may not help because the certainty of a cash buyer is superior to that of a highly leveraged loan contingency. To say nothing of…
The house may not appraise. And if the buyer is cash poor, they may want the seller to eat the difference if the appraised value come back low. The lower the down payment, the less punch the escalation clause will pack.
It has gotten to the point where some listings will state that no escalations will be entertained. We recently had a multiple offer situation on a listing where the winning bid was chosen because it had a high down payment and waived the appraisal contingency. An offer with a VA mortgage came in with an escalation clause, but VA mortgages are 100% financing, or 0 down. That might have gotten the seller an additional $5,000, but the risk of going to contract with a buyer with no cash to cover an under appraisal was not palatable for the seller. The buyer agent was unhappy about this, and I do appreciate the uphill battle VA buyers face, but that agent did not have an answer for the possibility of an appraisal problem.
Escalations can indeed make a difference. But they aren’t the panacea that some think they are because of the law of unintended consequences connected to other terms, and agents need to educate their clients that the clause isn’t a magic wand.
The term “in law apartment” or “in-law space” has become misunderstood lately by both agents and consumers, so I’d like to clear up what should be fairly straightforward.
First, if a home is a single family house, it is just that: a single housing unit. It is not a multi-unit building. If it has a “in law” attached, that space is designated for non-commercial purposes so that extended family can live in the same house, but more or less separately, and not for market rent. There is no true legal definition of an in-law space in my research, but overall it is visually like a second apartment in what would have been a single family home. It often has its own kitchen and for all intents and purposes appears to convert the structure into a 2 family, and other times it is a separate space with its own entrance that may not have its own kitchen.
“Separate but close” is, in my experience and what I have read elsewhere, the biggest distinction. It could be a living area above a garage, an out building like a cottage, a basement living area with it’s own entrance, or any number of other setups. But what all in law spaces also have in common is that they are not for rental income. Now, to be clear, you might have family in an in law apartment or area who contributes to your mortgage every month. That’s one thing. But if the people who live there and pay you rent monthly came from Craigslist and not from your genome, you are out of compliance.
Recently, we had an accepted offer on a home with a separate space with it’s own entrance that we suggested could be a home office or an in law space. The prospective buyer was sent by his agent to the municipality’s building department to ask if the space could be rented out. They were obviously told that they couldn’t. They withdrew their offer and the agent suggested that the wording in the listing was inaccurate.
I have two thoughts on this:
The consumer clearly misunderstood what an in-law space is.
That agent should have accompanied their client to the building department for obvious reasons. If a client has to do the due diligence, what use is their agent?
In-law spaces cannot be rented out to the public. No building department would sanction this. Moreover, if one decided to get clever and rent out an in law space on the down low, they would be tempting fate. If anything happened on the premises that required an insurance claim like a fire or accident, the insurance company would likely deny their claim because most policies mandate legal use.
Think about that. If you buy a home with an in law space with the intention of renting it out to the public instead of having family live there and the place burned down, you might not have coverage for the loss.
Real estate has lots of catch-22s: Someone might skip getting a permit on an improvement because they are afraid of an increase in their property taxes, but when the time came to sell, they’d have to legalize the work later at great expense to their wallet and they could lose a buyer or two in the process, affecting their sales price. A self employed person might hide taxable income to avoid income tax, but they end up having a harder time qualifying for a mortgage or having to pay a higher rate. In both cases, the short term savings is often washed away in the long run.
It is the same thing with misuse of in-law spaces. Skirting the rules could turn a short term profit into a long term headache (or worse). If you are on septic and rent out the space to a small family instead of having your aged uncle live there, it could overwhelm the system. You could cause a parking problem. You might have a neighbor complain , especially if your tenant doesn’t behave themselves. I’ve already mentioned the liability issues. Anyone who thinks that “in law” is a dog whistle for a multi unit home in the traditional sense is inviting future headaches, and could cost themselves dearly. Just like most real in-laws, proceed with care.
The dollar goes just a bit further in Ulster County than it does in Westchester, and this decked out cape that my clients closed on this week are ecstatic about their purchase. The prior owner did a marvelous renovation, and in addition to the wood burning fireplace and nearly an acre of level land, they will enjoy some wonderful modern upgrades.
It has a huge renovated eat-in kitchen, a formal dining area off the living room, 4 bedrooms, 3 baths, and some seriously awesome mechanicals: solar power, an ultra modern water filtration system, a backup generator, and ductless central air conditioning. It also offers a dynamite lifestyle, with a huge back yard that looks out at wilderness, a large patio, a turnaround driveway, and maintenance free siding. Just about everything is updated, from the septic system to the roof.
The team can help you find your own piece of paradise, all you need to do is call 914-450-8883 and we will see to it. We wish our clients many happy, healthy years in their new castle.
If I were asked by a seller what separates me from other agents to get them the best price for their home, I’d answer their question with a question of my own.
What type of mortgage do you have on the house now?
If the answer were an FHA, VA, or USDA mortgage, I’d then ask what rate they are paying.
If their rate were below 6%, for example 4.75% as millions of loans have now, I’d explain how I’d market their home to the buying public as an opportunity to buy a home in 2024 with a mortgage rate of 4.75%.
What sorcery is this? What gimmick? It’s the age old practice of assuming a mortgage.
Right now in the US there are millions of homes with mortgages that are assumable (with bank approval, which is not a significant obstacle for anyone who was buying with a mortgage at the current rates anyway), and a huge number of them have relatively high mortgage balances because those loans didn’t require a large down payment originally. Many buyers are fully prepared to put $100, $200, or $300 thousand down on their next home purchase. And if they have that kind of money down, they can assume an existing home loan with it’s original rate.
Marketing a home in today’s market with the verbiage that “mortgage is assumable at a rate of 4.75%” would attract even higher demand and should command a premium, especially since the fear of under appraisal would be virtually nonexistent. Assuming mortgages is a lost art, and all government insured loans like FHA and VA are assumable with lender approval. And for the average buyer, getting approved at 4.75% for example is far easier than getting approved at 7%.
I’ll draw out a scenario to illustrate the difference.
The home being sold is $700,000.
Right now, if a person were to buy that home with a mortgage of $500,000 at 7%, their principal and interest payment would be $3327. Now let’s suppose they instead found my prospective listing as illustrated above with a mortgage balance of $525,000 and the interest rate is 4.75%. There are 25 years left on the mortgage.
In both scenarios, the buyer puts $200,000 down. If they didn’t assume the mortgage, their principle and interest payments would be $3327. If they assume the existing mortgage, their principle and interest payments are $2608. That’s a $700 difference, which might shrink a bit if you add mortgage insurance required on FHA loans. But it gets even better.
The assumed mortgage only has 25 years left, which means the buyer is saving 72 mortgage payments. 72 x $2608 = $187,776.00. Moreover, they have paid the balance down by $25,000, which will take even more years off the life of the loan. And if they sell in the near future themselves, their buyer may also be able to assume the mortgage!
This is not a new gimmick or something that pushes the envelope of creativity. The HUD Website has an excellent page on the practice. My parents assumed the mortgage of the house I grew up in when they bought it in 1957. I’ve sold assumable transactions many times myself. It’s a forgotten art, mainly because tech has driven the industry away from the basics and into a preoccupation with digital everything.
Obviously, an experienced real estate attorney is crucial to make sure the seller has the release of liability for the original loan, which shouldn’t be hard to do. And of course the buyer should also have their attorney making sure their interests are covered as well.
There are millions of these mortgage out there, so they aren’t unicorns. Smart agents who understand this transaction will have lucky clients if the opportunity arises.
NIMBYs and the Damage They do to Communities
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:
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:
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.