Active Rain September 26, 2010

Crime and Punishment

Since there appears to be a movement toward venting tonight, I’ll jump in the pool too. Here are a few offences that have gone unpunished recently, and I hereby appoint myself as Czar of Real Estate Justice.

The Crime: Agents who keep their cell phone a state secret, even if they have an offer on one of my listings.

The Punishment: They must work an entire shift as a phone sex operator on the opposite side of their romantic preference.

 

The Crime: Agent writes a $410,000 offer on a $499,900 listing when the buyer only qualifies for a home of $420,000.

The Punishment: Their credit card is declined on their next date or important business lunch. The news will be delivered by a maître d’ with severe PMS.

 

The Crime: Gnus who trade 96 emails with me about my listing, questioning the gauge of the saw used to cut the lumber, swear they don’t have an agent, walk through the house for 90 minutes repeating the same questions 4 times as if the answer will change, then have an offer submitted on their behalf by a rebate agent who never set foot in the house. 

The Punishment: Their mortgage commitment is rescinded 72 hours before closing because the Internet lender the cheapskates used was taken over by the FDIC, forcing them to use a mortgage company that gouges them for 4 points and exorbitant fees. 

 

The Crime: A “buyer” is parked in front of a home for sale who calls on the sign and demands to see it right now, even if the owner is on home dialysis. When they are asked if they can schedule an appointment, they hang up telling you they’ll call an agent who wants to make a commission and isn’t lazy. 

The Punishment: The “buyer’s” home has a severe sewage back up, and every plumber they call is on vacation or on an extended industrial job that will take them 3 days. The guy who finally does show up smells vaguely like Russian salad dressing and is preoccupied with the wife’s shoe closet. 

 

The Crime: The buyer agent who doesn’t want to waste his time, so he wastes yours: Needs to know if the complex is FHA approved, what the setback rules are for a deck, what the utility bills are, if the Finnegan pin in the furnace was ever re-jiggered, and 38 other things before he schedules a showing. 

The Punishment: Is forced to modify the loan on his own home with the First National Bank of Satan. 

 

The Crime: The listing agent who argues about your feedback and fully expects that after deftly handling the objections, that you will be obligated to produce an offer. 

The Punishment: Listing agent coincidentally shares a name with someone wanted by the FBI for human organ black market activity. FBI, who have a guy in a dark sedan parked on the street watching, refuses to acknowledge mistake for 6 months.  

 

The Crime: Lender commissions an appraiser for a short sale from another county.

The Punishment: Bank negotiator’s wife suddenly has paranoid delusions that he is having a sordid affair with Dwayne, the neighbor’s bull mastiff. 

 

 

Active Rain September 25, 2010

Ossining Ranked 2nd-Best Place to Live by Westchester Magazine

I have to say that I normally cringe when Westchester Magazine ranks anything related to our local communities. My own home town of Ossining is often left in the shadow of the more affluent communities, and believe me, Westchester has some affluent towns. Yet the October issue of Westchester magazine has ranked Ossining 2nd out of 40 places to live, and unapologetically so. 

The article took the following criteria into consideration:

  • Diversity
  • Housing Costs
  • Parks and recreation
  • Proximity to NYC
  • Safety
  • Schools
  • Proximity to water
  • Nightlife
  • Shopping 
  • Downtown
Taking all that into the ranking criteria, Ossining came in 2nd to Irvington and ahead of 37 other communities. I have criticized author Elsa Brenner before, and even as the father of bi-racial children I wonder aloud at her preoccupation with race. That said, diversity should be a positive thing when evaluating a community, and I think in this case she framed the conversation fairly well. Other criteria, such as schools and safety I can’t touch, but Westchester magazine certainly can, and this gets people talking. Ranking places by raw property value or college entry is obvious and seldom very creative, and it results in great matches being missed. 
Some people could give a flip about proximity to water or nightlife perhaps, but there is an entire chart online with all the stats that can be viewed so you can make your own determination. Different things might be weighted differently, and as editor-in chief Esther Davidowitz says in her column this month, great places to live are not always obvious
I concur, and added in the comment section that my wife and I had many options, but we chose this area ourselves. 
Ossining Waterfront

 

Active Rain September 25, 2010

Death of an ex-Client

The ViewI just found out that a former client passed away. 

This was not just anyone; he was a father, a grandfather, and the house he listed with me was the home his grandfather bought in the 1940’s. I loved that house, and I liked Joel a great deal as well. It was a rare home for our area: it was a beautiful stone home on 5 acres, and in the breakfast room Joel told me how the wild turkeys would see a colorful blanket through the window and try and eat it, hitting their beaks on the glass. 

He never moved the blanket. 

Joel’s original art was throughout the house, and one got he feeling of peace and serenity just being there. The sun porch was his favorite place, and he even had an old stove there for the winter time. He spoke of how he would someday return the stove to New England, which was a deal he made with the guy who sold the stove to him. 

It never sold. I got an offer once early, but it fell through, and I continued to market it for another year and change. It came off, and I didn’t hear from Joel for a time. I drove by with a new trainee at one point, and ran into my friend again, who invited us in. He had a bout with cancer, he was engaged to a woman he loved, and he was ready to sell again. SO- we relisted the house at an aggressive price…and the economy tanked. 

After another generous term on market with no sale, my friend had to switch horses, which I never begrudged, and I saw some enormous price reductions which worried me that he might not want to secretly keep the house, it again expired. I knew the other agent, and we spoke recently. He informed me that we lost Joel last year. 

This is the first time I have learned of a client’s passing. We never did a transaction but he was a good, kind guy and I liked him a bunch. Yet again, I’ll say it. God takes his best work back early. 

Active Rain September 24, 2010

Agent Safety Month and “Packing Heat”

Keep me in the car. I know of two fellow brokers whom I like and respect who have said that they carry and are willing to use a handgun to ensure their safety on showings if some creep means them harm. I think this is a mistake. First things first: as a New Yorker, it is rather foreign to me to carry a gun. Handguns are by and large illegal in New York City, and getting a license to carry in other parts of the state is difficult. We have to have other precautions. 

The best defense against being attacked is, in my view, preparation and prevention- I have blogged about this before. While I am no expert on safety, I have, unfortunately, some field experience in the matter. 12 years ago, I was physically attacked by an imbalanced, irate client. In a prior line of work I was robbed twice. About 18 months ago, a dear friend (who holds a black belt) was savagely beaten in his office and required hospitalization and some plastic surgery. Lastly, I hosted an open house where a significant jewelry theft was made by people who turned out to be professional criminals. I would argue that the presence of a gun could well have made all four of those situations far worse.  

In all of these cases, there were two common threads that a firearm could not prevent: mild deception and surprise. Attacks are not the result of an elaborate deception as much as they capitalize on a nanosecond of distraction or a turned head. You cannot successfully sell real estate and simultaneously prepare to go toe to toe with an attacker. You can successfully sell real estate and be on the safe side of events. 

Self defense, in my view, should be more about escape than pointing a gun at an attacker, assuming you even got that chance. Get out. Get away. Live to tell about it. Your gun could be used on you. 

From my prior post:

Beating up your attacker is not plan A. If you can defend yourself, do so to the extent to get away. Think Edith Bunker when she thwarted that would be rapist. But if you fight, you are engaging someone in their turf; they were ready- you weren’t. And the element of surprise is lethal.  

Prevention is more important than reaction. Don’t be alone with people you haven’t vetted. Don’t do open houses alone with no backup. Casually remark that you expect a male associate any minute. 

Hand to hand combat has problems. Here’s the thing: Attackers sucker punch. Attackers rely on the element of surprise. Attackers are con artists who will go out of their way to make you feel comfortable. Attackers wait until you turn your eye away. Then, they’ll hit you hard, fast, low, and repeatedly. That’s the problem. They play dirty. They never tell you to put up your dukes. They rig it to their favor. Sharks, for example, don’t attack on land, where they aren’t very tough. They get you in the water. Don’t go “in the water.” 

If there is going to be a battle, make it a battle of wits. You can win that one. If you are alone in a house with someone who makes you uncomfortable, say “Greg Nino will be here any minute with that survey I forgot on my desk,” or “Jeff Belonger is running late but he has some great financing programs for this house.” Then, get on the phone and call Greg and Jeff and say “Hi, I am at our open at 927 Elm, there is a man here who really want to see that floor plan/mortgage/survey.” They’ll get the message. If I got that call from one of my team I’d send Cavelleria Siciliana

There are tons of things you can do to avoid a scrap. Get names. Get numbers. Verify. Let people know where you are at all times. Work as a team. Carry mace or pepper spray. Keep your eyes open and keep your distance. Never be alone with an unknown out of distance from civilization. Casually mention that others are on their way. But it is prevention, not a good left hook, that is the best deterrent to being harmed. 

I would add that producing a gun when threatened or attacked would throw gas on a fire. You won’t have a chance to take a position. In struggle, a gun can get away from you. Then, a black eye can deteriorate into a bullet hole. If anything, a gun might create a false sense of security, which could result in foolhardiness or carelessness. Make sure that where ever you go, and whomever you are with, that it is clear that the appointment is documented, that you aren’t truly alone, and that help is near. And if you don’t feel comfortable, get out. 

Active Rain September 24, 2010

When Should Sellers Make Agreed-upon Repairs?

In their efforts to accommodate buyers and make deals work, more Westchester home sellers are agreeing to either credit money to buyers for repairs or make the repairs outright. In general, I’d rather issue a credit; buyers can do the work as they see fit and sellers have one less headache. 

Often, however, the repairs are things the buyer would prefer be done prior to moving in: asbestos abatement, mold remediation, pest treatment, or something less urgent or elective, like the replacement of a light fixture or carpet. Regardless of what the repair is, unless it is urgent in nature, the only obligation a seller ought to have in making the repairs is to do them before closing. Whether a carpet goes in or wood paneling goes out, the buyer only benefits from it when they take possession of the domicile at closing. 

It is therefore not productive for a Westchester home buyer to demand that repairs be made immediately, before contracts are signed, or before anything other than the closing. Moreover, it is conventional wisdom for the seller to not complete any work or spend a dime until the buyer has provided a mortgage commitment. Once the commitment is provided, the seller can undertake repairs with peace of mind that the financing is not an issue and they they aren’t spending money for a buyer who will not perform. The last thing a seller should do is spend money at the behest of a buyer, only to have that buyer not end up buying. The next buyer might not want the work done, and the problem of the lost deal is magnified. 

We recently had a buyer insist, prior to contract, that the seller treat an old paper wasp nest (it should be noted that in Westchester and the surrounding areas, we do contracts far later in the process than the rest of the world). They were told it would be done after the mortgage commitment was provided. Buyers who do not agree to the conventional wisdom and normal protocol in a matter like this cannot also claim to be reasonable. 

 

Active Rain September 23, 2010

If I Can Get XX Dollars For My Home, Why Do I Need a Broker?

Early on the the beginning of the company, I listed a gorgeous old home that dated back to colonial times just outside the border of a village. It was a striking place, and even though it abutted commercial properties, its location outside the border of the village gave it residential zoning. A non-residential use required a special use permit, which probably would have been forthcoming for the right applicant. 

We had offers from a lawyer, an art gallery, and others, all contingent on that special use permit. 

However, the owner refused to do business with any of the offers. 

He wanted more money. He insisted on a premium in value based on the commercial potential of the property when in fact commercial use was not permitted legally. All offers were subject to procurement of a special use permit, which he did not want to wait for.

After 5 months on the market, we had lunch, and he discussed the various offers made. When I pointed out that the common thread in price appeared to be what the market bore, he informed me that I was not earning my keep. “Phil,” he said, “I knew I could get $500,000 for the house from anyone. If that’s all you can sell it for why do I even need you?”

I forget who picked up the check. 

The house remains unsold as a For Sale By Owner, 4 years after that lunch meeting. The answer to his question, I believe, is that very fact. 

Active Rain September 23, 2010

Title problems may interfere with foreclosure actions.

Not long ago, we read about a judge throwing out a foreclosure case, resulting in a mortgage being de-facto-cancelled, due to the plaintiff not being able to produce documented ownership of the mortgage. 

What is being done on the secondary market is not overseen and may well be rife with shenanigans. 

Pay attention to this issue- You know who services your mortgage. Who is the actual investor? That is a much harder question to answer. 

Via Eric Martell (RE/MAX Properties SW, Inc.):

A recent court case in Florida signifies problems for banks wanting to foreclose. A bank filed for foreclosure and submitted an assignment of mortgage as basis for the case. The court found that the mortgage was carried on the books of Fannie Mae and, thus, didn’t belong to the servicing bank. Apparently only Fannie Mae, the owner of the mortgage, had the right to foreclose, yet the servicing bank filed the case. The judge found that the servicing bank’s actions amount to a knowing deception and are therefore fraud. How often does this type of fraud occur? Are there a large number of these types of cases currently in process? This could possibly impact a large percentage of the foreclosures we’re seeing nationwide.

In short the problem is this: Banks used to hold the loan for its entire life, but then they started selling and reselling the loans. The loans were pooled with other loans and these pools (or tranches) were sold. Because of the cost of recording the individual title transfers with the relevant counties, the banks didn’t bother to register the transactions. So, because of this practice, for a bank to claim title to a particular house is almost like claiming title to an individual shingle on the roof of a condominium. The roof is common property and owned by all.

This is a potential problem for not only the loan servicer, but also for anyone who purchases an REO property. Will the title company defend your title to a house you bought in the event of a lawsuit showing that the foreclosing bank did not hold appropriate title? This is an interesting possibility.

For the time being, investors or anyone contemplating purchasing a foreclosed property, at the minimum, should make an effort to trace and understand the prior chain of title.

Active Rain September 22, 2010

Want to Sell? Stop Trying So Hard

 

Carol Culkin, whom I had the pleasure of meeting in person recently, wrote a very thoughtful post on listing agent-accompanied showings that prompted me to finish and revise a draft I had. We work the same market, and my thoughts are for Westchester County, New York and the Hudson Valley. Your results may vary. 

The idea of having the listing agent present in my view is the fallacy that the harder the listing agent “tries” in some cases, the more likely the house is to sell. The root of that fallacy is that some people think we pocket the whole commission while not really working too hard for it. We talk a little, take some photos, wait, someone else brings an offer, we take our cut. Voila. 

Therefore, these sellers want the agent to be on showings, jumping up and down “selling” the house to the buyers; pimping the 3 year old furnace, the landscaping, the radiant heat under the sun room floor (look Mom, no baseboards!) and so forth. These people do not understand how to sell. They do not understand what motivates buyers in this economy to make buying decisions. And it isn’t because we “try hard.”

  • People don’t buy the house because the listing agent was informative. They buy it because it feels like home. 
  • People don’t buy a home because the listing agent tried harder. They buy it because it feels like home. 
  • People don’t buy a home because the listing agent was able to pounce on their questions and give rapid, granular answers. They buy it because it feels like home. 
Let them walk through the house with their own agent, their own thoughts, and on their own terms. Think of it as a dressing room where the buyer is trying it on and wants privacy. Make sure there is a fact sheet that has the things that don’t meet the naked eye, and when they do have questions (GOOD- Buying signal), then you put on the dog show. If there are no questions and no offers, the home is overpriced. Sorry. Read the papers. We’re sliding down Vaseline hill, and there is no speech you can make in the kitchen to stop that tide from lowering. 
What some sellers do not understand is that “Effort” does not sell homes. Know-how sells homes. If “Effort” sold homes, then harder working stock brokers would get more money for stock, harder working, better talking car salespeople would get more money for their cars, and so forth. It doesn’t work that way. If the home is not priced at the price point your know-how suggests, the seller remains the high bidder and keeps the commodity. 
In some markets like Manhattan, the listing agent is always there. Fine. Are you in Manhattan? Look, in Manhattan people hardly turn their head when a fire engine screams by. They can deal with a listing agent. They don’t mind a listing agent breathing down their neck because 10 minutes ago on the subway, a complete stranger was actually breathing down their neck. So Manhattan is different, and here in Westchester, people like their necks un-breathed upon. 
99% of my buyers truly prefer the seller and listing agent to stay away. Some feel stronger about it than others. That leaves 1% who like them there. If you think you are going after that 1% by having the agent present, what you are doing is giving yourself a 99% probability of failing. 

 

Active Rain September 21, 2010

Wall Street Journal is Bullish on Buying a Home

I have meant to post this earlier. On September 16 the Wall Street Journal posted 10 reasons to Buy a Home, and the article is sound advice. What is good about it is the even keeled nature of the piece- real estate isn’t a 1-way ticket to dreamsville, but it is a savvy move for more than just financial reasons. Finally! Some sanity.

My favorite reason to buy a home was number 3: You’ll save on your taxes. They’ll repeal the mortgage interest tax deduction on the 12th of never, believe me.  

My favorite non-financial reason to buy a home: It’s yours. That is a powerful thing, ownership, and if you doubt me go check out a home that has been rented for the past 5 years as opposed to an owner occupant. 

In a world where online financial advice is a cesspool of garbage like “what your agent hope you’ll never find out” and other assorted nonsense of that vintage, this was refreshing, true, and timely. 

Active Rain September 20, 2010

You Need Your Neighborhood Agent Like a Hole in the Head

J Philip Real EstateLet me preface my remarks by making it clear that, all things being equal, I’d choose an agent from my own town over an agent half the county away…if all things were equal.

Things are seldom equal in this market. Here are a few facts:

  • Westchester County Home Buyers window shopped on Main Street in the 80’s. Today they window shop on the Internet. This is especially the case in higher priced markets. I’ll be clear: Buyers almost never drive up to your town from Manhattan, walk along your downtown, and step in to a real estate brokers office and ask what they have. That was decades ago. Nobody gets in their car these days without a manila folder filled with research and printed emails from brokers answering their questions on the properties they found online. The agents positioned to meet this need have a strong Internet presence and a superior follow up system. They get the buyers’ attention. You want that agent. 
  • Home buyers in Westchester County could care less who lists the property. They care about location, price, condition, and how the home meets their needs. Only sellers care for firms with names that sound like law firms, coats of arms on their sign, and a perception of prestige. They should care about terms we seldom hear but are the nomenclature of real estate success in 2010: IDX, SEO, Syndication, Desktop Underwriter, price points and other things that entered the market as window dressing years ago, but now make or break transactions in the current market. If your agent doesn’t sleep, wash and rinse with those terms daily, you have a problem.   
  • ANY broker or agent who would suggest that listing your home with a firm 2 zip codes away might result in fewer showings, a soft boycott by local agents (the local “mafia”), or inferior marketing exposure is not only lying, they are committing a serious ethics violation. The fact is that in a market where there is about 1 sale for every 15 licensees, any agent with a live buyer will show them anything and everything they can to make a sale. The competition to make a deal is brutal. No one would steer their client away from a home they liked and undermine their chances of earning a commission. It is antithetical to economic sanity. 

If an agent’s value proposition to you is that they are down the street and they don’t live and breathe my 2nd bullet point as well as half a dozen other terms, they are blowing smoke. Buyers don’t care where your listing agent’s cubicle is any more than they care where you’ll live after the closing. They want to know what’s in it for them, and if the listing agent cannot deliver on that question, you don’t move. 

Broker opens, free coffee in the lounge, office caravans, and glossy brochures were done in the 80’s. They are not the solution to get buyers to act in 2010. If you want to sell in 2010, you need to get re-educated about what works in this market. The days of licensees picking the low-hanging fruit, kissing yours but not breaking theirs are done. 

Buyers today are savvy, careful, and methodical. They make 3-4 visits. They bring their parents or advisors. They have inspections with granular scrutiny. How your agent handles them, and their own agent, is life or death to your sale. 

And that’s why just being down the street alone just doesn’t cut it. If you want to sell your home in Westchester County, your agent doesn’t have to live nearby, but they must live in 2010. 

Active Rain September 19, 2010

I’m a Dad!!!!

No, we weren’t expecting another one- I’m a BLOGGING dad!

This morning, as I perused the Active Rain features, I almost fell off my chair. I am so used to seeing Tom’s face that I almost didn’t notice, but there, 6 posts down the page from my own post, was Tom Ricapito, licensed agent with none other than J. Philip Real Estate, FEATURED!!! 

My guy was featured!!!

OKOK now take it easy Phil, so many thoughts -don’t make it about you – OK maybe just a little-

I’ve been telling this SO- um encouraging Tom to blog for so long and OH! Can I call him? no no it’s 7am on a Sunday he’ll kill you, now inhale, inhale, wait EXHALE, inhale, exhale- Wake Ann up? who is awake? 

Is anyone awake? 

Nobody is awake this sucks. Text? TEXT YES Text him! perfect! Email him! get a screenshot!! Will it fit? Adjust DPI to make it fit? It fits! OK…saaaaaave. Screenshot saved. 

BWAAAAAAAAAAAAA!!!!!!!!

Control yorself Phil 

what to say what to say ok He’s a GOOD guy…first agent I hired, very honorable, team player, hard worker, good attitude, breathe, breathe would SOMEONE wake up before I have an aneurysm over here? 

Was my comment OK? Don’t be a jerk and take him down a peg  be nice, be nice, I remember those people he’s writing about, yes, I recall we spoke, not about me, not about me….

Ann is up? Stirring upstairs? No? I can’t call Tom? Common sense? B-b-ut but. NO! No I didn’t call him. I DIDN’T call him I said. I texted him. I emailed. Of course I got a screenshot. NO! They must have done it at like 4am, this is the first I saw it. 

****************************

Yes. Tom was the first agent I ever hired, I think it was back in 2006. I have encouraged him, like many other agents in the firm, to follow my lead and blog. He has blogged himself some and is, in my estimation, a good, thoughtful observer with a sense of irony that mirrors my own. He is a team player, a great listener, an extremely likable guy, has a ethics compass powered by a 220 line with a backup generator, and is smart enough to call me whenever he has a question. 

And his blog got featured this morning. His broker is pretty proud of him and very excited. 

My apologies to the other good folks on whose good work I smeared red pixels. I couldn’t contain myself, and I want to hand out cigars. 

 

We're taking over!

Active Rain September 19, 2010

Yorktown Real Estate Market August 2010

As the beads of persipration gathered on my furrowed brow, I –

Wait, this is a market report. Sorry. *ahem*

Yorktown is a large town in northern Westchester County served by both the Yorktown and Lakeland School districts. It is is very post-war suburban in character- the vast majority of homes are 60’s and 70’s era ranches, splits and raised ranches, with larger colonials in the newer developments. 

This data is for the Yorktown school district only and is taken from the Westchester-Putnam Multiple Listing Service. It compares the sales of single family homes from August of 2010 to August of 2009.

Yorktown Real Estate Market August 2010 Yorktown

As my grandfather would say, Yorktown’s August market was not-ah so good. Transactions were about half of last August’s closed volume, and the median price was down over $61,000.  July was also a rather lean 8 closings, so buyers are sitting on their hands right now. One instructive thing is that the average asking price of the 19 pending sales is only $389,000, so the public is not looking to spend as much in Yorktown as much as before. 

As with Croton on Hudson, prices are on a downward trend in Yorktown. When prices do fall, transactions will bounce back. We just got an accepted offer in Yorktown this past week, and it was a tough time getting the sellers to accept the buyer’s offer. There is still some resistance to the downward pressure on pricing. Human nature I suppose, but when sellers adjust they’ll move. Until then, they wait. 

To check out the 137 available properties Yorktown has to offer, register yourself for a free Listingbook account

 

Active Rain September 18, 2010

Square Pegs in Round Holes

Cross the bridgeThis post is inspired by Brittany Rollins thought provoking post. It struck a chord. 

Real estate is  a hard business, especially right now. You have to love it. If you don’t, you should probably get out, or at least get out of the part of the industry you don’t love. I know many people in the industry who were once licensed salespeople who found their niche in other parts of the business: loan officers, title, and stagers, to name a few. There is no law that says after a year of being a licensed salesperson that if you don’t stick it out you are a failure. This is especially the case if you aren’t the primary breadwinner. 

If one of my agents walked into my office and said “I have been doing this business 9 months. I’m pretty good, but I hate it. I get nauseous when the phone rings. It isn’t fun,” I’d ask them what part isn’t fun and see if there is something they can do that is fun. Maybe they love marketing and can keep their license and get a referral fee if they market and I follow up. There are tons of possibilities. 

You might also examine whether the company you are docked with is the right fit. I interviewed a lady recently who didn’t fit into a rigid, meeting oriented office laden with paperwork and protocol. All she wanted to do was run leads and operate a small scale with a mentor available. She was in the wrong place. Smart for her to be looking. 

There are, of course, other possibilities: The convent, teaching, art, grad school, insurance, home remodeling, and dog grooming, to name a few. There is no rule you have to be in the industry. Follow your heart. 

I am blessed because, in large degree, I am where I wanted to be as a teenager- my own boss. I even live in the neighborhood I rode through on my 5-speed in the 70’s, daydreaming that I’d bump up here someday. My wife is different- although she has an artists’s heart, her parents pushed her in other directions: first pre-med, then an MBA. Not long ago, my mother in law admitted she should have let Ann pursue art. In Korean culture you can’t question your parents. In America, we rebel. Ann couldn’t win, and her mother’s admission was small solace. 

So the point is that this isn’t your practice life. Carpe diem. If you like real estate but hate real estate sales, go walk into a title company. Find out what it takes to be an underwriter or loan processor. Look into staging. See if being a marketing assistant or marketing consultant works. Don’t be miserable! Look for your niche. Don’t be a square peg in a round hole. 

Active Rain September 18, 2010

Overseeing the Top and Bottom

A brief observation prompted by nothing in particular. 

One of the biggest ironies of government solutions to housing problems is how heavily regulated the foot soldiers (agents, loan officers) have become while the executives in the glass tower can build billion dollar ponzi schemes and get away with it. 

I can’t have a discussion about where a church is located, school districts, crime and many other things without being accused of steering or a fair housing violation. Agents have been heavily fined, suspended or lost their license over things like this. Many times, it has been deserved. We can’t go there. 

If I write a bogus lease to help a borrower qualify for a mortgage, it is bank fraud. I can’t go there. 

HOWEVER: If I came up with a scheme to loan billions in bad mortgages, fund them with worthless mortgage backed securities I sell to institutional investors like pensions and retirement funds, then the whole thing falls like the house of cards it is, I can retire to the Caribbean. 

I’m not saying the guys in the field shouldn’t be regulated the way we are; I am saying that those up top in the corporate Ivory Tower who destroyed the economy ought to be held accountable for their wrongdoing as well. 

If the regulating authorities examined the complete unsustainability of the mortgage products being hawked from 2003-2007 and spent a little less time measuring the font of my name compared to that of my company, we’d all be far better off. Regulate the guys on the bottom; fine. But keep your eye on the fellows at the top too, please Uncle Sam? 

Active Rain September 16, 2010

How Safe Are You?

I seldom reblog, but this is an important message. September is Realtor Safety Month. 

This is not a minor thing. We meet strangers in strange places for a living. There are news stories of our colleagues being assaulted and killed. I was once assaulted- by a client- an imbalanced one- and there was a huge theft at an open house I hosted once. 

There are bad people out there. Precautions should be taken, and that is not a sometimes thing, it is an always thing. Read on. 

Via Ricki Eichler,Broker,GRI,ePRO your Texas Hill Country connection (Ricki Eichler Real Estate LLC):

September is Realtor Safety month.  We have talked about this topic several times in meetings this month.  There are lots of free handouts on Realtor.org for you to use in sales meetings and training meetings.  Safety is something we should never take for granted.                     Realtor

Make time in your office to develop a program of safety ideas for agents while in the office and when showing property.  Even going to take a listing, requires being careful.  Know who owns the home before you go to meet them.  Pull up the Tax Information, pull MLS data, neighborhood information, go prepared.  You might be meeting someone other than the owner.

Always let someone know where you are going, when you will return, who is with you.  Introduce your prospects to other people at the office.  Use your car signs and your name badge so people who see you doing your job will know who you are and what you are doing and where.

Always park on the street, so a quick departure is possible.  Keep your cell phone with you and charged at all times.  Learn to get license plate numbers without even thinking.  Walk behind your clients.

One of the best things to do is Pre-Qualify your prospects.  Not only does it help to make sales but it is also for Safety Sake.  You will know lots more about the people you put in your car if they are Pre-Qualified and if they had something bad in mind for you, guess what?  They will walk out the door and say forget it.

Real estate agents are harmed every year, some even lose their lives.  Our business is usually safe but there are times when we are put in some dangerous positions.  You never know when it might happen to you, so be preparedThink about Safety before you need to and if something does happen you will know better how to deal with it.  Work a plan out at the office with code words that you can call in for help without the prospects knowing you are calling for help.  If it doesn’t feel right, don’t be afraid to call.

Ricki Eichler Real Estate, your Texas Hill Country connection                           www.reretx.com

511 Junction Hwy                                 Kerrville, TX                                     (830)257-2520

 

Active Rain September 16, 2010

I Love Referrals

I am often asked why I blog. Clients wonder, fellow agents ask, and many who have read my words are curious why I produce all this commentary. There are a number of reasons: it is therapeutic, I have a big mouth, I like to write, it keeps my company visible, and many other motivations come to mind. A big one for me is Referrals. I love referrals. I love doing a good job when I get a referral. 

Magic happens when you are committed. Late in August, I committed to Karen Bernetti’s 30 day challenge contest, where I pledged to blog at least once a day for 30 days. Perhaps not a stretch for me, but some days I might not blog and other days I could write 3 or 4 posts. At any rate, I committed to 30 consecutive days, and, more importantly, my promise to myself was that I wouldn’t be a robot- I’d try and write good stuff. This post will fulfill my 30th consecutive day, but that’s not the best thing. Here’s the magic:

Elyse Berman

In late August, I was contacted by Elyse Berman and referred a listing. Elyse is in Florida, as was her friend, but she had a house to sell in my area. I called her and orchestrated a meeting when she returned to New York, and just this past week we signed papers and the house is active on the market as one of my newest listings. Elyse’s friend is happy, I’m ecstatic, and of course I look forward to the day when I can close the deal and mail Elyse’s referral fee. I am very honored she reached out to me, and I will do all I can to take great care of the client. 

Dana VoelzkeLast week, I saw another referral on the Active Rain Referral Exchange. I applied for it, and was told by Dana Voelzke that she had called me the day prior about referring her client to me! She thought of me first! This client was different- they needed a rental with some special circumstances and they needed it quickly. I never overpromise, and I have a terrific team, so I placed the client with one of my very best associate brokers who specializes in the locale that was targeted. The leases are already signed

Two referrals in less than 30 days. That is a big deal, and it is better than all the other little accolades I got from blogging; I got some features, added some new subscribers, and met quite a few ‘Rainers at a local ReBar camp. All great. But to me, the referrals are the magic- and 2 in one month is spectacular. I am grateful for their trust and am humbled.  

And I am going for 56 now, so 26 to go! 

Active Rain September 15, 2010

What a Pleasure

Sometimes you just have to tip your hat. It seems so rare these days, especially in New York, where terse tolerance of the competition is the most we expect in this market. With the State Association (NYSAR) in town this week, 4 kids just getting back into the school routine, and my admin out all last week, I haven’t been the best P and Q guy around. So when it occurred to me on my drive home at a tad before 9pm last night that I hadn’t set up a showing requested by a client for 3pm this afternoon, I sheepishly called the listing agent to see if I could set the appointment. 

I got her voicemail, and left a message requesting the showing, that I was sorry for the late hour, and that I’d call her office first thing in the morning if need be. I expected that the best I’d do is not hear from her until after I called her office. It was late, and she really didn’t have to do anything. I should have called earlier. 

At 8:30am this morning, Liz called me back and told me she’d be delighted to confirm the appointment, and that she could log in the showing right now, or I could wait until 9am to call her office and log it. WOW, I told her, what a pleasure to deal with someone so on the ball! 

I have a house to sell! she answered, and then proceeded to give me lockbox instructions and logged me in. I was also informed of a strong price change. No drama, no asking me why such short notice, just advocacy and focus on the matter at hand. 

Now it’s your job to sell it, she said, and I laughed. True. The ball was in my court, because, whether I was on top of things or not, a professional was listing the house my clients wanted to see. Moments later, the confirmation email arrived in my inbox. 

Liz PereiraI have to admit that, if the show were on the other foot, I would have asked the agent to call our showing service and log in the showing. Moreover, this was far from a million dollar property, yet it was clearly getting white glove treatment from the broker. How few agents understand this- the best thing you can do for your client is dispassionately get people in their door and save the nitpicking about notice, you coulda, you shoulda, for the gym. 

So hats off to Liz Pereira of Houlihan Lawrence, for being a professional, a colleague, and a good advocate for her clients. You might think it peculiar to give props to the competition, but that is not how I see it. We should focus on the good, no matter where it is, because it is good for the clients. That is who we work for. 

 

Active Rain September 14, 2010

Croton on Hudson, NY Real Estate Market August 2010

This market report is for single family homes in the Croton-Harmon school district. All data is from the Westchester-Putnam MLS. Last month I wrote the following observation:

The median asking price of $624,450 is over 100k more than the median sales price, so I don’t think we’ll see a huge increase in volume until buyers and sellers are more aligned. Buyers want to spend less; sellers want more; imagine that. 

Well guess what? See below:

Croton Real Estate market August 2010

Only 1 home closed in Croton in August, and at $425,000, it sold for over $25,000 over asking. Other than that, sellers got nothing. The number of homes under contract swelled up to 17, with a median asking price of…wait for it…$425,000. 

The median asking price of unsold available properties in Croton? $598,500. Does this mean that if you want $600,000 that you’ll only get 425? No. But it does mean that the buying public is trending toward lower cost homes in Croton, and that sellers need to review their price if they want to move. The numbers don’t lie. Aggressively priced homes sell. Overpriced homes don’t. 

Croton on Hudson is a fantastic community. I spent a chunk of my youth there and my brother lives in Croton. But buyers aren’t gravitating toward the higher priced homes there at this time, but they’ll sign contracts on moderately prices properties. 

Previous posts on Croton on Hudson

Active Rain September 13, 2010

Peekskill Dog Splash September 25, 2010 10am-Noon

I have blogged about the Peekskill Dog Park before. It just happens to be the creation of clients of mine. The story is that they got the city to dedicate underused parkland to an attraction that gets dozens of users a week. 

In 12 days, the park will have its 2nd annual fundraiser, the Peekskill Dog Splash. It will actually take place at the lake at Depew Park, and all dogs will have a chance to splash around and swim and have a good time. There will be a complimentary dog wash station, so your wet dog will go home smelling fresh and clean, which, frankly, you know you could use about now. Admit it.

Depew Park

If your dog is a little breed, there will be kiddie pools. There will also be music, giveaways, and you’ll meet plenty of other dog aficionados and dog-o-philes who walk on their hind legs. 

Pre registration is required, so go to PeekskillDogPark.com and get your pooch in. Registration is $10, which is almost free in dog dollars. We are still enjoying nice weather in this area, and I’d expect late September to be a bit of a last hurrah for some of us in the “getting out and doing something special with our dog” department. They give us unconditional love, and they earned a play date. 

Active Rain September 13, 2010

Re-thinking Linking (or Your Hijack is my Trackback)

Time to let the light in

I have read a number of places on Active Rain about the protocol of posting your own links in comments and the belief that linking back to your own post is considered hijacking a blog. Others have stated that if a link is posted by a commenter, they’ll delete it. Where did this start? Isn’t linking back to your own post a trackback of sorts? 

This is ironic, because with a trackback, you are typically creating your own material or response to a post, whereas I see most re-blogs as relatively weak in the commentary department, and they instead lean on the content of the original author. I have no beef with re-blogs either, for the record, I just note the irony. I think that offering a link to your own post on the subject is continuing the dialog. 

I know that there is a link to a member’s own profile at the bottom of their comment, but frankly I don’t click on that unless their comment is intriguing or provocative. What if they just emptied their cartridge on a brilliant post and can’t come up with another home run in a comment? I may miss out on some brain food. 

I have never deleted a non-spam link in my comments, but I have gotten emails from people asking permission to post a link or just offering their link to me privately. To me, not being able to freely post relevant links in comments hinders the ease of exchange of information and is antithetical to the platform. 

I want to make it clear that if you want to link to something outside that is relevant or germane to the discussion, please feel free to do so. I am not afraid of ideas. None of us should be. If it “hijacks the blog” or diverts the discussion, GREAT. So be it. Better ideas should take the stage. YouTube allows responses, WordPress and Typepad have trackbacks, and I have no beef with links. All I’d ask is that the link opens in a new window.

I welcome your thoughts. Tell me where I’m right or wrong.