The REALTOR Code of Ethics Standard of Practice 3-6 states the following:
REALTORS® shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation. (Adopted 5/86, Amended 1/04)
This has been the rule since Reagan was president. I was 18 when it was instituted (I am now 51). Cleveland had been selected as the site for the Rock and Roll Hall of Fame. The top pop song was Greatest Love of All by Whitney Houston. It was a long time ago. We should be good at this disclosure.
We still screw it up, all the time.
I’ll explain. This isn’t as huge a problem in other markets where brokers execute contracts and acceptance is the same as going under contract virtually immediately. In Westchester and the surrounding areas, including NYC and Long Island, attorneys draft contracts and instead of a brief day or so between acceptance and contract, it can be two weeks. Some MLS systems have an official status change for “AOs,” but in the Hudson Gateway MLS a listing is either “active” or “contract.”. That is fairly black and white, but it also means that a home could have had an accepted offer for a week, inspections completed, contracts out and movers being called but still showing as active. When the listing agent drops the ball and a consumer drives an hour to see the property and loves it, only to be told it isn’t in fact available, the frustration is hard to describe.
This past week, one of our clients, who was interested in a complex for some time, made arrangements to leave work and meet our agent at a newer listing. There was an accident on I-287 that day, with a gasoline truck catching fire. The client fought the traffic and made the showing, as did his parents. It was Valentine’s Day- they could have stayed home or gone out together, but they wanted to jump on this deal. The agent went through all the protocols to confirm availability and confirm the showing, met the client there, and submitted a strong offer, presuming that even it it were accepted, there would be competition for such a plum place.
Upon receipt, the listing agent wrote back that the home had gone to “highest and best” earlier that week, and already had an accepted offer. The agent further claimed that their automated system had the correct status (it didn’t), and that if we didn’t know there was an accepted offer, why did we submit such a high number (irrelevant)?
To summarize: The client hired our agent, got pre-approved, watched the market, made arrangements to see a property, stood on their head, collaborated on an offer, and got, in return, frustration from a listing agent that relied on a system that was inadequate 20 years ago.
This happens
All.
The.
Time.
Moreover, as I explained, it is worse in the New York metro market because we take far longer to execute contracts than any other market, leaving too much room for error.
The Hudson Gateway MLS, a fine organization for which I served as president in 2014, recently posted the following bulletin for all members earlier this month:
HGMLS statement on disclosure of accepted offers, February 5, 2019
While I agree that agents should disclose the existence of an accepted offer in the agent remarks on the MLS, that is not a binding rule nor is it sufficient enough to protect the consumer or cooperating agents in 2019. The listing in question above had no such update. I have belonged to 10 other systems, and the vast majority have an actual status change (which is to say, not “active”) where the accepted offer is in place and, in some markets, if they are continuing to show or showings are ended. HGMLS does not have such a function, and I respectfully think they should. But absent that status change, it is the listing agent’s job to ensure that disclosure is made, and we fail at it all the time.
You might ask why agents would be lax about this. There are several reasons. First, not having an MLS status change as other markets do contributes culturally. Agents also have a vested interest in keeping a listing active as long as possible, because when you have a listing you have a means of attracting buyers. This can veer toward “bait and switch” at times. Leaving it up to automated appointment applications invites human and machine error. Regardless of the reason, innocent error or intentional deceit, it is against the Code of Ethics, and it happens absurdly often.
Ethical violation sadly happen all the time. Agents print ads or send mailers that have compliance issues. Agents call other agents and don’t disclose their licensure. Misleading claims about market share abound (perhaps unrelated-the city of White Plains has no fewer than three firms claiming to be number 1, with varying metrics that make heads spin, all within the rules). Some infractions are more benign than others. But the failure to disclose an accepted offer is by far the most frequent I see, and I see nothing from the MLS or broker community at large that tells me we’ll tackle the matter in the foreseeable future. That is unfortunate, because we are better than that.
You learn quite a bit about people when you see how they handle it when life throws them a curveball. For Liz Koski Jessup, who I am delighted to introduce as one of our newest associates, meeting me was one in itself.
I’ll explain. A few months ago, one our esteemed associates, Tana McGuire, asked my availability to speak to a Liz about possibly joining the firm. The only time available was when I at my son’s baseball game, and there we were, in the bleachers, chatting about life, business and baseball on a sunny Friday afternoon while we watched the game. That’s not something just anyone can adjust to elegantly, but Liz was awesome. To know Liz is to like her, and we kept in touch. I’m delighted she chose our brand.
Liz is a consistent multi-million dollar producer, and as a Westchester native, her local knowledge is exceptional. She graduated from SUNY Purchase and possesses a background that is almost a perfect storm of experience to prepare for a career in real estate, with 6 years owning and operating a restaurant and another 12 years in education. A lover of the outdoors, she and her two daughters are horse aficionados (the girls both attend college but have ridden competitively) and if all that weren’t enough, she’s a landlord and real estate investor. This is the kind of experience you *want* advising you on the largest transaction of most peoples’ lives.
I have great admiration for anyone with the moxie to start the process in the stands at a little league game. And don’t be surprised when I laud her going forward in subsequent postings.
Whether you are a first-time buyer, an investor, or dealing in pet friendly or equestrian real estate, Liz has you covered with her experience and insight. You can reach her at 845.746.6788 or elizabeth@jphilip.net. When you do, you’ll be in great hands!
“So, have you written the State of the Firm blog post yet?” I was just asked. Basking in the glow of the Christmas break, with three teenagers here and an 11 year old out with friends as I type this, I laugh because as much as I love writing this stuff, time is a rough factor. That said, I am making the time to summarize the company’s 13th full year of production, because we have much to celebrate.
First and foremost, the dust is still settling on the final numbers, but we are flirting with our best year ever in terms of number of closed transaction and dollar volume closed. I’d like to say that is gratifying, especially in light of the venture-capital-backed competition that has entered the market, but I’ll cop to being frustrated that the firm hasn’t grown more. I’m competitive. I’ve been spoiled by past years with 20-40% growth year over year. I hate status quo. But that’s not the real world.
Last year at this time, in the Hudson Gateway MLS, we had 284 closed transactions for $89.5 Million, and that doesn’t include 4 other MLS systems where we do an additional measure of business. This year, the numbers are very similar: 282 closed transactions for about $91 million. That puts us at a ranking of 25th out of about 1300 firms, and no other Westchester or Putnam-based independent selling more units than our firm for the 4th year running. When we factor in business from other systems we should be well over $100 million closed and 300 transactions. Not too shabby.
Yes, that’s a pool table and a keg fridge at the Putnam Office
The Putnam office, with numbers still yet to be finalized from the MLS at this writing, is flirting with a market ranking of either 5th or 6th in overall transactions, which is bananas. WhatJenn Maherhas accomplished with that division in just three full years is utterly remarkable. Jenn, who as you may know is my partner in J. Philip Commercial brokerage as well as the Putnam operation, has done this great work while operating as the Hudson Valley Chapter Vice President of the New York State Commercial Association of Realtors as well. Jenn has also started a bar-raising video series on social media that has upped the stature of the entire firm. Spectacular.
Last year at this time I announced that Gloria Hernandez would take over the day to day management of The Briarcliff Manor office in addition to her duties overseeing Pelham, and her guidance and leadership were instrumental in another strong year of production. Gloria’s commitment to training and developing a basic curriculum for new agents, as well as compiling a cyber library of our accumulated knowledge has laid the groundwork for what I predict will be a breakout year for the firm in 2019. Gloria also spearheaded a training system (Thanks to Alyssa Hellman and her Game Plan system) for our part-time agents who want to transition into full time, and I expect that will pay dividends in 2019 as well.
Speaking of training: 2018 was the first year the company had a year long program of agent training that resulted in a dramatic improvement in contracts written in the second half of the year. Simply put, if we continue the pace of contracts signed that we set from July onward, we will see at least a 20% increase in sales in 2019. For that I have to thank Anthony Lamacchia’sREAL Training, which was a remarkable program that made a dramatic impact. It punctuated that for me, the theme of 2018 was training and investing in the professional development of the firm’s agents at a level heretofore unseen.
A huge debt of gratitude is owed to the support staff and administrative people who make things work around here. Ronnie DeMeo, in her 11th year with the firm, headed the team and was a priceless asset to the brand. We saw amazing value from Nancy Green in Putnam and Rosaline Cruz in Pelham, who, while new to the firm in 2018 was not new to excellence. Each of them epitomized professionalism and a commitment to supporting the team that no other firm can match in my opinion. We also said hello to a new Transaction Coordinator, Michele Kantrowitz, who seems to have never found a task at which she did not excel.
For a number of years I have benefited fromMaureen Jacobson‘s consultative prowess, and her insight and support has been stellar. She’s been an irreplaceable coach.
As for the agents, all I can say is that I won’t be shocked to see 2019 be our best year ever by far judging by their commitment, talent, and hard work. A few facts:
2018 was the highest total of agents who closed $1 million or more, going from 26 to 32 with a few others on the cusp.
As I said before, no Westchester or Putnam based independent brokerage sold more than our company. You can’t accomplish that with mediocre agents.
We slashed the amount of escalations where managerial intervention was needed to deal with a problem on a transaction. That’s huge from a professional standards metric, especially with almost 100 on the team.
As for the consumer experience, we had more 5-Star ratings from clients than any prior year.
Repeat business and referral business was high, which is a great vote of confidence from past clients.
The morale and esprit de corps of our team of professionals was remarkable.
As for that last point: When we did a series of recruiting videos from some of the agents giving their experience here, I was floored (and humbled) that their favorite thing wasn’t our tech, which has always been strong, the most common descriptor was “family.” Wow. That says quite a bit about the support and collegiality of the team.
While the subject of video is up, I compiled a number of short housing related videos on my LinkedIn. I also was active on the Village of Ossining Historic Preservation Commission, as well as being a member of the Sing Sing Prison Museum committee.
So where do we go from here? Unlike past years where I predicted higher production based on perhaps hubris or momentum, I believe that our training and recruiting systems are now in place to grow the firm in an unprecedented way. We continue to attract stronger and stronger agents to the company, and our best recruiters are the agents themselves, although we are proceeding in amore formal wayto get the word out about what a great professional home we are for the ethical, professional agent.
I’ll reiterate that the long term goal is to grow the brokerage to a billion dollar level of production, and my methodology has been to hire the best agents in terms of character and commitment, not necessarily looking for gaudy numbers coming in. We don’t hire just anybody. For the right person, we will continue to provide the best possible tools to serve their clientele, with an eye on growth.
In years past, I’ve made numerical predictions, but this year I’m going to be a bit more coy. I’m looking for good agents who want to grow their practices the right way. My role is evolving from chasing deals to procuring the best training, tools and professional infrastructure. 2019 will be centered on providing those agents with the best tools and training possible, and this year I can say that we’ve never laid the groundwork the way we have in the past 12 months. So I’m not worried about numbers; we’ll let the bean counters do their work while we do ours.
Here’s to a great 2019. We have much to be thankful for, and I expect magic.
A rare guest post from my friend Elyse Berman, a star agent in Boca Raton, Florida. I have known Elyse for ages and she’s more than knowledgeable about the New York to Florida real estate process. You can connect with here at her sites below.
ADVANTAGES OF OWNING A HOME IN SOUTH FLORIDA AND NEW YORK
Every year as summer turns to fall, people begin to remember cold winters and thoughts of south Florida pop into their heads. South Florida where the weather is warm and the sun shines most days of the year. It’s very appealing, especially to those thinking of becoming snowbirds. South Florida becomes even more attractive each time it snows.
WHAT IS A SNOWBIRD?
A snowbird is someone who lives up north and spends the winters in south Florida. They have the best of both worlds – beautiful weather in the winters and they spend their summers in New York, which is equally as beautiful.
How do I know this? I’m a New Yorker, born and raised, living in south Florida for 24 years. I grew up in Forest Hills and Woodmere. You know that old expression, You can take the girl out of New York, but you can’t take the New York out of the girl? Well, that’s me.
I vividly remember the change of seasons. Fall was always my favorite. The winters, well, the winters were the winters, but the summers were always beautiful in upstate New York, in the City and on Long Island.
WHAT IS A SNOWFLAKE?
A snowflake is a local term for those not ready to spend the entire winter in Florida. They may spend a weekend here or there, Thanksgiving and the last two weeks of December, and a couple of weeks in February. This group of people are most likely still working and looking for a quick getaway, perhaps to a condo in Highland Beach or Boca Raton. They may be testing the waters for their retirement years.
Are you planning to become a snowbird or a snowflake? Many snowflakes opt for condos versus single family homes In Delray Beach or Boynton Beach as there is less maintenance. They can come and go, just lock the door and leave.
“My parents didn’t want to move to Florida, but they turned sixty and that’s the law.”
Where do you want to live? You may already be familiar with the area from visiting family or friends and have a good idea of where you may want to live. Are you a beach person who wants to wake up and see the ocean every morning? Does watching the boats go by on the Intracoastal appeal to you? Or would you prefer a downtown condo, perhaps in Boca Raton or Delray Beach within walking distance of restaurants, shops, galleries and goings on?
You have options. Perhaps condos are not for you. You’d prefer a townhouse, villa or single family house. A villa is Florida lingo for a single-story condo, often with a garage and attached on either one or two sides. You have no one above you. (Remember, unlike New York, most homes in Florida are single level…and it’s much easier to age in place, so a nice little bonus.)
There are also gated communities. Loads of gated communities. Here again, more choices. Are you a golfer who wants to live in an equity country club? Some people do and others prefer not to pay the higher fees associated with these clubs.
We have all-age communities and 55+ active adult communities. Other than your monthly homeowner’s maintenance, these communities have no additional fees except for private fitness classes, massages, shows, restaurants, things like that. The clubhouse, pool, fitness and recreation centers are all included in your monthly maintenance. Most 55+ communities include lawn care, as well.
When I say 55+ communities or senior communities, these are not the communities of our parents’ generation (although they still exist.) The newer communities, built in the last 20 years, were built to model country clubs without the golf course (reducing the expense) but cater more to the baby-boomer generation adding state-of-the-art fitness centers, pickle ball and more.
MAINTENANCE FOR YOUR SOUTH FLORIDA HOME
You will need to have someone check on your property in Florida (and probably New York, as well) to keep your pipes from bursting) while you’re gone. In south Florida, it gets hot, sometimes humid and our air conditioners run pretty much all year long. When you leave your Florida home, you’ll set your thermostat at 78 or 79 degrees, so it will only kick on only if it gets that hot inside. You don’t want to fly down to find your air conditioner not working or you have a leak.
MEDICAL CARE IN SOUTH FLORIDA
If you have a specific condition that needs monitoring, check with your doctor in New York to see if they have someone they can refer you to down here. Through the years, I have heard complaints of how terrible doctors in south Florida are. I can tell you, first-hand, there are some very fine physicians here. You need to find them. Ask around. Many NY doctors are well connected to the South Florida network. It is so common for their patients to have homes in both places.
As more New Yorkers move down, we are seeing a shift. My husband’s cardiologist’s practice was recently taken over by NYU Langone. See what I mean? I have also watched Boca Raton Community Hospital go from a small community hospital without a cardiac center to Boca Raton Regional Hospital now. They do a lot of fundraising and, in the past 20 years, have added not only a cardiac center, but a neuro center, a cancer center, a new emergency room, and a newly redone women’s center. They hire the best and brightest doctors from around the country.
Delray Medical Center, a level 1 trauma emergency center, has also recently expanded, as has Bethesda in Boynton Beach, which now has its own cardiac center and a third facility in west Boynton. Nearby is also JFK Medical Center, and we are within driving distance of University of Miami Health System. Bascom Palmer is consistently ranked number 1 eye center in the nation year after year.
TAX BENEFITS OF MOVING TO FLORIDA
Unlike New York, Florida does not have a state income tax. It is also a Homestead State. In order to qualify for the homestead exemption, you must become a resident of the state of Florida. It is always best to speak to your tax professional and/or financial adviser with regard to Florida residency and homesteading.
Residency in Florida requires you spend at least six months and one day in your Florida home. How do they know? They know. They can easily check your utility bills.
Florida Homestead offers several benefits. First, there is the 3% Save Our Homes Cap Assessment limit on all residential properties. That means they can never raise your taxes higher than 3% in any given year. Please note: Any time there is a change in ownership, that triggers a reassessment of the Fair Market Value on the property. Once you apply, the base year is established and the 3% Cap will kick in.
The second benefit of homesteading is protection from creditors. Basically, as long as you pay your taxes, homeowner’s fees and insurance on the property, no one can take it from you for any judgments or credit card debt.
The third part of homestead exemption has to do with when you pass away. And for this, depending on whether you’re single, divorced, married, remarried, whatever, you need to consult a Florida attorney. I know you probably have an attorney in New York, but unless s/he is licensed in Florida (and some are), please do yourself a favor and consult a Florida attorney. The laws in Florida are different than the laws in New York. Trust me on this, I am a retired court reporter from New York. And, that brings me to my next topic.
WILLS, TRUSTS AND POWERS OF ATTORNEY IN NEW YORK
Wills, trusts and powers of attorney in New York may not be recognized in Florida. Oftentimes, these documents are redone when people move here. So, if you’re planning a permanent move to south Florida, seek the advice of an estate planning attorney in Florida. Perhaps your New York attorney can refer you to one. Even if you’re planning to just become a snowbird, it would be wise to speak with your attorney in New York about this matter. What would happen if…
MOVING TO SOUTH FLORIDA WITH PETS
If you have pets, it’s important to look into where you’re considering buying before you buy anything. Many condos and gated communities have pet restrictions, so make sure to do your due diligence first. Hire a local buyer’s agent (FREE to you) who is knowledgeable about pet restrictions in different gated communities and pet-friendly homes in Boca Raton and the surrounding cities of Delray Beach, Boynton Beach, Highland Beach and south Florida. Do you need a buyer’s agent for new construction – YES – especially for new construction! For reasons beyond your furry friends.
Please don’t hire a real estate agent who claims they are “pet-friendly” and all you see are listings, because listings are manually entered and often wrong. And our fur babies mean way too much to us to have problems later on, like when the board approves you but not your pet. It happens. I’ve seen it.
Speak to your veterinarian. They may have a recommendation for a vet in south Florida. Get a copy of your pet’s records. Today they are usually available on disk or even online so you have them with you at all times. My vet now has them online.
Most dogs love Florida. They like to go walking and meet up with their friends. They make friends in the neighborhood or building. Boca Raton and Delray Beach have three dog parks between them, a dog beach and plenty of doggie day care, if you’re so inclined. Plenty to keep your beloved pet busy.
UTILITIES IN NEW YORK AND FLORIDA
It’s a good idea to check with your local utility and cable companies to see if there is any problem with interruption in service while you’re gone. Same goes for any subscriptions you may have. You may be able to forward them for the months you’ll be gone.
MY FRIEND SAID…
I can’t tell you how many times I’ve heard “my friend said…,” and, please, don’t take this the wrong way – your friend may be right – but from my experience in working with people over the past 14 years, everyone has their own comfort zone. While your friend may tell you one community is fabulous and you’re going to love it, you just may and that’s great. But, you may not. And, things do change over time.
As a buyer’s agent working in south Florida, I can tell you, you will know when the community is right for you. You’ll feel it. You’ll get a comfortable feeling that hey, this is a place I can call home. And that’s it. Because the best deal in the world isn’t going to work for you if you don’t feel comfortable there.
FINAL THOUGHTS ON MOVING TO SOUTH FLORIDA
There’s a lot to think about before becoming a snowbird, snowflake or making a full-fledged move to Florida. It took time and folders (yes, folders!) 24 years ago (although my husband would still use folders!) It takes planning.
From one New Yorker to another, I am here to help you make as seamless a transition as possible. I get it. I know what it’s like to move with the dogs, the family, the business, from New York to Boca Raton because I’ve done it.
$649,000 just bought a great 5 bedroom 3 bath Chilmark colonial like the one we just closed on Meadow Road.
As described in the MLS:
Sought after Chilmark colonial on a fantastic half acre just a stone’s throw from Chilmark Park. Unbeatable lifestyle: large living room with fireplace and bay window, formal dining room, eat-in kitchen with island, first-floor laundry, family room, and a layout that is perfect for entertaining. Rear patio overlooks a lush green lawn and has plenty of room for gardening or recreation. Master suite with walk in closet, 4 additional good-sized bedrooms, and all on a quiet Chilmark street. Full walkout basement with enormous potential, state of the art updated heating system. Lots of parking, 2 car attached garage as well! Briarcliff Recreation, minutes from downtown of either village of Ossining or Briarcliff Manor.
We’d love to help you find your next home- just reach out to 914-450-8883 and the team will take awesome care of you!
After crunching the numbers a bit, I have some good news to report. The firm is 30% ahead of last year at this time for transactions closed, and 15% over last year for dollar volume closed. On April 20, 2017, we had 58 transactions closed for a dollar volume of just under $20 million. For the same period this year, we have almost 80 transactions closed for almost $22 million.
When you consider that this occurred in the wake of sacking the top producer in the company last summer, that is a fine thing- we didn’t miss a beat.
It’s also worth noting that in 2017, the firm’s listings sold on 17 days faster on average than the market norm. That’s almost 3 weeks faster than the market average, and that is some solid performance. Clearly, the hard work of the professionals on the team and their astute leveraging of the available tools is working.
“Go confidently in the direction of your dreams! Live the life you’ve imagined. As you simplify your life, the laws of the universe will be simpler.”
― Henry David Thoreau
My first impression of Stephanie was that she announced on Facebook that she’d joined the firm with a roll out of sharp, new professional head shots. Taking a strong first step like that makes me smile; I love the confidence, the drive and the resolute attitude. I have since been able to meet her in person and watch her approach, and nothing she’s done since has made me think otherwise.
Very much a local product, Stephanie graduated from Carmel High School before attending Dutchess Community College. She also got her Cosmetology certification at the Capri Learning Center. Prior to getting her real estate license, she worked as a bookkeeper and bank teller and also, not surprisingly, as a stylist. There’s more- she’s also a landlord. Want more? Ok fine- she’s managed a restaurant owned by her fiance. You know what else? She’s the mom of a beautiful daughter.
The common thread of hard work, customer service, and communication makes real estate a natural profession for her to excel. I won’t be at all shocked when she does.
Stephanie is one to watch, folks. You can reach her at (845) 656-2178 or email her at stephanie.finney@jphilip.com.
Statue of St Joseph at St Joseph’s University, courtesy of David Christman (!)
Today, March 19th, is the feast of St Joseph, my namesake. Yes- the “J” stands for Joseph. My father, Joseph S Faranda, wanted to name me Joseph, and my mother, who had successfully avoided the matter with my three older brothers (she didn’t want a “Joseph Jr.”), made him a deal: I would be named Joseph, but go by my (different than his) middle name, Philip. Being a J. Philip rather than a Joseph P has had its headaches, but in some ways I get to have the best of both worlds.
Today is one of those days. St Joseph, the foster father of Jesus, is the patron saint of many things: fathers, workers, expectant moms, and home buyers and sellers. Being a dad, a rather hard worker, and a real estate broker who has, shall we say, more than a casual familiarity with expectant mothers, I like to observe the significance of the day.
Incidentally, the reason Joseph is the patron saint of real estate is due to his difficulty in getting a room at the inn for Mary before Christ was born. I’ll add that the tradition of burying a small statue of St Joseph has never worked any miracles for selling my listings, but hard work, good marketing and prudent pricing strategies have done pretty well.
So, to all you workers, you fellow dads, you expectant moms, and those of you buying or selling a home, have a great feast of St Joseph.
Back in 2015 the firm was contacted by a producer in Hollywood asking to see our sign for possible use in a movie they were producing. You might be wondering why they’d contact little old J. Philip Real Estate, but we’ve had a fortunate knack for getting found over the years. In news stories, it is often due to our proximity to New York City, a producer searching for a more obscure real estate matter (often on my blog), or because of my involvement with the MLS and the Hudson Gateway Association of Realtors. But for a west coast movie producer to find me does seem odd.
That is until, you dig deeper.Wakefield, released in 2016 and starring Bryan Cranston, Jennifer Garner and Beverly D’Angelo, is set in Westchester, and as I discovered with the Mad Men series, producers want authenticity. So, having the words “Real Estate” on my sign and being a real local firm rather than a fictitious brokerage was helpful. After a brief discussion, emailing them a picture of the sign and signing a release, I sent a sign panel off the Wakefield Productions and promptly forgot about the whole thing.
A few months ago, a friend called me after seeing the movie and said he could have sworn that he saw my sign in the movie. Again, after a perfunctory web search, I got distracted and forgot about it. Then, Eric Lebenson texted me some screenshots.
The confluence of it being a weekend and not seeing anything shiny in the next few minutes actually afforded me the time to see the movie on Amazon and appreciate that.
My. Company’s. Sign. Was. In. A. Real. Movie. With. Stars. And. Stuff.
Holy crap. I mean, I could get hit by a cement truck tomorrow but my great grandchildren could be watching an old movie in 2099 and see their great grandfather’s sign in a movie being carried by the Breaking Bad guy.
Holy crap.
Ho. LEEE. Crap.
For those keeping score, it occurs at about the 53 minute mark. I have to say: I liked the movie. Mr Cranston is a marvelous performer, and while it wasn’t a hit at the box office, I think it was a solid production that is the victim of a viewing public that can’t sit through 96 minutes of no gratuitous sex or violence. A complex, multi layered story that takes us through 15 years of suburban ennui will have a narrower audience, but I liked it quite a bit.
Hey @BryanCranston! Good technique! We would totally hire you if you ever decide to leave acting and get your real estate license! https://t.co/rkIDHN1NtF
— J Philip Team @ Howard Hanna | Rand Realty (@JPhilipRE) March 11, 2018
In observance of International Women’s Day, I’d like to pay a tribute to the many fine women who have made our firm what it is. In 2012 I wrote aposton how I expected to build my firm with powerful women. Some of the things I said:
Of our 34 team members, 20 are women.
There are only 3 executives with the firm. Two are women.
When I write more good news about our firm, it will often be sourced by a powerful woman.
Was I right about that last part? Let’s see.
The firm now has close to 100 associates, over 70% of whom are female.
Every manager and executive with the firm outside of myself are women; this encompasses 3 branches, a residential company, and commercial brokerage.
The commercial company is half owned and 100% run by a strong woman.
In 2012, when I wrote that piece, the company sold about 60 homes for a dollar volume of $16 million. In the last 12 months, we have sold close to 300 properties for about $100 million.
15 of our top 20 producers are women.
A few more facts: we have an outside consultant who has been a massive resource the past 3 years who is- guess what? Female. We belong to a consortium of independent brokerages that is chaired and directed by ….wait for it…a strong woman. The best real estate attorney I know is a woman. Most of the better ones I do business with are. My personal sales team is made up of 7 amazing women. I could go on, but I think you get the picture.
Will I hire men? DUH- I’ll hire a unicorn if New York or Connecticut license them. And I’ll add that we men ought to try and learn from our counterparts on the other side of the gender fence. In this industry, they can do everything we can do, except they do can do it pregnant, while having their best year ever. I can’t get out of bed after bad oysters.
Here’s a thing men absolutely have to get out of their way about: The notion that a strong, in-your-face, assertive, matter of fact female is somehow any less professional than a man with the same attributes. If we respect that in a man, we should value it in females also. I’ve had too many complaints about my female agents from dudes who couldn’t handle strength, and labelled that as unprofessional. Wrong. Check yourself. I’ll add myself to the list of men who need to listen better and not dismiss a thought because of the delivery.
This post is not a chest beating about my me. I would hold my company up as emblematic of what can happen if men knew when to get out of the way and give the controls to a competent female. I’ll say it again: I will build this company with powerful women.
I love this quote: “women who seek equality with men lack ambition.”
Not many entries in this journal are “firsts” for me anymore, and this is a great pleasure to share. One of the firm’s very newest agents is actually the daughter of one of our established agents.
It is very tempting for me to wax nostalgic on how young Imelda Cruz Avellan was when I first met her, but I’d rather focus on the top-notch professional woman she is today.
So here goes: Imelda was raised and educated in Mt Vernon. She was in the Judge Judy and Nicole Sheindlin Mentorship program, where she earned the opportunity to intern in the Westchester County Executive’s office under Rob Astorino. Prior to her graduation from Mt Vernon High School she was selected to the National Honor Society. She also earned an academic excellence scholarship to Rochester Institute of Technology. She has since augmented her education in the technology area, but one of the many things I adore about Imelda is how she gets the human side of the transaction, beyond the shiny techie things. In her words:
I have real estate in my blood. I have listened to my mother help her clients navigate the real estate business my whole life. There is nothing like knowing you have someone in your corner looking out for your best interests during one of the biggest decisions in your life. It is my firm belief that whether you are listing, buying or renting in this real estate market, everyone deserves to be treated with respect. That is why I treat everyone with the same kind of patience and understanding I would expect someone to give my child. I am not here to just help you list, buy or rent just any house or building, I am here to help you with your home- a home that can be filled with memories, or a place where you want to create them.
As a broker goes through a checklist of things we look for in an agent, we have benchmarks for talent, intelligence, a workethic, a hunger for learning, and a motivation to achieve. Imelda is through the roof on all of them. Her local knowledge and savvy about the communities she serves is excellent as well. I’m not worried that the pressure of high expectations might make things hard for a person, because, for Imelda, pressure and even adversity are just a day at the office. She’s fit quite a bit of life in her young years, and I wouldn’t at all be surprised to see her among our top producers down the road.
You can reach Imelda at 917.386.3441 or email her at imelda@jphilip.com.
From time to time there is an issue with a transaction related to the inclusion or exclusion of a fixture, an appliance, or an article of chattel. For the uninitiated, “chattel” are furniture or personal belongings not attached the house, such as furniture, clothing or wall art.
When a property is entered into the MLS, the listing agent should specify what is included with the offering. Typically, fixtures are presumed included, as anything “glued or screwed” is. Most MLS systems have a label of “included” items under a category of…wait for it….”inclusions.” There is also a category to specify exclusions, and this is typically for items that might be presumed as inclusions ordinarily, such as a chandelier, or built-in shelving that the owner wishes to take with them. This isn’t complicated- if something is included, it conveys with the house. If it isn’t, it should be presumed not included, unless it is a permanent fixture.
Typical permanent fixtures are: lights, stoves, and oven ranges. Often ambiguous are window treatments and less permanent appliances such as window air conditioners, refrigerators and washers & dryers. Not ambiguous at all are furniture, barbecues, hanging pictures or art, and patio furniture.
I’ll summarize: If it is glued or screwed, it is presumed to be permanent and come with the property. If it isn’t glued or screwed, it should not be presumed. The buyer and their agent should be guided by the inclusions in the MLS details. If they are unclear, they should ask.
While this may seem like common sense, we have seen examples of unnecessary drama at the closing table over removed dishwashers, missing lighting fixtures, fireplace tools, curtains & shades, kitchen islands that were actually on wheels, window air conditioner units, and the list can go on.
Here is what a buyer and a buyer agent should NEVER, ever do: assume a non-permanent article of chattel is included simply because it isn’t specified as an exclusion.
Recently, we had a contract go out on my listing where the inclusions on the MLS were all kitchen appliances. The washer dryer were not in the inclusions. The offer specified that the inclusions were “per listing,” and the buyers attempted to add the laundry appliances to the contract. Their agent, who wrote the offer and the “per listing” verbiage, tried to argue that since the washer dryer were not specified as exclusions, that they should default to being included. In other words, they wanted to throw out all the other rules because the agent goofed. They did not prevail.
The takeaway: It is folly to assume a non-permanent appliance is included just because it isn’t on a list of exclusions.
One could argue that their buyer agent, who ostensibly was hired to help them get the best terms and save money, cost them more than $1,000.00 with that.
Silence is not consent. If a non-permanent appliance is not specifically included, never assume that it conveys with the house. It is the buyer agent’s job to make sure that everything is clear.
This past Friday, February 9th the firm had its annual award Gala at The Briarcliff Manor to celebrate a successful 2017. We’ve held the event annually since 2015, and the list of award recipients has grown as our collective professional acumen has risen. While I cannot do each of the dozens of recipients justice in one post, I’ll do my best to summarize the highlights of the celebration.
In all, 27 agents were Million Dollar Producers. That is roughly 1/3 of the entire company, and if you are familiar with the 20/80 rule (which is more like the 7/93 rule in our industry), it speaks well of our training and staffing. I can recall a time when we didn’t have 27 agents in the entire company!
5 (five) new agents could have been “Newcomer of the Year” in any other year but this one. I’ve written before about the rookie class of 2017 and it’s similarities to the NFL Draft Class of 1983, and I’m delighted to add that another five agents, but for their timing in joining us, would also be strong candidates. In addition to one Newcomer of the Year, we also recognized 4 additional Newcomers of Distinction.
The award winners are as follows:
Most Improved Production: Marcia Gordon. Marcia was last year’s Newcomer of the Year, and she improved her production over 300%. Staggering.
Teamwork Award: Kisha Riviezzo. The moment I uttered her name, the room erupted. That says it all. Kisha was nominated by Nancy Green, our Putnam County admin and oracle. That nomination should be framed.
Newcomer of the Year: Elena Kupka. Elena was a client in 2013 and was my guest at the dinner a year ago before the ink on her license was dry. I wasn’t surprised at her success, and I applaud her commitment. Elena has the electricity and positivity of a breadwinner on a mission.
Top Buyer Agent: Peaches Drummond. Peaches has earned high recognition in years past, and I’ll add here what I said Friday: She could be the top listing agent in 2018 too.
Production Excellence: Amanda Racek. Another repeat winner, Amanda just keeps piling on happy clients by the dozens and closing volume in the multi-millions. I have to pinch myself that a person of her caliber has chosen this company as her professional home.
Top Producer: Cristina Gameiro. Cristina had the most overall transactions and highest dollar volume, but more importantly, her clients and teammates all adore her. So do I.
Person of the Year: Tom Ricapito. The firm’s highest honor doesn’t go to the top number’s compiler (although Tom is a high achiever). That has never been our style. Being a leader, representing the brand with integrity, initiative, teamwork and many other things make the honor what it is. Tom was the first agent I ever hired in 2006. To say that I started off on the right foot would be an understatement.
In the “coming attractions” part of the dinner, I unveiled the release date of the new company website and back office. The intention to do this was announced at the prior year’s dinner, but we wanted to get it right, and I think we have. Not only will we have a fantastic, consumer-centric website, the agent back office will be a single sign on masterpiece that will have all the tools to manage their businesses under one platform’s umbrella.
I would also be remiss if I didn’t acknowledge that, for as big as our event was this year, the flu kept some very important people home, including Jenn Maher, my commercial and Putnam County partner. As smashing a success as the event was, it would have been more so with Jenn with us and not home nursing her daughter back to health from the flu. Happily, everyone is feeling better now.
Lastly: We danced.
I am humbled to be the leader for these many dozens of great professionals who do their jobs so well and build the brand on the foundation of happy, well-served clientele. I eagerly look forward to the rest of 2018 with this team.
Many thanks to Perry and the magnificent staff at The Briarcliff Manor for their dynamite service.
J. Philip Real estate is now closing more than a transaction every business day. The dust is still settling in tabulating January 2018’s final numbers. However, even with perhaps a few straggler status updates for closings we’ve had our best first month ever, with 27 sales for the 31 days of January. Given that the first quarter of any year is a result of what is often the slower 4th quarter with the holiday season cycle, this is extremely gratifying. I applaud the agents in the firm for their commitment and hard work.
With dozens more transactions under contract and reports of accepted offers daily, 2018 is off to a strong start.
This coming February 9th the company will hold it’s annual award dinner, and like years past we’ll recognize the agents in the firm that produced $1 Million or more in production. Just 3 short years ago, we had 7 agents who sold more than one million dollars worth of property. This past year, that number has grown to 26.
Inasmuch as we have aspired to attract and train productive agents, it is even more important that the consumer experience is just as positive. There are two intuitive metrics for client satisfaction: repeat business and referrals, and online ratings. Happily, the number of referral driven business that has built the brand over the has increased as our closings accumulated. Also, online ratings,which I used tokvetch about, are stellar.
When Zillow first introduced consumer ratings for agents, I was afraid that they would be deficient in credibility; competition gaming the system, irate consumers and competitors posting bogus flame reviews were concerns. Zillow, to their credit, has done a good job in vetting ratings and, while still not perfect, it’s hard to deny the success of the initiative.
Onmy own team’s profile, we have over 100 positive reviews and over overall rating is 5/5.
So, I am happy that our sales volume has grown. But I am ecstatic that our ratings are stellar and that we continue to have past clients entrust us with their loved ones.
The adage goes that in real estate, Spring starts January 2. The holidays are behind us, and in order to be in a new home by the summer, prospective buyers need some time just to find the right place and then 2-3 months more to close. Home shoppers are out as I type this, making inquiries, touring open houses, interviewing buyer agents, and familiarizing themselves with communities. I have a few takeaways for sellers to consider and take to heart.
Don’t wait until the flowers bloom in April to list your home. I know the landscape is barren now and the place looks prettier when the hydrangea and rhododendron are in full bloom, but the same goes for every other home in your market. The first wave of buyers are under contract by April or May, and that first wave is the most motivated. Every other house in Westchester and Putnam doesn’t have their landscape in full bloom yet either.
There is low inventory, which is an opportunity. In many communities, if you list you have sparse competition and a high amount of pent up buyer demand. This is a unique period, and if you want to sell you should take advantage of it.
Don’t sweat the law changes. The tax laws do affect New York properties more than other states, but that does not mean ownership is less desirable. No one buys a primary residence property solely or a write off. You “can wait and see” while on the market with a robust buyer demand we currently enjoy just as easily than if you remained off the market.
In a vacuum, tax law changes may suppress property values, but we aren’t in a vacuum, we are in a time of high demand and low inventory. If you’d like an estimate of your home’s value online before taking another step, we have just the help for you withour online value feature.
I always want my firm to be chosen, and that doesn’t just go for consumers. It also goes for licensees who are looking for the right brokerage at which to build their practice. So you can imagine my happiness when a past client joins us as an agent. That’s exactly what happened when Geraldine Bien joined the firm. Geraldine was a client of our own Tom Ricapito, and in the two years since she closed on her home, they remained in touch. When she was considering a brokerage to join, Tom encouraged her to talk with us. It was a counter-intuitive move, as we aren’t in her zip code, but when we spoke and I had the chance to share our digital footprint, we were simpatico.
People get into the business for different reasons, and they aren’t always the right ones. Sometimes, they actually have a great rationale for entering the industry, but they fall short in planning their strategy. I sometimes see deficiencies in both motivation and planning. With Geraldine, however, I see both a plan and a big Why. In our discussions, her focus was almost entirely consumed by a curiosity in how to make this work for her clients and how to get off on the right foot with her particular skill set to do the best job for them. I love that.
Prior to making the decision to join us, Geraldine attended some training meetings and got a feel for how we work and what kind of support we offer our associates. These meetings aren’t commercials; they are work sessions, and sometimes they can scare people away. Not Geraldine- I think they are actually what got her to choose us.
So who is this smart, motivated person?
Geraldine hails from New York City, as many Westchester residents do. Educated with a bachelor of Fine Arts at Bard, she elected to move to the suburbs (or the country, as she jokes) for the fresh air, educational opportunities for her kids, and the Hudson River town lifestyle of nature and people in love with the community. No stranger to real estate, she’s restored multiple properties in Brooklyn, where she hails from, and loves older architecture. Look for her blog soon, which will be at upintheburbs.com, as we both continue to plot out her course. I am certain that anyone working with Geraldine can expect excellent advocacy, empathy, top-shelf professionalism, insight and fantastic results.
To reach Geraldine, just call 917.435.4720 or email her at geraldine@jphilip.com.
As a kid growing up in Ossining in the 1970s and the long shadow of Urban renewal, I had a first row seat to the decline of Downtown Ossining. The stately old buildings that punctuated centuries of progress, commerce and history were reduced to a crumbling, blighted row of vacant shells. Sadly, in the clearing of some of those old buildings, what would now be considered treasured, one-of-a-kind structures became piles of rubble, then parking lots. Fire reduced some to fenced off fields. It would be that way for decades.
I left for college in 1985; in 1988 or so I got a part-time job on a semester break that made me fall in love with the nooks and crannies of this village: pizza delivery. Beyond the crumbling downtown were miles of neighborhoods, some in the shadow of Sing Sing prison, others up the hill with breathtaking views of the Hudson. The lights of the river towns across the river framed a picture that seemed like I was a speck in a 3-D Hallmark card. The image remained with me as I lived off campus at Villanova in Pennsylvania, to work transfers to Boston, New Orleans, Maryland, New Jersey, and finally Rochester NY. Whenever I visited my mom I’d see the same dichotomy of a struggling downtown and a surrounding village with strikingly charming architecture. Ossining was grappling with more than a downtrodden Main Street, however.
The school system was transitioning to the “Ossining Plan,” a spectacularly successful initiative to replace segregated neighborhood elementary schools with all kids in the same grade together in one school. It made a huge difference, and the race riots at the High School in the early 70s now seemed like they occurred in ancient history.
When I moved back home in 2000, Downtown was still a mess and administration after administration strove to support the area to reach a critical mass of progress. Happily, downtown Ossining in 2018 (The same can be said of the waterfront, but that is another post) looks nothing like it did even 10 years ago, and this past summer I was honored to serve on a working committee of residents to submit to the public our collective proposals on how to ride that momentum. The Ossining Downtown Redevelopment Working Committee met for about 4 months and madethat presentationat the Library this past Summer.
After that experience, I was made aware of an opening on the Village’sHistoric Preservation Commission. I applied for membership, and was accepted. The charge of the commission, according the village website is as follows:
The Historic Preservation Commission (HPC) hears applications for and recommends the designation of landmarks and historic districts to the Board of Trustees; decides upon Certificates of Appropriateness; and hears applications for and recommends to the Board of Trustees donation of façade easements. Additionally, the HPC may advise owners of historical buildings on issues of restoration and preservation; advise the Board of Trustees with respect to the acquisition of a landmark and/or structure, etc. The duties and responsibilities of the HPC are set out in Section 270-25 of the Village Code.
As dry as that sounds, was an honor to sit at my first meeting and get a feel for the ethos and passion of my fellow appointees for the exceptional history and architecture of this place. It’s been over 30 years since I first drove down a village street that was new to me, overlooking the Hudson at twilight with breathtaking beauty, just to deliver a pizza to someone who enjoyed that view in a gorgeous old home. It makes me happy that downtown is a place where I can go to eat or shop, and that the blight is a thing of the past. I love that the village has fought the good fight on so many fronts. There are thousands of reasons why I love this place and chose to remain here when I could have lived elsewhere, but this is where I want my roots, where my children are educated, and where I will remain.
I was interviewed onNews 12 this past Sundayon the “mansion tax,” a 1989 law that adds a 1% tax on properties sold for $1 million or more. In 1989, one million dollars probably did but an actual mansion, but in 2018, in a county with a median home value pushing $700,000, it doesn’t. This is problematic, and adds a dynamic and burden to middle class home buyers and sellers that was supposed to be shouldered by the most affluent.
I’ve seen homes -not mansion, homes- valued around $1 million have the price negotiations hijacked by who will pay this tax, and sellers intentionally price their property under $1,000,000 to avoid the headache. If a home is worth $1,050,000 that is an artificial externality that middle class people should not have to deal with.
There is a push to raise the threshold to $1.7 million, with adjustments for inflation annually. This strikes me as prudent, especially in light of the harm the current arrangement causes New York when consumers have more friendly conditions just a few town away in Connecticut and New Jersey.
While the tax does generate billions in revenue in Albany, a sensible adjustment would make living in New York more attractive, help New Yorkers, and keep our state competitive with our neighboring states. In that sense, a rising tide would raise all boats.
[Note: This is a draft from 2015 but I thought it worth publishing. Some think a buyer’s letter to a seller is a smart move, others don’t. I think it has everything to do with what’s in that letter. This is an example of perhaps what not to write, borrowed slightly from one that was with an offer once. The buyer was not our client. ]
Dear Home Seller:
You have not lowered your price sufficiently to satisfy our desire to subjugate you to our will, so we thought we’d dazzle you with the beauty of our family in an effort to make you forget math. Our names are Cornelius and Contessa, and we live with our son Aristotle and our exotic breed dog, Loki.
We’ve been looking for a second home to unwind from our Manhattan apartment (elevators, doormen- sheesh it can get crazy, right?) for several years and you are about the 7th homeowner we’ve engaged. Yes, it was a severe buyer’s market when we started out and it is now more of a market favoring the seller, but we press on. Fortune favors the bold, right?
As you can tell from the attached pictures, Contessa’s uterus is in fine working order, and Cornelius’s semen is teeming with strong swimming, fertile spermatozoa. That’s how we got Aristotle, and we like to photograph him with Loki in whacky situations. We hope you like the one attached. We also like to take selfies in exotic locations with palm trees in the background (see attched). As you can certainly relate, we’re just like everybody else, that is, if “everybody else” is a a college educated, dual profession family from the Upper East Side who set a life goal of a second home before the age of 40.
We want to make it clear that we really, really love your property. Not enough to offer you anything close to asking price or even your latest aggressive counter offer, but we love it all the same. We can see ourselves sitting on your deck, sipping Moscow Mules, feeling superior about how we rammed our negotiation position down your throat. We can totally see ourselves entertaining our friends from Manhattan in that living room with the fireplace roaring, deftly avoiding direct answers about why we didn’t get a place in the Hamptons (ker ching, right?).
Anyway, we thought that sharing our obtuse conceit about how photogenic we are would sway your attachment to your bottom line and get the show on the road so we can close this thing before we hit our time share in Aruba this August. If you, like us, agree that we are utterly clipart beautiful and are entitled to your property at a sufficiently discounted price, please just do the right thing.
Some “welcome” posts are more fun than others. This is one of those, because I have known this person for a number of years and have always like her.
Please join me in welcoming Shaun Manning to J. Philip Real Estate! Shaun is part of the “Class of ’83” group I referred to in myState of the Firm postrecently when I was marveling at the high caliber of newcomers that joined the company in 2017. I met Shaun in BNI in 2014 and was always impressed with her professionalism and cool demeanor in the face of adversity. An upstate girl who hails from Cobleskill, NY, she knows plenty about being cool.
When Shaun first spoke to me about getting her real estate license, I immediately kicked into recruiting mode, which may explain why she started out at another brokerage. After a year in the business and getting her industry sea legs under her, we revisited her association here, I tried to not act so excited, and her first months with the firm have been punctuated by strong activity and even a $1.4 million dollar listing. These things are no accident.
More about her background: From Cobleskill, Shaun attended SUNY Oneonta where she earned a dual Bachelor degree. She then moved to New York City and worked on her Masters at NYU before spending the bulk of her career in the financial sector, working as an analyst for 20 years. Wall Street will teach some things, and, among them, Shaun learned that she’d rather work closer to home. So, by her own count, with one husband, two sons, a dog and three cats, she did indeed pursue various marketing positions near her home in Somers before getting her license.
Since joining us, Shaun has busily been filling the pipeline with accepted offers, a gorgeous upscale listing, and had a number of buyer clients hire her who should be closing earlier in 2018. Ever the go-getter, Shaun has also taken advantage of the license reciprocity between the two states and gotten her Connecticut real estate license as well, so Fairfield County peeps one town over, she can help you also!
To reach Shaun, just call 347.612.9825 or email shaun@jphilip.com.
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You learn quite a bit about people when you see how they handle it when life throws them a curveball. For Liz Koski Jessup, who I am delighted to introduce as one of our newest associates, meeting me was one in itself.
$649,000 just bought a great 5 bedroom 3 bath Chilmark colonial like the one we just closed on Meadow Road.
From time to time there is an issue with a transaction related to the inclusion or exclusion of a fixture, an appliance, or an article of chattel. For the uninitiated, “chattel” are furniture or personal belongings not attached the house, such as furniture, clothing or wall art.
As a kid growing up in Ossining in the 1970s and the long shadow of Urban renewal, I had a first row seat to the decline of Downtown Ossining. The stately old buildings that punctuated centuries of progress, commerce and history were reduced to a crumbling, blighted row of vacant shells. Sadly, in the clearing of some of those old buildings, what would now be considered treasured, one-of-a-kind structures became piles of rubble, then parking lots. Fire reduced some to fenced off fields. It would be that way for decades.
The Real Estate Ethics Rule that is Broken the Most ( and It Isn’t Even Close)
The REALTOR Code of Ethics Standard of Practice 3-6 states the following:
This has been the rule since Reagan was president. I was 18 when it was instituted (I am now 51). Cleveland had been selected as the site for the Rock and Roll Hall of Fame. The top pop song was Greatest Love of All by Whitney Houston. It was a long time ago. We should be good at this disclosure.
We still screw it up, all the time.
This past week, one of our clients, who was interested in a complex for some time, made arrangements to leave work and meet our agent at a newer listing. There was an accident on I-287 that day, with a gasoline truck catching fire. The client fought the traffic and made the showing, as did his parents. It was Valentine’s Day- they could have stayed home or gone out together, but they wanted to jump on this deal. The agent went through all the protocols to confirm availability and confirm the showing, met the client there, and submitted a strong offer, presuming that even it it were accepted, there would be competition for such a plum place.
Upon receipt, the listing agent wrote back that the home had gone to “highest and best” earlier that week, and already had an accepted offer. The agent further claimed that their automated system had the correct status (it didn’t), and that if we didn’t know there was an accepted offer, why did we submit such a high number (irrelevant)?
To summarize: The client hired our agent, got pre-approved, watched the market, made arrangements to see a property, stood on their head, collaborated on an offer, and got, in return, frustration from a listing agent that relied on a system that was inadequate 20 years ago.
This happens
All.
The.
Time.
Moreover, as I explained, it is worse in the New York metro market because we take far longer to execute contracts than any other market, leaving too much room for error.
The Hudson Gateway MLS, a fine organization for which I served as president in 2014, recently posted the following bulletin for all members earlier this month:
HGMLS statement on disclosure of accepted offers, February 5, 2019
While I agree that agents should disclose the existence of an accepted offer in the agent remarks on the MLS, that is not a binding rule nor is it sufficient enough to protect the consumer or cooperating agents in 2019. The listing in question above had no such update. I have belonged to 10 other systems, and the vast majority have an actual status change (which is to say, not “active”) where the accepted offer is in place and, in some markets, if they are continuing to show or showings are ended. HGMLS does not have such a function, and I respectfully think they should. But absent that status change, it is the listing agent’s job to ensure that disclosure is made, and we fail at it all the time.
You might ask why agents would be lax about this. There are several reasons. First, not having an MLS status change as other markets do contributes culturally. Agents also have a vested interest in keeping a listing active as long as possible, because when you have a listing you have a means of attracting buyers. This can veer toward “bait and switch” at times. Leaving it up to automated appointment applications invites human and machine error. Regardless of the reason, innocent error or intentional deceit, it is against the Code of Ethics, and it happens absurdly often.
Ethical violation sadly happen all the time. Agents print ads or send mailers that have compliance issues. Agents call other agents and don’t disclose their licensure. Misleading claims about market share abound (perhaps unrelated-the city of White Plains has no fewer than three firms claiming to be number 1, with varying metrics that make heads spin, all within the rules). Some infractions are more benign than others. But the failure to disclose an accepted offer is by far the most frequent I see, and I see nothing from the MLS or broker community at large that tells me we’ll tackle the matter in the foreseeable future. That is unfortunate, because we are better than that.