I have been asked in recent months about the market for building lots in Westchester County. While I am far from a high transaction land guy, I’ll tell you what I do would if I had a double lot, an adjacent building lot to my home, a spot lot nearby, or a small parcel that could be developed with a house or two. 

I’d keep it.

That’s what I’d do. I’d hold on to it until more development made values higher. It doesn’t make me money as a broker to advise people not to sell, but if you don’t need to sell your land, why you let it go when the market has gone so low? 

If you have a small lot that a spot builder could build a spec house on, the market value of that land is far lower than it was a few years ago when they were gobbling up every available parcel. No one is gobbling anything right now except in a few choice, exceptional areas. 

Here’s the method to my madness: If you are paying taxes of $500 a year on a vacant lot that you might only get $150,000 for, why wouldn’t you hold on for when the market recovers and you can command a better, higher price when builders come back to the table? Land doesn’t have the same appreciation curve as homes, and the fact that we can’t just go make more of it gives it a specific scarcity that plays to the advantage of those that have the land once the recovery is more sustained. 

Even if you held on for another 5 years, that is only $2500 in carrying costs for a price that could be 10, 25 or even 50 thousand higher than what you might get today. What instrument exists where you can pay $500 in annually and make 5 figures in 5 years? Am I being overly speculative? I think not, I see people pay $2500 for minor improvements to make a home ready for sale with no guarantees. Land doesn’t have tenant headaches, you don’t have to fix leaky toilets, plow driveways, or put up with loud music. You simply pay the taxes until the market improves. In the scheme of things, it is incredibly low risk if you don’t need to sell. If you need to sell, then you have to take what comes, naturally, but if you don’t have to, you are in the driver’s seat. As Will Rogers said, God isn’t making any more of it, certainly not in Westchester. 

Karen Crowson wrote a thought-provoking post asking whether it was a good idea or not for buyers and sellers to meet before closing. In spite of many examples of my own transactions where buyers and sellers did hit it off well, my vote would be “no.” There are two main reasons. 

1. Potential for conflict. 
2. Sellers can’t sell. 

Potential conflict is a huge problem and should be avoided. So what if the principals meet and like each other? The deal closes. It was supposed to close. So there isn’t an advantage that I can see, but huge downside potantial. As I type this, I have a seller client in her driveway with her arms folded, watching her buyer, who closes next week, load his belongings into her garage. The pre-possession agreement didn’t specify where the stuff would be stored, but she agreed to the basement. The buyer, who is acting like the house is his already, is putting her off with his attitude as he piles his belongings in her garage. We should have insisted they put their stuff in storage for a week- but buyer and seller spoke, and that was that. Now my client has boxes of her things in the same garage as her buyer’s possessions. Not good. 

On another transaction, I represented the buyers buying a home from retired sellers who were present for all showings. The owner breathed down our neck every visit and didn’t know how to shut his yap. Toward the end of the process near the closing, we needed to get back in to walk contractors through. He wouldn’t let us. Why? We “stayed too long” in previous walks through the house. Ridiculous. 

Sellers can’t sell. Some sellers think they can sell. And they know the house best. But that is often the booby prize. I listed a house once where the buyer agents would call or email me with bizarre, arcane questions on the structure of the house-qustions about the stucco siding, the crawl space sealant under an addition built 50 years ago, and weird stuff like that. We the sellers present for showings? Yup. And they were non stop chatterboxes about every physical detail of the structure with such granular detail that the buyers heads were spinning when they left. Instead of asking themselves if the place felt like home, they’d ask themselves if they heard my clients right about the date the windows were installed, if the attic insulation was R-30 or something else, and so forth. 

Information overload doesan’t make a place feel like home. It kills sales. I know sellers want the showing agents to be jumping up and down “selling” and “pushing” and “closing” but it doesn’t work that way. A house is the largest transaction of a lifetime. It isn’t jewelry or a car. If it doesn’t feel like home, no detail in the world will matter. If it does feel like home, then buyers will make the best buying signal I know: They’ll ask questions. And that is your chance to show your peacock feathers- through your agent. 

For these and many, many many other reasons I have personally seen in my 16 years in the industry, I am for buyers and sellers working through their brokers. It is the best way, it minimizes exposure to risk, and it gets homes sold. 

We held my listing at 8 Harwood Ave White Plains open yesterday, and I thought I’d take the opportunity to create a walking tour of the home, a marketing strategy which has been getting good feedback for me lately. I have blogged recently about the better results I have been getting at open houses; this was no different. I was greeted by a cooperating agent who presented an offer to me at the open house, which I have never had happen in 15 years in this industry. 

As it stands now, we have three offers on the property. 

The tour is one take and very informal; the point is to give you a feel for what it is like to walk through the house, not have high production values or be overproduced. That said, I think future tours will be steadier and easier to watch- the project is a work in progress. I’d redo this one, but I think it won’t be needed after this week. 

Both homes that I have produced walking tours of this past week have had offers come in. 

Imagine you are in real estate. If you are reading these words, not a stretch. Now imagine you’ve busted your buns long enough to start your own firm, like I did after 17 years. You decide you’ll name your firm after something very personal about you- let say your dog. Not a stretch, right? I had a dog named Bella, which means beautiful in Italian. So You decide you’ll call your firm Bella Homes (if the name is taken-which would be ironic-, please work with me) and you work hard and build your enterprise honestly and ethically.  

Now, after 5 years of business, you look around and not only is your firm successful after the miserable economy we’ve expereinced, but you are also the author of a well-known real estate blog and you enjoy the respect of your peers. 

Then, you get served with court papers. You are getting sued. Why? Because someone on the other side of the continent who doesn’t broker real estate but markets to agents also named something that they do “the Bella Report.” And these characters are claiming you have damaged them by knowingly and mailiciously stealing your brand. Frivolous? Yes. Expensive and time consuming? Absolutely. Harmful to you? No doubt about it. 

This is pretty much what has happened to the Real Estate Zebra, Daniel Rothamel, by some outfit on the west coast whom I won’t even name because they don’t deserve the search engine tickle. They have a report named after the aforementioned 4 legged beast ( which wasn’t even Daniel’s source-he was a referee for $%^& sake) which you have to register to get in your email. 

This is a good man who is being attacked ad hominem by my understanding, with no rationale basis for a complaint other than billable hours by some hack attorney – that’s my take, and if they don’t like it they can piss in the wind. 

Jay Thompson has written a far more cogent summary of the matter on the Phoenix Real Estate Guy, and a legal defense fund-ZebraDefenseFund.com – has been set up. I wanted to bring this to the attention of the Active Rain comunity. 

As Jay said, if you can contribute, do so. If you are short on Scratch, blog about it. 

Stand up for what’s right, and defend a good colleague. The Real Estate Zebra is one of my favorite blogs, has been in my reader for years, and I’m not going to be silent about it. 

I posted a photo of a pie I got at Grandma’s earlier this week and got over a dozen comments that gave me a collective sense of cyber salivation. With good reason: Grandma’s makes the best pies around. They have been in business for decades and have quite a following. 

I first learned of Grandma’s last year when Luke’s cub scout pack went on a trip there. We saw the kitchen, bakery, “back of the house” kind of stuff, and how they made their delicious, homemade pies, then we all had dinner and…what else? Pie. 

It is a family restaurant with a menu that is thouroughlyy American fair; think of a bistro if June Cleaver were the chef. They have a private parking lot, close proximity to the Taconic Parkway (Grandma’s is closely identified with Yorktown; however, the address is actually Cortlandt Manor), and the place is clean and friendly. The first thing you see when you walk in is that glass counter with all those pies, and that is great marketing. Hungry people buy more at a restaurant, right? 

I was by recently for a “quickie” a cup of coffee, a hunk of fresh, warm apple pie, and then I left with a pumpkin pie to go. The total damage was $19.00 and it was worth every penny. 

Grandma’s is located at 3235 Crompond Road in Cortlandt Manor and they can be reached at 914-739-7770. 

It won’t go to print until this Sunday’s paper, but the article that I blogged about expecting is now live online. Entitled “A For Sale Sign with Brains,” the piece discusses how real estate brokers are embracing technology to sell property. The story behind the article is actually not one of the reporter finding my blog, but rather, another broker at another company who is.

Barry Kramer, broker owner at Westchester Choice Realty and my friend, was contacted by the reporter and he suggested that she contact me because he considered me a tech savvy agent. She did. We had a good interview where I told her how I saw our technology toolbox evolve since my entry into the business in 1996, and the photos were taken two days later. 

For the shoot, a filmed a walking tour of the home at 374 Quaker Road in Chappaqua, put it on Youtube, and then, on my mobile printer, created a brochure with a QR code that would connect a smart phone to that Youtube tour. This would enable the consumer to see the house and get questions answered without having to make a phone inquiry. I am in the process of doing more of these walking tours on other listings. They work, as the listing where we did this tour has already been given an offer. 

The piece has three photos of me in the online version, plus a great one of the house, and we’ll see what makes the paper Sunday. I am of course very humbled that Barry would suggest me to the reporter, and while I still encourage Barry himself to blog because I think he’d be great, I am happy he reads my work. 

I got a call today from an agent who claimed to have an interested buyer in one of my short sale listings. I informed him that all offers, per the instructions of my seller, would only be considered if they were in writing and accompanied by a pre approval letter or proof of funds. He used this as an opportunity to throw a number at me that the bank would never approve- so low that to tie the house under contract at that number would be irresponsible. 

He proposed the idea of having buyer and seller sign a contract, but to keep the house in “active status” on the Multiple Listing Service. “What would stop us from doing that?” he asked. My answer? “Well, aside from the Code of Ethics and the Department of State, not much.” 

He then dropped the name of an MLS official whom he thought would endorse the idea, but as Vice President of the MLS, I knew that he was barking up the wrong tree; the name he dropped was the guy who manages data, not the gentleman who oversees standards and practices. 

I called the Standards and Practices person myself as soon as we hung up and he confirmed that to sign a contract but to not disclose the “contract” status on the MLS-even if the principals agreed- would be a breach of article 12 of the Code of Ethics where we are bound to present a true picture of the facts.

Imagine being a buyer and seeing a house you liked, making an offer, proceeding with inspections and then finding out the owner signed a contract months before and was playing both ends against the middle waiting for a short sale approval. How would you feel?  Furious? Used? Deceived? All of the above?  

Shady business never makes for a sunny life. And if you are dumb enough to propose unethical conduct to someone without knowing who they are, you aren’t long for the business. 

Google is a funny thing. 

If I am logged in certain websites, that content will show up in my google search results. If I am on a different computer, it shows different results. If I google “Westchester Realtor” on my own computer, I am something like the 4th or 5th organic hit. If I go the public libarary and google the same term, I am on page 5. The reason is for another post- the point is that Google will show you the results it thinks you want to see. That’s why Google has managed to become a verb in a few short years in addition to a proper noun. 

Every so often, I see new Active Rain members churn out copious content. 50 posts a month. 300 posts a month. Targeted, hyper local, and specialized. 

Oh, and useless.

Know why? Because it is “members only.” The bloggers haven’t got Rainmaker accounts. The only people who can see their content are other Active Rain Members who are logged in. But that doesn’t stop them from churning out those blog posts, complete with “contact me!” links all over the place. I once emailed a guy and asked him why he made 300 members only posts, because they are invisible to the public. “They aren’t invisible!” he responded. “I am way high on Google!” I wasn’t in the mood to argue- he was in the results because he was logged in.

The last time I checked, a Rainmaker upgrade is under $400 a year if you pay up front. How many of us have blown 5 times that much on a stupid marketing campaign- newpsper-radio-banner ads-lead system- and not gotten any return on the investment? The return on my investment is sick. 

Read this email:

I sold that guy a nice house last year. We remain in touch. He was a serious buyer and he was looking online for help.  

Last Spring I got a call from Craig Rutman. There was a bank owned foreclosure in my town that the asset manager needed a local agent to sell. I listed it and sold it, Craig got a referral fee, and it was all due to this platform. There were other referrals too, but how many of you would like to get an REO? I had one fall in my lap. 

I hired 6 agents last year thanks to my blog. All are with the company and active.

My blog has gotten me on ABC World News, the New York Times, the New York Post, Time Online, AOL, and about half a dozen other prominent outlets. I’ll be in the New York Times again very soon-photos are already taken for the story.

When I attend board meeting for my MLS, I am often approached by staff and colleagues about something I wrote that interested them. The president of the MLS was very complimentary about my post on flat fee MLS.

My blog is my newsletter to past clients. It is a recruiting tool. It is a powerful prospecting and marketing system. It has raised my stature in my community. It has been instrumental in probably 30 or more transactions.  

And all because 95% of my posts are public. I have a Rainmaker account since early 2009. I pay monthly like anybody else and I am putting myself out there, publicly. And I am getting noticed. Yes, I work hard at it, but I get found-agents, referrals, media, new clients, you name it. 

If you are going to work hard at blogging, don’t keep it a secret. You are going to get far more bang for your buck if you broadcast those posts on the public stage. You might get a referral or a good idea here or there if you don’t upgrade, but you are missing the best stage. As far as I’m concerned, if your posts are “members only” you are just singing in the shower. It doesn’t matter how good you are, you get no applause. 

I’ll see you are Raincamp in Atlantic City this April.