This is another reblog on a similar topic....Buyers need to understand that if they like the property, chances are someone else likes it too. Yes, there are deals to be had in NY...But the "deal" is already baked into the cake. You've got prices that are down 20-30% and mortgage rates to die for! Looking for 40% or 50% isn't going to work. If you get the seller mad, they will just go elsewhere. Prime properties in prime locations and in prime condition sell for market value. The same holds for short sales. Do you seriously think you can take on a big bank and get them to sell to you at 10% below market. Not happening.
Bottom line, know what the values are make realistic offers. Crazy low offers won't work unless the home you are bidding on is a fixer-upper with TON of deferred maintenance. Meanwhile, someone else will come along and buy it right out from under you.
For the sake of Negotiating..... Lessons of Feet Dragging - yes, even in a Buyer's Market.
So, I've experienced the Lessons of Feet Dragging, Negotiating and Dragging just for the sake of Negotiating. It is not fun to witness buyers wanting to haggle just for the sake of haggling.
In the end, when the counter offer is not accepted and a new offer is introduced into the picture, it would be very disappointing when you lose the house, the house you've been talking about and the house you've been spending your time visualizing in.
So many times I wonder why buyers cant be serious? What could $2,000 mean in a $200K transaction or better yet, $2000 in a $500K transaction? Is it worth haggling?
ABSOLUTELY NOT! After evaluating the pros and cons of going back to the sellers for a tiny pricehaggle, in the grand scheme of things, it will not make a small pinch in the monthly payment,
WHY OH WHY DO YOU RISK ANOTHER OFFER COMING INTO THE PICTURE?
Do you know until it's signed and executed, you - the buyer is still vulnerable and that you have not secured anything yet.
And agents, don't come back to tell me how your clients will now pay the price they originally agreed on. It may be too late. The seller may have signed and executed the other offer. The seller may be upset about the haggle, the seller wants to deal with the other non-haggling buyer.
I've personally experienced 2 back-to-back negotiations where buyers lost because of Negotiation for the sake of Haggling.
This is a great post about seeing the "big picture." I'm seeing many buyers and sellers shooting themselves in the foot over very small amounts. When both sides dig in their heels, everyone loses.
For buyers, it seems as if they are looking for steals not deals. But we don't have that kind of market. Even when its a short sale, the bank insists on getting market value. If you think you are going play games with a large bank ....and actually win, then you are in for months of frustration because it is not going to happen.
Sellers often need every dime out that they can get, but if your market is declining, then there comes a point where you have to cut your losses. Also, statistics show that the longer your home is on the market, the less you will get.
Hold out for a good deal, but getting stuck on an a $500,000 transaction over $5000 is counterproductive. When that happens, it is in the best interest of both parties to break the stalemate and get the transaction moving again.
Why Are Buyers and Sellers Willing to Shoot Themselves in the Foot Over Relatively Small Dollar Amounts?
This was a question I was asked by a close friend of mine the other night. I was recounting the tale of another negotiation between buyer and seller gone wrong. On a home in the $400,000 price range, they were stuck over $5,000. This is something I am used to seeing, so I guess I consider it normal. Not being in real estate, she just laughed and went on that if you are spending that much money, what's another $5,000?
If you were negotiating to buy a home, at the market interest rates we are seeing in early 2012, you are essentially arguing over adding another $30 a month to your mortgage payment. A mortgage payment in the $400,000 price range with a 5% or less down payment would almost certainly have you well into the mid-$2,000's for a payment. So what's another $30? Is it worth losing the home over?
Sometimes you have to stop the back and forth that gets you in the mindset of "winning" and look at the big picture. And the big picture will often include looking at the monthly picture. Are you really winning if you lose your dream home over $30/month extra in your mortgage payment?
Make logical decisions based on facts when you are negotiating for your home purchase. Don't get caught up in feeling like you have to win. That's a dangerous mindset from which to make decisions when it comes to buying a home.
Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155. To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com. Or you can visit her website: www.nvarealestate.net.
Header is a photo of Braemar in Bristow, VA during one of the blizzards of the 2009-2010 winter season.
Yes, I know – everyone is gearing up for the Superbowl. But there are many who would like to share in outdoor activities this weekend.
For the past 8 years the Hudson Valley has celebrated the renewed presence and vibrancy of our national bird in the Hudson Valley. Many are too young to remember, but in the 1970s the American bald eagle was an endangered species. Now they are thriving and I have witnessed their presence on more than a couple of occasions. The photo at the right is one I took at Kingsland Point Park about a year ago. Apparently, the majestic soul in the portrait was watchful but not fearful of me or my telephoto lens….But the photo shows that my presence did not pass unnoticed…he was well aware of me and watching my every move – with his eagle eye!
This post is more than a bit tardy – and for that I apologize. The bus tour is sold out. However, there are still ways to participate and learn more about some of our most majestic birds of prey.
The event is hosted by the Teatown Reservation but the epicenter is at Croton Point Park – There are many ways to participate:
Eagle Theater Schedule:
10 AM, 11AM & 12 PM - Close Encounters with Wintering Eagles and Owls
1 PM, 2 PM – Exclusively Eagles
3PM – Flight of the Raptors
Advance Ticket sales are $5.00/person and $10/person when purchased at the door.
Eaglet Stage Schedule:
These shows are free of charge!
9 AM – Eagle Identification Tips
10:30 AM & 2:15 PM – Jonathan Kruk – Master story teller
12 PM – Teatown Birds of Prey Program
12:45 – Physics of Flight – Beyond Feathers
1:30 – Birding Optics
Additional eagle viewing sites along the Hudson River…
Each area is staffed by eagle experts with spotting scopes.
What would the Superbowl be without the crazy hats? I mean really – you gotta have them…Well the Larchmont Library is going to make things easy for you! They are hosting a hat-making event on Saturday – Feb. 4 for kids aged 7 and up…The event is free and the time is 10:30 AM
All buyers looking at Westchester condos for sale know about the Ritz Carlton of White Plains NY. Among White Plains NY Condos for sale the Ritz Carlton is at the pinnacle on the luxury scale. Just a block from City Center (1-5 Renaissance Square) the Ritz Carlton is at the center of everything. Getting much closer to the center of town would be difficult. You can easily leave the car behind and walk to shopping, fine dining, entertainment and the train.
Buying the Lifestyle – Not Just the Home!
In addition to the convenience of being steps from just about everything, there are plenty of amenities to keep you right at home. There is a lounge, a fitness center which is very complete. There is also a spa, a pool and media room as well as a terrace. There is room service through the hotel as well as maid service. A jitney whisks commuters to the Metro-North Train Station which is about 0.5 miles from the complex. Everything is close at hand and very convenient.
The Ritz Carlton Residences of White Plains NY:
The floorplan is open and the floor to ceiling windows expose magnificent views of the Long Island Sound or the Manhattan Skyline. The kitchens are open and boast walnut cabinetry and Viking appliances, including a wind fridge. The master bath has Aurora Rose Marble throughout and Kohlar fixtures. There are walk-in closets with custom storage systems in the Master BR. Ceilings are generally 9 ft in height giving a feeling of added space with 10 ft ceilings in the penthouses.
The Ritz Carlton – White Plains NY – Pricing and Sales History:
The official opening of the Ritz Carlton could not have happened at a more inauspicious time for the Westchester Housing market. The complex opened at the end of 2007 – just as the fall out from the sub-prime loan debacle was hitting the fan. Sales were sluggish though the sales volume indicated my figures are artificially low since like most new construction – most sales though done through agents dose not end up on the MLS. Prices actually inched up during 2008. But once the financial crisis of 2008 and the stock market crash happened – prices started to fall – reflecting the rest of the market.
The chart below depicts the pricing patterns for 2 BR units at the Ritz from the time of the construction of the first tower in late 2007. The red bars depict the market before the crash in 2008 and the green bars reflect pricing in the years following. The median sales price is down about 38% from the highs in 2008. Some very high-end units made their way into that mix in 2008. So in an apples to apples comparison, the prices are down about 25-30% depending on the type of unit. Over the past 18 months prices have held steady and have even edged up just a bit.
Right now this is not a buyers market paradise. Sales volume is up 35% from 2010 (from 13 to 20 units sold) which is a good indicator or a recovery in progress. Buyers need to get real. I’ve been getting a lot of lowball offers at the Ritz and Trump. Its not that kind of market. Buyers already have 25-30% savings baked into the cake and a stable market. You are still getting a great deal. But pushing the envelope will not fly. Sellers can get market value and do not have to entertain lowball offers.
Sellers need to be realistic. It will be a while before they see the heady prices of 2008. If you need to sell, bite the bullet. Don’t wait for prices to move up 25-30% – it could be a very long wait. Nevertheless, if your unit is in good condition, you can expect to get market value for your unit.
Larchmont homes zoned for the Chatsworth Ave Elementary School feature the best of what a Westchester bedroom community has to offer. Homes in this particular school zone cover two distinct neighborhoods.
Homes in the Village of Larchmont:
Homes in the village of Larchmont feature tree-lined streets and pre-war homes packed with Old-World charm and character. They range in style from rambling Victorians with wrap-around porches, graceful colonials and impressive Tudors. Typically, the homes in the village sit on smaller lots, though there is still a feeling of space and privacy. These are mature neighborhoods with old-growth which adds to a sense of privacy.
Convenience is a very big amenity of this part of Larchmont. It is easy to leave the car behind and walk to shops and fine dining. Many leave the car and walk to the train and end up doing their shopping on their way home. Most locations in the village are eaily accessible by foot to Metro-North. Walk Scores range from very walkable to walker’s paradise – which is very unusual for single-family home neighborhoods.
Homes in Larchmont Manor:
As a general rule, Larchmont Manor features bigger more expensive homes on larger lots. The streets are graceful and meandering with the mature growth that characterizes a long-established neighborhood. Located on the other side of Boston Post Rd., the area is slightly less accessible to shopping and dining withou the car. It makes up for it with more spacious homes, some feature water views of the Long Island Sound.
The area boasts the beauty of Manor Park and the Larchmont Yacht Club.
The walk score in this neighborhood ranges from very walkable to car-dependent.
Larchmont Homes – Median Sales Prices:
All data comes from the Empire Access MLS (EAMLS). This first chart shows the pricing before the crash and following. The red bars are the years prior to the crash of 2008 and the green bars are 2009, 2010 and 2011 respectively. In 2006 the median sales price was $1.226 million and that peaked in 2008 to $1.343 million. In 2009 that number abruptly “corrected” to $907k and rose to $1.243 million in 2010 and now rests at $1,053,000 for 2011. The decrease in median reflect a decrease in 3-4 BR homes. Larger homes with 5+ BR’s have actually gained back the ground that they lost. There was in an increased number of sales in the fixer market at the entry level this year. But median prices were indeed down slightly in an apples to apples comparison. This may have been a reflection of the the expiration of the first time homebuyers tax credit which would impact smaller homes more than larger homes. Median prices for 3-4 BR homes remain about 17% below the values attained near the peak in 2007.
Larchmont Homes – Sales Volume from 2006-2011:
The sales volume before the crash went from 78 sales in 2006 to 48 in 2008. Once the crash of 2008 happened sales volume stayed nearly the same for 2009 but at severely reduced prices. That ground was recovered in 201o and increased again in 2011. These numbers indicate that this market is shifting from a buyers to a sellers market. The increase in sales volume is a key indicator of a recovery in progress.
For the Latest Information on Sales and Listings:
For the latest on sales stats and current listings - feel free to contact me by phone –(914-374-5529) or email – (Ruthmarie.Hicks@gmail.com)
Larchmont homes typically evoke tree-lined streets and mature neighborhoods. This area does not disappoint on any of these. The area is strictly residential – yet for the most part it is walkable neighborhood – many of the homes being a mile or less from the train station and parts of the village. Some areas are somewhat further from town – so walkability depends upon you precise location. But leaving the car behind is indeed an option for a large portion of this neighborhood. Because this is a long established neighborhood, Larchmont homes generally have a distinctive Old -World charm about them. Tudors seem to dominate the area although Colonials are very much in evidence as well. But don’t let the age of these homes fool you. Most of them have aged gracefully and boast many upgrades that can give you the best of both worlds: old world charm – with modern amenities. The lot sizes run the gamut from roughly 0.12 acres to over an acre in larger homes. In general, the homes close in to the village sit on smaller lots.
Larchmont NY PO – Median Sales Prices:
The big bad bear market has actually been very kind to Larchmont Village and the Larchmont PO. While other areas of Westcehster NY are still in the doldrums, Larchmont homes have been selling at a fairly brisk pace and prices have increased. This first chart shows the pricing before the crash and following. The red bars are the years prior to the crash of 2008 and the green bars are the years following the crash. In 2006 the median sales price was $998k and that peaked in 2008 to $1.125 million. in 2009 that number came crashing down to $905k and has risen steadily to nearly $1.1 million this year. This has been a strong come-back.
Although the market in the area has recovered quite briskly, the pace of recovery has varied somewhat between smaller and larger homes. This chart contrasts the differences between 3 and 4 BR homes. In general, with a few caveats, the homes under 2000 sf with fewer bedrooms have recouped less ground than their larger counterparts.
Larchmont NY PO – Home Sales Volume:
The sales volume before the crash went from 94 sales in 2007 to 72 in 2008. Once the crash of 2008 happened sales dropped to 51 for 2009 but recovered in 2010 when it went back to 95 sales. 2011, although slightly lower in volume, was noted for its competitive sales.
How on earth does the consumer choose an agent? With so much hype, smoke and mirrors that the actually process can seem about as clear as mud. Sadly, there is no foolproof way to do so, but there are pros and cons to any method. Here are some typical methods that sellers seem to use:
You have a friend who just got licensed.…and he/she acts as if she already owns your listing….so why not?
Watch out here…your friend may be very competent – but competence and excellence are things that are often learned on-the-job in this field. Does your friend know the market well? Have they marketed a home for sale before? If prices are depreciating and your friend doesn’t know how to market and price your home, you are losing money every week you have this person as your agent. This should not be a decision based on friendship. A lot of money is at stake. But take heart – I do offer a possible solution to this dilemma later on.
You look for someone who is a top producer:
This can be done in various ways. You can look for an agent who has fliers out saying they are #1. You can count yard signs or you can try to find out who has made the most in gross commission or who has the highest sales volume in your area. This is all well and good. But you need to know what you are getting. Being #1 in listings is meaningless unless they sell. In fact everyone can be #1 for something if they think about it long enough. Many top producers built their businesses on trust and did it the old-fashioned way – they earned it. But others, not so much.
You Go to Zillow, Trulia or some other “trusted site” to pick an agent:
People trust these sites far more than they should. Ask yourselves just how trustworthy any site that features “Zestimates” that have a 25% margin of error can be? Picking an agent this way is a crap shoot. Don’t do it. We all seem to have a child-like trust of high ranking websites. They found it on the web, so it must be true. The public seems to have a vision of some nice person at Zillow or Trulia hand picking and vetting agents in every location in the country. Not so. Agents PAY for these spots. If they have the green – no questions are asked. This is not a good way to pick an agent.
These are issues that are often overlooked by sellers, but they can shed light on who is best suited to list and sell your home.
Ask to look at previous or current MLS listings:
In my previous post about what rocks and what flopsin terms of marketing – I put the MLS at the top of the list. So ask to see some examples of MLS listings. PHOTOS sell homes. Is it full of great photos of the home and even the neighborhood? Is there a slide show? Buyers want pictures, pictures, pictures! Is the copy decent? Remember that they have very few words for a description – but look to see if it is informative and not filled with cliches like “won’t last long” or “a must see.” If this is well done, then it is a sign that your home will be well-marketed.
Look at production – but get the full picture:
On questions of production – let’s get back to basics. You are calling an agent to help you sell your home not just list it. Looking at raw sales is only half the picture. Ask to see expired listings as well. This will give you an idea of the listing to sales ratio. Some agents with lower sales volume actually have excellent, if not superlative, track records when it comes to actually getting what they listed sold. Sometimes they leave top producers in the dust. Anyone can take a listing. If you have a “name” the chances are greater that you will have a lot of opportunities to list. Throw enough things up against a wall and something will stick eventually. But that doesn’t help you if 75% of what they list fails to sell. Agents can get overextended.
A caveat is needed here. Know that where this agent lists and what they list impacts those values. An agent who is taking on a lot of distressed property is going to have a higher failure ratio. Do not hold that against them. Ask for clarification and why the numbers are what they are. Listen carefully to what the agent says. You are not trying to create the Spanish Inquisition, but you are asking for clarity.
Look at the ratio of list to sales price:
Ask for listing histories. Did this agent promise one thing and then jawbone the price down inch by inch? This is particularly important when you find an agent that promises the moon and the stars. Remember, agents don’t have the power to create or make a market. We can only respond to what the current market conditions are. We all make mistakes. What you are looking for is a pattern not an individual instance. If you see rapid price drops at the beginning of a listing, that’s a clue that the agent was honest with the seller, but the seller needed to see the reality of the market for themselves. They probably agreed to a rapid price reduction if they didn’t get showings and offers. If some one is listing things 20-30% above the final sales price on a routine basis for months – that’s a problem. Ask agents to clarify what happened. Once again, you want to understand the pattern not be accusatory.
If you have a friend who really needs business…
I understand the desire to work with them – and offer a possible solution. If you feel you want to give your friend a break, suggest a co-listing with an experienced agent. If they will agree to that – then you can help your friend and rest easy that the listing is in the hands of someone who knows what they are doing. Remember that new agents are trained to cling to their friends who might be selling like crazy glue. So don’t let that put you off. One of the problems in our industry is that there are far too many agents for the business available and getting started is treacherously difficult.
Sadly, when I hear the word “trust” and “real estate” in the same question – my mind really turns to salad dressing. They just don’t seem to mix at all. We need look no further than YouTube to see evidence of the public mistrust of real estate “professionals”…and yes – that word is in quotations for a reason – and here is why?
Almost anyone with a pulse and half a brain can get a real estate license:
This was something of a shock to me. I came from a field that garnered a great deal of respect, but it took YEARS of post-graduate education to be considered a professional. Yet, in just 8 weeks – attending class twice a week – I was licensed to help the public purchase or sell what is generally their biggest financial asset. Does anyone see a disconnect here?
The result has been a cadre of agents – some with significant business – that appear to have nearly nothing between the ears. This is simply because the process is not selective. Many agents have indeed applied themselves to the process and have acquired a great deal of knowledge through their licensing classes, CE classes and designations – as well as on-the-job. The trouble is, since almost everyone passes, how is the consumer able to evaluate these agents.
Consumers are treated like shark chum:
If its easy to get started, why not try it? And thousands upon thousands of people do just that every year. If you can’t throw a rock without hitting an agent then there are simply waaaay too many agents for the amount of business available. Since agents are only paid when a transaction closes, that creates fierce competition for every qualified buyer or seller.
Desperation is a powerful motivator and it will induce many agents to do or say literally anything to secure the buyer or the listing. I always refer to the monthly list of expired listings as the “feeding frenzy.” There are agents that are all over hundreds of homeowners a month like a bad rash.
When buyers walk into open houses they often feel as though they are under assault by an army of agents all of them trying to convince buyers that they are the only buyers agent for them.
If agents have any doubts about how the buyers and sellers feel about the predatory behavior – the videos below pretty much sum up public sentiment:
Who benefits from all of this?
Does this in any way benefit the consumer? In a word, no! Although it gives buyers and sellers lots of choices, with no obvious means of discrimination, it turns the selection process into nothing more than a crap shoot. Meanwhile, agents pile on board plying any seller that will listen with their saying their “guru marketing package” that they promise will garner more than market value for their home. Its absolute nonsense – and when it doesn’t work as advertised it feeds into the seething level of mistrust and anger. No agent can beat the market because we don’t control the market. We can only respond to the realities of the market and get for our sellers the best price the market will bear.
Smoke and mirrors make navigating this minefield nearly impossible for consumers…
How on earth does the consumer know who to trust? Many resort to the lowest common denominator. Sales volume. Buyers and sellers look to the agent with the most signs in the ground or the largest sales volume. Or some move to their favorite “trusted sites such as Trulia and Zillow and give a shout out to one of their “preferred” neighborhood “experts.” The trouble with each of these methods is that they don’t tell you much of anything.
Many top producers are excellent. However, some are not. How did they get there? Many got there through their own merit and built their businesses brick by brick. Others not so much. Ethically challenged agents come in the form of low, medium and even top producers. If you have a name, they will have sales. But how did they come by that production? If the successes are hiding a carnage of cancelled and expired listings, then where does that leave the seller?
Trulia and Zillow? Forget about it. Consumers mistakenly trust these sites. Many seem to think that these “area experts” are carefully vetted and hand-picked for their competence and performance. Ah…..no…. Agents PAY for those spots. If your plastic is good, you have a license and are willing to pay to play, then you too can be a preferred agent – even if you have never sold a home in that area.
Then there is the banking industry….
Don’t get me even started here. Between the liar loans, the repackaged mortgages for whom the notes are missing, the unwillingness to proceed with short sales or loan modifications – it is small wonder that home buyers and sellers have had their sense of trust shaken to the core.
My point here is that our industry has come by much of the public contempt the old -fashioned way…we have earned it. The question is whether the industry has a whole is committed enough to make the changes necessary to restore the public trust. It begins with each indivdual agent taking responsibility for their own behavior. Agents have to work hard to differentiate themselves from the cadre of agents that do not serve their clients, but are self-serving. We need to offer true value, not smoke and mirrors with an extra helping of hype. When we prospect for business, we need to ask ourselves whether what we are doing is actually of any real value to the clinet. If it isn't then we have to admit that we are just trying to justify something that fulfills our need for a commission. We need to remember that we are a service industry, not a self-serving one. That is how we can once again earn the trust of an understandably cynical public.
This post is a submission to the ActiveRain / Adobe EchoSign Trust Contest. I could possibly win a prize. You can find out about the contest by clicking here
One of the most exciting new construction developments is Hudson Harbor – Tarrytown NY. I’m not normally a big fan of modern architecture, but I have to say that I really love the construction of this complex with its use of fieldstone and old wood beams. They made it look like Stone Barns which is quite an accomplishment. But what really makes its special are the views.
So after we saw the development, I went for a walk on the RiverWalk that runs right behind the complex. (The complex – now in Phase II is right on the river.) and took some photos. Basically I started with a wide-angle lens and moved to a tele photo.
The first picture is of the Tappan Zee Bridge. The Manhattan skyline can be faintly seen under the bridge with the wide angle. The second picture was with a zoom lens – it gives you a perspective of where the Manhattan skyline is in relation to the TZ bridge. The final was when I zoomed in on the skyline itself. I’ve taken photos from this perspective before, but it was such a clear – if blustery day, that the skyline really “popped” particularly with the color of the sky.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
In the end, when the counter offer is not accepted and a new offer is introduced into the picture, it would be very disappointing when you lose the house, the house you've been talking about and the house you've been spending your time visualizing in.
$5,000. This is something I am used to seeing, so I guess I consider it normal. Not being in real estate, she just laughed and went on that if you are spending that much money, what's another $5,000? 
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