Ruthmarie's Blog

We Received Your Payments On Time but are Foreclosing Anyway!

Ruthmarie Hicks (Keller Williams Realty) — Sun, 15 Nov 2009 09:35:26 -0600

Talk about service in lending - this is proof that in many cases - there is none - or worse - the service you get is catastrophic. The epidemic of not providing appropriate service for loans - takes a nasty turn in this blog. Fortunately, I have not experienced this with any of my clients, but the words caveat emptor (let the buyer beware) seem to apply here more than anything I've seen recently...and I've seen a lot.

Via Larry Bettag - Cherry Creek Mortgage:

I'm really seeing something wierd going on here:

Mortgage Compaines blowing up.

Mortgage companies thriving.

Clients are making the shift. Big box lenders are so big that they're collapsing on top of their own clients.

I'm dealing with a top three lender rignt now...

As an Attorney!

I've been contacted by the client. The lender had been accepting the mortgage payments, cashing them in and, oh yes.....reporting to the credit bureaus that they hadn't made a payment for nine months and therefore the big box lender began the foreclosure process.

I've spent hours upon hours with the client getting disconnected repeatedly. I'm an attorney looking to help my client, but many disconnections....we called again and again and the bank representative gave us their name and number. Each time we'd call back and invariably each extension was invalid, or surprisingly enough, "Crystal doesn't work at this extension."....can you say....

C'mon now!!!!

I call the president of our company and told him of the fiasco. He found a high up contact in that top three fortune 500 mortgage company to investigate the my client's allegations. What's such an paradox is that they're suing a client for foreclosure claiming that she's failed to make payments. In the mean time she's provided all the statements and cancelled checks to prove that she's never been late with them. As an attorney, I've told her that she has a cause of action against this mortgage company since they they're destroying her credit by reporting he not only as late, but also in foreclosure when the proof is contrary.

But Now??? How about an Update!!!!!

The latest as of this week???? This big box today agreed....to an extent and said the following...

We acknowledge that you've made your payments and made the payments on time. We just don't know where the money is within our company.

Are You Friggin Kidding Me!!!!! That's one caring mortgage company.

"We acknowledge that you've paid on time, but we're not ready to clear your credit or stop the mortgage foreclosure until we can figure out what we did with your money?"

There's a Major Shift Gooing on with Consumers now!!!!

Mortgage Companies are shooting up the list of the top 100 even in a market when big box lenders are collapsing and more are poised to collapse, great companies are rising to the top. Why? Because consumers are begging for someone to care about them.

It used to be that consumers wanted the lowest rate on the block. Now they want a good rate, a really good rate, but for the biggest financial transaction of their lives, they'll trade a little rate to have qualified people investing in their families. They want a relationship. They don't want crappy service for a lower rate.

There are a lot of great companies out there that offer great rates and exceptional service. They might not be the lowest rate in town, but they're fair and they will create a relationship with the client that will inevitably end up with a client for life. Big box???? Transactional, not relational. I'm sorry, I'll take relational over transactional any day. It may not be the cheapest rate in town, but to the client, it's a lot more cost effective. And with the biggest investment in your life isn't it good to have a relationship as well as a point of contact?
Larry Bettag - Regional Vice President, Midwest Region

Illinois FHA Specialist

630-417-7172

An Illinois Residential Mortgage Licensee

This Brokerage Has 750 Listings…..So they must be the best! (Part 2)

Ruthmarie Hicks (Keller Williams Realty) — Wed, 11 Nov 2009 14:54:10 -0600

Part 1 of “This Brokerage Has 750 Listings…..So they must be the best! ” was prompted by the fact that the Westchester NY real estate market had changed and as a result, I was getting more and more questions about what a brokerage brought to the table in terms of marketing. I emphasized the importance of choosing the right agent and that the brokerage itself was of less importance. I also indicated that there was a lot of smoke and mirrors regarding brokerage brands and what that means to the seller in terms of marketing the home.

In the end, I promised a sequel that got into more specifics. So here it is – six major myths about listing a property and marketing a property that are often trumpeted by our own industry. Its been said that if you repeat something often enough it becomes “fact” in the eyes of the consumer. So let’s put some of these “facts” to rest.

Myth #1 – “We have 12 billion to the 10th power active listings, so our reputation speaks for itself!”

Really? How on earth does anyone come to that conclusion? You can have all the listings in the world, but if you can’t sell them, what’s the point? The percentage of sold listings is a bit more pertinant. However, even that number does not discriminate between individual agent performance.

Myth #2 – “Your listing will appear on our website which is on page 1 of Google! That will draw in TONS of buyers”

Yup – it sure will be – along with every other listing in the ENTIRE MLS – whether you are listed with this brokerage or not.

Why? because listings and pictures are like crack-cocaine to buyers and that’s what these sites are designed to lure. The “bait” has to be the entire MLS or the buyer will be on to the next site in very short order. So rest assured your listing will appear on their site just like every other listing on the MLS whether your contract is with them or the small independent broker down the street.

Myth 3# – Our brokerage has the big dollars behind it to fully support your listing!

It sounds really comforting. Many consumers believe that a big listing brokerage must be brimming with money to market their home. Why wouldn’t they do it if they stand to make so much more once the sale is complete?

There are a couple of problems with that notion:
1. That big plush brokerage has a big plush overhead to go with it! That’s a fixed cost that doesn’t go away and in many cases it has become a monster demanding ever more revenue to sustain it. Most brokerages are not nearly so flush with money as they were in years gone by.

2. The other problem is “risk.” By marketing a house the agent or/and brokerage puts money on the table and assumes a financial risk. The risk is that the house won’t sell. No matter how good you are as an agent or broker…its a game that you will not always win.

Most sellers would be shocked at how little a brokerages will actually spend. But the fact is that if a broker is holding 700 listings, how much money can they spend at any one time? If you spend $2000 on each listing that’s $1,400,000 in outlays – with no guarantee of success. HELLO!!! Do you see now what I mean about the risk issue?

Brokerages of this size are generally playing a numbers game. They throw 700 listings up against a wall and some will actually “stick.” The sheer volume of listings necessitate this approach. But how wedded to each listing can a brokerage of that size be? That dedication must fall on the individual agent representing the seller. Since the agent doesn’t carry anything close to a the volume of a major brokerage – each individual listing is of far more importance. This is another reason why sellers should look to the AGENT not the BROKERAGE when selecting a professional to list their house. .

Myth #4 – “Our brokerage has a terrific individual marketing!”

If a brokerage has over 700 listings, how individual can the marketing plan possibly be?
Usually that means that the listing will be sucked up into the cookie-cutter marketing machine they throw at every listing.

In fact, if the agent keeps intoning “my brokerage does this, my brokerage does that” it is often a signal that they may well have divorced themselves from all but standard brokerage marketing. In this tough market that’s not a good thing. It is also a sign that nothing truly unique or outside the box will be brought to the table to help move the home.

Myth #5 – “We are the biggest brokerage in the area with the most agents and everyone of them is ‘motivated’ to find you a buyer.

WHOA!!! All I can say to this is RUN THE OTHER WAY!!! This may well mean that they are highly motivated to keep the sale “in-house” which is code for the agents have a financial motivation to do so.

This is a problem on so many levels, it’s hard to know where to begin. For openers it violates the spirit of the MLS. The MLS’s were created to level the playing field between competing brokerages so that buyers and sellers could work with whoever they wanted to without feeling they were at a disadvantage. Creating financial incentives to keep sales in-house throws a monkey wrench into that system.

It may sound great – having 500 agents looking to find you a buyer, but there’s a big elephant in the room. If the listing agent is motivated to keep the sale in house, what will they do if an agent from a competing office brings in the best offer? Will they push an ‘in-house’ offer? Even if it truly isn’t the BEST offer? The answer depends on the individual. I know many agents who would never compromise their sellers…but there are always a few who would. Bottom line: Why work with a brokerage that encourages this since it can almost invites unethical behavior? In the end, the numbers tell the story. There are roughly 6500 agents working in our county. Even if a brokerage had 1000 agents, statistically, it is far more likely that the “best” offer will come from an agent outside the listing brokerage.

Myth #6 – Our big brokerage has a relocation service that brings in gazillions of buyers just panting to see our listings!

Please see myth #5. Any buyer coming in through a relocation service will be looking at the entire MLS inventory…not just the listings within that brokerage.

So there you have it….six common myths about listings, agents, brokerages and marketing. I hope this adds some transparency to an issue that is generally a black box to consumers.

This Brokerage Has 750 Listings…..So they must be the best! (Part 1)

Mirror, mirror on the wall…who’s the fairest listing agent of all…Part 1:

Mirror, mirror on the wall…who’s the fairest listing agent of all…Part 2

Original Post:

This Brokerage Has 750 Listings…..So they must be the best! (Part 2)

Walking on the wild side at the Rockefeller Preserve – Fall Foliage in Sleepy Hollow

Ruthmarie Hicks (Keller Williams Realty) — Mon, 09 Nov 2009 07:40:04 -0600

Autumn in lower Westchester NY is a very colorful event.

There is something about the color of the leaves and how it lights up the sky that I find very compelling. Forget leaf peeping in Vermont – our season peaks later, but the foliage is just as amazing. At this time of year, people flock to parks in Westchester NY for the foliage and crisp weather.

This week had been particularly stressful – so Friday afternoon I escaped to the Rockefeller Preserve in Sleepy Hollow to regenerate. Among the many things to do in Westchester, this is among my favorite places to decompress and get back in touch with what it is all about. Although the leaves were more than half gone, the color of the sky and the sunlight caused the remaining leaves light up the sky with a full fall fire. Jade and Tundra – my faithful Huskies accompanied me and enjoyed the blustery cold air. We also ran into a friend from my brokerage – Monique another avid walker, arrived just as I was leaving.

Here are a couple of the photos I snapped along the way. As a nature Preserve, you get to see the beauty of nature’s wild side.

The video was created from still shots that I have collected during the fall of 2009 with a few from 2008 thrown in for good measure. To view the still photos go to my Flickr Feed.

First published

Walking on the wild side at the Rockefeller Preserve – Fall Foliage in Sleepy Hollow

SHOCK! Lenders make more money on foreclosures than short sales!?

Ruthmarie Hicks (Keller Williams Realty) — Sun, 08 Nov 2009 17:39:23 -0600

OK, I don't pretend to know all there is to know about the current banking situation. I do know that in many cases I smell a great big rat. But putting one's finger on it is a tad more difficult.

In my opinion, the banks took the TARP money, that means they now owe the country that bailed them out something in return. At the very least, their actions should be leaning towards STABILIING the housing market. Instead, some banks seem inclined to make matters worse by CHOOSING foreclosure over loan modification and short sales.

That is not acceptable at all. They took the money, now they are answerable to the American people. We have to hold their feet to the fire.

Via Pacita Dimacali - e-PRO, SRES, CDPE, MBA East Bay, North CA real estate (Gallagher & Lindsey):

Lenders make more money on foreclosures than from short sales or loan modifications. That's what Steve Harney conveyed in a seminar. He caused an earthquake in San Francisco

When loan modifications are turned down, the next thing we attempt is a short sale. And we know that lenders turn over the short sale accounts to loan servicing companies who make our lives hell getting short sales approved. As such, we should know that these loan servicing companies make MORE money by letting the properties foreclose than to approve the short sales OR the loan modification.

RUMBLE...GRUMBLE...CRIES OF DISMAY!

Did he just confirm what we were afraid of?

So I researched this topic and found a few articles worth reviewing. How did I miss these? Was I under a rock in a desert?

CONSUMERLAW.ORG REPORt ON "Why Servicers Foreclose when They Should Modify And Other Puzzles of Servicer Behavior"

DAILY PRESS headline. Oct, 30 2009. Do Mortgage Lenders Make More Money when a Loan Goes iInto Foreclosure?

HUFFINGTON POST. Oct. 21, 2009, Foreclosures Are More Profitable Than Loan Modifications, According To New Report

Washington Post. July 28, 2009. Foreclosures Are Often In Lenders' Best Interest. Numbers Work Against Government Efforts to Help Homeowners.

ThinkGlink. October 21, 2009. Loan Modification Help: Why Lenders Are Slow To Provide Loan Modifications

Dayton Daily News. Oct. 17, 2009. Drop in foreclosures called "very scary". Lender's actions show they think properties are not worth pursuing.

Mortgage101.com. October 23, 2009. Mortgage Companies Make More on Foreclosures Than They Do Modifying Existing Loans. (This blog refers to the news article on Huffington Post)

FLASHBACK: Huffington Post, June 8, 2009. Short Sales: Banks Blocking Way Out of Foreclosure Crisis

FLASHBACK: Huffington Post, May 15, 2009. Short Sales Stories. Lenders tend to stick with more familiar foreclosure process, losing money for everybody.

UPDATE: Huffington Post, November 2, 2009. Homeowners: "Hey Congress, Get Off Your A**"

KNOCKING OURSELVES OUT TRYING TO HELP

So are we engaging in self-flagellation helping our distressed clients with their short sales and loan modification?

Are lenders really more likely to foreclose?

Are the short sale servicing companies really trying to help?

Or are they stalling and withholding their help because they know their leaders would rather have the property burn into foreclosure?

Is there no resolution in signt?

There oughta be a law!

Excuse me BofA! You CAN NOT have it both ways!

Ruthmarie Hicks (Keller Williams Realty) — Sat, 07 Nov 2009 13:27:46 -0600

I've written several humorous (and not so humorous) posts about what I call "Big Box Bankmarts." Here is yet another example as to why any bank that is too big to fail should either be broken up or cease to exist.

Via Jane Penttinen (Sunstreet Mortgage, LLC - Sr. Loan Officer):

Excuse me BofA! You CAN NOT have it both ways!

I refinanced a loan this week for some past clients. I did their purchase loan in 2005. We did an 80-15-5 because they had another home that had not closed yet. The 15% second was a home equity line of credit. Their previous home sold and they paid off the 15% second in March of 2006. They never drew another dime on the equity line.

June 2008:
They received a letter from Countrywide telling them their 0 balance equity line was frozen. They were not allowed to take any draws on the line because the value had decreased. No problem for them. They weren't using the line anyway.

Like lots of other people, the equity in their home has evaporated but current rates are still better than what they had on their first so we put together a Freddie Relief refinance - a great deal for them. We are able to drop their payment $200+ per month and because they didn't have PMI on the original loan, there is no PMI on the refinance even though their LTV is now 95%.

October 2009:
Bank of America (aka Countrywide) rears its ugly head! There had never been a Deed of Release recorded for the "no longer usable" home equity line of credit. The title company received a notice from BofA that there would be a $350 Early Termination Fee in order to do the Deed of Release. Early Termination Fee? On a line of credit they were no longer allowed to use?

Really?? This Early Termination Fee showing on the HUD1 would prevent them from completing the Freddie Relief refinance.

My client took BofA the statement from March 1996 showing where they had paid it off. She took them the letter from June 2008 saying they no longer had a home equity line of credit. She took them the statement showing the $350 Early Termination Fee. She asked them how in the world they could expect an Early Termination Fee when they were the ones who terminated the line. BofA's response - "We didn't close the line. We just won't let you use it." My client spent over an hour discussing this with the Wizards of BofA. At one point they actually told her "if you do your refinance with us we may consider waiving the fee".

Really?? My client told the Wizards of BofA "either this fee gets waived and you allow the title company to record a Deed of Release or I will go to the Attorney General and see what they think! You CAN NOT have it both ways! I didn't terminate the equity line - you did."

Guess what? She got it! Refinance paperwork is all signed - we will record and fund on Monday.

BofA - what are you thinking? How many other people are you pulling this stunt on?

Jane Penttinen, Sr. Loan Officer

Sunstreet Mortgage, LLC

520-547-4150

If you, your friends or family require the services of a mortgage professional, please don't hesitate to call me. I am never too busy for any of your referrals.

BK090736

Excuse me BofA! You CAN NOT have it both ways!

Ruthmarie Hicks (Keller Williams Realty) — Sat, 07 Nov 2009 13:27:14 -0600

Via Jane Penttinen (Sunstreet Mortgage, LLC - Sr. Loan Officer):

Excuse me BofA! You CAN NOT have it both ways!

I refinanced a loan this week for some past clients. I did their purchase loan in 2005. We did an 80-15-5 because they had another home that had not closed yet. The 15% second was a home equity line of credit. Their previous home sold and they paid off the 15% second in March of 2006. They never drew another dime on the equity line.

June 2008:
They received a letter from Countrywide telling them their 0 balance equity line was frozen. They were not allowed to take any draws on the line because the value had decreased. No problem for them. They weren't using the line anyway.

Like lots of other people, the equity in their home has evaporated but current rates are still better than what they had on their first so we put together a Freddie Relief refinance - a great deal for them. We are able to drop their payment $200+ per month and because they didn't have PMI on the original loan, there is no PMI on the refinance even though their LTV is now 95%.

October 2009:
Bank of America (aka Countrywide) rears its ugly head! There had never been a Deed of Release recorded for the "no longer usable" home equity line of credit. The title company received a notice from BofA that there would be a $350 Early Termination Fee in order to do the Deed of Release. Early Termination Fee? On a line of credit they were no longer allowed to use?

Really?? This Early Termination Fee showing on the HUD1 would prevent them from completing the Freddie Relief refinance.

My client took BofA the statement from March 1996 showing where they had paid it off. She took them the letter from June 2008 saying they no longer had a home equity line of credit. She took them the statement showing the $350 Early Termination Fee. She asked them how in the world they could expect an Early Termination Fee when they were the ones who terminated the line. BofA's response - "We didn't close the line. We just won't let you use it." My client spent over an hour discussing this with the Wizards of BofA. At one point they actually told her "if you do your refinance with us we may consider waiving the fee".

Really?? My client told the Wizards of BofA "either this fee gets waived and you allow the title company to record a Deed of Release or I will go to the Attorney General and see what they think! You CAN NOT have it both ways! I didn't terminate the equity line - you did."

Guess what? She got it! Refinance paperwork is all signed - we will record and fund on Monday.

BofA - what are you thinking? How many other people are you pulling this stunt on?

Jane Penttinen, Sr. Loan Officer

Sunstreet Mortgage, LLC

520-547-4150

If you, your friends or family require the services of a mortgage professional, please don't hesitate to call me. I am never too busy for any of your referrals.

BK090736

Happy Halloween to all…from the land of the Headless Horseman…

Ruthmarie Hicks (Keller Williams Realty) — Sat, 31 Oct 2009 21:30:44 -0500

Happy Halloween to all! I went to the Halloween Blaze at Van Cortlant Manor in order to deliver to everyone some prime photos from one of the areas primary hot spots for Halloween.. The Halloween “Blaze” celebration is nothing short of amazing with 4000 pumpkins lit up on the 18th Century colonial estate. They make them into dinosaurs, they have black cats, and rats carved into pumpkins, ornate patterns as well as a spaceship, a pirates ship and so much more too numerous to even begin. The tour takes a little over an hour and is worth the trip up from lower Westchester to Croton-on-Hudson…Unfortunately, I’m still playing with the pics. I admit – a professional photographer I am not. I made a mistake with my settings and it was literally too dark to fix!

So, as a poor substitute – I found this video of Bobby Picket singing the “Monster Mash” on YouTube. I’ve heard it every Halloween since I was a child, but I didn’t know the artist behind the voice. His immitation of Boris Karloff made him and the song “The Monster Mash” famous. The song was composed in 1962 and was a major hit. It went through several incarnations – taking off in Britain in the 1970s.

Happy Halloween to all…from the land of the Headless Horseman…

This Brokerage Has 750 Listings…..So they must be the best! (Part 1)

Ruthmarie Hicks (Keller Williams Realty) — Sat, 31 Oct 2009 00:54:46 -0500

Does size really matter? Do the number of listings or the size of the brokerage have anything to do with the ability of the agent to market and sell a home successfully? Is it the brokerage or the agent that is the determining factor?

What Does the Brokerage Bring to the Table?

One of the biggest issues I encounter on listing presentations are questions regarding the brokerage itself. Most questions revolve around marketing. What does the brokerage do in terms of marketing for the listing?

I think that most sellers assume that since the brokerage is “big” and has capital behind it, that they are the ones spending big bucks on marketing the home. But this is rarely the case. Many big-box national brokerages build on that confusion and perpetuate the myth that their brokerage “brand” makes a significant difference in selling a home for top dollar. They also tout their “marketing package” in terms of the amount of support they offer. Some actually stress that the number of agents in the brokerage somehow makes that brokerage better or somehow more able to move the property. With all the hype and misinformation out there it is small wonder that sellers are confused.

I would challenge these large brokerages who claim that their numbers speak for themselves to enumerate exactly WHAT they do to justify their claims? And while they are at it, I would like to have some hard numbers to back up their success stories. I haven’t seen any of them come up with any marketing advantage that holds up under scrutiny. Most of the time they appear to be blowing smoke. Don’t get me wrong, I’m not slamming big brokerages. That would be rather foolish since the brokerage that I am currently associated with is quite large. What I am trying to do is cut through the hype.

Follow the Advice of Deep Throat:

Who actually sells the listing? The agent or the brokerage? To figure that out you have only to listen to the words of “Deep Throat” in All the President’s Men. He told Robert Redford to “Follow the money!”

If a brokerage has hundreds of agents, it is likely that they have close to 1000 listings. Brokerages are business to make money on sales. For a big brokerage like this – the listings are a numbers game. Throw 1000 up against a wall and maybe half will “stick.” So how important is your individual listing going to be to that brokerage? Answer: not very.

But what about the agent? Most agents have just one to two listings at a time. Top producers can have as manay as 20-30. Agents are paid on commission. If the property doesn’t sell – all the work they did is down the drain….and there is a lot more to than sticking a sign in the ground. When a listing fails to sell an agent is out usually well over 150 hours of time AND they are generally out a good deal of marketing money as well. Do you think that agent cares if your home sells? You better believe it.

Take Home Lesson: Look to the AGENT to market and sell your home.

Stay tuned for part 2 – where some major marketing myths will be revealed.

Further Reading:

Mirror, mirror on the wall…who’s the fairest listing agent of all…Part 1:

Mirror, mirror on the wall…who’s the fairest listing agent of all…Part 2

This Brokerage Has 750 Listings…..So they must be the best! (Part 1)

Hartsdale NY Housing Market Statistics – Third Quarter 2009

Ruthmarie Hicks (Keller Williams Realty) — Tue, 27 Oct 2009 02:30:58 -0500

The Hartsdale NY housing market is in buyer’s market mode. Prices for coops, condos and single family homes all experienced price reductions when compared with the third quarter of the previous year. This was the second year of price reductions for the area. Volume was variable with single-family home sales being down 70% over the previous year while there was a slight increase in the number of coop sales.

Hartsdale Cooperatives:

Coop prices dropped 11.1% over the previous year with the average price being $192k for Q3 2009. That was enough to make them a desirable purchase. This was particularly true of East Hartsdale Ave. Demand remained high and volume was up 1% from 2008. There is a 5.8 month inventory on the market – making it a borderline buyer’s market in terms of inventory. Prices have dropped nearly 15% from Q3 2007 – which is roughly when sales prices peaked. This is still a buyer’s market, but the reduction in inventory and stable sales volume indicates that we may be near the bottom.

Hartsdale Condominiums:

Condos didn’t fare as well as cooperatives. Sales prices were down nearly 13% from the previous year. The average sales price for the third quarter was $370k down from $425k in 2008. Sales volume was down 33.3% and there is currently an 8 month inventory on the market creating a definite buyer’s market. This market didn’t really start declining until after the stock market crash – so it may have some more adjustments ahead.

Hartsdale Single-Family Homes:

The price of a single-family home was up about 2.3% – however, I would not consider this to be a true improvement. The volume was so low, that this probably reflects the nature of the homes that actually sold more than an uptick in prices. Volume is down 70% from Q3 in 2008. Further, that low volume translates into over two years of inventory on the market – making this a definite buyer’s market. The market is down less than 8% from the peak indicating it may have a way to go. Sellers should price homes realistically, while buyers should enjoy great opportunities in the coming months.

Further Reading:

Hartsdale NY – Market Statistics for 3rd Quarter 2008

Hartsdale NY – Housing and Market Statistics for Fourth Quarter 2008

Hartsdale NY – Housing and Market Statistics for First Quarter 2009

Housing and Market Statistics for Hartsdale NY – Second Quarter 2009

Hartsdale NY Housing Market Statistics – Third Quarter 2009

White Plains NY Housing Market Statistics – Third Quarter 2009

Ruthmarie Hicks (Keller Williams Realty) — Wed, 14 Oct 2009 09:06:50 -0500

Following the stock market crash of 2008, home prices in White Plains finally took a hit. This market had remained remarkably sturdy up to the fourth quarter of 2008. The correction has been an abrupt one. The third quarter market reports reflect a market that is experiencing a major correction. The declines are steady but not alarming. This is the first time that White Plains has have every single factor in buyer’s market territory.

White Plains Cooperatives:

The average price of a cooperative in White Plains has decreased to $181,000 – down $36,000 or near 17% from Q3 of 2008. Sales volume was also down 38.5%. Although sales picked up over the summer months inventories remain in excess of 12 months. This is an excellent buying opportunity and sellers need to be realistic when pricing their homes.

White Plains Condominiums:

Condos have seen a sharp decline in prices. This is to be expected because during the boom a large number of condos were built creating a “natural” glut. Sales prices are down 16.1% over the previous year to $463,000 – down $89,000 over the previous year. Sales volume was down 20% over the previous year. Once again – this is a buyer’s market and sellers need to price their units to sell.

White Plains Single Family Homes:

Single family homes fared slightly better – at least at the starter level. Homes in the move-up range were another story. WIth jumbo loans hard to get and with a large pool of would-be move up buyers dealing with a depreciating values in the homes they are in – this is to be expected. There is a glimmer of hope for entry level single family homes – but the rest of the market is languishing. Prices are down 13.3% or $85,000 off the Q3 2008 average.

Further Reading:

Housing and Market Statistics for White Plains NY – Second Quarter 2009

White Plains NY – Housing and Market Statistics for First Quarter 2009

White Plains NY – Housing and Market Statistics for Fourth Quarter 2008:

White Plains NY – Housing & Market Statistics for 3rd Quarter 2008

© 2009 Ruthmarie G. Hicks, all rights reserved. Original Post from http://thewestchesterview.com

White Plains NY Housing Market Statistics – Third Quarter 2009

Freaky Friday: A conversation with a Big Box Bankmart Loan Officer..

Ruthmarie Hicks (Keller Williams Realty) — Fri, 09 Oct 2009 03:01:20 -0500

Over the past couple of months, I have written some scathing blogs about the big banks (Big Box Bankmarts) and their inability to fund loans in a sane, reasonable and timely manner. I’ve had loans stalled, delayed and otherwise mired in underwriting for months on end for no apparent good reason.

Just the other day Chris Berg created a “movie” using XtraNormal about Big banks and foreclosure sales. If you want a good laugh – you should take a look. This inspired me to try my hand at an XtraNormal video creating my own diatribe on the big banks regarding plain vanilla 30-year loans. I admit that my dialogue can not match Chris Berg’s but the sentiment is the same.

Enjoy the video and have a great weekend.

Further Reading:

Vote with your feet: Just say “NO” to Big-Box Bankmarts!

No! It’s NOT OK! 90-120 day escrows and endless closing delays are NOT acceptable.

Why Recommending A DIRECT LENDER Could Make You Choke on Your Coffee

Have We Kicked Mortgage Brokers to the Curb Too Soon? Why Mortgage Brokers Will Survive

Original Post: http://thewestchesterview.com

Freaky Friday: A conversation with a Big Box Bankmart Loan Officer..

New Housing Bill Will Force Loan Modification

Ruthmarie Hicks (Keller Williams Realty) — Wed, 07 Oct 2009 00:08:34 -0500

Ever since the taxpayers of America threw a ton of money at the failing banks - we have been patiently waiting for the banks to loosen credit, fund loans in a timely manner, streamline the short sale process and help those who might be able to avoid foreclosure to stay in their homes through loan modifications. Instead of doing what was expected of them - the banks vaulted the money, threw away the key. Foreclosures increased, short sales became harder and harder to get and let's not even start on loan modification...FORGET ABOUT IT!

I don't know whether this bill would have a prayer in the Senate...but I do think that it is a long overdue for Congress to tell the banks that this behavior won't be tolerated.

Via Claudette Millette - Metrowest Mass Exclusive Buyer Broker (The Buyers' Counsel):

Four senators are putting their muscle behind a new housing bill intended to prohibit lenders operating in the U.S. from foreclosing on home owners without first having discussed reasonable modification options with the borrowers.

The bill, called the Preserving Homes and Communities Act is being sponsored by Rhode Island Senator Jack Reed, Illinois Senator Dick Durbin, Jeff Merkley of Oregon and Sheldon Whitehouse of Rhode Island.

Under this bill, lenders will be forced to the negotiating table under the threat of stiff fines and other legal penalties.

All lenders will be required to perform what the bill terms as a "net present value" test for all seriously delinquent borrowers. The test would be a financial analysis weighing the benefits of a modification of loan terms against the benefits of foreclosure.

For borrowers who do not fit into this program, the bill would create a multi-billion national fund for states to make loans or grants in order to prevent foreclosures.

The senators' rationale behind the creation of this bill is that they are frustrated with the slow pace of current loan modification programs and feel that they are not keeping up with the record numbers of foreclosures this year.

"Voluntary efforts to keep families in their homes have failed," said Durbin. "This bill will force lenders to modify qualified mortgages rather than letting them move quickly to foreclosure, which destroys households and neighborhoods."

The act will also set up a mortgage payment assistance program to provide money to state housing agencies to assist people who have lost income and face the prospect of foreclosure.

The most significant aspect of this bill would be to create "mandatory mediation" requirements forcing lenders to allow some mediation efforts between them and their borrowers before being able to file foreclosures against home owners.

This proposal will, no doubt, be met with opposition by banking and mortgage lending groups. It is, however, currently favored to be supported in the House.

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Guess What? IndyMac (now One West Bank) & BofA WOULD RATHER FORECLOSE!

Ruthmarie Hicks (Keller Williams Realty) — Tue, 29 Sep 2009 10:02:07 -0500

Although the market I work is NOT a big short-sale market, I'm hearing some pretty scary stories from agents who have taken on these properties...It's just another reason why we need to say "NO!" to Big-Box Bankmarts. They are playing a lot of games with taxpayer monies and homeowners who are truly in distressed circumstances. They are large, have connections in Washington that make ....er....regulating them while nigh impossible. It gets back to the influence peddling and corruption that has deep tenticles in our government. The only way to fight back is NOT TO USE THESE LENDERS. The same holds for many of the large banks. They are toying with the public on their own dollar.

Via Bob Hertzog (Summit Home Consultants):

GUESS WHAT? INDYMAC (NOW ONE WEST BANK) & BOFA WOULD RATHER FORECLOSE!

For the past several months, we, as agents who have taken on short sale listings, have been able to tell potential clients, "Your lender doesn't want your home back. They would much rather work with you on a short sale".

Well folks, I'm here today to tell you that you should pause before making this assertion.

Fellow CDPE (and AR Member) Sidney Jimenez has written several blogs lately about the strong-arm tactics that lenders have been taking in recent weeks/months. I would highly recommend you read them here, and you will get an even better idea of what these two particular lenders are doing to homeowners (the same ones that bailed them out with their hard-earned tax dollars).

Case In Point:

I took on a listing in May/2009 for a couple who were going through a divorce, with 3 children. The husband, after suffering a serious accident, had been unemployed for the past two years, and the wife's income was cut almost in half at her job of 10+ years. First, they tried to do a Loan Modification. Up to the point of missing their first payment June 1st, they had exhausted everything they had (savings, 401(k), etc.) in order to keep making their house payments. Their backs against the wall, going through a divorce, they finally could not make their payment. Instead of just walking away, they thought they would try to salvage their credit and increase the bottom line to the lender by proceeding with a short sale.

IndyMac was in 1st position with a loan amount of $478,000.00

BofA was in 2nd position with a loan amount of $41,000.00

After 30 days of having it listed on MLS, we received an offer of $275,000. The BPO came in a week later (ordered by IndyMac) at the purchase price of $275,000. I found this out yesterday from the "supervisor" at IndyMac.

On the HUD 1, we instructed the Title Company to give BofA $13,000, and the remaining balance to IndyMac (after closing costs and commissions). So, IndyMac would net $241,000 on the deal (slightly more than half of what was owed).

BofA said they would take the $13,000, but only if my client agreed to pay the remaining deficiency of $28,000 through a promissory note. Note, in AZ, BofA can obtain a judgement at a later date, as this was a HELOC.

IndyMac, on the other hand, came back with the following:

They would accept the $241,000, but only if my client signed a promissory note for $75,000, payable over 10 years, at 0% interest. Plus, they would only accept a payment to BofA of $3,000, not $13,000.

Here is the funny part...Well, not funny, but....

Arizona has what is called the Arizona Anti-Deficiency Judgement Statute, which does not allow a lender in 1st position to obtain a judgement for a deficiency on a first mortgage, or a second mortgage if it is "purchase money". Obviously, the HELOC doesn't fall under this statute, but the 1st mortgage does. I explained this in detail, on more than one occasion to the IndyMac "supervisor" that this case was escalated to.

After talking to her "VP", this is the response I received today:

Bob,

"I have spoke with upper management and we are not going to wave the promissory note as a condition of the approval. If the borrower is not willing to sign that then we will proceed with foreclosure. Thank You".

So, IndyMac now gets the house back, and my client becomes yet another foreclosure statistic. The home has decreased in value (now worth about $260,000), and will continue to decrease until they finally sell it. IndyMac still has not filed a Notice of Trustee Sale. Once they decide to do this, my client will have 3 months to stay in the home until the sale takes place.

So, let's say they file the notice at the end of September (he as until then to respond to their "offer"). That means he gets to stay in the home until January 1st, 2010.

Then, let's say they put the home on the market February 1, 2010 as an REO Listing, and it takes 90 days to market and close the transaction.

Getting the picture now? Instead of getting their $1,200/month mortgage payment ($14,400) over the course of the year that they should have been getting, they get NOTHING. Tack on another $800 per month for general maintenance, taxes, and utilities, and that number now climbs to $24,000.

On top of all that, the house is worth about $260,000 today. They will be lucky to get it sold for $240,000 as an REO in February 2010.

The bottom line is this:

If IndyMac takes the short sale today, they net $241,000

By foreclosing, they are LUCKY to net $200,000

But then again, do you think IndyMac (now One West Bank) or BofA cares?

Do you think that if they take back enough homes that they will finally learn their lesson?

Heck No! After all, when they go bankrupt again, they simply have to pick up the phone and call THE MESSIAH for another BAILOUT!

So folks, the purpose of this post....

Before taking on a BofA or IndyMac short sale, THINK AGAIN! While we all love to help homeowners who are distressed, WE CAN'T WASTE OUR TIME WORKING WITH LENDERS WHO WOULD RATHER FORECLOSE ON HOMES THAN WORK THROUGH THE SHORT SALE PROCESS.

One question to all of the AR Members...AM I THE ONLY ONE EXPERIENCING THIS IN THE LAST 4-6 WEEKS?

Vote with your feet: Just say “NO” to Big-Box Bankmarts!

Ruthmarie Hicks (Keller Williams Realty) — Mon, 28 Sep 2009 20:06:37 -0500

Over the past four months, I’ve had five transactions with one particular big-box bank. All save one were a complete nightmare. What tipped me over the edge towards a new rant was Greg Nino’s post “I am prejudiced and here’s why…”, a post from Michael and Karen George “A Realtor really messed me up the other day.” and the fact that yet another loan is poised to have a prolonged escrow due to a Big-Box Bankmart.

I will leave you guessing as to the identity of the banks in question…I am not as brave as Greg. But I can say this much…my litany of complaints could fill a tomb the size of War and Peace. Mountains were made out of molehills. LO’s went MIA when the going got tough. Papers got lost, closings were delayed (5 times in one instance) the process went on so long that things such as employment verifications required RE-verification. Rate- locks expired and contracts were hanging by a thread because so much time had elapsed. There were extensions on extensions. You name it, it went wrong. The final insult came when the bank then “surprised” the buyers by trying to increase the agreed upon mortgage interest rate by 0.25 points at the closing table.

If the public believes that Big-Box Bankmart is their only choice – it will become just that:

As I said in a previous blog about seemingly endless escrows – all I seem get from the powers that be at any Big-Box Bankmart is snarky arrogance bordering on disdain. Its pretty simple….Big-Box Bankmarts pretty much feel that they are in full control of the situation. The result is a smugness that is simply disgusting. Since the public feels that they are the ONLY game in town – Big-Box Bankmarts feel accountable to no one. If the public believes that Big-Box Bankmart is the only viable choice – it will become just that.

But hubris is dangerous…..There can be accountability – but we have to make them accountable. Let’s vote with our feet and tell our clients why we don’t want them using banks that just have not been performing. The public needs to say “NO!” – we won’t use a Big-Box Bankmart until they clean up their act – and by doing it collectively – we are doing ourselves, and in some ways – our country – a good turn. By using banks and mortgage brokers that can get the job done in a timely manner with decent customer service – we are saying “no” to bad service and a dangerous trend towards Big-Box Bankmart monopolies.

Vote with your feet: Just say “NO” to Big-Box Bankmarts!

2 BR/2 BA Pet-Friendly Condo at Jefferson Place – 300 Mamaroneck Ave. #828 Offered at $478,500

Ruthmarie Hicks (Keller Williams Realty) — Wed, 09 Sep 2009 10:46:31 -0500

OPEN HOUSE!!! Sunday Sept. 13 1-4 PM! Come and see this truly unique unit complete with spectacular downtown views from a private balcony on the top floor of Jefferson Place!

The Residences at Jefferson Place in Downtown White Plains NY.

Jefferson place is a new and very desirable complex located in downtown White Plains in the coveted 10605 zip code. The complex spans an entire square block between Livingston Ave. and Rutherford Ave. in White Plains, NY. The units cover two major addresses: 300 Mamaroneck Ave. and 31 Greenridge Ave. The side facing Mamaroneck Ave. is an eight-story urban mid-rise with a sophisticated brick façade. The other side of the complex on Greenridge gives a bow to the suburban neighborhood of the Highlands that it borders. Jefferson Place is just steps away from all the shopping and dining that downtown White Plains has to offer.

Just across the street on the Mamaroneck Ave. side there is plenty of fine dining, take out and retail – all within easy walking distance of the complex. The heart of the downtown with all it has to offer is just a stroll down the street. Walk to almost everything: Shopping entertainment, fine dining and so much more. Walk score is 92 out of 100.

This Luxury 2 BR/2BA Unit Offers:

* Over 1000 s.f.
* Top Floor Unit – the privacy of having no one above you.
* Balcony with plenty of light and spectacular city views.
* Working gas fireplace.
* Hardwood floors.
* Modern granite kitchen & baths.
* Walk-in-closets – LOTS of storage in the unit.
* Additional Storage comes with the unit.
* Full-sized laundry in unit.

For more photos, see the photostream for this listing on Flickr.

Jefferson Place Amenities:

Jefferson Place is well-known for the amenities in its common space. It offers luxury touches that are generally only found in condo complexes with far higher price points. These include:

* 24 hour doorman.
* Indoor parking – this unit has a prime assigned spot.
* Club Room.
* Media Center.
* State-of-the-art gym.
* Business and conference center.
* Central AC.

COST OF LIVING

* Current Listing Price: $478,500.
* Property Taxes: $7607 without STAR.
* STAR Savings: $1525.
* Monthly Common Charges: $578.
* Monthly Mortgage: $2174*
* Gross Outlay: $3,258.

Net Outlay After Taxes:
$2628/month**

* Conservative estimate includes FULL list price. Also assumes conservative 5.5% 30 year fixed rate loan with 20% down payment. Includes STAR savings.
** Assumes 28% marginal tax rate and fixed rate loan sighted above.

Housing and Market Statistics for New Rochelle NY – Second Quarter 2009

Ruthmarie Hicks (Keller Williams Realty) — Wed, 09 Sep 2009 10:30:53 -0500

New Rochelle was a city that was coming into its own when the housing recession hit in full force. The downtown has been in the process of a major rehabilitation. Today, you can see the benefits of that effort, but with a depressed housing market, prices have stalled out and there are bargains to be had.

Make no mistake, New Rochelle is still up-and-coming. Whereas it does not have the attraction of being as fully “established” as its sister city, White Plains – the future looks bright. Many who want White Plains, but find it inaccessible price-wise find themselves attracted to New Rochelle. New Rochelle also has something land-locked White Plains will never be able to offer – water front property on the Long Island Sound.

Buyers who were disappointed that the White Plains market didn’t crash through the floor – should stop wishing for the impossible and give New Rochelle a second look.

Cooperatives:

Coop sales are down 33% over the previous year with prices slightly elevated. Given the low volume, I would associate the price rise to be due to random gyrations and describe the pricing as declining slightly or just flat. There is a 19 month inventory on the market – making this a buyer’s market.

Condominiums:

Condos in New Rochelle took a plunge. Prices are down 26.3% over the previous year with about 35 months of inventory left on the market. This market was overbuilt during the boom. The overbuilding included too many town houses along with the high-rise condos of Trump Plaza. Volume is off over 33% from the previous year as well. This is a market that buyers should be actively seeking – not shunning.

Single Family Homes:

The divergence between the high-end and low-end markets shows very distinctly here. The stats generally show a 4% price change, but that change is much greater at the high end where sales are very depressed. If you use $800k as the cut-off between the markets, the dichotomy is very clear. In the under $800k range – 48 homes sold while only 9 sold that were over $800k. Add to that the difference in inventory – 9 months for under $800k, 36 months at the high-end and you have two very different markets.

Further Reading:

Housing and Market Statistics for New Rochelle NY – First Quarter 2009.

New Rochelle NY – Housing and Market Statistics for Fourth Quarter 2008.

Housing and Market Statistics for New Rochelle NY – Second Quarter 2009

The Ultimate Solution to the Pesky Telemarketer Problem…

Ruthmarie Hicks (Keller Williams Realty) — Sat, 05 Sep 2009 12:05:15 -0500

This is the FINAL ANSWER to that burning question: How do you stop a telemarketer dead in their tracks?

I have a confession to make: I hate telemarketers. I really do. It’s one reason why I rarely call clients until they appear to be “ready” to act. There is nothing worse than finding yourself on the phone with someone who is trying to sell you something you don’t want.

Seriously though, agents are generally being stalked by telemarketers. Agents are independent contractors – we run our own businesses under the banner of our brokerages. That makes us ripe for harassment because the DNC (do not call) list does not apply to us. New agents are stuned to find themselves under seige by telemarketers offering ever more fancy (read expensive) solutions for generating new business contacts. When I first got licensed several years back – I felt like someone had put a sign on my forehead “SUCKER HERE!” For the most part, what they offer is sheer junk. After all, if it were any good, they wouldn’t need to hawk it on the phone so aggressively. Once a telemarketer gets you on the phone, it is almost impossible to get them OFF without hanging up on them.

Another reason for this post: Well, let’s face it, since real estate agents rank up there with used car salesman – I do get perverse pleasure in making fun of vocation that is held in lower regard than my own!

But I digress! A friend of mine sent me this link. This is the ultimate in answer to annoying telemarketing calls! Absolutely HILARIOUS! I want to thank Karn for sending this to me. The Ultimate Telemarketer Nightmare.

Freaky Friday – The Ultimate Solution to the Pesky Telemarketer Problem…

Housing and Market Statistics for the Westchester NY River Towns – Second Quarter 2009

Ruthmarie Hicks (Keller Williams Realty) — Tue, 18 Aug 2009 11:24:10 -0500

This is the first time I’m including several “River Towns” of lower Westchseter in one report. The reason for this is that because of low sales volume in each individual village, it is difficult to nail down market trends. The small numbers produce wild gyrations that are often the result of one or two sales at the high or low end of the spectrum. Including villages that have similar price ranges, commutes and tax structures in one report creates a more accurate picture of the area.

The River Towns included in these stats are in the lower portion of “Area 3″, including Hastings-on-Hudson, Dobbs Ferry, Ardsley, Irvington and Tarrytown (which are all part of the town of Greenburgh.) Also included is Sleepy Hollow – which shares a school system with Tarrytown. Sleepy Hollow is located in the town of Mt. Pleasant.

Cooperatives:

In the second quarter of 2009 13 cooperative units sold – down 50% from the previous year. Prices remained firm and were even up nearly 5% over the previous year. Difficulty in securing a loan may be the primary reason for the drop in volume as consumer desire for entry level housing is returning. It is still a buyer’s market with a little over 11 months of inventory on the market.

Condominiums:

14 condos sold in Q2 2009. Volume was down 39% over the previous year and prices dropped 6.5%. Some complexes were hit particularly hard while others remained more stable price-wise. With 15.5 months of inventory on the market, it is a good time to consider buying. Sellers will have to be realistic in order to get their units sold.

Single-Family Homes:

There are two distinct markets in single family homes. Moderately priced homes under $800,000 and homes over $800,000. I draw the line there because for most buyers of homes in that upper price range, a jumbo loan is required. Rates on jumbo loans have been high and so financing on the higher-end homes has become very difficult.

Sales volume is down nearly 23% from 2008. Overall, prices have dropped 20% – but this is partly a reflection of the type of home that is actually selling. The statistics get skewed downward because fewer luxury homes are selling. The market for homes over $800k is definitely in buyer’s market territory with over 40 months of inventory on the market. Although moderately priced homes are still in buyer’s market territory, that market is healthier with about 14 months of inventory. There are a substantial number of contracts and pendings -which once closed would improve the inventory numbers.

Further Reading:

Housing and Market Statistics for Tarrytown & Sleepy Hollow NY – First Quarter 2009.

Tarrytown and Sleepy Hollow NY, Housing and Market Statistics for Fourth Quarter 2008.

Housing and Market Statistics for the Westchester NY River Towns – Second Quarter 2009

Housing and Market Statistics for Larchmont NY – Second Quarter 2009

Ruthmarie Hicks (Keller Williams Realty) — Tue, 11 Aug 2009 00:08:41 -0500

Larchmont seemed to be impervious to market forces. Prices on single family homes kept climbing, national housing crisis notwithstanding. And why not? Larchmont is an easy commute to NYC (30 minutes). It’s got wonderful shops with a nice village feel, fine dining, nice boutiques, terrific schools and established neighborhoods brimming with old-world charm. Add Manor Park along the Long Island Sound to the mix – the proximity of downtown White Plains and New Rochelle and you’ve got a winning combination. But nothing can go up forever and the stock market crash has impacted the housing market.

Cooperatives:

Coops in Larchmont look as if they rose significantly in price. But this flies in the face of experience and common sense. The raw stats sighted below show a 33% price increase which is crazy. On closer examination, the 2008 stats were artificially low due to the large quantity of studios and small 1 BR units that sold. So skewed were these numbers that closer examination revealed a 6-7% price decrease. This was accomplished by comparing 1BR units that sold in 2008 to those sold in 2009. The same was done for 2 BR units. The inventory also indicates a buyers market with about a 24 month supply of units on the market. Volume is down 50% over the previous year. Compared to other markets, this decrease is far from dramatic. But this is a good time for buyers to enter this market.

Condominiums:

There were so few condo sales that I can not draw too many conclusions. Prices appear to be down about 8% – but this is difficult to measure as only one condo closed in Q2. There are currently 7 for sale. At the present rate of sales, that creates an inventory of about 21 months.

Single Family Homes:

Average sales prices fell 21% over the previous year. Some of this drop is undoubtedly a reflection of the crisis in jumbo loans. This has skewed sales towards more modest dwellings. Prices have undergone a significant drop, but it is probably not as much as the raw data indicates. Currently there is a near 12 month inventory sitting on the market as well as a 48% decrease in sales volume over the previous year.

Further Reading:

1. Housing and Market Statistics for Larchmont NY – First Quarter 2009.

2. Larchmont NY, Housing and Market Statistics for Fourth Quarter 2008.

3. Larchmont, NY – Housing & Market Statistics for 3rd Quarter 2008.

4. The village of Larchmont in a snow storm…

Housing and Market Statistics for Larchmont NY – Second Quarter 2009

Housing and Market Statistics for Scarsdale NY – Second Quarter 2009

Ruthmarie Hicks (Keller Williams Realty) — Tue, 04 Aug 2009 11:25:10 -0500

The housing market in Scarsdale is all over the place. Single family homes took a very heavy hit last year. Since they took their hit early, they now appear to be in recovery mode. The same can not be said for neighboring Edgemont which is now taking a drubbing and the cooperative market has also seen some difficulties.

Cooperatives:

Coops took a big hit this time around. It is somewhat surprising to see since this entry level type of housing has remained very sturdy and resistant to correction due to high demand. But it is not immune. Sales prices for the Scarsdale P.O. are down over 23%. Less so in desirable areas near the train – such as Garth Rd. But all have taken a hit since the market crash of ‘08. Sales volume for Q2 2009 is down over 45% with only 18 units sold in Q2. There is currently about 15.5 months of inventory on the market – making this a buyers market by every criteria that we have.

Condominiums:

There were so few sales that I am not including condos in my statistics except to say that volume is down by 50% and prices are up – reflecting a couple of sales at Christie Place – a new high-end 55+ luxury condo complex. It is setting a new price standard for the area – and this increase does not indicate rising prices across the board.

Single Family Homes:

These homes are located in the Scarsdale school district. Sales volume has remained steady when compared with Q2 of 2008. This reflects improvement seen in White Plains as well. Single family homes took the biggest hit early in the housing recession and are now leveling off and even recovering. Prices are actually up over 2008 averages to $1,560,000 up 4.6 %. There is over 13 months of inventory on the market, so the conditions still favor buyers. But for those who want to buy, I would suggest that you get moving. Low interest rates and buyers market that might be turning around indicate that buyers should pull the trigger rather than wait for better things.

Single Family Homes: (Edgemont)

Different town, same P.O. – totally different stats. Edgemont didnt’ take a big hit early on, but it is doing so now. Sales prices are down a near whopping 40%. That does not indicate a 40% drop in the price of the average home. It indicates a price drop combined with a market that is shunning higher end properties. More modest homes are selling – while high-end homes sit – skewing the stats downward. However with more than 2 years of inventory on the market, Edgemont is a buyer’s market.

An Important Note About the Criteria for the Statistics:

I handle each type of housing in Scarsdale differently. I also include a special section for single family homes in “Edgemont” which is really in the town of Greenburgh with a Scarsdale post-office and zip code.
For condominiums and cooperatives, I use the Scarsdale post office and zip code as my criteria. Many of these complexes are actually located in Greenburgh and Eastchester.

This reflects the way most buyer’s shop for housing. Coop and condo buyers work by address whereas those looking for single-family homes are often shopping municipality and school districts.

Further Reading:

1. Scarsdale NY – Housing and Market Statistics for First Quarter 2009.

2. Scarsdale NY – Housing and Market Reports for 4th Quarter 2008.

3. Scarsdale, NY – Housing & Market Statistics for 3rd Quarter 2008.

4. This could be your “back yard”….

Housing and Market Statistics for Scarsdale NY – Second Quarter 2009

Housing and Market Statistics for Hartsdale NY – Second Quarter 2009

Ruthmarie Hicks (Keller Williams Realty) — Sun, 02 Aug 2009 14:46:06 -0500

The Hartsdale housing market is in buyer’s market territory at this time. Like White Plains, the area resisted the housing correction particularly in the condo and coop markets until the stock market crashed in late 2008. Single Family homes had taken a hit prior to the market crash and although declines continued – they were not as severe.

Cooperatives:

The coop market saw a 3.1% price decline from Q2 2008. Hartsdale currently has an inventory of 11 months. There are quite a few contracts and pendings at this time. This reflects the longer escrow periods that the banks are responsible for. Sales volume is down 12.5% over the previous year. Much of that decline in slaes volume can be attributed to the slowness of the banks. The number of contracts and pendings indicates that thinAlthough this is absolutely a buyer’s market, the volume has picked up and the free-fall in prices has stopped.

Condominiums:

The most dramatic price adjustment was in the condo market. Prices were down almost 35% over the previous year. Sales volume was down over 14%. The current inventory suggests an absorption rate of 15.5 months. Although Hartsdale did not go on a high-rise “building spree” like White Plains and New Rochelle, the excesses of those markets are filtering their way through the entire lower Westchester condo market.

Single Family Homes:

Single family homes already took a hit last year prior to the market crash. Now there are signs of stabilization. Although prices are down close to 6%, sales volume held steady from Q2 of 2008. The free-fall has stopped. Homes at lower price points are selling better than those over $800k. This reflects the difficulties encountered in obtaining reasonable jumbo loans. Currently there is a 14 month inventory. But if you are a buyer shopping for a modestly priced home, that high inventory may give you a false sense of power. Homes in this price range are moving faster than the median.

Further Reading:

1. Hartsdale NY – Market Statistics for 3rd Quarter 2008.

2. Hartsdale NY – Housing and Market Statistics for Fourth Quarter 2008.

3. Hartsdale NY – Housing and Market Statistics for First Quarter 2009.

Housing and Market Statistics for Hartsdale NY – Second Quarter 2009

Working cooperatively towards a common goal is a win-win for agents and clients alike…

Ruthmarie Hicks (Keller Williams Realty) — Thu, 23 Jul 2009 15:44:35 -0500

Over the past few months, several sales-in-progress have been occupying a major portion of my time. When my clients and I began our journey together we had NO IDEA what lay ahead. The problems we encountered were mostly the result of the shifting ground that the lending crisis created. The banks were moving at a pace that would make a snail look like an olympic sprinter.

Each transaction had its unique set of players and problems. But in each case I was blessed to be dealing with buyers, sellers, agents and attorney’s that all pulled together to get to the closing table.

In this environment, there is no room for egos and selfishness or special agendas…

Real estate transactions can be rife with conflict, anger, egos and selfish motives. In these difficult times, closings are hard won. Buyers, sellers, agents and attorney’s are having their patience and tempers challenged at every turn. One agent said to me – “its like we are CLAWING our way to each and every closing.” I liken it to trying to walk through mud that is waist deep. Having reasonable clients, working with agents who are willing to get the job done, and having responsive a communicative attorney’s are no longer luxuries – they are essential components of a successful transaction.

So here is a heartfelt “thank you” to….

My client’s Kathy, Frank, Allison, Judith, Ted, Cristina, & Laura – for patiently prevailing during through all the delays. I know there were times that you thought you would never close. Your tenacity and determination paid off.

To the agents on the other side of these transactions, Suzanne, Andrew, Regina, Liz, Delilah and Lorna I thank you for your diligence and hard work moving the transactions from the beginning of negotiations and through the challenging escrows intact.

Finally to the attorney’s Michael, Lou, Mary, and Rodney I thank you for putting the contracts together in a timely manner, keeping the agents in the loop while following up on the many issues that the lending crisis created.

Everyone named went above and beyond. No one had a grudge or an axe to grind. No one was trying to take advantage or club the other party into submission under the guise of “negotiation.” We worked with our clients to put together a win-win deals for all concerned. These closings are a perfect example of what can be done when parties acting in good faith pull together to achieve a common goal.

Working cooperatively towards a common goal is a win-win for agents and clients alike…

Housing and Market Statistics for White Plains NY - Second Quarter 2009

Ruthmarie Hicks (Keller Williams Realty) — Wed, 22 Jul 2009 01:06:08 -0500

The White Plains housing market finally to its hit when the stock market crashed in late 2008. Until that time, the White Plains market - along with much of lower Westchester had resisted the declines that had occurred in other parts of the country. Prices dropped sharply and as credit markets froze up, sales volume dropped to a trickle by the end of Q4 2008. The winter was long and harsh as sales volume continued to stay low. This was mostly due to the tighter lending standards and a general reluctance to buy for those who actually had the credit to do so.

Buyer interest started to increase at the beginning of the 2nd quarter as lower prices and the stimulus package pulled buyers off the fence. Towards the end of the quarter there were many more contracts and pendings. The question in early June was whether or not the banks would actually fund all of the loans. Fortunately, things started looking up and the market is again moving, although volume is lower than in years past is the order of the day. This can be attributed to tighter lending standards.

Cooperatives:

Coops actually showed a price increase over the 2nd quarter of 2008. The 2.7% increase was small - but compared to the decreases seen in the condo and SF home markets, it is an encouraging sign. Coops are the entry level purchase for most first time buyers - which explains the resilience. Sales volume overall is still down 24% over the previous year while inventory is estimated at about 12.5 months. The inventory pressure will keep prices in check, but all in all - the coop market has fared better than the rest of White Plains housing.

Condominiums:

Condominiums have taken a real "hit" in this market. Prices are down over 11% over the previous year while inventories remain very high. Right now there are over 153 condos on the market an absorption rate of about 8 units a month. That's up from the 3-4 units a month we saw at the beginning of the year. Still at the present rate of sales it will take over 18 months to sell off the current inventory. Sales volume is down 46% from Q2 2008 and 60% from Q2 2007. So this represents a serious buyers market.

Single Family Homes:

Single Family home sales have picked up over the last few months. Single Family homes were the first to correct in White Plains as their downward price spiral started before the market crash. Lower prices have driven buyers to make offers although the sales volume remains down 15% from the previous year. Prices are off 11.3% from last year, but there are signs that the excess inventory is easing. It will take about 11 months to absorb the present inventory. This is a buyer's market, but not a fire sale. Buyers should be aware of the fact that they can get a good deal, but pushing the envelope too far will cost them. Its a market that is moving once again.

Additional Reading:

White Plains NY - Housing and Market Statistics for First Quarter 2009.

White Plains NY - Housing and Market Statistics for Fourth Quarter 2008:

Housing and Market Statistics for White Plains NY – Second Quarter 2009

No! It's NOT OK! 90-120 day escrows and endless closing delays are NOT acceptable.

Ruthmarie Hicks (Keller Williams Realty) — Thu, 09 Jul 2009 17:43:06 -0500

OK - this is a funny way to begin a blog - but I'm exhausted! Just plain out and out drained. Normally this state of tiredness would have me beating a path to a doctor. But I don't need a doctor, I just need a lender who can close a loan in a timely manner. You see, in addition to everything else that I do to complete transactions, I am being confronted with host of escrow issues that I've never seen before. I find myself on the phone constantly trying to prod the banks to close loans that I've had commitments and appraisals on since the beginning of the last century. And if this is stressing me out - some of my clients must be ready to jump off the Tappan Zee Bridge.

The problems with lenders has been fodder for several recent blogs. Although I have a host of war stories that would be funny if they weren't such a threat to each transaction, I won't bore the public with the gruesome details - YET. But what truly amazes me is the arrogance of the banks. After one disastrous situation where a closing was postponed FIVE TIMES and over one month, I ended up speaking with some of the powers that be at our friendly neighborhood national bank. (Yes, I know that is an oxymoron and the sarcasm is deliberate!) Their attitude was atrocious. I was informed that "this is the new normal. You now need to count on 90-120 day escrows. If buyers and sellers are prepared for it -it shouldn't be a problem."

Right - not a problem. Sure! Tell that to families that have their furniture in storage, their pets in kennels and themselves bottled up in hotels for two to three weeks. Tell that to the person who must lease a temporary rental for a couple of months to bridge the gap. Tell that to the seller who is dumping their savings into the mortgage and maintenance on an empty home. I won't even go into the convenience issues and the fact that lives are on "hold" for what seems like an eternity. What about the expense? In a time where credit is almost non-existant and most people have no money to spare, this is a BIG problem. The expense is not "going away" just because we are told to expect it. While I am at it - I should mention that prolonged delays have the potential cost buyers their deposit. When all parties are acting in good faith - this is a non-issue - but one can not count on that type of good will in each and every case.

What the larger banks are really saying is "You don't have a choice - just deal with it." Perhaps they don't care because they don't think they have to. If I hear one more major player in these banks tell me about how "well capitalized" they are - I think I'll throw up.

Hey banks! I don't CARE how well capitalized you are. I really don't. If transactions are falling apart or are delayed endlessly it has a snowball effect - and that giant snowball could smother me and my clients. Your capitalization means nothing if you aren't LENDING in a reasonable and timely way. From a purely selfish standpoint - if I don't get closings, I don't get commissions. No commissions, no money, no money, no money, no food on the table and no mortgage payment. For my clients the scenario is similar. Seller's who have moved on are paying for two residences. The deal gets delayed - that's bad enough. The deal falls apart, they are back on the market with months of payments and another looooooong escrow period looming. How long can they float on their savings before they too start to default on payments?

The large banks had better start caring. They may think they are "too big to accountable" but there are consequences. There is one large bank with which I have four escrows all of which have had serious closing issues. At this point - I will no longer accept a pre-approval letter from this bank. If a buyer comes to one of my listings with a pre-approval from said bank - they will be required to find another lender. By doing this I am fulfilling my fiduciary obligation to the seller - protecting the against an endless and dicey escrow. This bank is 100% off my list for buyers. If a buyer wants to use a loan officer from this bank - they MUST get a back-up pre-approval or I'm referring them to a more masochistic colleague.

Now - what good is that going to do? If you think that any large bank is afraid of little me - you are smoking something you shouldn't. However, more and more agents in my brokerage are doing the same thing - shunning the large and stodgy and embracing the small and nimble. The latter is more motivated to get the job done and customer service is not an afterthought with them. Our agents are sharing information about loan officers and mortgage brokers that we have used with success. You know, the "small fry" the big banks thought they were going to squash with their pinky finger. Ironically these were the banks that were NOT too big to fail and took no TARP money.

Instead of cleaning up - the large banks may find themselves being cleared out. Agents and brokers are slowly building relationships that navigate around these large cumbersome Goliath's of banking.

No! It’s NOT OK! 90-120 day escrows and endless closing delays are NOT acceptable.

Mornings at Coffee Labs - Tarrytown NY

Ruthmarie Hicks (Keller Williams Realty) — Sun, 05 Jul 2009 23:24:05 -0500

Coffee Labs of Tarrytown NY - A place to enjoy a great cup of coffee - with your best canine friend!

I confess that I have a coffee habit. It’s easy to point fingers at my 1/4 Spanish/Cuban heritage - but let’s face it - I’m addicted. This is particularly true of really fine coffee. And Coffee Labs offers some of the best blends there are. Once you’ve tried it, there really is no going back.

Sometimes I go to Coffee Labs in the morning with Jade - my mellow Siberian Husky. For those of you who have read the antics of my two White Siberian Huskies, you know that I hav two females named Jade and Tundra. Tundra is my wild child and Jade is as relaxed and mellow as Tundra is exuberant. So Jade gets to accompany me to the coffee shop where I get a great cup of coffee, pull up a table and get to work researching the market and catching up with correspondence. It’s my way of getting out of the office and enjoy a change of pace - while still being able to get work done. There are quite a few regular morning patrons at Coffee Labs. Many sit just like me - working away at their laptops sharing the bandwidth. Julie Annello is one a customer who I took note of because she didn’t have a laptop. Instead, she had her sketch book. For several days Julie tried to get a nice sketch of Jade, but somehow - it never quite happened…until last Wednesday… It really captures the quiet calm of Jade and her retiring, gentle personality. Julie gave me her sketch which I scanned into my computer and here it is….direct from Coffee Labs…Jade in repose while her “Mom” is working on market stats.

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