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If only we could move the house…

By
Real Estate Agent with Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605

You can't move the houseWhen buyers first come to me they have a lot of criteria on their wish list.  Very often the hype in the market about homes being available for pennies on the dollar sets them up for disappointment.  It is not unusual for me to hear the following…

We love this house!  It has all the amenities we want – but that neighborhood!  Why can’t we find this in the school district (or insert other criteria) that we want?


This is a question asked by many buyers who are frustrated that they are not able to find exactly what they are looking for at their price point.  Lenn Harley wrote a tremendous post on this topic and kind of beat me to the punch on this topic. “I’ll send you my criteria….” In that blog – Lenn aptly describes a situation very familiar to Westchester NY agents.  A  buyer who is  perfectly  capable of buying  has created criteria that is so tight it prices them out of the market.  It happens all the time and the way I answer that question depends on the circumstances.

Often the buyer has  has  selected an area exclusively based on the school district (as in Lenn’s blog)   I recognize and understand everyone’s  desire to give their children every advantage, but unfortunately everyone likes that town (zip code)  for the same reason. Since pricing is determined by supply and demand, how much you can buy often depends more on where you are looking.   Some areas are highly competitive while others have plenty of inventory.


The following amenities raise the price of buying a home in this market.

School District – People want only the “best” districts – or their definition of same (which I don’t agree with – but I digress) high scores mean big bucks.

Close to high end shopping and fine dining - The McMansion far from stores, shopping and dining is now passe. People want walkable neighborhoods where they can leave the car.  They want to walk to first class restaurants, be able to pop by stores like Anne Taylor, grab a coffee at Starbucks (or a local bistro) and stroll home. Any home with that amenity will be priced higher than those that are tucked further away.

Commute –
In Westchester  NY – if it is not about the schools it is ALL about the commute!  Premium prices can be expected for anyone looking at homes within about 40 minutes of Grand Central Station NYC on any of the three  Metro-North train lines.  If the municipality lacks a stop on Metro-North the price goes down.  If you can walk to the train – the price tag goes up.  White Plains has the most peak hour trains of any stop on any of the three train lines.  This boosts prices in the downtown.

At the end of the day, creating criteria that can’t be met by the current market is self-defeating. Homes in desirable locations are resistant to major price shocks – so the correction that we had – though significant – has proven to be a disappointment for many buyers. But  hoping that affordability will increase is probably self-defeating at this point.  The areas where everyone seems to cast their lot are already edging up in price and interest rates are also starting their upward climb.  Prices may or may not adjust more, but affordability is not going to get much better.

And no - you can't move the house...Even if you could - the house would probably cost more in its new location.

©2011 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Comments (16)

CA COASTAL ESTATES Lauren Selinsky Perez CRS
California Coastal Estates - Aliso Viejo, CA
"Your Real Estate Broker" #oclauren

I, myself had the perfect house 50 miles away from the beach... and said, if I could just move this house near the beach.... ;)

Feb 09, 2011 08:41 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Well I suppose this is how mobile homes started... :-)

Feb 09, 2011 09:00 PM
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Excellent post Ruthmarie.  You're so right...if you could move the house, it would cost more anyway.  Your name came up yesterday at Keller Williams happy hour - an agent mentioned you blogging and you leading a training course.

Feb 09, 2011 09:37 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Often show a vareity of homes, with the buyer saying if I could just have that yard with this homes kitchen and that homes extra rec room conversation happening on the ride back to the office in the jeep. So I joke we can mix and match and there are trailer hitches on all of those homes. They look, realize someone is joking and that maybe we have to do the best with what is out there. But on the top ten list Mr and Mrs Real Estate Buyer, which one comes closest. That's the chair to sit in when the music stops and it's time to start getting ready to head to the real estate closing.

Feb 09, 2011 09:38 PM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

Terrific post, and yes, I'm sure we've all had this conversation with our buyers at one time or another.

Feb 09, 2011 10:03 PM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Ruthmarie,

Just a few miles can make a million dollar difference in values. So, this is very significant.

Brian

Feb 10, 2011 12:32 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Lauren - Yes - waterfront, beechfront - it all sells at a premium. Around here its views of the Hudson or Long Island Sound.

Hi Michelle - Funny - I was thinking of using a pic of a mobile home for this post.

Hi Debbie  - Thanks - I'm getting this a lot these days.  I think that there are many fence sitters from waaaaay back who anticipated making a real "killing."  No one has asked me to lead a training course...I figured if Gary wanted me to - he'd ask.  I did teach one class on blogging - but its not  an "easy" way to prospect. I think people thought it would be easier than it actually was.

Feb 10, 2011 02:19 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Andrew - Yes. eventually people have to pare down the criteria and deal with needs and not wants.  The problem in NY is that people were hoping the market would literally collapse.  Sales volume collapsed, but prices did not.  They went down - significantly.  But the very upscale areas people crave to live in have been resistant to severe correction and I think there are a lot of disappointed buyers out there.  The fact is that they were NEVER going to be able to buy a nice home in Scarsdale.  Heck, people are buying into the few cooperatives in Scrasdale and crammng families of 4 into that 2 BR coop to get into that school system.  The price? close to $600k for a cooperative!  So you can imagine what a house is going to run.  In our case its unrealistic expectations.

Hi Carol - I'm sure this happens everywhere. Lenn's post is also spot on - about this issues.

Hi Brian - This is true. One house over into another town on a street can make an enormous difference.

 

Feb 10, 2011 02:28 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

Ruthmarie, it is not just in different districts, it can also be in the same District, different parcel, or neighborhood, or on more AC. I have one going on like that now.

 

Feb 10, 2011 03:05 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Missy - True.  This time around I was thinking more locally.  Its very different in different areas.  But here commute and schools RULE with respect to price.  The walkability is also now a big deal - though it is trumped by the other two factors. 


Generally it comes down to choices between - let's say - a house in mint condition with more square footage and a better lot in a less desirable district and the prime location and a real fixer. 

As I said in another comment - some parents (and I DO think this is over the top) are cramming themselves into 1200 sf coops with a couple of kids.  Said cooperative cost almost $600k! It usually is in great condition - but boy it must be cramped and no back yard etc.   But it has the schools, the train and the shopping right where you want them!  So can you imagine what a house in terrific condition in that area would cost.  Most are simply priced out...still.  And this is cause for a lot of sad faces.  People really thought that these areas would take a 60-70% dive and become affordable for the masses.  There was no reason to ever suppose that would happen.  It has to do with available land and mature neighborhoods.  Westchester looks like its got a lot of room to grow, but that is deceptive because of the wetlands.   The easy stuff has been done. Now, communities that don't have the stellar test scores because they are more city-like - THOSE areas are more affordable - but a lot of buyers are turning up their noses at the schools.

As someone who has taught at the college level and holds a doctorate, I will say - for the record - that this obession with scores is approaching madness.  I mean I had people rejecting school systems because the elementary school isn't in the top 100 - in the country! You've gotta be kidding me!  They are rejecting schools that produced Intel science talent contest finalists - on test scores!  I sympathize to a point - but the child's amibition and the parent's support have a lot more to do with the final outcome than the school rank.

Feb 10, 2011 04:55 AM
Joelle Embres
jsellhomes@live.com - Parkland, FL
Re/Max Advisors

Hi Ruthmarie, When this happens to me ,and it happens often, unfortunately. I send the client stuff in their price range.1st.

Then.... I usually send them an e-mail with a subject line something like. Finally A home that fits all your criteria....

Of course its usually double(at least) what they are looking to spend.

They usually laugh and get the picture.

Good post. I'll have to check out lenn's too.  Have a great day!!

Feb 10, 2011 05:14 AM
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Ruthmarie, at times, it does feel as though we're in the business of having to adjust expectations.  True 'nuff.

Brian L. Sirota, Esq., Broker/Attorney, BriStar Realty, Orange County, California

Feb 10, 2011 05:47 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Joelle - That's a good way to approach it.  In NY people are very stubborn.  They usually think if they dig deep enough they will unearth a gold nugget that every buyer and every agent somehow missed.  I waste a lot of time showing pure JUNK trying to let the buyer get the "I can get a better deal then they are telling me" thing out of their system.   Sometimes it works, sometimes it doesn't.

 

Hi Brian - Sorry - I think I called you "Bistar" yesterday!   Expectations are a serious problem - partiularly in a place right outside Manhattan. The only thing more expensive than Westchester IS Manhattan....well maybe Greenwich CT - that is more expensive...

Feb 10, 2011 07:05 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Ruthmarie, I do my best to set expectations.  There will always be a trade off unless you have unlimited funds and then that isn't a guarantee either.

Feb 10, 2011 10:09 AM
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

Ruthmarie....I could have written this post!  Schools and commuting are issues here too.  I have buyers who are well qualified and can afford to buy in the towns they are looking in but want to be close to the train so they only need one car.  But, they need a certain amount of SF and for the price they are willing to pay, want it to be in great condition, have at least two full baths, central air.....you get the picture.  Usually I can find nearly everything they want but either it's not near the train or if it is, it is either at the top of the price range or more than they think it should be priced at for its size, etc.  For what they can afford to pay, I'm not quite sure why they don't just buy an inexpensive used car so the one who takes the train can just drive to it.  But, I just keep my mouth shut!

Feb 10, 2011 12:33 PM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Nick - the media is bringing them in with stars in their eyes.  Just last week I had someone all hot and heavy to buy a town house.  He had been reading my blog.  Well - if he had really READ the blog - he'd realize that finding a townhouse in the location he wants will cost about $250k more than he has to spend.  He can buy something - an 800 sf condo or 1200 sf coop..but that's not what he had in mind.

 

Hi Christine - Around here the walk to train is more serious.  There isn't enough parking and people wait 2-3 YEARS for a parking spot in some municipalities.  So many decide to settle for smaller and walkable.  Buyers just seem to have very overblown expectations of this market.  Again - I will say that that is media driven.

 

 

Feb 10, 2011 03:19 PM