The Westchester real estate market is now truly a buyer’s market. In most communities, the number of westchester ny homes for sale is in excess of six months inventory. This is not universal throughout the county. But for the most part, the county is in a buyer’s market. A few days ago, I wrote a blog about seller’s stuck on unrealistic prices (Dear Seller, About that number in your head…) But this is one of those markets where unrealistic expectations are not limited to one side of the transaction. Fueled in part by media reports filled with sturm und drang (storm and stress) many buyers have confused a buyer’s market with a fire sale.
Unfortunately, unrealistic expectations can set buyers up for unnecessary disappointment and frustration. There are several flavors of unrealistic buyers out there.
The “I want to steal a house” investor:
This buyer is determined to find a home for pennies on the dollar. They comb through listing after listing and call agent after agent to show them home after home that looks as though it is the bargain of the century. The trouble is that once they see the home, they realize that this is beyond the simple fixer-upper. A new coat of paint is not going to do the trick. These homes don’t just need TLC – they need to be gutted.
This type of buyer needs to realize that there is no free ride here. Many of them have been watching too many late-night TV shows that claim that banks want to get rid of these properties at “any price.” After the way the banks have behaved over the past year – does anyone seriously think they are going to get the better end of any deal involving a bank? Banks have shown themselves to be more than capable of looking after their own interests.
The “I’ve got champaign taste and a beer budget -but I’m not settling” buyer:
This buyer can appear in any market. Since affordability has improved, it might seem counterintuitive to observe an increase in this type of buyer right now. Yet, that’s what I’m seeing. They want far more than they can ever possibly afford and the buyer’s market media hype is giving them tacit permission to push for the impossible. The sad thing is that this buyer is not looking at the increased affordability of the past year as the gift that it is – instead they are on a quest for even more.
This type of buyer has two choices: bite the bullet and buy what they can truly afford or roll the dice and hope that affordability increases still further. The latter has true risks in this market. Although prices may decline further, affordability is probably not going to increase because interest rates are almost certainly headed northward. This may well more than offset any further price decreases. For affordability to increase the buyer has to look to their own finances not the marketplace in order to afford “more.”
The buyer who will only put in offers 10-20% below asking price no matter what the comps say:
This type of buyer is of the mindset that “if you don’t ask, you don’t get.” They want to “test” the seller with a lowball in the hopes that the seller is desperate enough or ignorant enough of the comparable solds to accept. As I said in my previous blog about sellers: asking isn’t getting.
Not only does this rarely work, but it can really offend the seller to the point where the buyer could lose the sale. Low-balling is not a good way to win friends – or negotiate a sale. Offers should be based on the comparable sales – NOT the asking price. Many seller’s have already priced their homes realistically. A realistically priced home is more likely to be having multiple offers – so low-balling is a bad idea.
At the end of the day, buyers need to take a realistic look at the comparable sales. Those numbers are not lying and placing realistic offers in that “sweet spot” where they are consistent with recent sales – leads to success in the long haul.
In the end, the sale and purchase of a home should be a win-win for all concerned. It’s not about “beating the market” or “getting the better end of the deal.” It’s about negotiating a transaction that works for all parties.
Yes, these old Timberland boots were used as flower pots! It’s an example of how out-of-the box thinking can transform something that would find its way into the the trash, can be turned into a spring time arrangement.
Whether buying or selling Westchester NY real estate, clients often need help with curb appeal. When selling, landscaping creates an inviting atmosphere that invites buyers into the home. Buyers, on the other hand, are often eager to put their own personal stamp on their gardens and may often be at a loss as to what to do or where to go.
Carlson’s in White Plains has expert advice and marvelous arrangments for both home and garden a like. The arrangments can run the gamut from highly formal to totally funky. I particularly like to go there during the different holidays – such as Easter, Christmas, New Years, Halloween to see what they have. Over the years I’ve mentioned Carlson’s in several blogs. I’ve taken many photos of the arrangements. So I compiled the photos into a video. I thought it would be a nice diversion from the rain and wind we are expecting this weekend. Enjoy.
Carlson’s Floral & Gift is located at 625 Dobbs Ferry Rd., White Plains NY 10607 – 914-684-6084
Whenever I go on a listing appointment, I generally find that the seller already has a “number in their head” about what their home should sell for. This number can come from various sources. It is – unfortunately – almost always higher than the current market can command.
In truth, I can’t blame sellers for this…their minds have been levered to continued price increases to such an extent that the current market has left most sellers blind sided.
The first thing I often hear is that “I need to get X out in order to buy my next home which I can now get for Y because its gone down in price. The trouble if the property you want to buy has gone down so much in price, chances are the property that you want to sell has gone down by a similar percentage. Wishful thinking is often the culprit here. Markets are fluid – that was fine when prices were going up – but it also holds true when prices decline.
Misinformation is another issue. Many sellers look at what their neighbor is asking for their home. Asking isn’t getting. Many listings are overpriced in this market – so setting your price on the basis of other listings is not a wise strategy.
“But my neighbor sold their house for X just six months ago!” Six months is a lifetime in a depreciating market. If your market is depreciating – and many markets still are – then prices have decreased over six months.
Zillow zestimates and other information on the internet may or may not be accurate. Zillow has been off as much as 25% in our area. So if the zestimate of your property seems too good to be true, it probably is.
If you need to sell, price your home competitively – this is particularly important in a declining market where inventories are high and buyers are few. Overpricing your property will result in fewer or no showings. The property will sit as the market declines further – resulting in an even lower price down the road. Overpricing a home is just about the worst thing you could do in this competitive market.
This segment on the Daily Show was very disturbing. Normally I find Jon Stewart a laugh fest. But the fact that one Senator could block unemployment insurance extension during the worst recession since the Great Depression is NOT funny.
Clients ask me where the Westchester real estate market is going. I have to be honest with people. I have definite thoughts about how interest rates and expiring tax credits are going to impact the market – but another wild card remains – unemployment along with under-employment.
My own former career fell victim to outsourcing combined with an influx of H1-B employees from abroad. With absolute stunning speed, I watched as prospects for employment at a livable salary evaporated into smoke. This happened several years ago and the only reason this is relevant to the discussion is that my story is not unique. Earning capacity has gone down -even for those who are fortunate enough to be employed. Housing can’t completely recover until the employment issues and stagnating pay are addressed. These are issues that are bigger than the real estate market but the point is that the housing crisis does not exist in a vacuum.
People often ask me about fine dining in Westchester NY. The New York City dining experience has been finding its way northward to Westchester County. This might be news to Manhattanites – for whom Westchester has always seemed to be some sort of backwater destination. White Plains restaurants boast several transplants from Manhattan. Downtown White Plains is a location where high-end shopping and entertainment are the order of the day. Now, there truly can only be one Manhattan – but White Plains and other destinations in Westchester can no longer be considered truly suburban. Westchester is a mix of suburban life with NYC amenities.
To that end, one of Manhattan’s most distinctive dining attractions, Via Quadronno, opened its doors in White Plains at the corner of Renaissance Square and Main Street – next door to the two 42 story towers that are the Ritz Carlton. The location in the famous Art Nouveau Barr Building provides an interesting background standing next to the mirrored glass and sleek steel of the Ritz Carlton. That mix of old and new is very typical of the “new” White Plains.
For many on the East coast Friday was a snow day. White Plains NY was no exception. Let’s put it this way – people were not exactly calling me for showings on Friday. It took several hours for me to dig out – my walkways were covered with the white stuff. I actually spent about an hour cutting back branches that were hanging so low, they were in danger of pulling down a couple of small trees.
When I finally finished, I found that my Siberain Huskies (Jade, Tundra, & Buddy) were eager to play in the yard with me. I grabbed the camera and decided to create a video from some of the photos. Siberian Huskies and snow go together like ham and eggs. They were having a ball and I think it shows.
Enjoy the video, I put it together rather quickly, but I still think its fun
One of the primary problems facing the real estate industry right now is that anyone who needs loan has to have squeaky clean credit in order to qualify. The number of Westchester homes for sale – that overhang of inventory – won’t go away until more buyers have access to credit. During the boom, anyone with a pulse could get a home loan. Today the pendulum has swung too far to the in the other direction. Credit requirements are bordering on the absurd. Lately I’ve been waiting for lenders to demand DNA samples and FBI background checks for prospective borrowers.
It is true that in the past Americans have taken on a ton of debt. With wages stagnant, unemployment high and families up against the wall – credit created the elasticity that kept many families living check to check afloat. But the banks have been very mecurial - loving those who keep revolving credit balances and penalizing them at the same time. The system has been set up with what Elizabeth Warren referred to as “tricks and traps.” The result has been a mess where banks jack up rates almost on a whim, change due dates, include non-usage fees and do anything else you can think of to wring more money out of the consumer.
Some of these new regulations regarding credit are designed to plug some of the holes. Of course the system is still full of holes you could drive a truck through. Jon Stewart had a wonderful take on all of this.
Here is the video – hilarious – particularly the second half.
Scarsdale coops are very popular for commuters and long-time residents alike. When people think of coops in Scarsdale, they are often thinking of the famous Garth Road. Unfortunately, there are no longer any dog-friendly cooperative complexes on Garth. However, nearby on Central Ave, there is such a complex.
Scarsdale Country Estates:
Scarsdale Country Estates is located on Campus Place and Sentry Pl. off of Central Ave. Although they have a Scarsdale, P.O. address, it is important to clarify that they are actually located in the town of Greenburgh in the famous Edgemont school district. These are lovely old world garden style units with fine moldings, hard wood floors and fireplaces. Read the rest of this entry »
The river towns comprise the towns/villages in Westchester that are located along the Hudson River. This blog covers the lower Westchester region primarily in the town of Greenburgh. Sleepy Hollow is included since it shares a school district with Tarrytown. Initially I ran these statistics on Tarrytown and Sleepy Hollow, but the sales volume was too low to create reliable statistics.
In general, prices in the river towns such as Tarrytown NY showed some signs of stabilization in the river towns. Certainly the area has been badly beaten up over the past few years, so it was good to see a slowdown in declining prices.
Cooperatives:
The pricing for cooperatives was dicey because during the 4th quarter there were practically no 2BR sales. This skewed the price point dramatically downwards. Although the number indicates a decline of over 34% from the previous year, this market is nowhere near that unstable. Because of the unusual sales pattern decent sales figures were almost impossible to come by. However the increase in sales volume of 120% indicates a recovering market. The 6 month inventory reflects a slowly declining market. So the numbers indicate a level or slightly declining market creating some good news for buyers and sellers a like.
January was a quiet month for snow. Westchester NY weather was cold, but after months when I thought it would never stop raining – we had a reprieve on the amount precipitation. The result was a calm January. A lot of residents had their fingers crossed for February – but it was not to be. And although we all grumbled about digging out, my pups were as pleased as punch to have some quality time with the white stuff. I was out with them this afternoon watching the cavort and play like they had never seen snow before and it was a lot of fun to see. I took a few pictures with the idea of making a new video, but this time, they didn’t come out the way I anticipated. So I’m settling for a remix of the video I prepared in December of them playing in the first snow of the season. The picture above, however was from today’s snow…
The Westchester real estate market is now truly a buyer’s market. In most communities, the number of westchester ny homes for sale is in excess of six months inventory. This is not universal throughout the county. But for the most part, the county is in a buyer’s market. A few days ago, I wrote a blog about seller’s stuck on unrealistic prices (Dear Seller, About that number in your head…) But this is one of those markets where unrealistic expectations are not limited to one side of the transaction. Fueled in part by media reports filled with sturm und drang (storm and stress) many buyers have confused a buyer’s market with a fire sale.
