The Westchester View » For Buyers

White Plains NY Housing Market Statistics – Fourth Quarter 2009

Ruthmarie Hicks — Tue, 19 Jan 2010 09:43:21 +0000

The housing market in White Plains has taken a drubbing since the stock market crash of 2008. Although some adjacent areas are showing small signs of stabilization, the same can not be said for the city of White Plains. This is ironic because White Plains was at the epicenter of the housing boom for Westchester County.

White Plains NY Cooperatives:

Cooperative prices were actually up slightly over the same period in 2008. However, this slight uptick might be do to an increase in the proportion of 2 BR units in the sales statistics. The previous quarter showed a grim 17% price reduction and recent sales in specific complexes indicates that this downward trend is continuing. Since 2 BR units are suddenly far more affordable, buyers are finding that they can afford a larger unit. Sales volume is down 17% over the previous year and the current inventory of 9 months indicates a buyer’s market undergoing a price correction bordering on double digits.

White Plains NY Condominiums:

Condo sales remained very soft though pricing showed no further reductions after the near 17% decrease that happened in the third quarter. However, the inventory is alarming because in spite of increased buyer activity across the board. Currently there is a 13.1 month inventory sitting on the market which promises to increase as soon as the spring selling season gets under way. Such an inventory is consistent with double digit price decreases. Sellers should take care to take advantage of this lull in price reductions and price their units aggressively.

White Plains NY Single Family Homes:

Single family homes showed the greatest year over year price drop in this quarter. Average home prices are down 24.2% year over year – shedding an average of $186,000 in value. The current inventory is a bright spot. The six month inventory indicates a buyer’s market undergoing high single digit declines, but this may be the calm before the storm once the spring market starts and people list their homes. Overall, sales volume is up over the previous year which would be a very positive sign if sales volume hadn’t been so desperately low last year.

How far is too far? Does having a large geographic range of service make sense for the client?

Ruthmarie Hicks — Sun, 17 Jan 2010 09:54:26 +0000

It is very interesting that just as consumers are demanding ever more hyper-local content and knowledge from agents that we are also seeing another distinct trend in the opposite direction: the tendency to list and sell to larger and larger geographic areas.

The contrast between old-school hyper-local agents and the newer nomad agnet was driven home to me while I was working with two listing agents who still work exclusively in small niche markets. I was at a closing with one of them and she implied that since I had the entire city of White Plains to cover, why didn’t I simply refer out the client who finally bought in Scarsdale?

Can a real estate agent be too local?

I knew that the attitude about staying hyper-local is alive and well though it appears to be a staple of old-school real estate. Still, I was more than a tad surprised. Scarsdale is not the moon. It is the town directly adjacent to the west side of White Plains and about a whopping six miles from my front door to the center of the village. If we followed this line of thinking to its most extreme would mean that a buyer potentially moving from New York City to Westchester NY would have to have as many as five or six agents to explore all the possibilities open to them that were within about 30 minute commute. For the consumer this seems most unwieldy if not highly impractical. Could you imagine the mountain of agents all crawling over each other for the buyer’s attention? What a mess. Not to mention a monster of coordination.

From the agent’s perspective, there could also be a danger to being too local. What if something happens to that small segment of the market you represent? If your geography/price range are razor thin – you are setting yourself up for trouble. This was clearly seen this year when agents who specialized in small high-end markets got creamed because jumbo loan issues bit them in the backside. Another listing agent I encountered was used to selling about 10 major properties a year – but this year had only managed a single sale.

The nomad real estate agent:

On the other hand, we have the opposite trend. I’m seeing this from the listing side. There are a cohort of listing agents that are increasing their range to encompass as many as five counties. These agents list in such a wide ranging area that I refer to them as “Nomads.” (Please don’t yell at me if you are from a rural region. I am speaking from a local perspective in a densely populated area.) Densely populated areas tend to have more gyrations in market conditions per square mile than more rural locations. The number of towns, cities and villages with their local governments and school systems within Westchester County alone is daunting enough. Market nuances that can seriously impact home values would be a black box to an agent that is overextended geographically. I have to question whether this is in the best interests of the seller. Let me put it this way: If going to each listing once a week would entail a gasoline bill that looks like the national debt – I submit that you are probably trying to cover too much ground and that this could seriously impact the result to the client.

Why do I say this? Well, I’m a numbers type of person, and I started looking at the raw numbers of agents who cover large territories and found a disturbing trend. I will give the caveat that this was not totally scientific. I looked at a handful of agents randomly. Still, the results from my informal survey were pretty compellling. When comparing solds to expireds and cancelleds, the ratio of closed sales to listings was consistently under 50% . 35-45% success appeared to be the norm for the Nomads whereas anything from a 55-90% success rate was the norm for those who stuck closer to home. To be fair, I chose not to include expired or cancelled listings that the agent re-listed. Nor did I include sales listings that wound up as rentals. The further the range, the lower the actual ability to close the sale.

Now, as a business model, being a Nomad might make sense. It’s probably exhausting to service so many listings that fail, but many businesses are based on throwing as much up against a wall as they can to see what sticks. It can be profitable to work that way.

But what about the seller? For the seller, listings that just won’t sell are like beating your head against a wall – it feels so good when it finally stops.

Personally, I take a line right down the middle of this controversy. I have too many buyer clients who want one-stop shopping to limit myself to one town or community. Therefore, with respect to buyers, I cover pretty much the bottom half of the county. With listings, I have traditionally stayed closer to home. However, I am gradually extending my listing range to also encompass the lower part of the county. When listing opportunities arise in areas where I have not taken listings previously, I generally choose to work with a co-listing agent who is experienced with respect to the neighborhood in question. In that way, I have started to expand my territory while retaining top service for my clients.

Scarsdale NY – Housing and Market Statistics for Third Quarter 2009

Ruthmarie Hicks — Sat, 12 Dec 2009 09:12:20 +0000

Scarsdale NY housing has been in the cross hairs of the housing recession for a while now. Initially, it was resistant to the correction taking place in other parts of the country. Eventually the forces that had hit other parts of the country so dramatically, came home to roost even in the most resilient areas of Westchester. Real estate values in Scarsdale NY came under prssure as inventories swelled. The drop was severe. However, some of the numbers show signs of a bottom being at hand.

Cooperatives:

The number of co-ops sold are down 15% over the previous year. This is a trend that has been seen in other parts of the county and reflects the difficulties in obtaining financing. Currently there is a nearly 8 month inventory on the market. However, prices remain slightly higher than the previous year, (5.4%) indicating a market that is stabilizing. There are some mixed signals here. the inventory is still high however, the pricing is surprisingly robust.

Single Family Homes – Scarsdale:

After a “pop” during the 2nd quarter prices have once again fallen and are down 27% over the 3rd quarter of 2008. Swollen inventories are going down. Right now inventories are approaching th 6 month mark.

Single Family Homes Edgemont -

Edgemont shares ad PO with Scarsdale, but it is actually is in the town Greenbburgh. Sales have picked up in the area leaving inventories low at about 4.4 months.

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.

Additional Reading:

Housing and Market Statistics for Scarsdale NY – Second Quarter 2009

Scarsdale NY – Housing and Market Statistics for First Quarter 2009

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

Defining “success” in the real estate – or how not to choose a real estate agent

Ruthmarie Hicks — Sun, 22 Nov 2009 14:52:23 +0000

In surfing the net, I discovered an on-line version of an article by Ben Brody and Laura Gurfein that appeared in last months Westchester Magazine about the county’s “top” Realtors. The subtitle declared “In good times or bad, whether buying or selling, these are the agents you want on your side.”

Now, I have nothing against the Realtors who were chosen as the finest agents in Westchester NY real estate. None at all. it was fascinating to see how the authors chose to define “success.” They used a simple unbiased metric – the bottom line. They defined success in terms of .sales volume in dollars. The theory being – the bigger the sales volume the better the “track record.” This kind of boggles my tiny mind. In a twisted way it reflects the public antipathy to Realtors in general because it emphasizes that “success” is defined in dollar signs.

This got me thinking – how exactly should one define success in real estate? How should these bottom line numbers like sales production and number of listings held factor into a home owners decision about who to sign a listing contract with?

Well, realistically, an agent has to achieve two goals. Certainly, over time, the agent must be able to turn a profit or they will go out of business. This is much harder to do than most people outside our industry think. I have to make a living this way and turning a profit is absolutely essential or my bills don’t get paid. But for all the delusions of real estate agents being “rich” without any effort, the failure rate is enormously high – north of 80% in most of the country (over 90% locally.) So posting sales volume is a major component of success.

But, what does this do for the client? The home seller or home buyer? The article indicated that whether selling or buying – these agents were the best. But by looking at sales volume only, the article missed the mark altogether.

1. Is this agent primarily a listing agent or a buyer’s agent? If they have an even number of sales in both categories – fine. But I looked at the sales history of a couple of these superstars. They were primarily listing agents and did relatively few sales as a buyer’s agent.

2. On the listing side, what is their success rate? After all, an agent can make a bundle listing in volume. The percent of listings that actually sell is another matter.To that end I took a look a closer look at a “top agents” sales record for 2009. I picked an agent on the list at random and found the following.

This agent’s 2009 figures were way off from 2008. It’s a tougher market in which to sell homes and their sales volume was down nearly 4-fold. That’s quite a drop. Granted Westchester home sales are well down from 2008. Although this agent was working a niche which has been badly hit in the market, it is still a stunning fall in volume over one year.
During 2009 the number of expireids/cancelleds was nearly equal to the number of actual sales. So when a seller listed, they had about a 50% chance of getting their home sold. A few of these properties were rented. If you include those as successful then the seller had a 68% chance that his home would be either sold or rented by that agent.

Compare these stats with those of another agent that I selected. This agent will probably never appear in the “top 20″ in terms of volume. But their record speaks for itself.

In 2009, this agent actually increased production – showing that they could negotiated just as well under far more difficult circumstances.
Every single listing either was sold or rented. The one expired was relisted immediately. With this agent 88% of the listings sold, the other 12% were rented.

Which type agent would you rather have listing your home? The more successful earner, or the one that truly gets the job done for the vast majority of their clients?

Now there are more criteria for sure. I did not measure days on market or final sales price vs. list price. The point is that are many factors beyond market share and raw profits that define greatness in the real estate industry. From the consumer’s perspective – sales volume should be the least of these.

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

Ruthmarie Hicks — Fri, 09 Oct 2009 07:21:00 +0000

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.

Click here to view the embedded video.

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

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

Ruthmarie Hicks — Mon, 28 Sep 2009 23:57:27 +0000

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 on seemingly endless escrows - all I ever 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.

This could be your “back yard”….

Ruthmarie Hicks — Sat, 13 Jun 2009 08:26:00 +0000

One of the many issues confronting first time buyers and those who want to “downsize” is that many crave having an outdoor space. Cooperative life isn’t always conducive to having outdoor space, but the coops on Garth Rd. are an exception. The park that runs behind the Bronx River Parkway side of Garth Rd. creates a wonderful “back yard” for the residents. For those who crave outdoor space and easy to footpaths. The area, called the Garth Woods Conservatory offers a quiet oasis from the usual street and village traffic and appears to be popular with many of the residents. I took advantage of some extra time I had and took a short walk along the Conservatory with my dog Jade. We ran into several canine friends along the way as well as several people who were happy to meet my dog…I wasn’t nearly so interesting.

As can be seen from the photos – many who live along the Garth Woods Conservatory have a birds eye view of the woods – with gardens or terraces having a view of the woods.

Scripters vs. the Scripted…..Do you fall too easily for the slick pitch?

Ruthmarie Hicks — Wed, 27 May 2009 22:25:05 +0000

This post was initially published on Active Rain about a year ago. It was during the election cycle so the parallels to our political system make more sense. I have modified it somewhat for this blog. My reason for reposting is simple: Many buyers and sellers seem to fall for the smooth-as-silk , extremely slick salesperson. Many of whom promise to help buyers “steal” a home and sellers sell for a price that hasn’t been seen since 2006. I tend to not work with scripts. I don’t like being scripted to – so I try not to script to others. So here is the post. Enjoy the clip at the end – its interesting nearly a year later as an example of how scripting devoid of understanding or true content can be dangerous to the “scripter” as well as the “scriptee. “

OK, so this idea was stolen from Jennifer Allen and Karen Rice. I only lift ideas from the very best! When I do, at least I’m honest about it! Recently Jennifer wrote about how she felt after she had been pitched to with a script. Karen Rice later described going to a “free” REALTOR.com technology tools seminar. She may have gotten a free meal, but she paid for it with a long hard sales pitch that went on endlessly and offered little of practical value.

For the most part, I readily agree – most of us like to feel that we are too important for a script or “pat” dialogue. Personally, I hate scripts, and haven’t used them. However, my down-to-earth approach comes at a price. I’m not SMOOTH. Don’t get me wrong, I’m not sloppy, but I’m not as polished as a scripted agent because mine is generally an honest response to an honest question. To be smooth – most of us need scripts. That lack of smoothness, answering questions honestly as they are presented can create a feeling of roughness, less polish – the opposite of slick. In many cases it won’t fly. Many audiences are so used to being scripted, they won’t tolerate anything so direct. In some ways, they need to be “sold.”

What is most disturbing is that this garbage is SELLING! Elections are lost and won over slick campaign ads such as Swift boating. So is it small wonder that people in any sales profession feel they must resort to the use of scripts? If we, the public, are that shallow and gullible, do we deserve any better?

Perhaps a lesson to buyers and sellers a like is that if when they see a less than polished “pitch” they should consider that they are dealing with the “real deal.” That is – an agent who wants to work with them on an individual basis and address their specific needs and concerns rather than offering pat answers in neat and tidy scripts. Certainly, a well scripted agent devoid of practical knowledge and insight is something to be avoided in this challenging market. Buyers and sellers need and deserve more.

Below is an example of someone who has gotten away with scripted dialog for so long they don’t even know what they are saying. – NAILED!!! OUCH!!! This man is a radio talk show host that has probably relied so heavily on scripts that he’s not even sure what he is saying or what it really means. A truly frightening example of how sound bites can rule over true content.

2 BR/2 BA Pet-Friendly Condo at Jefferson Place -300 Mamaroneck Ave. #308 in White Plains – Offered at $469,000

Ruthmarie Hicks — Fri, 01 May 2009 07:30:33 +0000

Note the newly reduced in price! Initially $474,900 now $469,000. This unit is the most competitively priced 2 BR unit at Jefferson Place. The sellers are serious and are inviting serious offers.

Jefferson Place:

300 Mamaroneck Ave & 31 Greenridge Ave. White Plains, NY 10605:

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

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 89 out of 100.

For additional still photos of this unit, follow this link.

Jefferson Place Amenities:

Jefferson Place is known for its amenities. It offers luxury touches found in condo complexes with much 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.

This Luxury 2 BR/2BA Unit

Over 1100 s.f.
Private end unit with great views.
Large bay window with city panorama.
Hardwood floors.
Modern granite kitchen & baths.
Walk-in-closets – LOTS of storage.
Full-sized laundry in unit.

This is a terrific unit and its the location in the complex that makes it special. The views are excellent throughout. It is an end-unit with plenty of cross -ventilation and unencumbered views. The large bay window keeps everything bright and sunny. The location is very private as well.

COST OF LIVING:

Current Listing Price: $469,000.
Property Taxes: $7087.32 without STAR.
STAR Savings: $1675.02.
Monthly Common Charges: $552.07.
Monthly Mortgage: $2130.34.*
Gross Outlay: $3,133.44.

Net Outlay After Taxes:
$2,528.59/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.

Commuter Heaven: 2BR/1BA Cooperative For Sale at Hartsdale Towers – 11 Columbia Ave. #C-1 – $230,000

Ruthmarie Hicks — Sun, 05 Apr 2009 15:46:24 +0000

For those looking for an easy commute and extra elbow room at a great price, this coop should be on top of your list of “must-sees.”

Hartsdale Towers is a beautiful pre-war complex located on the corner of the highly desirable East Hartsdale Ave. and Columbia Ave. This complex features a unique stucco and brick facade with wonderful old-growth trees and landscaping that create a residential feel in spite of its location on E. Hartsdale Ave. The lobby is Art Nouveau with stunning moldings and details.

The unit itself is a large 2 BR unit with 1080 s.f. It has high cove ceilings and newly refinished hard-wood floors. The kitchen and bath are updated and the kitchen contains new stainless steel appliances. Bright and airy with excellent view of E. Hartsdale Ave. the unit offers tremendous value for the price.

The amenities include a common laundry and extra storage for $30.10/month – although there is a short wait for a storage unit.

The neighborhood surrounding the complex offers the best of all worlds for those who call it home. The neighborhood is highly walkable. You can leave the car behind when it comes to errands in the village or dining. The train is about 0.5 miles from your door. The neighborhood behind the complex the highly desirable residential neighborhood known as Manor Woods which is a lovely area for those who enjoy walking in a residential setting.

Vital Statistics:
Price $230,000
Down Payment 20%
Monthly Maintenance $715/mo.

Assuming a $184,000 30-year fixed mortgage at a rate of 5.5%, the GROSS outlay to own this coop is $1760.00 (rounded to the nearest dollar.)

Assuming a 25% marginal rate and allowing for mortgage interest deductions and tax deductions the net outlay is conservatively slighly over $1400/month. This blows away most 1 BR and all 2 BR rentals in the area. It also makes this 2 BR unit competitive with many 1 BR coops in terms of affordability.