Just the other day I was pulling comps for a seller in a specific neighborhood. Normally, this shouldn’t be like pulling teeth, but a trend that I have been noticing has been accelerating. Half of the listings in this neighborhood failed to mention the name neighborhood in either agent remarks or pubic description.  This forced me to search by zip code. Since the neighborhood in question straddled two zip codes – I ended up digging through mountains of actives and solds – not to mention contracts/pendings as well as expireds.

Since the neighborhood I was researching straddled two zip codes  – I had to go through a mountain of actives, contracts, pendings and solds, expireds and cancelled listings to fish out the relevant information.

So I have to ask the moronic question – Whatever happened to including the name of the neighborhood on the listing?

I don’t mean to sound snarky – but this is NOT rocket science.  HEY!  LISTING AGENTS!!!! Include the $#%!ing neighborhood in the listing!!  This is quite literally the LEAST you can do.  How hard can that possibly be?

Not local?  It’s your job to find out for God’s sake.  If you don’t have enough knowledge of  the area you are listing in to find this information – then you have no business listing there.  Do yourself and the seller a favor and decline the listing.

Why is this important?

Well – it’s not because yours truly would like to do neighborhood stats without going listing by listing through one or two zip codes….although that would be a nice perk.

But….

1.  Most serious buyers are shopping by neighborhood.  If they want a specific neighborhood, but don’t KNOW the house you are listing is in that neighborhood, they aren’t going to ask to see it.  Your seller’s are missing out on some of the most serious buyers this way.

2. Counting on the buyer’s agent to know?  Are you kidding me?  If agents are listing further from home, buyer’s agents are certainly showing further from home.  You are counting on the blind to lead the blind. Further, you shouldn’t be asking the buyer’s agent to do your work for you.

Look, I realize times are hard.  I have been expanding my range for a while now.  There is no longer enough business for most agents to stay purely local.  But when agents  spread your wings, they need to do it responsibly.

Message to Sellers:

A lot of agents are spreading into new areas.  In most cases this is a good thing.  There are a few villages in Westchester NY where one or two brokerages are still the only game in town.  But that is changing.  Furhter,  as much as the primary players in these towns and villages hem and haw and argue that only they know all the nuances  of the area -  this  “new blood” can be a breath of fresh air.    Agents new to the area know they have to offer something fresh and unique.  They will often offer a new approach and more alternatives than the established brokerages in order to attract buyers and sellers.  This can force those who thought they had the market cornered to step up their game and offer more than the same-old, same-old.

But, sellers have to make sure that the “new blood” knows the area well enough to be effective.  Make sure your listing agent at least knows the neighborhood in which the home you are selling is located.  They also need to be aware of school zoning and issues such as if the area is flood prone. If they don’t know that – find another agent.  Seriously.  I don’t care what they promised.    If they don’t know the area at all then they probably don’t know enough to be effective.

No,  your agent doesn’t have to be local – but your agent does need to have local knowledge.

© 2010 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

But…. as anyone in the sciences will tell you – statistics are only as valid as the data they are measuring.   I saw more than my share of  deceptive creative  uses of statistical models.  In the science/engineering  disciplines “peer review” holds these “creative types” accountable and by and large it does an excellent job.  In fact this is often where the rubber meets the road for  most of the junk popular pseudo-scientists who whine that they can’t get published.

Sadly – I haven’t run into the real estate watch-dog equivalent of peer review.

Phil Faranda  wrote a  blog about REALTOR stats being open to the public. He sighted a post from Agent Genius about how when the Houston Association of Realtors started disclosing these stats – agent protest caused the program to be discontinued.

Part of me is tempted to like such disclosure.  On a positive note  – it certainly would throw a monkey wrench into people using Trulia and Zillow to become premier area “experts” so long as they are willing pull out the plastic.  Never mind that they may have nary a closing or listing in the zip code for over a year.

The critical question  that every home buyer/seller has to ask themselves when looking at all this number crunching is simple:  What do these stats tell me about this agent or this brokerages ability to sell my home or help my buy a home?

This may sound pretty easy – but its not.

How can the numbers be distorted – oh let me count the ways!

When I was getting my license and looking for brokerages I found to my surprise that they all claimed to be the #1 brokerage in the area.  The question was #1 for what?

• One was #1 for listings…
• One was #1 for the number  sales….
• One was #1 for gross sales volume ($ amount)
• One was #1 for the most  agents….
• One was #1 for the number of branches….
• And finally – One was #1 for finding creative ways to be #1 at SOMETHING…

All could have  earned an  A++ in Statistical BS 101.
They had used some much pretzel logic in their number crunching that I truly had to admire their ability to be deceptive creative use of numbers.

Last year Westchester Magazine published their definition of Westchester’s top agents.  It was based exclusively on gross sales volume.  I wrote a blog based on their stats regarding how we define “success in the real estate market. They ignored expired listings, cancellations, the fact that most of these people had large teams of agents working for them.  Their numbers were in effect – useless for the average seller looking for a listing agent or you typical buyer.

For individual agents – Statistics are your friend – if you massage the data -

“I have over 100 listings!” Friendly translation – I throw anything and everything against the wall to see what sticks.  Please don’t ask me about my sales stats.

“I have $15 million in gross sales!” Friendly Translation – I’ve done this over a 15 year period!  or I slept with someone and sold one property worth $15 million.

“I sold over 100 homes last year!” Friendly translation -  My BROKERAGE with 50 agents under  sold over 100 homes collectively.  Don’t ask how many agents it took to achieve that number.

“I personally sold 22 properties last year!” Friendly Translation – That’s what I sold but I’ve got about 80 listings littering the expired and cancelled list on the MLS.

Statistics are too easily distorted/misrepresented.   Also I note that on that post the people who were “all for it” were those for whom those particular stats would favor…hmmmm.  I bet if you looked “under the hood” at what the stats actually meant on an agent by agent basis – some of them wouldn’t look as good as they do on paper.

Further Reading:

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

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

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

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

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

I might be on the first page of  Google for the search term “real estate in the United States of America.”

What does that do for my seller in New York?

The answer is nothing – absolutely nothing.  The same could be said for being on page one for “New York real estate.”  That might get me a lot of phone calls, but  it does nothing for a seller in a village or town in lower Westchester.   People who are searching an entire state may not even be contemplating a purchase.  Why are they looking?  Who knows?   And if – perchance – they are looking to buy a home in that state – they are a looooong way from  buying anything.  They are cutting a wide swath because they don’t know what they want yet.

How about the search criteria – “Westchester real estate”?

What does this do for my seller in White Plains?

Well, we are closer – but no cigar.  That buyer is  searching an entire county.  This isn’t a buyer – it is a long-term lead that an agent might cultivate over a period of six months to two years.   This does nothing for a seller whose home is on the market NOW.

How about the search “real estate White Plains”?

What does this do for my seller in Gedney Farms (a famous neighborhood)  or in Jefferson Place (a large condo complex)?

Well, we are certainly getting warmer – but have you ever looked at what comes up with such a search?  Not so great as one might expect.  When I searched “White Plains real estate”  Google pulled up several broker sites and maybe one or two agent sites.  Most of these were “sponsored” – that is the brokerages or agent paid for that position.  The organic results (not sponsored)  pulled up large national sites such as Trulia and Zillow.   These are still big generic sites that are guiding the buyer to their public-facing MLS – which covers the entire county and beyond.

Anyone happy with those results is still a long way from buying.  Those who are narrowing down their search are frustrated. By the time most buyers are ready to call an agent or are ready to go to open houses – they are drilling down to specific neighborhoods, subdivisions or condo/coop complexes.   The frustrated group is going to scrap that search and start looking for far more specific search terms.

But its those very frustrated searchers that sellers want to pull in. Those with an itchy finger on the trigger that are ready to act and are looking in your subdivision or your condo complex.  Sellers – listen up – you want your listing front and center to this type of buyer.

How about a search for “[Jefferson Place] White Plains NY” or “[Gedney Farms] White Plains NY”?

Does this  help my seller in Gedney Farms or Jefferson Place.  YES!

This can and does help.  A web page about a complex or subdivision that ranks on the first page of Google that is  linked to specific listing information is something that will catch a buyer’s eye.  This is what is know as a long-tail search. One that drills down to very specific terms and pin-points what the searcher is looking for.

It is interesting to note that this may not help the agent grab buyers as much as they would like to.  By that time, many may already have agents.  But – once they find the information – their agent will show them the property.

In a market with high inventory loads as high as they are, being on the first page for THIS kind of search  – puts the listing front and center to the most buyers that are actually ready to make a commitment.

So yes, an agent having a presence on the first page of Google matters – as long as the search criteria is specific enough to pull in ready, willing and able buyers.

© 2010 – Ruthmarie G. Hicks – http://thewestchesterview.com.  All rights reserved.

At first this might seem like real estate heaven for buyers and sellers a like.  However, the number of these sites have been propagating like bunnies and the elation turns to confusion when the consumer picks up the phone to call the agent who listed the home.

Where is the Listing Agent?

You see, these listings are being sponsored by  agents and brokerages that for the most part have nothing to do with the listing.  Some may have no idea about the listing whatsoever.  They engaged a  service that covers several counties, and know nothing about the home in question. In fact their working territory might be 30-50 miles away or more – but they are eager to help the buyer or seller with their real estate needs no matter how little they know about the area.

Now if you look very, very carefully – you can indeed find the listing agent. Just look for the only 8 point gray colored font on the page and you probably have located the listing information.

Public Facing Home Search – Some History:

Confused yet – you should be.  A little history will help consumers to  understand what is going on here: On my site – as well as many other agent websites -  you can sign up to “search for homes.”  These sites are up-to-date and derived from the broker’s version of the MLS – but it is not in fact THE MLS.  The public never truly sees  the broker/agent version of THE MLS;  they see a public facing version of  the same.  It is up-to-date, but has restrictions and is not 100% complete.  These sites are referred to in the industry as “IDX” sites – for “internet data exchange.”

People who land on my site can sign up for IDX access any time they wish.  I am giving them a feed that is derived from the MLS.  So consumers on my site recognize that although I let them view all the listings in the county – they aren’t all MY listings!  If they were I’d be having a coronary  trying to keep track of the thousands of homes I was lucky enough to list county-wide.

Google Now Gets To Pick Up IDX Listings as Individual Web Pages:

Here is where it gets tricky.  The pages indexed to Google are the exact same thing.  They agent has  subscribed to a site that takes each and every listing that most consumers sign up for – and has indexed each listing as a separate web page to Google.  But here is where it gets deceptive.  Since its on Google as its own separate web page and has the agents face, name, number, email and other information – it LOOKS like that agent’s LISTING.  And here is where I feel a line has been crossed that should not be.   This is deliberately deceptive and confusing to the public.

In the interest of full disclosure -  I do have an axe to grind here.  As a listing agent nothing makes me madder than someone  taking my photos, my descriptions, my video links and my marketing and using them to promote themselves. If I just slapped up the listing and put no effort into the process I probably wouldn’t mind…but I spend HOURS on proper presentation, taking hundreds of shots to pick the best ones.  The photos are edited and tweaked and submitted after hours of work.  The same is true for my video feeds.  The fact that another agent  displays it as their own infuriates me.

What Does Do For the Consumer – Seriously?

Objectively, from the consumer’s standpoint – the trend to bypass a buyer’s agent and go directly to the “source” is not a good one.  Representation is a tricky topic – and one for another blog – but  a buyer going directly to a listing agent can be problematic to the buyer.   The notion that a buyer can save significant money going direct to the listing agent is a fallacy.    So having a different face and name for buyer’s to call is not necessarily a bad thing.  However, there are several disturbing issues:

• These sites are often purchased by agents who don’t really work the area in question. In fact such indexable listings are a great way for an agent to push their way into an area they know nothing about.  Bottom line here – the consumer has no idea if the agent has any local knowledge at all.
• There are questions about specific issues where the consumer might want to seek out the listing agent for information.
• If someone is thinking of listing a home and they are looking for a listing agent with experience in the immediate area – this can be very, very deceptive.

The question from the consumer’s standpoint remains – does the mess you see at the right make ANY SENSE for the consumer…seriously.

The popularity of these sites is sowing the seeds of their own destruction:

As these sites propagate like bunnies – their usefulness to the agent is diminished with every single new subscriber. Given that the first two pages of Google now look like nothing but  a string of listings for the same property, the ability of these sites to draw in buyers and sellers is already on its way downhill.  This form of marketing my be a victim of its own success in fairly short order.

© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – Why are Google searches for listing addresses so confusing?

A few years ago a post like this would have been an afterthought.  Perhaps it would have even been laughed at as overkill.  The condo and cooperative markets were on fire as the prime entry points into a market in which a single family home was a out of reach for the vast majority of first- time buyers.   The need to prepare and stage a unit was just not part of the picture.  But alas, this is no longer 2005.  It is now 2010 and we have an inventory overhang  that is giving this market a hangover.

This overhang is, in many cases, due to overbuilding and that fact presents those who are on the resale market with a problem.  Sellers are  competing with an inventory that includes a large percentage of brand-spanking new – never lived in units.  These are very, very tempting to the average buyer.  Everything is finished, fresh and sparkling clean.  These units are now being priced to sell and they are turn-key. No heavy lifting, no muss, no fuss.   To add insult to injury, these new complexes are often chock full of amenities that put a pre-war cooperative and some older condo complexes to shame.  From the  stainless steal appliances and granite countertops  they are tough to resist.

So how does a seller compete?

Recognize that how you live in your space is not how you are going to sell the space.

Toss the things that you have no intention or need to keep:

Condos and cooperatives have limited space.  Buyers of these types of properties are very sensitive to the “space” and “storage” issues.  If they see so much as a hint of clutter,  they will run the other way.  It is very important to clean out and de-clutter BEFORE you put the unit on the market.  If you are like most people, moving is an opportunity to “purge” your life of the excess “stuff” that we all tend to collect.   That includes knick-knacks, old files that are long “dead”  and the things that we just mindlessly allow to accumulate.

Take it to the next level:

After purging the unit of the things that you are not intending to keep.  Take a look around.  Take down the personal items such as family photos, clear the refrigerator of magnets and your kid’s artwork.  Although a lot of these items add personality, they are a distraction to buyers.  The buyer needs to be able to picture themselves in the unit.  That means the seller needs to depersonalize the space as much as is possible.  Place those valued items in storage.  Get rid of excess pots and pans and cooking utensils – particularly if kitchen space is tight.  Take non-seasonal clothing and pack it away into storage.    Think “Pottery Barn,”  not Victorian trinkets.

Paint:

Painting is pretty much an essential step.  Nothing makes a space look fresh and clean and modern better than a fresh coat of paint in neutral tones.  You may love bright orange or vivid pink, but  here you have to play to the majority and keep ti subtle, soothing and neutral – but NOT all white.

If you happen to own a pre-war charmer rather than a modern amenity-rich unit, you can use the paint to great effect.  What these complexes lack in amenities, they often make up for in terms of character. Many of these units feature higher ceilings, and unique moldings that give the space more personality.  Make that work for you when you paint.  Unique features should be highlighted proudly.

Refinish Wood Floors – Clean Wall-to-Wall Carpets:

Everyone loves hard-wood floors – but they need to be in good condition.  Some modern complexes offer them as a perk in the living space but these need to buffed and polished so they are like new.  Wall-to-wall carpets need to be fresh and clean. If they don’t clean up well,  replacement might be a viable alternative. Carpeting is not that expensive – so this is an easy fix.  If there is hardwood under wall-to-wall carpeting – it is best to pull the carpets and show off the wood.

Older complexes often have unique wood floors. I had one unit where the flooring was very detailed and some rooms had the wood floors laid on the diagonal.  Very unique and something that was highlighted.  For someone living in a pre-war complex with old hard-wood floors  – having the floors refinished and stained will do wonders.

The pictures above are an example of how carpets in need of cleaning need to be attended to and how plain white walls can leave buyers cold.  The unique angles and character of the room are lost in a sea of white – as to the carpeting – no need to explain further – not only can this kill a potential sale, if it doesn’t do that it will certainly will be an issue in the negotiations.  Not cleaning them is like throwing money out the window.

Stage the Unit to Define the Space:

In today’s market, staging is really a must.  I advised against it only once and that was a very unique situation.  This is where hiring a stager works wonders.  As previously noted, space is at a premium in any condo or coop.  Therefore, the space that  is there needs to be defined.  Each nook and cranny has to have a function or it is defined as wasted space.  Buyers need to see that they have defined areas to work with.  Most importantly, they want to see a defined living area, dining area, sleeping area (not a problem unless it is a studio)  a work  area outside the bedroom if possible and enough storage.

The picture above is of a very nice space, but it is a tough space to define.  Plain white walls and no furnishings prevent the buyer from seeing how their furnishings would “work” in the unit.  This room is screaming for a good paint job and staging.

The photos above are of a well defined spaces.  Note the excellent use of more than one neutral color on the left and particularly how a large open space was defined for specific purposes on the right.

The Kitchen/Bath Conundrum:

It is often said that kitchens and baths sell a space. For those fortunate enough to have a modern kitchen and bath – FLAUNT IT!  Make sure the space is decluttered, slick and clean. If you have granite and stainless steel – flaunt it.  Great backs-splash – show it off.  If the kitchen is newly redone -show it off!

For those who have a dated bath or kitchen – it is up to you to decide if you want to renovate.  I have found that half-hearted efforts seem to backfire.

Putting in a new floor in the bath will do nothing if the entire room is screaming “gut me.” Ditto to adding a coat of paint.  In the case of a very dated kitchen and bath there are two alternatives – do a complete renovation on both or price it to reflect that considerable work will be required of the new owner.   There is no hiding or disguising the need for a total makeover.  Making something “less bad” or doing a half baked renovation won’t help.

In a case such as this, it is best to concentrate efforts on the living and sleeping areas.  Make sure those areas actually sparkle so that buyers see that these areas are move-in ready and that they can concentrate their energies on the dated kitchen and bath.

Emphasize the Positive:

If your location is prime – say so.  Use photos of the neighborhood and area restaurants and stores in the marketing.  If your unit is just steps from the train station – that’s money in the bank.  An easy Westchester to NYC commute can make a world of difference in the ability to sell.  Easy access to an Metro-North station is also key. If the layout is open but well defined – emphasize it in the staging and photos.  Often an older unit with more charm and a prime location will trump a slick modern unit because the location is prime and the layout is stupendous.

Price it Right:

Sometimes no one wants to hear the awful truth.  The truth is that your unit is probably not worth nearly as much as it was a few years ago or even a few months ago.  But one of the unique aspects of living in a condo or coop is that there is generally less wiggle room with respect to price.  The units are stacked on top of each other – so finding realistic comparables is pretty straight forward.   No one is going to buy an overpriced unit.  Even if you could get a buyer to pay an over-the-top price, the appraiser and the bank will provide additional hurdles for an out of whack price to jump. Banks will simply not lend to something that doesn’t appraise.   Overpricing and “testing the market” are a no-go in this type of market.  Price the unit to sell and not to sit.  In this market, anything that sits loses value.

© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – Selling Your Westchester NY Condo or Cooperative

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.

© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Increasingly, listing agents, myself included, are encouraging sellers to stage their homes prior to putting them on the market.  That includes, but is not limited to painting, pointing up and arranging furniture in a way that maximizes the potential of the space and creates a neutral atmosphere.  We ask that seller’s depersonalize the space so that buyers can “mentally move in.”

Although I am not one to spend a homeowners money needlessly,  there are times when I feel staging is essential.  Staging is most beneficial in the following cases:

An Empty Home:

When the sellers have moved out – they tend to leave an empty shell of a house that used to be a home.  That house can tend to lack personality and be all too forgettable  to a prospective buyer. Right now there is an excess of inventory that is completely unfurnished and after a while they can all start to look the same to buyers.  If a house is in danger of becoming that forgettable – it needs staging in order to stand out in the eyes of buyers.

A Very Dated Space:

A space that looks like it was in the height of style during the  1970s complete with orange shag carpets and disco lighting definitely could use a facelift.   Not that there is anything wrong with the 70s – but many buyers weren’t even born yet and its hard for them to imagine their things in homes decorated in a way that their parents would appreciate.

An Awkward Space:

Spaces that are tight or have an awkward configuration really benefit from proper staging.  Often buyers just can not possibly imagine how on earth to decorate a space.  Often they feel that their furnishings won’t fit.  In cases like this, it is vital that this objection be neutralized or the home will just “sit.”

For those who feel it is a waste of money, it should be noted that no one would stage if it didn’t actually work.  Staging can pay for itself.  If buyer’s find the space desirable and can imagine themselves in the home, they are more likely to make an offer and for top dollar.

© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com. All rights reserved.

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.

Further Reading:

White Plains NY Housing Market Statistics – Third Quarter 2009.

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

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

© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

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.

© 2010 Ruthmarie G. Hicks, http://thewestchesterview.com All rights reserved.

Sellers with homes listed today will be able to identify with some of the antics that buyers in a bear market will pull.  But this is about a listing that was active 14 years ago in 1996 – during another deep housing recession.   I wasn’t a real estate agent at the time,  I was a seller.  My mother had just died after a prolonged illness and I was listing her house for sale.  The house in question was a beautiful 1932 Tudor sitting on prime property with sweeping golf course views in wonderful residential area in White Plains.  There was a good deal of emotion involved since the home in question had been designed by my Grandmother and built by my Grandfather.

Although I wasn’t an agent  I was smart enough to read the newspapers and  so I know it was a crummy market.   The house would have been worth roughly $600k just a few short years ago – but in 1996-1997 I was hoping for about $550k – but knew I would probably only see a litte more than $500k. Gut instinct told me to rent the place, but my co-executor was adamant that the house had to be sold.

Nothing prepared me for the crazy home buyers that came through looking for a “deal.”

90% of them were bottom-feeders looking to steal a house – and looking for ANY excuse to chisel  the price to the bone.   My beleaguered broker  came to me with all sorts of concession requests – some of which made  sense.  But more often than not, the requests bordered on the absurd. Some of the more hilarious issues are worth noting because when we see frustrated sellers – we need to be aware that their pain is real and that some of the crazy concessions being asked by buyers can be truly ridiculous.

Among the more ridiculous issues I encountered:

1. “We are offering $50k less than listing price because  the fact that one bedroom is on the ground floor, makes this a 3 BR house. “

My response to my broker:   That non-bedroom was quite large with two ample closets and a full bath.  Further there are two other full baths in the house and an additional half-bath – so there is no bathroom shortage either.

2. “Since the house is ‘old’ I want the ENTIRE PLUMBING AND ELECTRICAL SYSTEMS replaced from scratch at the seller’s expense.”

My response to my broker: Sorry, the electrical is fully updated and I’m not pulling every single pipe out and replacing the entire plumbing system.

3. “Since the house obviously has lead paint – I want all the walls stripped of all lead paint at the seller’s expense.”

My response to my broker: You’ve got to be kidding – it’s a 3500 sq.ft. house with cathedral ceilings.  Tell them to  buy a newer home if they feel that strongly about it.

4. “I don’t like the Tudor look of the wood beams across the living room ceiling.  I want $20k off the house to be able to drywall over them.”

My response to my broker: If they don’t like Tudors, why are they bidding on a Tudor home?  There is a glut of homes on the market and this is TUDOR – so much so that Henry VIII would find the home quite comfortable.

5. “I want all the asbestos removed completely even if it is encased and not friable at the seller’s  expense.”

My response to my broker:  Sorry, the asbestos is contained and in good condition (not friable) I’m not about to open Pandora’s box and create a problem that didn’t exist before.

6. “We want all the windows changed out at the seller’s expense because they are so old.”

My response to my broker: Yes most of the windows ARE old but the reason they are still there is that they are one-of-a-kind original leaded stained glass windows!  I’m not taking those out.
Note: My favorite comments involved the balcony.  To me it was a beautiful and elegant feature – but boy did it become a bone of contention.

7. “I have two children, that balcony is DANGEROUS, they could fall off.  But I’ll consider it anyway if you knock off  $20k.”

My response to my broker: How did they determine that each child’s life was worth about $10k?  $20k is not going to solve this problem.  They either need to admit that this is a red herring or move on to a home that they have fewer fears about.

8. “The balcony overlooks the living room and there is a big picture window.  I could see a burglar entering through the LR window – swinging on the chandelier, landing on the balcony and entering our bedrooms at night.”

My response to my broker:  They’ve  been watching too many action movies.  My family has lived in this house for nearly 65 years and you would be amazed to know that NO ONE has ever tried to do that.

So when I have sellers who are tearing their hair – I try to look back over 13 years  and remember crazy and out-of-control things seemed to me.  I would add that my ability to play hard ball reflected my situation.  There was no lein on the home and at the time, property taxes weren’t that high.  I had the luxury of being somewhat picky.  For those who really need to sell,  its a far more complex problem.

© 2010 Ruthmarie Garcia Hicks http://thewestchesterview.com All rights reserved.