Archive for the 'Wild & Whacky Real Estate' Category
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.
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This is a story about selling your home during a housing recession.
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.
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Part 1 of “This Brokerage Has 750 Listings…..So they must be the best! ” was prompted by the fact that the Westchester NY real estate market had changed and as a result, I was getting more and more questions about what a brokerage brought to the table in terms of marketing. I emphasized the importance of choosing the right agent and that the brokerage itself was of less importance. I also indicated that there was a lot of smoke and mirrors regarding brokerage brands and what that means to the seller in terms of marketing the home. Also, for those consumers who would like to see broker/agent input on Part 1 of this post…you can go to my blog on ActiveRain where I re-posted the blog. It got a good deal of attention and much commentary from real estate professionals.
In the end, I promised a sequel that got into more specifics. So here it is – six major myths about listing a property and marketing a property that are often trumpeted by our own industry. Its been said that if you repeat something often enough it becomes “fact” in the eyes of the consumer. So let’s put some of these “facts” to rest.
Myth #1 – “We have 12 billion to the 10th power active listings, so our reputation speaks for itself!”
Really? How on earth does anyone come to that conclusion? You can have all the listings in the world, but if you can’t sell them, what’s the point? The percentage of sold listings is a bit more pertinant. However, even that number does not discriminate between individual agent performance.
Does size really matter? Do the number of listings or the size of the brokerage have anything to do with the ability of the agent to market and sell a home successfully? Is it the brokerage or the agent that is the determining factor?
What Does the Brokerage Bring to the Table?
With the Westchester NY real estate market in a downward trajectory, sellers realize that they need more than a sign in the ground to move their property. In truth, this was always the case, but these days I’m getting more and more questions about marketing the listing. One of the biggest issues I encounter on listing presentations are questions regarding the brokerage itself. Most questions revolve around marketing. What does the brokerage do in terms of marketing for the listing?
I think that most sellers assume that since the brokerage is “big” and has capital behind it, that they are the ones spending big bucks on marketing the home. But this is rarely the case. Many big-box national brokerages build on that confusion and perpetuate the myth that their brokerage “brand” makes a significant difference in selling a home for top dollar. They also tout their “marketing package” in terms of the amount of support they offer. Some actually stress that the number of agents in the brokerage somehow makes that brokerage better or somehow more able to move the property. With all the hype and misinformation out there it is small wonder that sellers are confused.
I would challenge these large brokerages who claim that their numbers speak for themselves to enumerate exactly WHAT they do to justify their claims? And while they are at it, I would like to have some hard numbers to back up their success stories. I haven’t seen any of them come up with any marketing advantage that holds up under scrutiny. Most of the time they appear to be blowing smoke. Don’t get me wrong, I’m not slamming big brokerages. That would be rather foolish since the brokerage that I am currently associated with is quite large. What I am trying to do is cut through the hype.
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Over the past couple of months, I have written some scathing blogs about the big banks (Big Box Bankmarts) and their inability to fund loans in a sane, reasonable and timely manner. I’ve had loans stalled, delayed and otherwise mired in underwriting for months on end for no apparent good reason.
Just the other day Chris Berg created a “movie” using XtraNormal about Big banks and foreclosure sales. If you want a good laugh – you should take a look. This inspired me to try my hand at an XtraNormal video creating my own diatribe on the big banks regarding plain vanilla 30-year loans. I admit that my dialogue can not match Chris Berg’s but the sentiment is the same.
Enjoy the video and have a great weekend.
Further Reading:
© 2009 Ruthmarie G. Hicks http://thewestchesterview.com – Freaky Friday: A conversation with a Big Box Bankmart Loan Officer..
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.
© 2009 Ruthmarie G. Hicks http://thewestchesterview.com. All rights reserved.
Over the past few months, several sales-in-progress have been occupying a major portion of my time. When my clients and I began our journey together we had NO IDEA what lay ahead. The problems we encountered were mostly the result of the shifting ground that the lending crisis created. The banks were moving at a pace that would make a snail look like an olympic sprinter.
Each transaction had its unique set of players and problems. But in each case I was blessed to be dealing with buyers, sellers, agents and attorney’s that all pulled together to get to the closing table.
In this environment, there is no room for egos and selfishness or special agendas…
Real estate transactions can be rife with conflict, anger, egos and selfish motives. In these difficult times, closings are hard won. Buyers, sellers, agents and attorney’s are having their patience and tempers challenged at every turn. One agent said to me – “its like we are CLAWING our way to each and every closing.” I liken it to trying to walk through mud that is waist deep. Having reasonable clients, working with agents who are willing to get the job done, and having responsive a communicative attorney’s are no longer luxuries – they are essential components of a successful transaction.
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OK – this is a funny way to begin a blog – but I’m exhausted! Just plain out and out drained. Normally this state of tiredness would have me beating a path to a doctor. But I don’t need a doctor, I just need a lender who can close a loan in a timely manner. You see, in addition to everything else that I do to complete transactions, I am being confronted with host of escrow issues that I’ve never seen before. I find myself on the phone constantly trying to prod the banks to close loans that I’ve had commitments and appraisals on since the beginning of the last century. And if this is stressing me out – some of my clients must be ready to jump off the Tappan Zee Bridge.
The problems with lenders has been fodder for several recent blogs. Although I have a host of war stories that would be funny if they weren’t such a threat to each transaction, I won’t bore the public with the gruesome details – YET. But what truly amazes me is the arrogance of the banks. After one disastrous situation where a closing was postponed FIVE TIMES and over one month, I ended up speaking with some of the powers that be at our friendly neighborhood national bank. (Yes, I know that is an oxymoron and the sarcasm is deliberate!) Their attitude was atrocious. I was informed that “this is the new normal. You now need to count on 90-120 day escrows. If buyers and sellers are prepared for it -it shouldn’t be a problem.”
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Sometimes agents talk amongst themselves. Share our war stories and generally discuss the market and where we think it is going. Over the past few weeks I have been hearing a similar theme being expressed in different ways by several agents and brokers. It’s something that I’ve been feeling too – but haven’t expressed verbally – until now. Yesterday, one agent finally put his finger on all the euphemisms regarding “buyer behavior” over the past year when he said he is seeing a lot of “angry buyers.”
We are in one of the best buyer’s markets that Westchester County has ever seen. So why all the hostility? Buyers are in the drivers seat. But like the angry comic, Lewis Black, there are quite a few buyers who seem almost hostile no matter how much the pot is sweetened. It’s never quite enough and they keep pushing the envelope until there is no more. Even after they’ve been offered a gooey sweet pot – they sometimes walk away convinced that they are being ripped off.
My guess is that many of these angry buyers feel that they have been denied their “market crash.” They have been patiently waiting for the market to take a blissful dive off a cliff. After all, a crash of catastrophic proportions was promised by news media. A cohort of buyers were waitin’ and hopin’ and wishin’ and prayin’ for a complete collapse in the Westchester housing market. Then they were then going to swoop in and snag a steal and live happily ever after purchasing a $600,000 home for $200,000.
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