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.

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

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

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

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.

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.

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

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.

The restaurant offers breakfast, lunch and dinner. The fare is distinctly Italian and includes their famous panini sandwiches, espresso, a wide variety of coffee drinks and ice creams. Via Quadronno adds White Plains, NY to its very select group of markets that includes the upper east side of Manhattan, Tokyo, Hong Kong and Miami.

The restaurant is open from 8 AM on weekdays with the kitchen closing at 10:30 PM. On the weekends, the hours are 9 AM to 11:30 PM.  Indoor dining seats 80 while the outdoor dining area pictured below seats 60 additional patrons during the warmer weather.  Reservations can be made on-line at www.opentable.com.

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

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

To see the still photos that helped make up this video go to my Flickr account:

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

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 Cooperatives:

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.

Being located directly off of Central Ave., these units offer easy access to the Express Bus to Manhattan as well as Shuttle service to the Scarsdale Train Station.  Their location is definitely convenient many forms of shopping and within just of few minutes of the hustle, bustle, shopping and entertainment that downtown White Plains, NY and the City Center has to offer.

Cost of Living:

The units themselves are generously sized with loads of charm. 750-900 sq.ft. is customary for  a 1 BR or Jr. 4 while 1250-1350 sq. ft. is the norm for a 2 BR. Many of the ground floor units offer private entrances complete with private patios and are very appealing for people who have pets or for those who just enjoy being outdoors in warmer weather.  Parking is available but unassigned and storage is available.

There are several units under contract and in pending at this time. Although the final sales price is not known, the average sales price is about $178,000 for a 1 BR/1BA unit with units having a private patio having a correspondingly higher price.  The average maintenance is $731 a month without STAR savings.  Using a 30-year 5.5% loan and a 20% down payment as a basis, the outlay for such a unit after calculating standard tax deductions would be about $1250/month – more than  competitive with rentals in the area.  2 BR units are selling for about $277,000 with maintenance fees running $1050/month.  The outlay is correspondingly higher at about $1920/month but still very competitive with  rentals.

Pet Friendly Status:

One dog is allowed.  The dog can be any size or breed but must pass the board.

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

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.

Condominiums:

Condos went up in price quite dramatically. But that increase doesn’t impress me so much because it probably reflects the sale of high end units at Hudson Harbor in Tarrytown – skewing prices northward.  However sales volume for the river towns is up 67%.  There is considerable inventory on the market indicating that although sales are up – price declines may continue for a while.

Single Family Homes:

Single family homes showed 5.5% declines over 2008 which is far less severe than in previous years.  There is still an 8 month inventory hanging over the market, but sales volume was up 31% over the 4th quarter of 2008.

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