Gambling on lower prices and lower interest rates….

People think that if they haven’t made a decision to buy that no decisions were made.  That makes them feel “safe”.  NOT TRUE.  The buyer made a decision and that decision was to punt.   So in reality, the buyer is rolling the dice that the market will decline more or at least not improve.   They are also gambling that interest rates will remain at record lows.  As one famous blogger (Lenn Harley) puts it to her buyer clients “The market will bottom six months before you decide its time to buy a home.”

Looking for local real estate  trends…

All real estate is local.  National numbers are next to useless in determining where any one local market is going.  One way to peek behind the curtain and try to glean what is going on in the location of interest.  Another tactic is to look at surrounding communities  that influence real estate values in the area of interest.

White Plains Single Family Homes..

The chart below is of median prices over the past several years.  The big knife fell in 2009 when prices dropped 12%.  They were bolstered a bit in 2010.  So far in 2011 the trend has been down – however – that 7% is skewed somewhat by the type of housing that sold.   In 2010 – roughly 7% was at the low end (entry) level  but  in 2011 15% of the sales were entry level… while 15 % were at the highest end of the market.   In 2010  the higher end accounted for over 20% of the sales.    From my gleaning of  the MLS data, prices drifted down about 3-4%.  This indicates that price drops are slowing and you are bouncing along the bottom.

For all the charts – the red bars indicate prices before the market started to correct, the green bars are after the correction and the orange bar represents the current year. All data is derived from the EAMLS (Empire Access Multiple Listing Service).

Neighboring Markets Help set the trend….

The White Plains market is influenced by other neighboring markets in.   Manhattan   is key and  moving up in price and volume.  Mitchell Hall had an excellent Q3 report of that market.  In addition, markets in neighboring towns exert a major influence and can help us glean what is likely to lie ahead for White Plains.   Markets such as Scarsdale, Mamaroneck and Larchmont tend to be resilient. .  People want to live there and when prices go down – those that couldn’t otherwise afford these areas rush in to buy while the prices are affordable.

As you can see from the charts below – these markets are on their way back up.  They were a bargain in 2009 – but not so much anymore.  White Plains is where many buyers go when these areas become less affordable. White Plains is  a great alternative with housing prices that are generally lower and taxes that are more affordable than the likes of Scarsdale and Mamaroneck or Larchmont.   With prices heading higher in the surrounding areas – these areas are rapidly becoming less affordable.   But White Plains is STILL on sale…at least for the time being.   Given where these other markets have been heading -  White Plains is likely poised for a strong recovery in the foreseeable future.

So you can make a decision not to make a decision and wait (as Lenn Harley says)  until  “six months after the market hits the bottom” in order to buy.  Of course that ensures that you will miss the bottom of the market and many of the advantages of a buyers market.  So you see, staying on the fence is not necessarily “safe”.

©2011 – Ruthmarie G. Hicks – http://thewestchesterview.com

As bear market rumbles on – staging is become the norm and those who don’t do it will often find their home languishing on the market.  Buyers have plenty of choices and are only buying the cream of the crop – while leaving the rest behind.  If it looks dirty, or in need of painting, if the carpets are dirty or old – rest assured – unless you really slash the price to the bone – your home will sit.

A Tale of Two Condos Units:

To Drive the point home.  Last winter I had two condo units in the same complex on the market at the same time.  The one I listed first was vacant with no furnishings and had not be repainted.  The sellers had already taken a severe hit in the housing market downturn. Understandably, they balked at the idea of painting and renting furnishings.  As time marched on and no offers came, I kept driving the conversation back to staging.

Meanwhile, in early February, I listed another unit in the same building. This unit had been beautifully furnished by the sellers and since they were still living there, the unit was able to be shown to best advantage.  Sure enough – the first second open house – the unit sold to a buyer who had come through it twice on the same day.  They loved everything about the place and could “mentally move in” because the sellers had pared down their belongings.

What’s good about banging your head against a wall? It feels so good when it stops!

As unit #2 was heading towards contract, the state of affairs in unit #1 remained status quo.  I would call (harass) buyers agents for feedback.  There were plenty of people to call – the unit had been shown over 40 times.   It was all the same.  Even though nearly new, the unit looked “tired.” The layout was “awkward”   The words “dull” and “bland” were used as well.  After 4.5 months with nothing to show for it, the sellers finally relented about the staging.

Enter Marie Graham – Stager Extraordinaire.
I knew what needed to be done and most importantly who to call:  Marie Graham of “The Refreshed Home” is just the person to respond to such an S.O.S.   She knows exactly how to create that “WOW” factor buyers crave.

The Before:

As  you can see from one of these before photos – the fireplace was more of a problem than an asset.  It stuck out far into the primary living area and buyers were very challenged by what to do with space.  As it was, the unit was set on a diagonal creating something of a challenge for almost anyone.  Maximizing the available space, putting it to good use and including all the elements owners expect to get out of such a space is the challenge. As it stood, buyers couldn’t “visualize” a full living area.  What about an eating area?  How do I deal with skimpy living space?

Before/After Comparison:

These two photos were closed to each other in terms of angle.  After painting and furniture placement, it looks like a different space.  Marie’s clever placement of furnishings and accent pieces creates a space where the buyer can actually see their own things in the space.  From cold an tired to warm and inviting.

The After Effect:

The use of paint in two colors as well as the furniture placement brings what was a flat canvas to life.  The space is defined – there is cooking area , a living area and a dining area.  This was a mystery space for buyers when it wasn’t furnished.  Now they can mentally move in and feel comfortable that they have the space they need.

Quite literally – the space goes from wishy-washy to WOW!

The Bottom Line:

This all sounds great you say – but did it help sell the unit?    Within about 10 days of the staging there were two offers on the unit – one was accepted.  So the unsellable condo went into contract about three weeks after the staging was complete.

Way to go Marie!

To see more from Marie Graham  Go to her website - The Refreshed Home as well as her informative Blog on Active Rain.

© 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.

Newly Reduced Price – the most competitive price at Jefferson Place above the ground floor.

The Residences at Jefferson Place in Downtown White Plains NY.

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

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 92 out of 100.

This Luxury 2 BR/2BA  Unit Offers:

* Over 1000 s.f.
* Top Floor Unit – the privacy of having no one above you.
* Balcony with plenty of light and spectacular city views.
* Working gas fireplace.
* Hardwood floors.
* Modern granite kitchen & baths.
* Walk-in-closets – LOTS of storage in the unit.
* Additional Storage comes with the unit.
* Full-sized laundry in unit.

For more photos, see the photostream for this listing on Flickr.

Jefferson Place Amenities:

Jefferson Place is well-known for the amenities in its common space. It offers luxury touches that are generally only  found in condo complexes with far 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.

COST OF LIVING

* Current Listing Price: $455,000
* Property Taxes: $7607 without STAR.
* STAR Savings:  $1525.
* Monthly Common Charges: $578.
* Monthly Mortgage: $2067*
* Gross Outlay: $3,152.

Net Outlay After Taxes:
$2546/month**

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* 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.

© 2009 Ruthmarie Garcia Hicks. http://thewestchesterview .com All rights reserved.