Westchester Real Estate Talk

6 DEERHILL LANE, SCARSDALE (PO), NEW YORK 10583

SUNDAY, June 3, 2007 1PM-4PM

Ardsley School District, Greenburgh Recreation, Hartsdale Train Parking

High ranch with Living Room, Dining Room, Eat in Kitchen, Oversized Deck overlooking .46 of an acre on a private centrally located cul-de-sac.  There is a Master Bedroom/bath, two family bedrooms and another bath upstairs and a separate entrance with a bedroom, bath and den downstairs.  Two car garage, central air conditioning and sprinkler system.  Roof and appliances  within three years old.  This is an Estate Sale and has recently been reduced. 

 $765,000

Property Information

Web Commercial

The report published by the Federal Trade Commission and the US Department of Justice, which you can read in its' entirety below, is a really interesting document that is easy to read.  It explains in a easy to understand the defininations in real estate, the definitions of the different types of listing agreements, how buyers make offers and the whole process, the different models, how the internet has changed real estate, and lots more.  Easy read and well worth it.

Competition in the Real Estate Industry - The Report

Well, here is the press release from the National Association of Realtor highlighting the inaccuracies in the 60 Minutes program that aired on Sunday night.  Personally I think the show left an awful lot out, was inaccurate and really I found it surprising as to the amount of information that wasn't in the segment.  Read it for yourself:

NAR Response to 60 Minutes

               Hi, I'm Leslie Stahl.  I have my house for sale.  I just made up the flyers and am running around my neighborhood distributing them.  Call me if you have any questions.  I am available to show my house to you at any time.    Maybe I will do a segment on 60 Minutes showcasing all the wonderful things about my house.  I have lots of time to sell the house my self.  How many bedrooms? 6, etc.

I can see it now. 

In the real estate market we find ourselves in with more inventory to look at it seems easier for some buyers to spend Sunday afternoons going from house to house previewing properties in their price range. Seems less complicated.  Sign in and look around ask questions if necessary and go on to the next. So what is wrong with doing it this way? Nothing if you understand the ground rules. So......

1.  You need to understand that the agent at the house works for and represents the seller of the property.

2.  You need to understand that when you ask questions the agent will propably not be able to answer the question, remember they represent the seller. Your agent can ask the questions and will get you the correct answers.

3.  You need to understand that when you go to an open house, if you are working with an agent, or have a buyer's agreement with an agent, you should mention it right away.

4.  You need to know that if you go to an open house you should not discuss your finances, your reasons for moving, or anything else that might effect your position in a negotiation later on.

5.  You need to understand that the agent at the open house didn't just open the door to let you go through the house they are attempting to become your agent if not for that house then for other houses.

6.  You need to understand that the agent has spent money advertising, is working to sell that particular house and obtain follow up for the seller with feedback after the open house.  Giving a fake phone number or name is not fair.  You have been let into someones home and they will want to know what you thought.

7.  You need to know that it is not okay to bring small children into someone's home and then not supervise them.  How would you feel?

8.  It is not okay to open a refrigerator door at an open house some things are private, ask permission from the agent if it is alright.  Remember this is someone's home.

9.  Running through an Open House and not acknowledging the agent or even being polite and saying hello is rude.  Yes, we know you are there for the house, so are we.

10.  We ask you to sign in for many reasons, security we need to know who is in the house, feedback for the owner, liabiity, and finally what if you drop something?  We can call and tell you we have it.

I am having an open house on Sunday, May 20,2007 at 6 Deerhill Lane, Scarsdale, New York which is in the Ardsley School District. 

I just watched the 60 minute segment on Redfin and the real estate industry.  6% was mentioned often as the going rate which is news to me.  I have been under the impression that commission's are negotiable and there isn't any particular number that is "across the board".  Aside from that the discussion on Redfin was interesting. A young couple was coached by Redfin in the pricing of their home which they sold within $10,000 of the price Redfin placed on the property. They claimed that they saved $26,000 in commission.  They saved commission by paying Redfin a flat rate on the listing side of the sale.  They did the work themselves. I don't understand how for a flat rate of $3000 that paid for advertising, staging, brochures, virtual tours, being placed on numerous sites across the internet or did the young couple they pay for advertising themselves over and above the flat fee they pay to Redfin, nor was it discussed how long the property was on the market or if it sold during the recent downturn and slowing of sales.  They didn't discuss how it was marketed or much of anything.

 My experience tells me that there will be a small percentage of people who are willing to attempt this process coached by agents online.  I also think a great percentage of sellers and buyers will continue to want a professional Broker to tackle the process and will be willing to pay for it.  It has not been my experience that all seller's are capable of dealing with buyers, with negotiating and whille coaching is great if the Redfin agents are truly churning out deals they won't be able to do the hand holding these deals take. The internet provides a lot of information but it doesn't take the place of experience.

On the east coast we have a company called Foxton's which attempted a somewhat similar centralization of service with reduced commissions and during the height of the market when you could sell a house by simply putting it on the market they had some success.  But now you barely hear about them anymore.  You would think that if the public were clamoring for this type of brokerage it would exist, but it doesn't.

I would love to hear from the agents out in Redfin country and know their experience's dealing with them.

Hot off the press today: 

Federal Trade Commission and U.S. Department of Justice Issue Report on Competition in the Real Estate Brokerage Industry

Agencies Make Recommendations to Maintain Competition and Protect Consumers from Anticompetitive Conduct

The Federal Trade Commission and U.S. Department of Justice (DOJ) today issued a joint report, "Competition in the Real Estate Brokerage Industry." The purpose of the report is to inform consumers and others involved in the industry about important competition issues involving residential real estate, including the impact of the Internet, the competitive structure of the real estate brokerage industry, and obstacles to a more competitive environment.

"Home ownership is the American dream, and real estate brokers have helped to achieve that dream for many," said FTC Chairman Deborah Platt Majoras. "But when anticompetitive practices stand in the way, consumers lose. The FTC is committed to working with the industry and policymakers to ensure that competition is not inhibited and that consumers are well-informed about this important marketplace."

The Whole Press Release

In the local newspapers in Westchester County there is an article about a franchise that is relatively new to Westchester that claims to have attracted lots of agents and now claims to have the largest inventory of listings in the area.  Years ago before a lot of the shifting in this industry, before lots of smaller offices were gobbled up and certainly before the internet I understood the importance of market share to both the broker/owners of offices and to agents.  Used to be greater market share meant more advertising and that meant that the phones would ring more.  For agents doing floor time and trying to build their business and have clients that was a good thing.

Now with the internet it would seem that floor time is a bit diminished.  Agencies with loads of listings in a slowing market are enduring high advertising expenses. If you are selling is it better to one of many listings, do you get the same attention?  Or is it better to be one of one or two.  Do you get more attention if you are not with a very large agency. Yes you do.  What does market share of an office do in terms of selling your property.  Buyers are finding you online. Or in the newspapers.  Do they care that your listing office has a market share.  Probably not.  They just want to find a home.

Is market share important? Or is the experience of your agent important?  I would go with experience.  The agent is the one who will be the captain of the ship.  Market share won't help sell your house.

Agencies now are trying all sorts of things to impress the public.  It is business after all.  #1 IN MARKET SHARE,
#1 in VOLUME,  #1 OLDEST AGENCY IN >>>>whereever, etc.  The public must have a hard believing any of this hype.  And what does it really matter anyway.  So here is my hype:

            "I can't believe my sinuses were that bad."
            

In this slowing market one of the ways to retain a listing is to have constant contact with your homeowner.  When I started in real estate we were taught call every Sunday night, touch base, let them know you are working and fill them in with what is going on.  Not to hear from your listing agent leads a homeowner to think you are not working and frustration.  However, this story in Wisconsin beats the naked man in the bed story.

                                                                 So, What is that smell?

High ranch in Greenburgh with Award Winning Ardsley School District.  Living room with floor to ceiling brick wood burning fireplace, formal dining room with sliders to oversized deck, eat in kitchen with stainless steel appliances, master bedroom with bath, three more bedrooms and two more baths, walkout den in lower level, Cul-de-sac location, double door entry, .46 of an acre useable property, central air conditioning, two car garage, centrally located equal distance to Villages of Ardsley and Scarsdale. Bedroom, bath and den on lower level with a walk out slider.

Asking $789,000
www.MiriamBernstein.com

Call 914-907-1922