Westchester County New York Real Estate Blog

Vacant Home Insurance

2008-07-24T10:07:52-04:00

There are a lot of vacant homes on the market right now. Homes that are for rent and homes where the owner has vacated awaiting a sale. While each insurance company and each policy is different there are some insurers who will stop coverage when a home becomes vacant after 30 or 60 days. There concern is theft, vandalism, fire and water damage that can occur without anyone around to report it.

Things like fire and theft alarms, someone checking on the house on a regular basis can reduce premiums.

If you have a property on the market you should check your homeowners policy to determine your coverage.

From one of my readers:

A recent New York case seems both apposite and persuasive. In Lamoureux v. New York Cent. Mut. Fire Ins. Co., 244 A.D.2d 645, 663 N.Y.S.2d 914 (N.Y. App. Div. 1997), the insured building was a one-family residence located adjacent to and behind plaintiff's residence. The premises were destroyed by fire three months after the plaintiff's tenant had moved out. The policy excluded coverage for loss if the building were vacant over 60 consecutive days. Plaintiff's principal challenge to a finding of vacancy was that he was personally renovating the house and was inside the building every day for a couple of hours. The court reversed the trial court's denial of the insurer's motion for summary judgment, "[g]iving the word vacant its plain and ordinary meaning. . . ." 244 A.D.2d at 646, 663 N.Y.S.2d at 915. It also ruled that because "plaintiff himself was never an inhabitant of the premises, the fact that he frequented the premises for the purpose of renovation is not germane to the issue of vacancy." Id.

From Realty Times, here.

Proper Attic Ventilation is a Must

2008-07-23T09:53:15-04:00

On a recent home Inspection the question of a heated attic came up. In this particular house the attic heated to over 120 degrees. For my homebuyer this was an issue. When I called the listing agent to discuss this her answer was, my attic heats up - so why is that a problem?

So I started to research the topic and found the following problems and issues are associated with an attic that is not properly vented.

1. 20 Year Roof Shingles will deteriorate in 8-10 years from the underlying heat;
2. Mold can form
3. Mildrew
4. The exterior paint on the house can peel
5. There can be moisture buildup which termites like

One of the best discussions on the internet that I found was by David Valley who is a Home Inspector in Massachusetts. Please click the link for further information and some of his recommended solutions,

Roof Ventilation and Proposed Solutions

2nd Quarter Westchester County MLS Sales Report

2008-07-22T10:38:26-04:00

The 2^nd Quarter Residential Housing Report from the Westchester-Putnam
Multiple Listing Service was issued today. Some highlights:

There were 1770 residential closings during the 2^nd quarter of 2008
which was 24% fewer than 2007;

The median price for a single family house was down $25,100 or 4%
from last year to $674,900.
The mean price is down 7%
Million Dollar Homes accounted for 24% of residential sales in the 2nd
vs. 31% during the 1^st quarter.
Inventory is up 11% from 2007

To read the entire report,here.

Taking the High Road and Our Code of Ethics

2008-07-19T07:05:22-04:00

Last night I received a call from a seller who has been on the market for a while. When he originally listed his house he had a lot of showings. Now he isn't getting any showings and he is angry at his agent. He was calling to see what I would do differently than his agent, he was picking my brain to find out where he could blame his agent. I went and looked up his property and the history. I then asked him, what is your agent suggesting? Did you list your house at the price your agent suggested? The answer was no I listened to the agent and then decided where I wanted to list it.

I could see from the history that he has been "chasing the market down". Instead of pricing the property at the market he has slowly been making downward adjustments and each time he adjusts downward the market drops further he is always just a tad too high.

I asked him if he is still listed with this agent and the answer was yes. I told him to go back to his agent and listen to his agent. If, when his agreement terminates and he is still not happy to please call back but until then he is in good hands.

I would never talk about another agent in a negative way, I never say anything about any other agent except to say you are in good hands and good luck. Buyers and sellers are smart and can make up their own minds about their agent. It is unprofessional to speak negatively about another agent.

Buyer Brokerage, The Internet and Things Have Changed

2008-07-19T06:16:16-04:00

Real Estate has changed, it has changed a lot. Some Brokers don't want to let go of the old way of doing business and want to keep what they consider out of area agents out of their areas still to this day. A lot of this still has to do with the lack of disclosure to buyers. Some agents want to keep the status quo, keep it the way it has always been. But Buyer Brokerage and the Internet have changed the way we do business, a lot. I believe that a lot of agents do NOT exlain buyer brokerage properly, some because they don't understand it themselves and some because they still want both side of that commission and if buyer agency were truly explained it would effect their bottom line.

I have a blogging buddy by the name of Laurie who works on the North Shore of Long Island. Laurie has moved from another state and is amazed at the way we do real estate in New York, perhaps amazed is the wrong word. She wrote a wonderful post about disclosure of real estate agent roles that explains some of the issues and I recommend this post highly to anyone who hasn't seen it, here.

In the past Real Estate agents would stay in their areas, everyone represented the seller and the goal was to make the "double dip" meaning both sides of the commisson. The disclosure to buyers that they could have their own agent looking out for their interests didn't have to be disclosed because it didn't exist. Everyone represented the seller.

Now, however lots and lots of agents work as buyer's agents and travel throughout the County of Westchester selling properties. The agents are going with their buyers and helping the buyers find the best communities and properties. The way the internet has changed this is that there is so much community and school information on the internet now buyers come knowing a lot before we begin. It is not the place of a real estate agent to discuss schools, demographics and in fact this is against the law. The buyers need to research these areas on their own. The fact that a brokers child went to a particular school is not a factor, schools are very subjective and buyers need to figure this out.

In the past an agent would "refer" a buyer to any other community that the buyer might want to see and collect a 25% referral fee without doing the work. There is a large network of agents who have nurtured these referral networks and want to protect them.

The very good news is that this is now changing and changing a lot. A friend of mine sold a house in Rye and she is an agent in Bedford, a friend of mine working as a buyer's agent sold a house in Yorktown and her office is in White Plains. Does she know the community? Yes, she does. I personally have lived in lots of communities throughout Westchester County and sell in those areas. Sometimes a buyer's agent who doesn't live in a particular community comes with a fresh point of view. A buyer's agent who goes to different communities with a buyer won't try to convince a buyer to buy in any particular community, the buyer can take their time and decide which community is best for them. The old way an agent would want the buyer to buy in "their" community in order to earn the commission. This "new" way an agent will be paid for their work no matter where the buyer buys - no pressure.

Duties to REALTORS^®

Article 15
REALTORS^® shall not knowingly or recklessly make false or misleading statements about competitors, their businesses, or their business practices. (Amended 1/92)

The Purchase CEMA

2008-07-17T09:03:00-04:00

So what is the Purchase CEMA? CEMA stands for Consolidation, Extension and Modification Agreement. CEMA's are typically used to avoid the second payment of the New York State mortgage tax by mortgagees when refinancing a mortgage. This an be used in the sale of property and both the buyer and the seller can reap benefits.

The Seller can save ,4% in New York State Transfer tax up to the first 500,000 of assigned mortgage up to $2000.00 dollars for signing an authorization. Savings are based upon the continuing lien deduction achieved because of the assignment.

The Buyer can save 1.8% to 2.55% in New York State mortgage tax when they purchase a property. The sellers existing mortgage balance is assigned to the buyer and the buyer then only pays the mortgage tax on the difference between their new loan amount and the seller existing mortgage and can save thousands of dollars.

This is a tool that will not apply to everyone. It takes time, up to a month, to obtain an assignment, the seller has to have enough of a mortgage left and all the numbers have to work. Structuring a deal with a CEMA as a component is possible but needs verification as it will not work with all sellers and buyers.

Greenburgh You Tube Clips

2008-07-17T06:32:43-04:00

The Town Supervisor of Greenburgh, who can be a political lightning rod, is nonetheless very innovative. He has started a collection of You Tube clips about the Town of Greenburgh, there are now about 20 clips.

“Feiner and summer intern Andrew D. Laub began the project last week, posting clips to the popular site that range from interviews with municipal employees to recreational activities around town.

"The goal is to show different aspects of the town of Greenburgh," said Laub, who will assist Feiner and oversee the project.

Laub, 18, said the segments would also give constituents another way to connect with the government and be aware of town politics”

To read the entire article from the Journal News, here.
To see the videos, here.

Best Place to Live - Greenburgh, New York

2008-07-15T18:46:38-04:00

According to CNN Money top 100 places to live, Greenburgh is number 80 out of 100 locations across the United States. The only community in Westchester County to make the list.

Greenburgh is a large town, with six villages, unincorporated areas, hamlets, loads of parks, several down towns, Hudson River communities, and loads more.

From, CNN Money you can read the entire list here and see what other communities made the list.

Congratulations to Greenburgh and Paul Feiner who I believe had something to do with this.

Orchard Hill and A Vacant House

2008-07-15T06:23:26-04:00

Late last night in Orchard Hill which is in Greenburgh some strange goings on. So now with the increase in foreclosures, with more and more vacant houses there are more and more things to be concerned about. A vacant house seems like a great place for a tryst,right?

Vacant houses that aren't being maintained are a target for thieves. If the lawn isn't mowed it is a giveaway that the house is vacant. If there is a pool in the backyard and the water is standing stagnant that is a health hazard. Poachers are moving into some of these vacant houses. But now as reported in our local newspapers comes a sexual tryst with a Principal of one of our local private Catholic schools involved. This would have been hard to foresee.

From the Joural News, here.

Administrative Fees? What!

2008-07-12T06:49:23-04:00

The blogs are humming about something called "administrative fees" on real estate transactions. Don't know if any of you have come in contact with this but these are fees over and above the commission that you might be asked to pay. You may not be aware of these fees until the closing table. This happened to me at a closing a few months ago. Let me say that I never charge any fees to anyone over and above the stated commission. At this closing I arrived a few minutes late. The listing agent and the seller were having a discussion. The seller had signed a contract to list their property and had agreed to pay a commission, a percentage of the sale price to the brokers involved. This seller gets to the closing table and their agent hands them a fee schedule of "administrative fees". This seller was not aware of these fees and never agreed to pay them.

At the closing table the agent was trying to charge an additional $300.00 for handling the folder on this sale and for copies of documents made. The seller was taking a pen and simply crossing out these fees. He refused to pay them. He was of the belief that the commission amount he agreed to was payment in full for real estate services. I believe he was right, that is what the commission is for, a complete transaction.

On the buying side I understand that the same thing is happening. That you should carefully read the contract and question any fees over and above the commission that you find there.

There is also the question of the legality of these types of fees. I am not an attorney, but there is something on the HUD-1 that deals with nusance fees and certainly undisclosed anything is a problem.

From MSNBC's blog, another view, here.

Heritage Festivals Sponsored by Westchester County

2008-07-10T18:34:02-04:00

Throughout the summer the Department of Parks of Westchester County is sponsoring heritage festivals, celebrating, Irish, Indian, Italian culture.

On Sunday, August 3^rd, 2008 at the Kensico Dam Plaza in Valhalla and sponsored in conjunction with the Indian American Cultural Association of Westchester is the Heritage of India Festival. Some of the activities will be an Indian Merchanidise Bazaar, Mahendi (Henna) and Bridal Make-up, Indian Folk Dances, Indian Fashion Show and rides for the kids. Free Admission and Parking.

For further information and other festivals being held, here.

Remember Sellers, Life Happens While You Are Waiting

2008-07-09T08:46:25-04:00

The problem with the market reports that are posted on various blogs is that they rarely give the full story as to what is going on in the local housing market. There are short sales and foreclosures that are closing way past an expiration date on the multiple listing service. There are foreclosures that are also not being registered on the MLS. The problem with market reports is that your personal circumstances are not factord in. What good does it really do you to know that prices are down, we all know that prices are down.

The numbers of homeowners that have withdrawn their properties from the market is never factored in that I see. So we know that prices are down and we know that it is taking longer to sell a property we also know that some propoperties are selling quickly and some properties are selling over the asking price. Properties in mint condition that are priced right or have a seller that is receptive to all offers and is in the "right" location will sell in a reasonible amount of time.

Is it a good time to sell? Prices are down. If you are selling and planning to buy in a retirement area such as Florida as an example you will sell lower than you planned but you will also buy much lower than you planned. If you wait for prices to rise again you will sell for a higher price but you will also buy higher.

Not sure it makes much sense to wait. If you don't have to sell and bought within the last few years it is probably a good time to wait expecially if you bought at the height of the market. If you don' have to sell and you bought within the last two years it probably is not a good time to sell.

If you bought your home many years ago and have built up equity you may not sell at the amount you would have a few years ago however you will still walk away with a respectable profit.

Whether it is a good time to sell is really about where you plan to go, whether you have to sell and how long you have owned your home. If you are waiting for the market to come up and can wait then why not. However life happens while you wait.

Swimming Pool Safety - Westchester County, New York

2008-07-08T06:21:20-04:00

Recently I have read in the news about several childred drowning in private pools. Such a tragedy. Westchester County has a brochure regarding pool safety and has partnered with the Association of Pool and Spa Professionals and the Northeast Spa and Pool Assocation. A link to the brochure is below.

According to the U.S. Consumer Product Safety Commission, drownings involving young children in pools and spas are on the rise, averaging 283 annually from 2003-2005. That’s an increase from 267 for 2002-2004.

“As pool professionals, we are pleased to work with the county in promoting pool safety, which is our top priority,” said Martin Silver, president of Bel-Aqua Pool Supply, Inc. and a member of NESPA. “This is a terrific example of the government and the private sector working together to protect the public – and children in particular.”

Among the safety measures being urged are the following:

Isolate the swimming pool by way of a minimum four-foot-high enclosure.
Install an impenetrable covering that completely covers the pool, blocking access to the water.
Keep all doors and windows leading to the pool or spa securely closed.
Keep rescue equipment and a phone by the pool.
Install anti-entrapment drain covers and fittings.
Maintain proper water clarity.

Brochure from Westchester County on Pool Safety, here.

West Nile Virus - Some Things You Can Do

2008-07-07T08:16:46-04:00

I am writing this post because I recently showed a house in upper Westchester County to a buyer. We walked the back property and discovered a reservoir runoff where there was stagnant water. So if you own a property and it is on the market here is what the Health Department in Westchester County says you should do:

Mosquitoes capable of carrying West Nile Virus lay their eggs in stagnant water. The eggs can develop in any pool or puddle of water that stands undisturbed for more than four days. Mosquitoes will breed in any untreated water, so the Health Department recommends you:

Remove unneeded tires, cans, buckets, drums, wheelbarrows and bottles
Cover trash containers to keep rain out.
Turn over plastic wading pools and wheelbarrows when not in use.
Clean roof gutters and remove standing water from flat roofs.
Remove standing water from basements.
Place a couple of capfuls of household bleach in a basement sump-pump pit if it has standing water.
Keep drains, culverts and streams clean of weeds and trash so that water can drain properly.
Make sure stored boat covers are completely drained. Store small boats upside down.
Drain water in birdbaths, plant pots and drip trays twice a week.
Trim shrubs to eliminate hiding places for adult mosquitoes.
Clean and chlorinate swimming pools, outdoor spas and hot tubs. Be sure rainwater does not collect on their covers and disinfect them with bleach to kill mosquito larvae and eggs.
Fill in hollow tree stumps and rot holes that hold water with sand or concrete.
Drill holes in the bottoms of recycling containers that are kept outdoors.

From the Westchester County Department of Health, here.

Absorption Rates, Jan-June 2008 Westchester County, NY

2008-07-06T20:14:40-04:00

The following chart is shows the absorption rates for various school districts around Westchester County for the period of January-June, 2008. The definition of an absorption rate is the amount of time it will take to sell the current active inventory based on the current rate of sale. The rate is in weeks and this is only for single family houses. Some school districts are selling at a quicker rate than others. It is different district to district. More than 6 months worth of inventory is a buyer's market.