Let The Search Begin - Just don't make me get up

Starting a search for a new home can be an overwhelming process. There is tons of advice out there - get a broker, go to open houses, look in the NY Times, look for foreclosures, surf the web - the list goes on and on. All of these ideas are good ideas and all may lead to your dream home. However, it is my personal recommendation that you begin your search for a new home on-line and in the comfort of your own living room. Searching online first will give you the opportunity to get a feel for prices, amenities, style of the homes, etc. Try not to eliminate listings based on the posted price. In this market there is room to negotiate so if you see something you love it’s worth visiting in person and submitting an offer (make sure you visit with a financial advisor or mortgage broker first prior to offer submission to determine how much you can afford to buy).

Below is a list of websites that are good resources for real estate listings:

• http://www.trulia.com/. Trulia allows you to search for homes by location or price. It also has a running list on its home page showing price reductions, open houses, and new listings, which makes searching through their enormous database a little less daunting and gives you a snapshot of how the market is doing.


• http://www.streeteasy.com/. This website is primarily for Manhattan properties but has recently added listings in the Hamptons and North Jersey. Like Trulia, you can search by price range or price. Unlike Trulia, Streeteasy also posts rental listings. It also has a new development section where you can peruse all the brand new buildings around the city. While you are there check out the video for “Platinum NYC.” http://streeteasy.com/nyc/building/247-west-46-street-new_york


• http://www.craigslist.com/. Believe it or not Craig’s list has a lot of for sale listings on it. It’s nationwide too so if you feel like looking for a home in San Francisco you can find it here. As with everything on Craig’s list, be a little wary but there is also some great stuff on there - Spacious 2 Bed Condos w/ Great Amenities- Spa Hot Tub & Fitness Center anyone?http://newyork.craigslist.org/fct/reo/1491283210.html.


• http://www.oodle.com/ Like Craig’s list is more of a classified ad database but it does have real estate ads and listings.

On another note, I was at a meeting this week and everyone was talking about the Tiger Woods incident. No, they weren’t speculating about why Tiger’s wife was beating his car with a golf club, or what he was doing out at 2am, or even why his alleged mistress just retained a lawyer. Nope, they were wondering what on earth he was doing living in a home that cost a mere $2,400,000. Not to worry a quick google search has informed me that he also owns a $40 million 10 acre ocean front estate in Jupiter Florida that is still under construction. Phew – all is right in the world again.

Thank You Global Recession

So, the recession huh? It’s been crappy. It’s been hard. People have lost jobs, loans, homes, and life savings. Real Estate, as an industry, was hit particularly hard (just because we may have started the crisis doesn’t mean we can’t lick our wounds too) with thousands of unsold homes languishing on the market, prices falling, developers losing entire buildings and being responsible for personal guarantees, companies going out of business, and non-existent commissions being all too common. I don’t think there is anyone who doesn’t want this to be over…pronto! But in the spirit of thanksgiving, I would like to take a moment and discuss 5 reasons why I am thankful that I have worked in the Real Estate Industry during a recession (let’s just hope I don’t have to go through another one).

Thank you recession for reminding me:

1. Location is King…again
It may be the first lesson of real estate, “location location, location” but it took a global recession to remind the industry that “if you build it, they will come” should only work in movies. Gentrifying neighborhoods is a process; it takes time, and evolves naturally. You can’t just enter a pioneering neighborhood, slap up a condo building, and expect to get a $1,000,000 for a studio. Conversely, buyers – before you buy an “investment” home think to yourself – “would I live here?” and “am I going to live here?” If either of your answers are no – DO NOT BUY – go back to the Upper West Side where you belong and where there will always be a market for your home.

2. You Can’t Always Get What You Want
When the financial industry started giving out mortgages like candy people forgot that not everyone can afford a million dollar home. Yes we all want one. I personally want an $8,000,000 one at 1055 Park Avenue but that doesn’t mean I can have it. No doc loans, lenient regulations, and creative financing made us all feel like millionaires. But ask anyone who is now struggling to make a mortgage payment they can’t afford, or whose falling home prices has gotten them into an upside down situation and they will tell you that it’s not worth it. The recession has reminded us that it’s time to get back to basics, it’s generally accepted that your housing costs should be no more then 30% of your income (http://www.lendingtree.com/smartborrower/saving-money/managing-your-money/budget-rules-of-thumb/). Remember that number and buy a dream home you can actually afford.

3. Read the fine print.
Buying in new construction presents risks that are different from the risks you assume when you purchase in a coop or buy a single family home. In a new condo there is no problem with board approval, old furnaces needing to be replaced, leaky septic tanks, giant lawns that need mowing and don't care that you don’t own a lawn mower, and who knows what other surprises you will find in the attic, basement, buried in the yard etc. New construction carries its own risks including construction not being completed, re-assessments of common charges or operating budgets, and the developer holding onto homes making your neighbors renters not homeowners. The thing about new condo buildings, at least in New York, is that their offerings are regulated by the Attorney General. This means when you buy a home, you get a giant legal document that addresses every possible risk that could come up when buying your new home. It also, gives you recourse if things don’t go your way. The AG is almost ALWAYS on the buyer’s side – remember The Rushmore? (http://therealdeal.com/newyork/articles/buyer-sues-gary-barnett-extell-for-1m-deposit-at-rushmore). So what did the recession teach us? Read the damn offering plan. Every word of it. Understand risks before you take them so you can make an educated decision.

4. Don’t buy at retail
When the market was overheated people were bidding up prices, buying homes after triple digit price increases, and generally purchasing with exuberant disregard of price. The recession has put buyers’ feet back on the ground while simultaneously bringing developers to their knees. Ideally, things will end up somewhere in between what was and what now is. But what we can’t forget is that negotiation is a good thing. It allows both buyers and sellers to split the power during the transaction and in a successful negotiation, leave the table feeling satisfied. It’s a win/win and it’s how markets operate in most other countries and how it should work here too.

5. You got to know when to hold ‘em
Real Estate, like all markets, is cyclical. It is not always going to be up and it’s not always going to be down. Be patient, be educated, and make sure you are in a position to wait out a storm. Economists are forecasting that the pace of economic cycles is increasing – meaning we will have shorter periods of boom and bust and will experience both more frequently (http://ideas.repec.org/p/nbr/nberwo/4005.html_). Let’s hope it doesn’t get this bad again, but let’s prepare for the fact that it probably will.

Park Avenue Calling

I like to think that I am down to earth and reasonable. That I am the kind of person who aspires to be comfortable and content, that I don’t want or need the biggest house on the most prestigious block, or the fanciest car, or even artwork that hasn’t been purchased from http://www.posters.com/. And on most days I am that person. But then there are days like yesterday. It started out like any other trip to view a new building. In fact, I was not planning on being overly impressed when I visited 1055 Park Avenue http://www.1055park.com/. Sure it’s a Park Avenue address located perfectly in the 80’s. But so what? I’ve been to lots of luxury buildings and previewed more than my share of ultra luxury homes. But when I got there, I realized that 1055 Park Avenue was something else entirely.
To start with, the entire building is only 20 feet wide. Yup, you heard me – 20 feet. It’s approximately the width of a townhome - except that its 12 stories high. The narrow footprint of the building, along with a loophole in historic zoning allowed it to be the only curtain wall building (floor to ceiling glass) on Park Avenue north of 60th street resulting in a building that is elegantly magnificent. To read more about the architecture check out http://therealdeal.com/newyork/articles/1055-park-avenue-designed-with-real-inspiration-kohn-pedersen-fox-davis-development-holdings-costas-kondylis-985-park-avenue.
Inside the building there are just 5 homes, one of which is a gorgeous model. It’s a duplex, with a living room and master bedroom that look out on Park Avenue, 3 bedrooms and a maid’s room, a kitchen that made my mouth water, and enough bells and whistles to make Inspector Gadget grin. Want a projector and screen that come down from the ceiling of your bedroom? Check. How about a built in espresso machine, two ovens, two warming drawers, and a sub zero? Check. Tired of having a counter littered with small appliances? Not to worry, at 1055 there is an appliance garage for you to hide them away. Oh, and did I mention the floating glass staircase?
I’m not going to lie. Standing in 1055, gazing out the double height windows while caressing the sleek and shiny polished countertops made practical, reasonable, down to earth Andrea disappear. Right then and there, I wanted to sign the paperwork, get my keys, and move right in. Luckily, or maybe unfortunately, homes at 1055 Park Avenue start at a little over $9,000,000. As I put on my coat, took the private elevator back to the lobby, and stepped out into the balmy fall weather practical Andrea returned eschewing a cab in favor of the more cost effective alternative of the subway.

I'm Back (I'm Back)

I know, I know, it's been way too long. I broke the most unforgivable and #1 rule of blogging - "post regularly," and actually the #10 rule as well - "don't give up on your blog." I think those are currently my only 2 blogging indiscretions but you can check out the list of tips/rules for yourself just to be sure at http://www.bloggingtips.com/2008/12/31/10-blogging-tips-for-2009-to-make-it-your-most-successful-blogging-year-ever/ (you should also take a look if you are interested in some common sense tips for blogging).

Anyway, luckily for everyone i am not too proud to beg for your forgiveness. So here i am, back again, 6 months later asking you to forgive me and read what i have to say. A lot has happened in the market since the summer. The Fed has continued to inject liquidity into the banks, who have continued to pile up reserves, which has continued to do very little for stimulating the economy (can you tell that i am taking an Econ Class this semester?). However, from an on the ground anecdotal report, the real estate market is in fact picking up. Company wide, The Marketing Directors (http://www.themarketingdirectorsinc.com) had the highest number of sales/month in August compared to any month in 2009. Crystal Point, our newest river front condo tower, and the crown jewel of Jersey City, (http://www.crystalpointcondos.com) is tearing it up in the sales department and has made over 40 SALES in 8 WEEKS. Not to be left behind, it's riverfront neighbor Hudson Harbor, located in Tarrytown (http://www.hudsonharborny.com) is also reporting big sales numbers and is 40% SOLD since opening this past June. Not to worry, communities not located on either side of the banks of the Hudson river are also reporting more sales, higher offers, and in some cases multiple bids. Looks like my wishing for a recovery has finally begun to pay off.

In other real estate news - the extension of the Federal First Time Home Buyer Tax Credit until April 2010 is looking pretty certain (http://www.cnbc.com/id/33493223). Learn more about the credit (ignore the soon to be out-dated December deadline) at http://www.federalhousingtaxcredit.com/2009/index.html.

Celebrate Seasonality

With Memorial Day just barely behind us, and the advent of summer firmly upon us, the real estate industry begins to party. Calm down, we are not talking keggers, who’s who events, or even social networking (although we will ask you to don a name tag). These events are strictly marketing and sales tools where each community in turn throws an event targeting individuals whom they think are most likely to buy or help sell homes before the summer doldrums take over. Seasonality has always been a part of real estate sales. Historically the fall and the spring are the busiest selling seasons while the summer is hands down the slowest. There is no exact science to the change in buyer patterns but I find myself having a lot of conversations that go something like this:

Sales agent: “They loved the home. It’s everything they wanted and it fits into their budget!”
Me: “Fantastic – did they buy it?”
Sales agent: “Oh, no. They want to wait until they return from their 6 week cruise, trip to London, and week in the Hamptons before making a decision.”
Me: “So this fall?”
Sales Agent: “Yup”

Check out http://www.urbandigs.com/2007/04/data_shows_nyc_is_seasonal.html for a slightly more analytical presentation of seasonality in the real estate market.

Now that event season is here, crafting party concepts and coordinating events that will attract people despite their busy schedules (do I go to the Palmer Hill event or my daughter’s graduation?) take a central role in my daily responsibilities. To be honest, event planning is not one of my strong suites. I am not particularly interested in, or good at, organizing caterers and I know absolutely nothing about floral arrangements or linens. In fact my idea of a good time involves nothing more then plastic cups, some chips and guacamole, and a bucket full of Coronas – probably not a concept that sells luxury homes. Luckily for me there are usually professionals on hand to help and we have been able to throw some great events like our recent Pool Grand Opening at Palmer Hill (thanks Garden Catering http://www.gardencatering.net/). If you missed it, or are interested in taking advantage of some free food and drink while previewing and buying (hint, hint – because the volume of sales goes down in the summer your buying power increases actually making it a great time to buy) not to worry, there is still time to get yourself on the list. All you have to do is register on the website of the community you would like to preview and in the comments section of your registration write “Andrea said I can come.” Upcoming events include but are not limited to:

Hudson Harbor – various events all summer long including Rosé on the River, Guest Chefs, and Wine Tastings. http://www.hudsonharbornyc.com/

Palmer Hill – Fourth of July Bash, and potentially outdoor movies, Shakespeare readings, and homemade ice cream tastings throughout the summer. http://www.palmerhillhomes.com/

Cassa – Grand Opening Event featuring an appearance by World Famous architect Enrique Norton. http://www.cassanyc.com/

See you there – I will bring the bucket of Coronas.

Cupcakes, Ramen Noodles, My Cat Fluffy and Other Indicators that the Recession is OVER!

Despite my recent completion of NYU Stern's comprehensive intro to economics class "FIRMS AND MARKETS," even i sometimes struggle with the complex economic theories and indicators used to judge the health of the economy. To help us out, i have enlisted the expertise of Jennifer Lathrop, an analyst in our research department who will explain all (pictured right) . She has kindly put together the following user-friendly post to make economic theory a little clearer, a little more relevant, and a little funnier. Take it away Jen.

In the Real Estate business we have been eager for the end of the recession before it was even declared an official recession. Crystal balls quickly became wishing wells and we began daily hunts for signs that things are getting better, something, anything. We all know that you can never really tell where the bottom is until after it has passed but that does little to quench the anxiety. We still want to know: What are the signs that a recession is over?

There are some official markers. Job loss is halted, consumer confidence index grows, the stock market stabilizes, and toxic assets are cleared off the books for a fresh and hopefully more mature start. We have been seeing some great signs. Jim Kramer amid all his yelling said that it is the bottom, federal interest rates are still at an all time low (again as mentioned in earlier posts- now is a good time to buy), banks have their bailouts and are working through toxic assets, and the media got bored with scaring people about real estate and has moved onto pigs.

An article by MSN gave 5 signs the recession is ending, including the never failing and fully scientific “cupcake indicator.” http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/5-signs-of-the-recessions-end.aspx

Really? Cupcakes? The cupcake indicator claims that people are more willing to indulge in small luxuries when the economy is good and we can monitor this indulgence by watching cupcake sales. It makes sense…kind of. But who has time to monitor cupcake sales and what if you don’t like cupcakes? To solve these dilemmas I made my own list of 5 indicators to watch:

1. Fluffy the cat is back to being fluffy. You’ll know it’s over when you can finally budget for the occasional grooming instead of the do-it-at-home variety in your 8x8 walkup (it looked bigger on the floor plan). I don’t know if the money saved was worth it. You never know what kind of retaliation Fluffy has planned while you are sleeping.


2. Ramón noodle sales revenue shows a decrease quarter over quarter. What was once primarily the staple of starving college freshman became a go-to meal during the recession at 50 cents a pack. Interestingly, all the money saved on food went directly to the increased amount of alcohol consumed while “networking” so perhaps this wasn’t the smartest frugal move. Regardless, when people begin trading up to Easy Mac (retail approx $3) we will know we are almost in the clear.

3. Your unemployed friend who has been crashing on your couch finally moves to their own place. It seems like a cause for celebration but upon further review you notice you are now missing your pizza pan, your “it-bag” from last season (you couldn’t afford this season’s bag), and Fluffy…In a way it was cheaper to have her stay.

4. The “it’s the thought that counts” gift for your friend’s birthday flops…hard. When the recession ends so does the appropriateness of hand made, home made gifts. If only her birthday had been 3 weeks earlier - she would have loved the dried Ramón noodle picture frame you made her.

5. Your landlord has morphed back into the person who is never around until its time to collect the rent and who doesn’t care if your ceiling is falling down, just like they were before the recession. Not only that, but now they aren’t calling every month to lower your rent if only you’ll stay the remainder of your lease.

Geez, I’m starting to get nostalgic about the “good ol’ days” of the recession.

Time to bake more cupcakes!

It's that good

My apologies for not writing for the past 2 weeks, I have been feeling un-inspired and have fallen prey to a mild case of the real estate blues. You know that feeling of despair that seems to be going around as we meet with more banks, less developers, and see fewer prospects? Well I am shaking it off with some exciting news. We are proud to announce the opening of Cassa Hotel and World Condominium Residences. Yes, you heard me right –we are opening our doors while other people (like Steelwork Lofts, +Art, and Isis Condominium to name a few) are slamming theirs shut http://curbed.com/archives/2008/12/08/arrested_development_new_buildings_hybernating_for_winter.php).

So what’s our secret? It’s simple really. Cassa is just that good. With a swanky hip hotel in the base of the building, brought to you by the savvy hoteliers who just launched the Betsey hotel in Miami Beach and who are so cool that they can get away with naming their company Desires (http://www.desires.com/), an on-site five star restaurant (we are not ready to announce who it is yet but I promise it’s going to be good!) and hotel services to boot – Cassa is going to be the ultimate place to live if you desire (get it?) service and prestige. Picture this, you are sitting at home one rainy Saturday afternoon and you get a hankering for a martini. Call downstairs and voila the martini arrives perfectly appointed on a silver plate. Don’t feel like walking your dog, doing your laundry, or cleaning up after yourself? Not to worry just call down for maid service and a dog walker. Even better, you can get turn down service whenever you want. Just picture coming home after a long day at work to a turned down bed complete with that tasty little mint sitting right on your pillow. Ahhhhhhh.

And if that’s not enough, the homes at Cassa start on the 28th floor and all feature a corner window. So not only are you on top of the world but you feel like you can see forever. I am not kidding – Cassa is the real deal. Check it out – http://www.cassanyc.com/.

Behind the Scenes of New Home Sales

Ever wonder what goes on behind the scenes in a new condo sales office? Probably not, but don’t stop reading just yet you might learn something.

When you enter the office you will probably be greeted by a receptionist. He or she will ask you some basic questions to ascertain your contact info (name, phone number, e-mail address etc.). Be deliberate in what information you provide – sales agents are accountable for each person who walks through the door and they WILL contact you, possibly repeatedly. So if you really hate being called on the phone or you prefer to deal only with email take that into account when answering.

Most pre-construction sales programs will begin the presentation at a building model where they will orient you and try and get you to understand “The Vision.” During this time, and throughout the presentation, a good sales agent will be asking you a lot of questions. He or she is not simply being nosey or friendly he or she is looking to find out what is important to you – do you need to have a killer view? Do you want an open kitchen? Do you need a second bedroom that will fit bunk beds for your twin boys? There will probably be questions about your budget either indirectly – what do you do? Where do you live now? Or more directly – how much are you looking to spend? Does this price fit into your budget? And there will be questions about the home itself - how large of a home you are looking for? When do you need to move in? Be honest and open – the more information you give your agent the better able he or she will be to show you a home that meets your qualifications and budget without wasting your time.

If there is a model home you will see it and then it will be time for the close. Any good sales agent, and particularly any good sales agent in this market, will ask you then and there if you would like to buy. Yes, right now, today, before leaving the office.
It’s not as crazy as you think. Before you panic and fall prey to your knee jerk reaction of shouting out “NO – WE ARE JUST LOOKING” it is important to understand how purchasing a new home in New York (and some other states) often works.

In New York all new developments have an offering plan. This is a legal document that is filed with the Attorney General and protects you, the buyer, from the seller aka. Big bad real estate developers. The plan lays out all legal risks, ramifications, benefits, guarantees and warranties connected with the project as well as infinite details about lots of boring architectural items, engineering reports etc. It also defines the procedure to purchase a home. When you sign a contract you get this plan (there are other scenarios as well but let’s stick with this easy one). So when the sales agent asks you to purchase a home. You take a deep breathe, sign the contract and provide a deposit check and he/she hands you the offering plan. You now have 7 days to review the offering plan with your attorney and the home you signed for will be off the market. During this week you can cancel your contract and get a full refund on your money – no penalties. So what? Not signing a contract and going home to think about it also has no penalties right? Well, maybe. What if someone comes along and buys your dream home right out from under you? You saw it, you loved it and yet someone else comes in the next day and buys it. It’s no longer your dream home; it’s their dream home now. I know what you are thinking – that doesn’t happen in this market. But it does. I promise.

So there you have it – your very own sneak peak into the world of new home sales. Being educated and prepared will only help you make better decisions. Exciting stuff this new home sales is isn’t it?

10 Worst Marketing Ideas So Far

With a slower sales pace then 2003-2005 (duh!) and a client base that is tired of hearing that people are not buying because of the recession (I can’t say that I blame them) coming up with innovative ways to drive traffic and sales has become a more frantic part of my job. It’s a task that I cannot claim to be very good nor very bad at carrying out. Some ideas work, some ideas don’t. In the spirit of self deprecation and not taking life or myself too seriously I would like to share with you my 10 worst marketing ideas so far. Some ideas were dismissed (and rightly so) in meetings, while others never even made it out of the recesses of my brain for fear of the mockery they would surely elicit.

10. Have both developers at Palmer Hill (http://www.palmerhillhomes.com/) jump into the newly completed pool in mid-December for a photo op that could be pitched to the press as “Palmer Hills’ Polar Bear Club.”

9. Start a matchmaker service for new residents. It could be marketed as an amenity -kind of like the “Millionaire Matchmaker” only it would be more like “Andrea chooses who you date out of a pool of people who were also smart enough to buy a new home, but are probably not millionaires.”

8. Provide NYC Marathon runners with t-shirts branded with the name and website of a specific condo building. If they finish in the top ten (yes of the whole marathon pool) they win a free condo.

7. Name the Penthouse portion of the condo tower Aria (http://www.ariathecondominium.com/) Aira (yup Aria backwards) so it would appear to be 2 different buildings and make the PH homes exclusive and differentiated. It’s a bad idea, what can I say?

6. Arrange for the next 10 purchasers at Trump Plaza Jersey City (http://www.njtrump.net/) to have a guest appearance on The Apprentice.

5. Hire rickshaws to poach clients from the competition’s sales office and deliver them right to the door of my sales office (not my idea- but morally questionable and deviously clever).

4. Give away a free apartment for the PR buzz to any of the following: Lindsay Lohan, Nick Lachey, Paris Hilton, Brett Michaels, or one or more of the Olsen twins.

3. Film a season of “Deadliest Catch” right here in Manhattan. Atelier (http://www.ateliercondos.com/) could be the equivalent of “Dutch Harbor” and it goes without saying that anything caught in the Hudson is potentially deadly. It’s going to be an exciting season premiere as The Cornelia Marie dodges crashing airplanes and rush hour traffic.

2. Provide free bonus cashing advances for all top AIG employees when bonuses are used as a down-payment for homes.* *No refunds, even for ethical reasons will be permitted.

1. Give away condoms with “Everything’s bigger in Riverdale – Size Matters” printed on them. I was kind of kidding about this, but everything IS bigger in Riverdale – giant kitchens, huge closets, bedrooms that fit king sized beds etc. (http://www.solariariverdale.com/).

Surprised my Buy One Get One Free concept isn’t on the list? I am standing behind that one. It’s a damn good idea.

Nothing Sugary About It

Home Sweet Home at Palmer Hill.

Accusations of brokers “sugar coating” the state of the market have been swirling through the Real Estate industry. Blame a rumored incident where two Manhattan brokerage firms allegedly advised their agents to keep mum about the market and to boycott The Real Deal for the mudslinging. You can learn the whole story at the famed blog Urban Diggs and while you are there feel free to support writer Noah Rosenblatt’s quest to “keep it real without bias” and “fight for transparency” http://www.urbandigs.com/2009/04/the_real_deal_tossed_for_not_s.html#comments. Whether or not the incident happened, or if it even matters at all, what’s worth discussing is that The Real Deal and Noah are correct – there is no excuse for sugarcoating the market or the trickery this implies.

Over the past few weeks I have spent a lot of time talking about why now is the time to buy – and I am not going to stop now. But, I do want to clarify. I personally believe that now is the time to buy for end users - people who are actually going to live in the home that they purchase - not flip, not rent out, live in their investment. But before we get to why to buy now, first let’s discuss buying in general and why despite the state of the market buying can still make sense for you. Think about your home this way – you are always going to be out of pocket for housing costs. Why not make those payments on something that gives you the potential to gain equity and could increase in value? It’s almost a no-brainer because you have to pay to live somewhere. Now that we are in agreement that buying is the way to go think about these three reasons why our current crappy, scary, slumping market is going to help you (maybe not the developers or the economic recovery – but you personally).

1. Falling prices are good news. Remember when real estate was hot? Everyone was buying and prices kept rising and rising until you couldn’t afford to live anywhere but your parent’s basement. Things are different now. The Wall Street Journal reported an alcove studio on the Upper East Side priced at $199,000 (http://online.wsj.com/article/SB123864151725581585.html) – when was the last time you could buy in Manhattan for $199,000?


2. Standing inventory is good news. Developers no longer have strict availabilities and restrict inventory release. You will not be told “no, you can’t have the home with the terrace – it hasn’t been released and when it is we don’t know what price it will be at - so please buy this smaller home with the partially blocked views.” Developers no longer have the luxury of holding on to the best homes to sell when prices are at their highest. This is your opportunity to pick the home that fits you best, with the best views, and the nicest closets, and that is just what you wanted at the price that you wanted (see point 1).


3. Interest Rate Cuts Are Good News. Interest rates were low before the recession and now they are headed even lower. Although the guidelines to qualify for loans are changing, well qualified buyers can still get loans and they can get them at amazing rates.
   

If these three reasons were not enough to get you thinking I would like to leave you with a question posed by our Regional Sales Manager – “Why is it that in a sellers market everyone buys but in a buyer’s market nobody buys? Tricky.

The Quest for a Recession Proof Home

I was watching television the other day and I saw this commercial from the National Association of Realtors. In the ad the perfect family finds their dream home and a friendly realtor reminds viewers that now is the time to buy.

The ad is right, now is the time to buy – but we have been over that before. If you are motivated and savvy and thinking about buying a home in this market you must also being wondering what you should look for in your new home. Is there such thing as a recession proof home? No, there’s not – but there are some things to look for that will help you choose a home that will weather bad economies better and hopefully retain more value. Honestly, it’s back to the basics. Here are three rules of thumb to think about on your search.

1. Location, Location, Location. You’ve heard it before but it’s worth repeating – three times in fact. As the market has stumbled we are seeing more and more that location means everything. Where once moving into a gentrifying (read cheaper) neighborhood was exciting and cool, it is now often synonymous for standing inventory and decreasing home values. Remember that Starbucks that was moving in? It’s not moving into the neighborhood any faster then you are. So consider this, if you are moving into an urban area look for an established neighborhood that’s convenient to public transportation. Consider a building like Avonova (http://www.avonova.com/). Its’ venerable Upper West side neighborhood has long proven itself as a beacon to families, old time Manhattanites, and Yoko Ono. But perhaps most importantly, you can rest assured that there will always be a Starbucks right around the corner.

2. Time Tested Product Types. When the market falters people stick with what they understand. In an urban market that is most likely a high rise tower or an apartment of some kind. In the suburbs, albeit everyone is different, but high rise condos are not part of the suburban dream for most people. Over the past 5 years we have seen an influx of condo towers move into Westchester County and Connecticut. Beautiful places to live, but potentially not as easy to resell as a single family home or a townhome, especially when the market is down. Did I mention that I represent some beautiful townhomes in Stamford (http://www.palmerhillhomes.com/)? But in all seriousness, time tested is the way to go - at least for now. Just an aside, you can be less concerned about interior finishes. Your super modern kitchen is not going to keep someone from buying your home as they can always renovate. Changing a high-rise apartment into a single family home or townhome on the other hand is impossible.

3. Don’t buy the most expensive home on the block (or in the building). You’ve undoubtedly heard this one before too, but again that’s because it’s true. Historically, you do not get the same return on investment for the largest most expensive home on the block as you do for a smaller start up home. So look around before you buy and make sure your home is not overbuilt for the area.

Nicole Weidaur of Keller Williams Greater Seattle has compiled a good list of things to think about when looking for a home as well. Everything from “research the neighborhood” (we are totally in agreement on that one), to “look at several houses before you buy,” and “buy based on needs not wants.” It’s a great list and worth checking out. http://nweidauer.activerain.com/post/1005381/8-Home-Buying-Dos-Donts

Helping People Become Homeowners Since 1934

It seems like everyone in Real Estate is talking about FHA loans these days. Just this week it was the headline on inman.com “The facts on FHA-insured loans" http://www.inman.com/buyers-sellers/columnists/jackguttentag/the-facts-fha-insured-loans and it was a major topic of discussion at the NAHB convention. Interestingly, it has not been widely written about in either the New York Times or The Wall Street Journal, maybe because FHA loans are not anything new and aren’t going to save the real estate market.

As Jeff Belonger, FHA expert said “I am tired of listening to loan officers, realtors, and the average consumer get all excited because FHA mortgages are back. People, they never left. FHA loans are not the new subprime mortgages” http://activerain.com/blogsview/503019/FHA-loans-FHA-rates-Why-so-different-from-conventional-loans. That being said, Jeff goes on to say, and I agree, FHA loans in many cases are better then conventional loans and CAN HELP people buy homes.

This is the deal, straight from The US Department of Housing and Urban Development’s mouth (http://www.hud.gov/buying/loans.cfm) “FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.”

Specifically what they mean is that FHA loans allow you to do the following:

• Provide a lower down payment. Typically 10-20% of the purchase price is required as a down payment on your home. With an FHA loan you can put down as little as 3.5%.
• Qualify with lower credit scores. Because FHA is insuring your mortgage you may be eligible to qualify for a loan even if you have had some credit problems in your past. In fact, a lower cumulative credit score can qualify for FHA loan then typically required from other home loans.
• Down payments can be gifted. Don’t have enough for a down payment but have a rich uncle? He can gift you the money with no penalties.

Excited yet? FHA loans are the real deal and can help put homeownership in your reach. There is one catch however, if you are looking at multi-family housing (i.e. one of the many beautiful new condo buildings on the market) – the building must be pre-approved by HUD. Luckily for you, we would like to announce that Adam’s Square, Hoboken’s hottest new address has just been granted HUD approval!!! That’s right, you can purchase an outstanding one, two, or three bedroom home in this venerable building that expertly blends historic grandeur, modern amenities, and the convenience of an urban lifestyle with your shiny new FHA loan. http://www.adamssquare.com/

The Thrill of Victory + The Power of Platinum

It always feels good to win an award, and I don’t mean the honor of being nominated - it’s bringing home the gold that gives you that warm and fuzzy feeling. Just this month my company received 3 outstanding marketing awards from the Pillars Awards. As their website explains “NAHB's Pillars of the Industry Awards brings you the best in multifamily design…and it honors the best marketing campaigns and the industries top developers…” http://www.nahb.org/page.aspx/category/sectionID=1024.

So there you have it, with the presentation of the awards for Best Brochure for a For Sale Multifamily Community, Best Overall Sales Campaign for a Condominium Community, and Best Property Website to Platinum (http://www.platinumnyc.com/) we are validated in our hypothesis that marketing campaigns featuring spraypainted silver people are the panacea for all of our real estate woes.

Mocked by many including, but not limited to, curbed.com (thanks for featuring us in an article entitled "People Sounding Stupid in the Real Deal, Part II" http://curbed.com/archives/2007/12/05/people_sounding_stupid_in_the_real_deal_part_ii.php and yes we did put swimsuits on the models so as not to offend your delicate sensativities) and Lost City (“Revolting billboards featuring the neo-nazi, Atlas-like figure pushing a big silver ball” ouch! http://lostnewyorkcity.blogspot.com/2007/03/power-of-platinum-wood.html) sometimes even we began to wonder if we had made the right decision. But it turns out we did! Thank you Pillars and thank you buyers who have made Platinum 80% sold.

The Very Open House

Mondays always get me thinking; it’s a new week so it’s time for some new brilliance to get some homes sold. I don’t know what it is this Monday though; I am fresh out of ideas. I blame the intensive Econ studying that monopolized (get it?) my weekend and left little time for marketing brainstorming. Not to worry though, the internet and Canada have saved the day by providing the best marketing idea yet – the 72 hour open house.

On January 26th, Kye Grace of Vancouver staged a 72 hour open house. Isn’t it Brilliant? It’s a little dramatic (so what if there was heat, water, and plumbing - he still had to sleep on a cot) and little unusual, but most importantly it caught the attention of the news. And not just the local news, somehow it made it all the way down here and onto Mike Price’s blog http://www.mlpodcast.com/blog/ (I like him because he uses the term irreverent in his subheading) and then into my hands. According to Kye’s website http://www.72houropenhouse.com/ he was not allowed to leave the house for three whole days forcing him to bring all of his food and necessities with him. Interestingly, he reported that people stopped by at all hours of the day and night to preview the house. I like it. I like the whole thing. 72 hour open house at Galerie Condos – sounds good to me.

In other news, we saw an increase in sales across all of our communities this week. Everywhere from Red hook, to Battery Park City, to Stamford people pulled the trigger, signed on the dotted line, let ‘er rip, or whatever colloquial cliché you like. People bought homes this week. Congratulations and keep it up!

Gotta Have an Aqua Grotto

I took a field trip to Jersey City yesterday to see what life is like on the other side of the river. After navigating my way onto the correct PATH train (at least they take Metrocards) and bracing myself for big hair, guidos, and sightings of The Boss – I have to say I was pleasantly surprised. Jersey City itself may be nothing to write home about, but the aqua grotto at Trump Plaza JC (http://www.njtrump.net/) – mmmmm now this is definitely worth a visit or maybe even a new condo. I have been hearing about this “dazzling” amenity since it was just a concept on the drawing board but I have to say, I had no idea just how cool it was going to be. This picture doesn’t even do it justice. Here are five reasons why the aqua grotto has exceeded my expectations:

1. Who doesn’t want to be able to throw their own bash in the grotto? It’s like being Hugh Heffner without the ambiguous filth.

2. I would like relief from muscle tension and stiff joints, lymph detoxification, blood circulation improvement, sinus congestion relief and a boost to my immune system - all courtesy of the steam shower (http://www.steam-sauna-benefits.com/steam_room_benefits.html).

3. Marble floors, cushy lounge chairs, pitchers of water with lemons floating. Enough said.

4. When you walk in, the grotto is warm and inviting. No odor of chlorine anywhere!

5. I heard some rumors that residents are kicking back and enjoying wine coolers in the grotto. Yup, wine coolers in the grotto – that’s just my style.



My apologies for the short and late post this week – my econ mid-term is looming large. Does anyone know how to take Total Revenue and Calculate Marginal Revenue from it?

Starter Homes For All and Cassa's Pearly Whites

Liberty Harbor Townhome Exterior - The New Starter Home

The sun is shining (or at least it was this morning), the weather is mild and things seem to be looking up. The New York Times published a story with economic signs that indicate we are “at the bottom.” In the article Barry Ritholtz, Professional Investor and writer of the user-friendly econ blog “The Big Picture,” (http://www.ritholtz.com/) suggests that we have hit bottom when a young couple earning two modest incomes can qualify for a mortgage and afford to purchase a two-or three-bedroom starter home in a middle – income neighborhood. This is wonderful news, particularly because that is just what we are starting to see. Take the breathtaking waterfront super community Liberty Harbor located in Jersey City (http://www.libertyharbor.com/). Made up of a mixture of townhomes, condos, and rental buildings this behemoth of a development provides a range of prices and living options designed to appeal to many segments of the market - and it did; achieving a respectable 90% sold before the market tanked. What’s happening at Liberty Harbor now is extremely interesting. People who bought the smaller, less costly homes are returning to the sales office interested in moving up to larger homes. Their families are growing, they need more space for a home office, they just adopted a Great Dane - whatever the reason, they love Liberty Harbor and now have the opportunity to afford a bigger home – a true starter home, and not just the one bedroom they have been squishing into. It’s a beautiful thing. And it’s very similar to what Barry told us to look out for. People who were priced out of the homes they wanted now have the opportunity to buy their dream homes, or at least their starter dream homes.

The other thing that is making me particularly happy today is that http://www.curbed.com/ came through with another great Cassa posting. Yes you snarky curbed real estate bloggers – I applaud you. As I may have mentioned before, Cassa World Condominium Residences and Hotel (http://www.cassanyc.com/) will soon be throwing its hat into the condo market ring and I am part of the team responsible for its dramatic entrance. Thanks again guys for this sneaky feeling post http://curbed.com/archives/2009/03/10/in_your_face_sneak_preview_of_cassa_nys_pearly_whites.php

Infomercials and the Secret to Saving the Economy

Survived jury duty after 2 days of sitting around making new friends (who unfortunately did not want to buy real estate from me) and a brutal questioning session where all my biases were exposed – apparently I love doctors and cops which makes me ineligible to be a juror in either drug cases or medical malpractice cases. Now it’s back to the grind – there are homes to be sold.

Real estate is a tough business and it only seems to be getting tougher. Developers are feeling the pressure from their banks, construction is being pinched by rising costs, and marketing and sales agents are running around like chickens with their heads cut off. I have figured it out though, I can solve the housing crises with my simple “buy one, get one free” incentive plan. It’s really quite straightforward. One of the biggest challenges facing the real estate market today is the over-supply or “gluttony” of homes, as analysts like to call it. By giving purchasers two homes at once we will be doubling the pace that real estate is absorbed. In addition, we will be increasing the rate that people buy at because no one can turn down a free home. It’s the like the “snuggie,” only better because you get a free home instead of just a free press open book light http://www.youtube.com/watch?v=2xZp-GLMMJ0. It’s really a no brainer. “Hi, Tim Geithner? I have an idea…”

Check this out http://video.google.com/videoplay?docid=-2757699799528285056. Someone with a little too much time on their hands created a roller coaster animation tracing the rise and fall of real estate prices (not to worry it was adjusted for inflation) since the 1890’s. Unfortunately, the rollercoaster ends in 2006 when prices were just leveling out and robs us of the dramatic and nauseating thrill that 2007 – 2009 undoubtedly provides. It’s still pretty neat though.

Just a reminder tomorrow, Friday the 13th, is Colgate spirit day. Please be sure to wear an article of clothing showing your Colgate pride. No. I am serious.

Kipsy here i come!

Christian Punsal, 24, bought this three-bedroom home in Elk Grove, Calif., for $193,000.

Day light savings is here! You know what that means - the spring selling season is almost upon us. The New York Times’ aka bad news bear is forecasting a “Gloomy Outlook” for the Spring Market. http://www.nytimes.com/2009/03/07/business/economy/07home.html?_r=1&scp=3&sq=spring%20real%20estate%20market&st=cse. However, I think they have overlooked some important concepts in their analysis. For one, the spring makes people think about re-birth and cleaning/getting a fresh start. In this market, it may actually be cheaper to buy a whole new home then to pay a professional cleaner to neaten up the squalor that most of us have been living in since the market tanked. But in all seriousness, the spring does motivate people to make changes and try new things. This spring in particular, with the government providing up to $8,000 in tax credits for first time home buyers http://www.federalhousingtaxcredit.com/ and with Real Estate prices entering attainable ranges people will purchase. In addition, buying homes makes people happy – and isn’t that what we all want for this spring? Just look at Christian Punsal who is pictured in the abovementioned article and at the top of this post. You tell me - does he look like a Gloomy Gus?

Now onto the shameless or perhaps not so shameless plug for Hudson Harbor – Westchester’s Newest, Greenest, Closest to the River, townhome and condominium community (http://www.hudsonharborny.com/). Located in Tarrytown on the banks of the mighty Hudson River, Hudson Harbor is destined to become Westchester’s Premiere living Destination (yup copied that right out of the brochure). Although this community is unique based on its own merits (who knew you could hire a Corporate Sustainability Strategist/Green Real Estate Authority who can also ensure historical relevance and context for your townhome design?) I would like to propose adding a new, never heard of before, amenity – community sea creature. Recently, or maybe not so recently – (Wikipedia was a little vague), sightings of a sea serpent living in the Hudson River have been reported. This elusive serpent has been named Kipsy (after Poughkepsie where he was first seen). I personally, think Kipsy would make an ideal mascot and amenity for Hudson Harbor. Children could learn the responsibilities of pet ownership while their parents elevated their status by having an exotic and one-of a kind pet. It’s a win/win. I am on it.

Back off - I don't like Airline food and I am just looking

I saw an ad yesterday that said “If you like airline food, please don't fly Austrian.” Huh? I couldn’t resist this forced logical reasoning. I don’t like airline food…so I should fly Austrian? Hahn, yes! I DON’T like airline food so I SHOULD fly Austrian! Brilliant. It’s like a blatant double negative - “I am not not licking toads.” If only real estate ads could be this clever. And maybe they can:

If you like paying your landlords' mortgage please don't buy your own home.

If you like don’t like building equity please don’t buy your own home.

Somehow it just doesn’t have the bite of those Austrian Ads. Gute Job-Kerle

Moving right along. Visited one of our sites in Connecticut and was once again amazed by how many people had stopped by and agreed to receive a sales presentation “just to see the model.” I find this mind boggling. I personally will do anything in my power to not speak to a sales agent. It doesn’t matter what they are selling – I am “just looking.” It doesn’t matter if I am determined to buy and know exactly what I want – don’t bother me, I am JUST LOOKING! And I will continue just looking right up until I bring my merchandise to the register and fork over my Amex Card.
Many of these people on the other hand welcome the presentation. Now don’t get me wrong, it is a particularly lovely townhome model (http://www.palmerhillhomes.com/), and it is always fun to see how homes are decorated, but I have a suspicion that some of these visitors aren’t just looking. Some of these people are just like me and they are secretly picking out their home. It’s okay. I can wait...but not too long…please…

I have jury duty next week and have been thinking about how to sell condos to citizens doing their civic duty - ideas anyone?

Real Estate

Truffles Tribeca's new e-mail blast campaign has created a buzz from anyone who was lucky enough (?) to receive it. http://curbed.com/tags/truffles-tribeca. But between rumored opium beds, references to swine, and shameless hot chick promotions what is it that Truffles is really selling?

They are selling real estate just like every developer trying to rent or sell their piece of the rock in Manhattan. And Manhattan real estate has never been more creative at courting brokers and buyers alike. From negotiating on price, to buying down financing, to giving away free trips- Manhattanites and Bridge and Tunneler's are wising up to the fact that now is the time to buy if they are looking for a smoking hot deal.

As a project manager for a Real Estate Marketing and Sales firm in Manhattan I am one of these brilliant minds coming up with the exciting traffic driving ideas. Are you a broker? Want to win a trip for 2 to south beach? www.cassanyc.com. Are you a buyer? Looking for once in a lifetime financing programs and a free gift certificate to Cornelia Spa? Check out www.galeriecondo.com. Help me out here people. Visit our buildings, visit every building in Manhattan. Give us your best offer. Buy a home. Buy 2 homes. Stop Renting. Move Forward. Now is your chance.

In other news, Colgate University Hockey held it all together yesterday and beat ECAC champions Yale in a messy but still victorious 3-2 upset. Take that Ivy League