Sullivan County Real Estate

$600,000 to Play Golf - No House Included

Hey, you read the header and thought "$600,000 to play golf. In Sullivan County?". Nope, we're not there yet. Not even close. But in today's NY Times' Sunday Style section, the front page article was about the Bridge, a new golf club for the unstuffy new-money set in the Hamptons, where the membership buy-in is $600,000. That's not for real estate — a house or even just a vacant lot. That's just to join the golf club!

Wow, here in Sullivan County, at that price you get a house with that Big Mac and Fries, and a pretty darn good one, usually with a bunch of acres and a view and pond thrown in. (Sorry, for a great lakefront house, you'll have to SuperSize that budget a little.)

As much as we pat ourselves on the back as being the 'New Hamptons', we're just not in the same league. We just don't have hordes of the uber-wealthy throwing obscene amounts of money at real estate. $600,000 puts you in the upper echelon of buyers here, and $1M practically gives you the keys to the kingdom.

A lot of my clients are upper end buyers, at least by Catskills standards. An interesting trend I've noticed over the last couple of years is the number of younger, well off city professionals who are gravitating to the Catskills because they can buy an eye-popping trophy property here for what a modest getaway would cost in the Hamptons or Fire Island. They aren't the kings (and queens) of business and industry pulling down a hundred mil a year (for whom a membership at the Bridge is a fashion accessory), but well-paid mid-level ladder climbers who may well be the future royalty of business.

Many of this new crop of second homers here in Sullivan County are just one or two degrees of separation away from the real movers and shakers. One thing that many 'newcomers' often comment on here is how open and accessible socializing is here, with not a shred of snooty pretension. A very intriguing phenomenon here is the networks among these folks that are evolving, and what those informal connections may lead to in 10 or 20 years.

We don't have a private golf club you can join for $600,000. Heck, we don't really have a private club you can join at all. (All of Sullivan County's golf courses — and there are some really good ones — are open to the public.) The big question is whether the well off young turks who revel in the quaint and charming openness of Sullivan County will choose to close themselves off in gated and private enclaves and clubs when they reach the next rung.

I really don't think so. The new, younger energy coming in to Sullivan County is egalitarian and refreshingly 'anti-Hamptons'. There's just a different feeling here, a kind of harking back to a kinder, simpler time ... sort of that aw shucks, Warren Buffet thing — he may be one of the richest men in the world, but still lives in Omaha, in a modest house, and waits his turn at the same barber he's gone to for decades.

Just like we all stand in line for a Sunday pancake breakfast at the Jeffersonville Firehouse. Every child (and the child in all of us), rich or poor, celebrity or not, gets the same delight from seeing a deer with her two baby fawns crossing the road. And that's kind of what we're all about here in Sullivan County.

The Property Tax Data Mess

It may have happened to you, or someone you know. The sales listing for the house you fell in love with (and decided to buy) showed a property tax amount that seemed reasonable and you could live with. Then, you get to the closing only to learn that the property taxes, in fact, are much higher — maybe even double — what you thought they'd be.

The situation for me, as an agent representing buyers, is very frustrating. I've started telling clients to take the tax information on a listing with a grain of salt, and that if they're seriously interested in a house I want to confirm the property taxes before they make an offer.

So why is property tax information on a listing often not accurate? One reason is many listings agents rely on verbal information from sellers about property taxes. When taking a listing, many just ask the seller "What are the property taxes?" and don't ask for copies of the most recent tax bills. In New York state, each property receives 2 tax bills --- a school tax bill in September and a property tax bill in January. When asked, some sellers remember only the most recent bill, not the two bills together (which is the accurate tax number.)

Another contributing factor is outdated and often inaccurate online property tax reporting systems. Many agents do check taxes with online databases such as First American's Realquest. Now, First American is one of the largest title insurance and real estate data companies in the nation, and one would expect to be able to rely on the accuracy of their data. Not. It is often out of date. For example, First American's property tax data is included in the Greater Hudson Valley MLS — but for some Sullivan County townships, its updated only through 2004! So an agent may be 'verifying' tax data that is 2 years out of date.

Its not all First American's fault (or any other property tax data aggregator). New York lacks a comprehensive property information and tax reporting system, and the frequency (and accuracy) of data updating can vary widely between townships, depending on how they make their data available. And on some property records, First American includes both school and property taxes, and on others, only property taxes (and there's no way to tell.)

Then there's the issue of 'time on market'. If a property was listed in July, 2005, the taxes listed may be accurate then --- based on the Sept. 2004 school tax bill and Jan. 2005 property tax bill. But now, in July, 2006, there have been 2 more recent tax bills and a possible reassessment on the property, all of which can substantially change the property taxes. Very few agents, even if they're conscientious about tax info at the time of listing, update a listing with each new property tax bill or reassessment. As a result, property tax information on a listing can be sorely out of date.

Some brokers have taken to not including any tax information at all in a listing, which, frankly, isn't helpful to buyers. Property taxes are a material element in the value of a house. Others have started adding a disclaimer, "Property taxes to be verified by buyer."

Both approaches are, in my opinion, a cop-out. Property tax and assessment information in listings should be accurate, not just at the time the listing is taken, but throughout the period of the listing. The calendar for property tax bills, school tax bills and property reassessments doesn't change from year to year. Every January, listing agents should request a copy of the latest property tax bill from owners, and the same with the school tax bill every September --- and update every listing.

And the local and state Associations of Realtos should lobby for an accurate, up to date and comprehensive property tax reporting system throughout New York State. But until then, its caveat emptor --- buyer beware. Don't take any information on property taxes or assessed value for granted until you've verified it! If you do, you just may end up with a shock at closing.

Callicoon Featured in Today's NY Times' Escapes Section

Just 2 weeks after the NY Times' Friday Escape section crowned Sullivan County as one of the 'new wave of gay getaways', Callicoon scored a glowing article in the same section. (To read the article online at the Times, click here. Or click here to download a .pdf of the article .)

Land is Hot, Houses Aren't

If you're a regular reader of my site, you know I don't do a lot of raw land. But earlier this week I had the opportunity to work with a well known celebrity architect (you know, the kind that makes the covers of hip design magazines) to find land for his/her personal house.  I ferreted out every piece of nice property I could find, listed or unlisted, through brokers and friends, on both sides of the Delaware River, from Livingston Manor to Barryville. I was actually shocked by how little vacant land, or at least good, interesting vacant land was on the market. (By the way, the architect's land search was successful, and he/she will be building their house in this area.)

During the hot housing market a year or two ago, houses were in short supply, but raw land was abundant (and relatively cheap). On those occasions when I would work on a raw land search, I typically found a nice variety of parcels — affordable with interesting features.

Today, there's a huge inventory of houses (well, not necesarily of nice, interesting and well priced houses, but of houses none-the-less) and land is scarce. As houses have gotten more expensive, I think a lot of potential buyers have turned to raw land to build, perceiving it as possibly a less expensive alternative. Just a few years ago you could pick up an outdated, less appealing little ranch house on some nice acreage for $125,000, maybe $150,000, and justify putting $50,000, $75,000 or even $100,000 into it for renovations or an addition and have a great getaway. And the renovated house could be resold for at least what was in it, or even a profit. Now owners of similar (but still butt ugly) houses think they're sitting on gold and want $250,000 or even $300,000 for their little treasure. Put in $100,000 for renovations and a buyer is looking at $350,000 or $400,000 total. At those prices, it makes buying land and building more appealing.

A lot of buyers, however, way underestimate the cost of building. A stick-built house can cost $175 to $200 a square foot (yes, you can shave that, but not much below $150). A high end modern prefab like the Dwell House by Empyrean can run much higher than that, into the $250 to $300 a sqaure foot range. Even a more affordable pre-fab modern home, like the LV Home designed by Rocio Romero, can run $150 to $200 a square foot when you factor in site preparation costs, well and septic. (I have a page on my website devoted to Buying Land and Building for more information.)

In the city, real estate pros often talk about the balance between the cost of buying and the cost of renting. When they get way out of whack, they begin adjusting back into a relative equilibrium. The same can be said here for buying (and renovating) an existing home or building a new one. As folks have shifted to raw land and building, the cost of raw land has risen very rapidly as the supply has dwindled. Today, for a piece of nice land, with privacy and a nice setting, maybe a pond and view, a buyer is looking at $150,000 to as much as $300,000, and even more for large acreage property.

As the land inventory has dwindled, the housing inventory has increased. There are a lot of 'butt ugly' houses on the market on nice pieces of property that are crying out for a creative makeover — but they're just too expensive to justify it. As those houses sit on the market, hopefully the prices on them will drop to a point that they're just too irresistable to pass up. When 'butt ugly' houses were cheap, they attracted a number of investors with a creative eye, who turned as sows' ears into silk purses at the same time they turned a profit, as well as owner-occupiers who did some great makeovers.

A new equibilibrium needs to get established, so an ugly house with potential is just too attractive to pass up and makes better sense to buy and renovate than buying a piece of raw land and starting from scratch.

National June Sales Data Released, Sales Down

The National Association of Realtors released its Existing Home Sales report for June 2006 yesterday. Not surprisingly, the number of sales nationally posted an 8.9% drop over June of the previous year, and down 1.3% from the previous month. In the northeast region, sales were off 9.8% from the previous year and 3.5% from the previous month (on a seasonally adjusted basis).

Nationally, the year over year median price increase was in the positive column, but just barely — at 0.9%. The northeast posted the best regional price performance, though, with a 7.2% year over year jump in the median. My data for Sullivan County (not part of the NAR report) indicates that we are actually outperforming the region, with a 13% increase in the median year over year (although my data is a 3 month running average due to sample size rather than a single month snapshot.)

The data continues to validate the anticipated slowdown in the housing market. The good news is that dropoff the number of sales in most reports seems to continue at about 10%, a year-over-year level that's been holding for the past few months. We're also seeing a flattening in prices, but the only region reporting a significant drop off in prices is the south, which is greatly impacted by the condo glut in Florida.

Overall, I think the data is quite encouraging. The flattening in prices indicates that sellers are finally getting the message that the market isn't galloping ahead and may be moderating their price expectations. The number of sales, while lower than last year, is continuing at a historically strong rate.

I think that the next few months are going to be an interesting bellweather to watch. Various factors, like mortgage rates and amount of inventory, have stabilized, albeit at higher levels than last year and now the market is realigning.

Listing Shifting - Real Estate 3 Card Monty

Over the past month, I've seen a lot of sellers playing 'listing shifting'. Unhappy that their house hasn't sold, they move the listing to another broker. Almost universally, they blame their broker for their house not selling. In some cases, the blame is well founded. Some agents just aren't very skilled at marketing or positioning a property. But recently, I've seen listings being shifted from some of the best agents in the county.

Sellers need to take some responsibility. The #1 reason a house doesn't sell (or even get shown) is because its overpriced. Moving an overpriced listing to a new broker isn't going to solve that problem. I've talked to at least a dozen sellers in the last month who have said some version of "I want to tell you about my house, because my [incompetent or some version thereof] agent isn't even showing it." I ask them to describe the house and then ask the price. Inevitably, even without seeing the house, I can gauge that its vastly overpriced. I don't care if your beautifully renovated farmhouse has gold faucets - if it sits right on the road, it isn't going to fetch $500,000.

The Multiple Listing System is a surprisingly efficient 'market maker' (even if your individual listing agent isn't the brightest bulb in the chandelier.) If your listing in the MLS has reasonably good pictures, an accurate description and is priced right, it will get shown --- even if your agent isn't a crack marketer who works their networks to widen your audience.

Sellers, before you blame your agent and decide to move your listing, take a hard look at your property and price, and where it fits on the market. Look back and ask if your agent recommended a lower listing price and you insisted on a higher one. Ask your agent to review recent sales and current listings for houses similar to yours, and what you should be doing to increase the marketability of your property.

Lake Interest Soars With Summer Heat

There's nothing quite as appealing on a hot summer day than a dip in a cool mountain lake. As the temperature rises in the city, so does the interest in lakefront property here in the Catskills. In the past week, as temperatures in the city have edged ever closer to the 100 degree mark, calls and emails about lakefront houses have gone through the roof. I have a page on my website devoted to lakefront at www.catskill4sale.com/lakefront.asp. I've also put together a selection of current lakefront listings in a range of prices. Just looking at 'em will cool you down a few degrees. If lakefront is a little too pricey, check out a selection of houses with lake rights.

The best overall value in lakefront in the county is Emerald Green, near Rock Hill. You get more house for your money here than almost anywhere else. The reason? Many buyers today prefer a lake getaway with that "On Golden Pond" mountain lake and cabin feel. Emerald Green was developed in the 70's and 80's, and has a more 'suburban' feel --- there are paved streets and streetlights. While Emerald Green may lack that cute and cozy mountain getaway feel, it has two BIG pluses. Its pretty close to NYC (you can make it from the GW Bridge to Emerald Green in 1:30 to 1:45) and there are community amenities, including a large swimming pool, tennis courts, a clubhouse and basketball courts, to keep your family happy. Here's a selection of Emerald Green lakefront houses.

Finally, if you prefer your dipping more 'au natural', a place with your own private pond may be just the ticket.

NY Times Highlights Sullivan as Gay Getaway

Check out today's NY Times' Escape section. Sullivan County gets 4 parapgraphs of ink in an article on "Gay Getaways: The New Wave". (Download .pdf of article) Its pretty amazing to see Jeffersonville and Livingston Manor sharing a map with well known gay getaways like Ogunquit, Provincetown and Ft. Lauderdale. For those of us in the g/l/b/t community here, who have been watching, encouraging and nurturing the growth, its kind of an "Oh my God" moment. They didn't pick the Hudson Valley or Margaretville or New Hope. The picked us.

The Times interviewed Randy Florke who commented "It (Sullivan County) is for people who want a great house around great people, but are not as concerned about town or a gay community,” he said. “They want an escape.” While I agree with the 'great house and great people' part, I think saying we're only for g/l/b/t folks who aren't concerned about a gay community sells us short. Way short.

While Sullivan County doesn't have a traditional commercial gay scene, with bars and discos, we do have a very active welcoming and definitely growing gay and lesbian social network. Its not uncommon for gay second homers to have to choose between two or three dinner or cocktail invites on a Saturday night in season. The monthly art openings at the Blue Victorian in Jeffersonville have become a de rigeur stop. This summer, our home-grown charity, the Day To Be Gay Foundation, has held two dances at Hill's in Callicoon, with a couple of hundred folks packing the dance floor. The Day To Be Gay in the Catskills Festival, held over Labor Day weekend, has grown up to be a mainstay of the summer cultural calendar here, with a 1,000 revelers expected this year.

Kathy Rieser's g/l/b/t radio show, Out Loud and Queer, has held court on WJFF 90.5fm here for a decade (Fridays, 10PM). gaysullivan now has over 600 names on its email list, and hundreds of folks listed in its online directory. Duncan Tucker filmed the edgy hit TransAmerica here, because, well, he has a house here.

So I disagree that Sullivan County is for someone who "isn't concerned about a gay community." I think its a great place for g/l/b/t folks who are looking for a real community, and not just a place with a concentration of trendy gay businesses. The difference between Sullivan County and those other 'high priced spreads'? In Provincetown, you can find plenty of places to table hop on a Saturday evening. Here, we house hop.

Peck's in Callicoon Reopens

The Peck's Market in Callicoon was one of the businesses severely damaged by the floods a few weeks ago. The rumor circulating was that it might be a month or two until Peck's in Callicoon would be able to reopen.

So imagine my surprise today when I was driving through Callicoon and there were lots of cars in the Peck's parking lot — and a sign on the door saying "Opening Today." Yeah. Hats off to all the Peck's employees who must have moved hell and (literally) high water to get that store back up and running so quickly.

New York Regional Interconnect Power Line Project

Visits to this blog soared through the roof today after an article on the front page of the Metro Section of the NY Times about the New York Regional Interconnection Power Line Project. The power line route is proposed to run through western Sullivan County.

Most of us up here believe this is an unnecessary and horrible project, with no other real purpose than to line the coffers of NYRI and its investors. Opposition among politicians along the route is practically universal. And if you've attended any of the public meetings held by NYRI, the combination of their arrogance and obfuscation is simply amazing. At a meeting in Callicoon, one of their executives actually said that there is no evidence that huge power lines have a negative effect on property values!

I could go on and on. (I don't get hot and bothered about a lot, but I do about this.) A number of people have emailed me today asking where they can get more information, or maps of the route. Here are some resources:

The primary group organizing opposition to the power lines in Sullivan County is the Upper Delaware Preservation Coalition, www.udpc.net. They have established a legal fund, and can use your contributions. Its a good, well organized group of folks

An excellent website with the latest news on the project, and of the moves to stop it, is www.nyri.info.

The official New York Regional Interconnection website is www.nyri.us. This is where you can see the detailed maps of the route. To see where the power lines are proposed near you, go to the orthophotographic map library section.