Sullivan County Real Estate

The Rudest Behavior Ever

Both of my colleagues and I were out showing property this weekend. We usually touch base on Sunday evening to see how things went, to share experiences and make suggestions on other properties the buyers we went out with might be interested in.

This evening I was talking with my colleague, Kathy Rieser, and asked her how her day went. Her response? "Well, I hope your day was better than mine. I had the worst experience." Now, we've all had experiences of being stood up (with no call), owners answering the door saying that 'Sorry, it's just not convenient to show the house today' (when we've confirmed an appointment), walking in on a sleeping (or otherwise inconvenienced) resident, or spending the better part of the day getting a client pulled out of a ditch or snow drift. But Kathy's experience today takes the cake.

A couple from Virginia had contacted Kathy in February, looking for an inexpensive Catskills getaway a few hours from NYC. Kathy had emailed them back various options and didn't hear anything back until last week, when they said they'd be in the area and wanted to look at some houses.

What fit their budget was mostly in Smallwood, so Kathy set up a variety of showings in that area. It was clear, after seeing a few of the houses, that it probably wasn't quite what they were looking for. The buyers were in their own car, following Kathy. She was leading the way to another house, and after one turn noticed that the buyers weren't behind her. She doubled back to try to find them, thinking they were lost. She saw the agent who had just shown them a house, who said she thought she saw them over on another street. Kathy rushed over there, saw them coming down the street, stopped and blinked her lights, thinking they had gotten lost. Looking straight ahead, they sped by her, not meeting her gaze and disappeared. Kathy called their cell phones. They didn't answer. And they never called Kathy.

Maybe the houses weren't what they had in mind, which happens. A simple "Thanks, Kathy, for taking the time to show these to us. But there really isn't a fit" would suffice. But gunning the car, ditching your agent and not answering your cell phone? That's the absolute height of rudeness.

Bridgewater Opens Guest House

Jamie and Paul, the owners of Bridgewater Mercantile in Jeffersonville, have opened their beautiful home on Tempel Road in Shandelee as a bed and breakfast this summer. The Bridgewater Guest House has 3 rooms available, a stunning master suite with private bath and 2 'standard' bedrooms with a shared bath. (Although with Jamie and Paul's elaborate decorating sense, it's hard to call them 'standard'.) The master suite would be a very special and remantic getaway.

And if you want to take home a souvenir from your stay, you can go one better. The house (which includes lake rights access to Lake Shandelee across the road) is available for purchase, with an asking price of $449,000. I'd be more than happy to work with you to purchase it!

Listening for Intent

Buyers from the city or suburbs often come "up here" with a vague belief that the 'country' is this vast, kind of wild west expanse of unregulated freedom, and sometimes don't think that there might be limits on what they can do with what they're looking to buy. A great part of that stems from the fact that country property is a very different animal in many ways than city or suburban property. If you've never had experience with a septic system (and most city people haven't), it wouldn't even dawn on you that you couldn't put an addition on a little lakefront cottage on a quarter acre lot because the septic might not be expandable. Likewise, if you're looking at a house on 20 acres, there's plenty of room to build a second home for your mother, right?

Not necessarily. There are myriad situations and restrictions in the country that may limit what you can do, or think you can do. And just because you can do something in one situation doesn't mean you can do it in another situation that appears, on the surface at least, similar. The range of situational specifics here in the country makes the patchwork of coop rules in the city (where you can have a 20 pound dog, but not a 30 pound dog, and not if you also have goldfish or a turtle) seem almost sane.

Which is why I spend considerable time listening for intent when I'm out with buyers. Buyers often make comments very casually in passing that indicate intent, based on assumptions they're making that may not be true. One half of a couple may comment, for example, "Yes, the house is small. But if we added a guest house, it would work." Now, in some situations, building a guest house would be possible, but in others it wouldn't. When a statement like that is made in the presence of a real estate agent and goes unchallenged or unqualified, buyers may make the tacit assumption that it's true and that truism gets transferred to other properties and situations.

To stay with the guesthouse example, some lake developments permit guesthouses and some don't. It probably wouldn't even dawn on most potential buyers when looking at a house on 5 acres in lake development (with all that extra land) that they wouldn't be permitted to erect a second living structure, particularly if they'd visited another lake development where it is allowed. If they were being shown the house by a Realtor who didn't have much experience with lake developments, that agent might not think to point out that there might be a restriction.

Here are some of the more common "mistaken assumptions" I hear.

• We can add on to the house. Not always true, particularly in areas close to water (lakes and rivers) or or small parcels with wells and septics, where there may not be sufficient setbacks and separation for a septic expansion.
• We can build a second house for mom. Two full houses (with a kitchen and bath) are often not permitted on a single tax parcel, even if there are 20 or 50 acres. Building a second full home (rather than a small guesthouse, which wouldn't have a kitchen) generally requires subdivision of the parcel.
• We can subdivide off a piece for my brother to build a house. There are various rules that vary by township regarding subdivisions. Not all property can be subdivided, due to limited road frontage, right of way access, insufficient acreage, wetlands considerations, or deed restrictions or covenants prohibiting further subdivision.
• No pond? We can just build one. Good ponds require hearty springs, not just stream run off. (Run off ponds often go dry in August.)
• We can clear out all those trees to open the view. This isn't a slam dunk. Covenants, particularly in more recent subdivisions and lake developments, may limit tree cutting to maintain privacy or the feeling of a setting. And there are areas where tree cutting is limited for scenic protection, or the protection of wildlife and eagle nesting habitats.

The 3 of us at Catskills Buyer Agency feel pretty strongly about working exclusively with our clients. Some buyers do want to hop from agent to agent, seeing some houses with this agent, some with that agent, and some with us. But that doesn't fit with how we work in representing out clients. It's not just about making the sale and getting a commission. It's largely about maintaining continuity, and having all the information — from feedback on houses and settings, to the multitude of intent indicators — that enables us to fine tune the shopping process. That shared body of knowledge between us becomes more valuable over time, as criteria evolve and priorities realign. A key part of that is building an inventory of intent and assumptions.

Quiet Weekend

This is the first weekend in a couple of months when I haven't had any appointments. The weather is a likely contributor. Days and days of heavy rain don't lead to thoughts of taking a drive in the country to look at property.The end of June also tends to be fairly quiet, with the end of the school year in New York and graduation weekends. I'm not very concerned, because a number of folks are already staking out July visits. But if I blog on here when I'm busy-busy, it's only fair to put up a post when I'm slow-slow.

What's Moving

Believe it or not, parts of the market are pretty hot. Moderately priced smaller farmhouses or charmers on a few acres on quiet (not main) country roads are moving pretty well. I've been surprised in the last month, when I call to check on availability of houses in this category, at how many have deals on them. (Here are 5 that are in deals or contract.) The deal prices range from the upper $100's to the upper $200's. There are also a couple of non-MLS properties in this range that also have deals on them. There are also a scattering of deals in the mid $300's for larger houses with more acreage or with some special feature like a killer views. But overall, the hot spot seems to be the $200K range.

I've been getting a lot of calls for little cabins in the woods in the $150,000 range. That's a category, though, where there just isn't much available here in Sullivan. Requests are also picking up for lakefront houses, but at very moderate prices. I'm not seeing much actually moving in lakefront because of the pretty wide price disparity between buyers and sellers. One reason I think the moderate priced country charmer segment is doing well is that there has been enough activity to instill some pricing confidence. We just don't have that yet in lakefront, making it difficult for both buyers and sellers (much less lenders and appraisers) to determine value.

A Fond Goodbye to Bill Pammer

Dr. Bill Pammer, who has served as the Director of Sullivan County's Division of Planning and Environmental Management for the past 5 years, is leaving to take a tenured position with the Dept. of Public Management at John Jay College of Criminal Justice in Manhattan. (As part of that job, he'll also be running the master's program in public administration at West Point.)

Personally, I'm going to miss Bill. He's brought a level of professionalism to planning here in the county. He's been at the forefront of a number of key issues like gas drilling, and been instrumental in a number of green initiatives in Sullivan. Over the years, I've been to a number of forums and meetings where Bill has spoken, and been impressed by his understanding of complex issues and the often competing interests of different constituencies here.

I wish him all the best in the next chapter of his life.

Mortgage Rates Continue Climb

Last week, mortgage rates rose about another 1/4%, with the 30 year fixed rate conforming loan with no points being quoted in the 5.75% to 6% range. That's up about 3/4% to 1% from the rate bottom we saw just two months ago. Mortgage interest rates closely follow U.S. Treasury bond yields, and they've been rising sharply over the past month as well.

The question, of course, is what impact the sharp uptick in mortgage rates will have on real estate sales. Every rise in mortgage rates reduces affordability, and at the margin pushes some people out of the market and forces others to downshift to lower priced properties. My experience is primarily with second home buyers, and they tend not to be at the affordability margin. Moderate rate increases don't seem to have that much of an impact — as long as they stay within a range that's perceived as "historically low" (a phrase Realtors love to use.)  That "historically low" perception seems to apply up to about 6.25%. In the past 5 years, there have been 3 spikes into the 6.5% range, but they've been short lived and tend to settle back around 6%.

But if rates continue to climb, pushing well into the 6's and close in on 7%, that perception may change.

The $4 Million Sale

Or $3,975,000, to be exact, from calculating the price from the $55,650 in transfer and mansion taxes paid on the sale of Howard Schoor's house at the Chapin Estate that closed a few weeks ago. The reported sale has been buzzing around real estate circles here for weeks, but I've waited to post it until it came through in the Credit Bulletin.

The total sale amount in the buzz circles is reportedly much higher than the $3,975,000 recorded for the real property, as the house was sold totally furnished, and the house is quite beautifully and lavishly furnished.

Property records show the house as having 7,680 sq. ft., with current property taxes of $54,953, based on an assessment of $1,187,700. (With Bethel's 2008 equalization rate of 46%, that translates into an assessor market value for the property of $2,581,956.) It wlll be interesting to see what happens to the assessment next year.

The sale raised my eyebrows when I first heard about it, and I expect this post will lead to a trail of comments about the buyer being out of his mind. But I'm not so sure. Howard Schoor, the seller, is one of the developers of Chapin and had his pick of the litter of lots, and his pick is one of the most stunning — an entire south facing point on Toronto Reservoir. The house is beautifully designed and impeccably built. It's one of the few houses here in Sullivan County that truly qualifies as a trophy property.

Property falls into two categories — those that are on the market and those that aren't. Often, truly special trophy properties aren't on the market. Owners have no intent on selling them. But if someone offers them enough money, it's very tempting. That's often how the top properties transfer. As buyer agents, my colleagues and I periodically  represent upper end clients looking for very special properties, and owners of potential options to determine their willingness to sell. Some owners of special properties have no interest whatsoever in selling (often because there is a long family connection to the property.) But many respond with, "We haven't considered selling, but make me an offer I can't refuse."

It seems like the buyer of this Chapin home made Howard Schoor an offer he couldn't refuse.

Don't Miss The Tractor and Trout Parades and More ... this weekend

The "official" start of summer up here really isn't Memorial Day Weekend. It's the sound of dozens of antique (and not-so-antique) tractors chugging down Main Street in Callicoon for the Annual Callicoon Tractor Parade. It starts at noon this Sunday, June 14th and runs until about 3PM, followed by a chicken barbeque and entetainment at the Delaware Community Center in Callicoon. If you haven't gone before, go. Kids love it.

Not be outdone, Livingston Manor hosts it's annual Trout Parade this Saturday, June 13th, kicking off at 1PM, with festivities in the Manor from 11AM to 3PM. www.troutparade.com If the Tractor Parade is a slice of Americana, the Trout Parade is a slice of, well, hard to explain ... but it's a hoot, and a heck of a lot of fun.

This weekend also marks the opening of the Bethel Woods summer season, with a concert on Sunday, June 14th with Earth, Wind and Fire and Chicago.

Finally, you may want to take note of a new restaurant on the northern end of Kauneonga Lake. Luzon Station is a reincarnation of the popular restaurant and bar that was previously located in Hurleyville. Jonathan Sunshine and Patti Greco-Sunshine are your hosts. Serving dinner Wed. through Sat., 5 pm to 10 pm, Sunday 5pm to 8 pm. Lunch Sat. and Sun. noon to 3 pm. The bar is open Wed. to Fri. from 5 pm, Saturday and Sunday from 12 noon. Karaoke every Friday night at 10:30 pm. Luzon Station Trio plays every Fri. and Sat. 6:30 pm to 9:30 pm. 3 Horseshoe Lake Road, Kauneonga Lake, NY.

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Pet Peeves

We all have pet peeves — drivers who make turns without signaling, people in the 10 item check out line with 18 items who wait until the end to start writing a check, customer support phone systems that never have an option to speak to a human or arbitrarily disconnect.

I've been selling real estate here for 8 years, and in that time have accumulated a list of real estate pet peeves. Here are my tops:

• Toilet Bowl Photos. What is it with listing agents taking bathroom photos with the toilet bowl front and center, with the lid up? If you just have to include a photo of the throne, at least put the lid down.
  
• Misspelled Addresses. Misspelled street names are more common than you can imagine. It's "Bethlehem Road", not "Bethelhem". Searching by street name is one of the most common searches I do, particularly when a client calls and says "We were driving down Pretty Maple Road and saw a for sale sign. Can you tell me about the house?" It's tough to find it when the listing agent has entered the address as "Prety Marple." Mistyping something is human (heaven knows, I've done it enough on this blog), but once you've input a listing, how about pulling it back up and checking it for accuracy?
  
• Owners Who Make It Impossible to Show Their Houses. Believe it or not, more than once, when I call to show a house, the listing agent tells me that the owner (who lives a hundred miles away in Jersey) won't give them a key. I'm told to drive my clients by the house, and then if they're interested, have them come back and the owner will come up to open the house. There are also owners who won't permit their house to be shown on weekends (which is when most folks want to come and look at houses) — because that's when they have friends and family up.
  
• Buyers Who Are Really Late (and don't call until the last minute). Stuff happens, and we all get delayed from time to time. But most of us have early warning signs we're going to be late, like still being in the shower in your apartment on the upper west side an hour before you're supposed to meet me in Livingston Manor! At least a few times a year, I get this call. "David, we're running a little bit late." (The call may come 30 minutes before I'm supposed to meet them here in Sullivan.) "OK,", I reply, "Where are you now?" "Well," comes the sheepish answer, "We're just about getting to the Lincoln Tunnel." Which means you're still in Manhattan and will be about 2 hours late!
  
• No Property Addresses in Public MLS Displays. I've written about this before. Our Multiple Listing Service prohibits displaying property addresses for listings on public MLS search sites, like the MLS Search on my website. Some listings agents fear that potential buyers will drive by the property on their own, knock on the door, bother the owners and encourage them to scuttle their agent, do a deal directly with them and save the commission. (But that overblown fear doesn't prevent them from putting a 'For Sale' sign in the front yard.) Consumers today want more information, and to be in more control. Not displaying property addresses is a paternalistic throwback to an earlier era. You wouldn't believe how much time I spend every week telling potential buyers that the cute little farmhouse they fell in love with on the web is about 25 feet off of Route 17B, something they'd immediately see if the property address was available.
  
• Men Who Won't Listen and Get Stuck. OK, ladies, you know this one well in various iterations, the most common "Refusing to stop and ask directions." But there's a unique twist that happens here in the country. Mr. Man has an SUV and has seen way too many of those commercials with a Jeep perched perilously on top of a mountain in New Mexico. Driving conditions here at times can be pretty challenging during the winter (with snow and ice) and spring (with mud). The public roads are usually pretty OK, but I'm often taking clients on private roads or down long drives that may not have been plowed or maintained well, and hold the potential for getting stuck.
  
  Now, I drive a truck-based SUV, have lots of experience driving in poor conditions, and am equipped for the worst (with heavy duty snow and mud tires, sand, salt, shovels and tow ropes.) But sometimes that SUV owner insists on driving himself against my counsel, and lo and behold, gets stuck. The looks from the wife or girlfriend, who is now glaring at her husband/boyfriend with arms crossed, could kill a deer.