Second Home Owner Survey Shows Solid Market, Appetite for More 06

Demographics and lifestyle trends alone will continue to drive the Hamptons real estate market. Add to that a stong economy and things look even better.md

Second Home Owner Survey Shows Solid Market, Appeitite for More 06

Bankrate: 50-Year Mortgage Debuts in California

I wonder if anyone over 30 has to get a physical before taking out one of these 50-year loans...? md


Bankrate: 50-Year Mortgage Debuts in California

Choice Hamptons Rentals Scarce

I imagine the lack of available rentals will convince some to buy...md

Bloomberg.com: Culture

Flood Insurance

Some interesting points made here. Flood insurance is getting harder to find and more expensive to own.md

RealEstateJournal | Who Really Needs a Flood Policy? There's a Good Chance You Do

Fresh Direct Coming Back to the Hamptons !!!

A great way to avoid the lines at King Kullen and Citarella's. md

New York - LONG ISLAND CITY -- With nearly four million orders fulfilled since its first delivery in 2002, FreshDirect has become a mainstay in the lives of its customers in Manhattan, parts of Brooklyn, Queens, and Westchester and sections of Northern New Jersey, including the most recent new delivery zones of Weehawken, Edgewater, West New York, and Guttenberg. Today, FreshDirect announces the extension of its home delivery service to include parts of Douglaston, Little Neck and Great Neck, Long Island. FreshDirect's success in each additional market drives the company's continued growth.

In addition, FreshDirect is preparing for its second summer delivering to the Hamptons. Service to residents and vacationers in East Hampton, Amagansett, Southampton, Bridgehampton, Westhampton, Sag Harbor and Hampton Bays is expected to begin in time for Memorial Day weekend and will continue until Labor Day.

"Long Islanders are some of our closest neighbors here in Queens, and we are thrilled to respond to the consumer demand for our service," said Steve Michaelson, president of FreshDirect. "With each added expansion we continue to stand by our promise to provide only the freshest food and highest quality prepared meals to the consumers we service, offering the same ease-of-use that current customers associate with FreshDirect."

Based in Long Island City, FreshDirect is known for offering superior quality food with its convenient online ordering and home delivery model. From delectable chef-prepared and ready-to-cook meals, including popular new items such as Smart & Simple meals, to specialty departments such as organic, kosher and local market selections, FreshDirect prides itself on being New York and New Jersey's preeminent provider of the finest quality and freshest foods available in a convenient and cost effective way.

About FreshDirect

Founded in 1999, FreshDirect is one of the nation's leading online fresh food manufacturing and delivery services. FreshDirect is setting a new standard for fresh food production and distribution by offering unparalleled quality, product customization and value pricing from its state-of-the-art facility in Long Island City. The company is expanding rapidly and currently serves most of Manhattan and locations in Queens, Brooklyn, the Bronx, as well as parts of New Jersey, Westchester and Nassau County. The company's vision is to change consumers' lives by providing the ultimate shopping experience for impossibly fresh food and meal solutions. The company currently has over 250,000 customers and has fulfilled nearly 4 million orders since opening for business in September 2002. Additional information can be found at www.freshdirect.com

Alleged Mortgage Fraud Ring Indicted in New York

Every day, more reports are made about mortgage fraud. This fraud cost is covered through increased fees to everyone, just like shoplifting causes retailers to increase prices to cover the losses.

In the meantime, banks are casting wide nets and developing new longer-term mortgage products for new customers as interest rates climb and the refi boom winds down.

Have you noticed the "lead generators" packing our email spam inboxes with desperate attempts to get our contact info? "CONGRATS, MR. SMITH, YOU'VE BEEN APPROVED!!!"



Inman Real Estate News - Alleged mortgage fraud ring indicted in New York

The Changing Face of the Hamptons

I remember the last time I was at the CPI. At that time, it was known as the OBI East. There was what felt like a thousand people in the room with the DJ playing Billy Idol. In the next room, there were another thousand partiers rocking to a Marshall Tucker cover band.

I once heard the Boomer generation characterized as being like a sheep eaten by a boa constrictor as it passes through time. Well, the biggest nightclub around for over 30 years is closing and the property is turning into a "private residence club" with the amenities of a Four Seasons luxury hotel.

I can't help but feel a bit nostalgic. md

Click on the link below for the story:

New York Daily News - Boroughs - Club's days numbered

Speaking of the Royal Family...

Suffolk Profiles reports the transfer of the Sagaponack compound of Caroline Kennedy Schlossberg to a new owner. Looks like the more civilized Kennedys are saying goodbye to the Hamptons. John Jr. would spend summers here as well... The property transferred at $5,750,500. md

Further Lane Bouvier Family Estate On The Market for $25m

This home was designed by architect Arthur Jackson and built in 1917. Its name means "place of peace", and the six-bedroom home sits on over six acres with a pool. See more photos below:


Lasata, Estate of the Day - Luxist: "Bouvier family "

Self-Directed IRAs and Real Estate

There is lots of talk, emails and general chatter about using your IRA for real estate investment.

"But it can be a risky investment if you don't know the rules. Here's a look at some common myths that can result in costly penalties and fees", says Phoebe Chongchura from Realty Times.
see article below:

Realty Times - Real Estate News and Advice

Hamptons - No Condo Craze Here

Much of the bubble talk that drones on and on in the news is geared toward the condominium investment segment of the market. As was said on CNBC yesterday, if you do a rain dance long enough, it WILL rain! Sure, talk of overheated markets and increased interest rates has given pause to buyers in many markets, giving some long-awaited satisfaction to the real estate "bears". Also, as we have said before, Wall Street is on a roll and is attracting investors back.

Here in the Hamptons, while we struggle with issues of affordable housing and land preservation, values continue to appreciate and sales are brisk in many segments. We have very few condominiums here, so that's not an issue - and many of the area's residents are connected to Wall Street (either directly or indirectly), which has always been a driver in this market.

So, my view? If you are a seller, your property has never been worth more, so go for it and reap the rewards of your investment. If you are a buyer, buy what you want today, because it will cost more a year from now. What a great place to be, eh?

ABC News: How Smart Is 'Flipping' Real Estate?

It's Not Too Late for East End Rentals - New York Times

A hodge-podge of anecdotal rental info from the NY Times. In a nutshell, this is the best rental season in the Hamptons in the last four years.

It's Not Too Late for East End Rentals - New York Times

Generation Y Enters Housing Market Search

Food for thought for the Baby Boomer-centric luxury real estate market. Especially here in New York, Gen Y-ers comprise a serious market segment and have needs, wants, and requirements of their own.

Generation Y Enters Housing Market Search

News From Around The US

Locally, East End sales are reportedly brisk in the over $5MM and under $2MM markets. The number of sales is down 1st quarter '06 vs '05, but prices are stable.

RealEstateJournal | Where Vacation-Home Shoppers Are Buying, and Where They Aren't

Inman Stories

Brad Inman's newest venture. It's almost time to do a summer update!

Inman Stories

Brokerate.com - This Could Be Interesting

Another example of consumer empowerment comes to NYC. As competitive as New York real estate is, it will be interesting to see if this site will become a trusted consumer advisor or just another "Page Six".


Brokerate.com

Hamptons Classic - Forbes.com

Every now and then, we like to see our market through the eyes of others...

Hamptons Classic - Forbes.com

Trading Places...

Reportedly, Rick Hoffman, former Hamptons Regional Manager for Prudential Douglas Elliman, has been hired by Corcoran for the same position. Recently, David Fite, former CFO for Corcoran, was reportedly hired by PDE.

The Second Most Popular Subject (North of The Highway)

Newest (and Oldest) Ways to Control Deer - New York Times

A Hedge on Your Hamptons Real Estate...

A Real Estate Boom That Keeps on Giving - New York Times

Tax 101 for Home Flippers

For investors who buy and sell properties they don't live in:

REALTOR Magazine Online -Daily News- Tax 101 for Home Flippers

How Much Home $1 Million Buys

Check out this $1.1MM listing in the Hamptons, then check out the Forbes Article:



VILLAGE CAPE; MOVE-IN CONDITION
Looking for an affordable, renovated home with privacy and walking distance to Sag Harbor Village? This new-to-market Cape Style home offers just that with 4 bedrooms, 2 baths, a 20x40 heated pool, wide plank flooring, central air, a formal living room, eat-in kitchen. Bright and spacious rooms with a large backyard and porch area. Landscaping to be completed soon. Partially finished basement as a Bonus! Home is also for rent for the Summer season. $1,100,000.


How Much Home $1 Million Buys - Forbes.com

Good News/Bad News?

Depends on your client base. If they are mortgage interest rate-sensitive...

New York Times
Key Economic Measures Jumped in March
By VIKAS BAJAJPublished: April 26, 2006
Two key measures of housing and manufacturing activity jumped sharply in March, the Commerce Department reported today, indicating that the economy ended the first three months of the year with a roar.

A 13.8 percent increase in sales of new homes and a 6.1 percent jump in orders for durable goods signal that the economy, which had built up momentum in the first two months of the year, picked up even more speed last month. The reports indicate that, at least as of last month, the economy had shrugged off the burden of higher energy prices and interest rates, which many economists believe could significantly slow the economy later this year.
-------
Estimates on economic growth will play a critical role in shaping the actions of Federal Reserve policy makers, who have signaled that they will raise their benchmark short-term interest rates at least once more, to 5 percent from 4.75 percent, on May 10. The Fed has indicated further increases will be determined based on economic data.
-------

New home sales rose to an annual pace of 1.21 million in March, up from 1.07 million the month before and 1.2 million in January. Sales were strongest in the West, where they jumped 35.7 percent, and weakest in the Northeast, where they rose 4.7 percent.

But compared with last year the housing market has already weakened noticeably — sales were running at a pace of 1.31 million in March 2005 — and there are signs that sales and prices could lag further later this year. The median price — half the homes sold for more and half for less — slipped 2.2 percent from a year ago, to $224,200. And the number of homes on the market increased by 24.4 percent over the last 12 months, to 555,000; at the current sales pace it would take five and a half months to sell those properties.

The increase in inventories is the biggest in 33 years, and the drop in prices is the worst since January 2003, noted Ian Shepherdson, chief United States economist at High Frequency Economics. Sales "are going to drop in the next couple of months," he said, noting that mortgage applications, an early indicator for the housing market, were falling.

Mortgage applications fell 3.7 percent last week and were down 22.4 percent compared with the corresponding week a year earlier, the Mortgage Bankers Association of America reported today.
------

Golden Pear Cafe Opening in Sag Harbor

Keith Davis, owner of the three existing Golden Pear Cafes here in The Hamptons, is adding Main Street in Sag Harbor to his Southampton, East Hampton and Bridgehampton locations. The GPC is moving into the former deli location between Sylvester & Co and Latham House Clothiers.

Believe it or not, some locals have expressed their dismay about a "chain" coming to the village. I consider that taking NIMBYism to the extreme. Keith has been operating his cafes here in The Hamptons since 1987: http://www.goldenpearcafe.com/gpcabout.html

Look for a May 20th opening.

Has Hamptons Real Estate Become a Data-Dependent Business?

It's getting to the point where one can anticipate with relative certainty the day-to-day ebbs and flows in Hamptons real estate activity based upon what data comes out of the hundreds and hundreds of market reports (if you know what to look for).

The number of residential sales is down slightly from last year, but rental numbers are up. The rise in interest rates is taking a bite out of the buy-vs-rent advantage, and since rentals have been down in recent years, rental prices have not appreciated nearly as much as sales prices have (that is, of course, with the exception of the super-premium high-end rentals which have appreciated exponentially). Ten years ago, the rule of thumb for summer rental prices was 10% of value. With that formula, a $1MM home would rent for $100K for Memorial Day to Labor Day, a $500K would rent for $50K, and so on. Today, that percentage has gone to as little as 4%-5%, even lower in some cases. With an average sales price in 2005 of over $1MM, the average rental price has not kept pace. In addition, a good percentage of buyers during the last few years used to be renters, so not only were they taking themselves out of the rental population, but many of them were also buying with the intent of renting their new purchase for part of the year to cover their "nut". It's worth noting that many of them took out 3/1 or 5/1 interest-only ARMs and are now cringing with every interest rate increase.

So, back to the day-to-day data. If the DOW, NASDAQ, and S&P are up today, business will be a little off tomorrow; this is because for many, Hamptons real estate purchases are competing with their investment dollars. Conversely, if oil/gas prices are up today, then Hamptons real estate will be busy tomorrow, because we are close to one of the most highly-populated markets in the US. Besides, if worse comes to worst, they can leave the gas guzzler at the summer house and take the Jitney back and forth (or, God forbid, the LIRR).

The DOW just hit a six-year high, and some will celebrate this weekend by buying that house they've wanted in The Hamptons (maybe they won't even wait for the weekend). Stay close to your Blackberries! Additionally, March's National Housing Sales report was up - that should give sellers a little more bravado. Buyers will be out this weekend and maybe even take Friday off to hit the market early.

The dollar has weakened today! Let's call our foreign customers and tell them the good news! The house they want is now another 2% discounted with their Euro.

The dollar strengthens tomorrow! Let's call our foreign clients and tell them we have a buyer for their house!

I've got to remember to send in that donation to RPAC today, because if the Democrats get control of the House and Senate, causing the next capital gains reduction vote to fail in 2008, then what?!?

ZIP CODES - Sagaponack #1 in US

check it out:

http://www.nypost.com/news/regionalnews/67515.htm

Affordable Housing on the East End

Real Estate is the talk of the town here in The Hamptons. We love to talk about how much homes have appreciated and who bought what and who sold where. There is, however, an underlying issue that must be addressed:

The Southampton Press
Thursday, April 20, 2006
League To Screen Housing Documentary
A family on the South Fork of Long Island earning the current median annual income of $88,850 can afford to purchase a home for $280,000, according to the League of Women Voters of the Hamptons. But the current median home price on the South Fork is $600,000—and rising. The impact of that “affordability gap” is the topic of a new documentary produced by the League called “Trouble in Paradise: The Affordability Housing Crisis on the South Fork.” Special screenings of the documentary will take place later this month—April 29 at 10 a.m. in the auditorium of Southampton High School, and May 6 at 10 a.m. in the auditorium of East Hampton High School. The showings will be free of charge. The film features testimonials from town officials and department heads, business leaders, and medical professionals, as well as local citizens in need of affordable housing, according to a press release issued by the League. Creator and executive producer Barbara Jordan of East Hampton is a past co-president of the League, and she headed the group’s five-year study of the affordable housing issue. Ms. Jordan is serving a five-year term on the town’s Housing Advisory Board, which advises the Town Board on the use of affordability housing funds, and Housing Authority Board, which manages the town’s affordable housing apartments. The film was made with funds provided by the towns of East Hampton and Southampton, the Donald and Barbara Zucker Foundation, Bridgehampton National Bank, and individual benefactors. All who attend the showings will receive a free pamphlet with further information on the issue. For more information, visit the League’s website at www.lwv-suffolkcounty.org/ Hamptons.htm.

Also see NEW YORK TIMES NEW YORK REGION / NEW YORK/REGION SPECIAL April 23, 2006 Long Island Journal: East End Blues: Working Hard and Unable to Buy a Home By MARCELLE S. FISCHLER BY day, Shawn Beyer teaches English as a second language at Sag Harbor Elementary School. By night, she teaches adults. Her fiancé, Dan Mitchell, works as a chef. Between them, they earn $70,000 a year.

Sag Harbor Update - Bulova Watchcase Factory Re-Development

Finally, the largest building in Sag Harbor, which sits in the center of the village business district and has stood vacant and deteriorating for years, will get some much-needed attention. It just may turn into the Crown Jewel of Sag Harbor, perhaps the entire East End. See Sag Harbor Express Top Story of the week:
http://www.sagharboronline.com/20060420/news.htm

Cook/Brinkley Bridgehampton Home Offering Repackaged & Reduced

CEO's Whale of a Deal in Nantucket
By TROY MCMULLENApril 21, 2006; Page W10

...Former model Christie Brinkley and her husband, architect Peter Cook, cut the size and asking price on a Bridgehampton, N.Y., listing, to 18.5 acres for $26.5 million, says their broker. The property was listed last summer at 20 acres for $30 million. (The couple combined the other 1.5 acres with an adjacent parcel and is selling those 3.5 acres for $2.5 million, the broker adds.)
The larger property includes a restored 1898 mansion, a five-bedroom guest house, a 75-foot heated pool, a tennis court and a greenhouse. The couple bought the property in 1998, public records show. Mr. Cook, a residential architect, restored the wood-shingle, 8,000-square-foot main house to include a two-story family room and stone terraces with ocean views. A 50-foot tower attached to the main house, dating from the 17th century, is said to have been erected by English settler John Gardiner.
Ms. Brinkley and her husband own several properties in the Hamptons and recently listed one in the nearby town of Watermill for $8.7 million. That renovated 1940s cottage sits on the ocean with four bedrooms, two baths and a fireplace. Lori Barbaria, of Prudential Douglas Elliman in Bridgehampton, has both listings...

News From Other Waterfront Communities (Apr17'06)

Where the Buyers Aren't:
Prices Ebb in Some Waterfront Locations
By June Fletcher From The Wall Street Journal Online
As real-estate prices surged across most of America, some of the biggest gains swept coastal resorts. Now there are signs the tide has finally turned.
http://homes.wsj.com/buysell/markettrends/20060417-fletcher.html

OK, OK! You Have Our Attention.

When is using the word "Bubble" exploitive? Check out a story in April 6, 2006 issue of The Southampton Press: http://72.32.16.161/Repository/ml.asp?Ref=U1BFLzIwMDYvMDQvMjAjQXIwMzkwMA==&Mode=Gif&Locale=english

Sag Harbor Follow Up (BBB)

As reported in the Sag Harbor Express, work began in earnest this week to start demolishing the big blue gas ball (Hortonsphere) that has stood at the corner of Long Island Avenue and Bridge Street for more than seven decades. It was 75 years ago this week, in fact, that the sphere was being built. Looks like a King Kong-sized hard-boiled egg, eh?

Unfortunately, due to ground contamination caused years ago under the BBB (Big Blue Bawl), neighboring businesses have been told that they will need to vacate their shop space soon to allow for clean-up. That has put several proprietors in a tough spot to find new locations. In particular, Harbor Pets is scrambling to find retail space in the Harbor.

Braden Knows Best

For any of you who don't read the NY Post regularly, Real Estate reporter Braden Keil again demonstrates that he knows more about what's going on in Hamptons Real Estate than anyone in the Hamptons does. Braden has always been plugged in to Hamptons goings-on, but fact is more NYC brokers than he knows are conducting business on the East End. It's inevitable that the best NYC brokers will eventually be the best East End brokers as well. Hello Dolly! Check it out at:
http://www.nypost.com/realestate/62640.htm

Spring Has Sprung...And So Have Sales

Spring selling season is upon us and activity has picked up. "March turned out to be a very good month", said Gioia DiPaolo from Corcoran Sag Harbor. "My listings are selling," she said. "And new listings are coming in!"

Robert Burke from Capstar Funding in Melville reports "I haven't been able to get out of the office before midnight this last week because we're so busy!" Capstar primarily lends on new home sales, and mortgage applications for new sales are exactly what they've got coming in.

Jeff Hunter, Par East Mortgage in East Hampton, has two "nice-sized" deals on his plate.

From New York, Richard Ferrari from PDE reports that "business hasn’t stopped in NYC! So far it’s a great year."

$185 Million Sounds About Right For Rennert Estate

Alberto Domingues, an Actuary from Atlanta states in his blog that the PBGC (Pension Benefit Guaranty Corporation - and yes, I had to look that up) is planning to put a lien on the Rennert oceanfront property on Daniel's Lane in Sagaponack. They value the estate at $185M. It's a tough comp, but I can't argue with that number. Check out Alberto's entry: http://pensionactuary.blogspot.com/2006/02/pbgc-may-take-rennert-hamptons-estate.html

Market up, market down...

...market, market all around. I'd like to think that I can usually predict what major moves in the financial markets will have on Hamptons Real Estate. After all, many clients and customers are movers, shakers and rainmakers on Wall Street. But numbers are coming out so fast and furiously, my head is spinning.
I like what Jonathan Miller on his blog MATRIX had to say about this subject:
http://matrix.millersamuel.com/index.php?p=562

Will This Weeks Housing Numbers Have Any Impact?

At the moment, the Dow is down 90 points. Homebuilder numbers are down. What will the housing report numbers coming out this week mean to us?



BUSINESS / YOUR MONEY April 16, 2006 Market Week: All Eyes on Housing Numbers By CONRAD DE AENLLE Investors will be examining retail and wholesale prices for signs of rising inflation, but they may scrutinize reports on the housing market even more closely.

Will Buyers Brokers Become More Common In This Market?

Buyers Brokers (designation for the NAR is Accredited Buyers Representative) are not very common here on the East End. But who knows what a more even market will bring?

REAL ESTATE April 16, 2006 In the Region Long Island: Brokers Who Represent Buyers By VALERIE COTSALAS A changing real estate market and savvier buyers have led some Long Island brokers to switch their allegiance to buyers.

A Healthy Riverhead Will Benefit Everyone

The town of Riverhead, at the end of the Long Island Expressway and the beginning of both the North and South Forks, has become the retail center for the East End of LI. Nearly every big box store, from BJ's Wholesale Club to Tanger Factory Outlet has opened outside the village there in the last 10 years. Unfortunately Main Street in the village has gentrified and many of the stores have closed. Several times over the last 10 years, local groups have had to rally to keep the Suffolk Theatre from destruction. Hey, Westhampton Beach successfully transformed their UA Theatre into a now-thriving Performing Arts Center. It would be great to see Riverhead do the same.
There are a couple of interesting proposals below:

REAL ESTATE March 5, 2006 In the Region Long Island: A Plan to Revive Downtown Riverhead By VALERIE COTSALAS Three private investment proposals could once again make Riverhead, N.Y., a Long Island entertainment and shopping destination.

PEACE ON EARTH

Think Globally...Act Globally! Wake Up and Smell the Cappuccino!

Realty Times Article --Global RE
Real Estate Now Truly Global
Real estate is no longer a local or even national pursuit. It's now an international marketplace where investors from outside a country's borders are just as likely to own property as those living and working inside.
What are you doing to keep up with the changes?
Lew Sichelman has the details.Read the Full Story At: http://realtytimes.com/rtcpages/20060329_global.htm

Brad Inman's Speech to the NYState Assoc. of Realtors

Brilliant!
http://interface.audiovideoweb.com/lnk/nj45win9555/Brad+Inman-01-1.wmv/play.asx

What's a few million?

So far, 2006 has been the year of the web-based home valuation uber-sites. Trulia.com, redfin.com and zillow.com are three getting a lot of press, both national and in the real estate trade pubs. Granted, Zillow is still a "beta" sight, meaning that they are constantly tweaking and changing things based upon user feedback. I sent them some feedback suggesting they hold off their "zestimator" for the East End until they figure out how to value this non-traditional market. This is not a suburb where home values can easily be determined by neighboring sales. For instance, the Mediterranean stucco house bought by former DougEl Chairman Alan Rogers on Main St in Sag Harbor is "zestimated" at $1.98M even though, after a terrific reno by Bob Tortora, it is now in contract for reportedly close to its $3.2M asking price. A waterfront property in North Haven currently on the market for $3.495M comes up at $1.5M on Zillow. Check your own house and see what you get.

Real Estate now has some competition for investors dollar...

Jonathan Miller's blog MATRIX captures the issue of how the financial markets are now getting some of the investment dollars that real estate has been enjoying the last few years.
goto: http://matrix.millersamuel.com/index.php?p=548

RealNet Could Serve All East End Brokers, Agents and Clients and Customers

Nicholas Khuri and his wife Theresa, founders of HREO.com, have launched their RealNet Listing System, a customizable back-office database tool for realtors that interfaces with the public HREO.com site. HREO has served as the main portal for Hamptons Real Estate since 1995 and is the most widely used search site for real estate on the East End. In the last year, RealNet Solutions has signed up most of the major brokerages on the East End to its client list. Joining Allan Schneider Associates, which has been a long-term client, Brown Harris Stevens, Sotheby's and The Corcoran Group have all contracted for the program. And he's working with several other brokers at the moment. Agents almost universally think the program is great, and anyone who's worked out here knows it's a miracle to please agents with listing systems.

The neat thing about Real Net is that it could serve as an MLS-like tool for East End brokers. Khuri has the ability to allow brokers to share co-broke as well as broker open house info with each other electronically, which is a great improvement from the current fax-blast and email spamming techniques used by brokers for years (and outdated for years, too.) Changing the info on RealNet also instantly updates HREO.com and feeds can be set up with broker stand-alone websites to update their info as well.

This technology is currently available and Principals of the client companies have been told of its availability, but no one can seem to get the group to agree on how to share the info. There is no forum for this conversation. HANFRA (Hamptons and North Fork Realtors Association) is an organization that is trying to find its legs again after falling apart in recent years (I am a member) and many of the RealNet clients are not members. LIBOR (Long Island Board of Realtors- I'm a member here, too) has very little representation and even if they did, they would want to push the Long Island MLS System and not RealNet. So, where does this discussion take place? Or do we continue to sit here in the dark ages?
Remember the question: What is best for our clients and customers?

The truth can "sting" a little, eh?

Straight shooter Barbara Corcoran - www.barbaracorcoran.com/ - founder and former Chairwoman of The Corcoran Group, which she sold to NRT, a division of Cendant in 2001, regularly appears on ABC, NBC, CNN and other national programs offering advice on Real Estate. Most recently, Barbara appeared on a segment called "What Your Broker Might Not Tell You" on ABC's Good Morning America on Friday, March 24, 2006.
see transcript at http://abcnews.go.com/GMA/story?id=1759949

Her frankness has ruffled some feathers, including those of the National Association of Realtors who fired off a rebuttal. Fact is current Agency Law is so outdated and convoluted (at least in NY), that many clients, customers and even some agents don't understand it. There have been times during negotiations that I have found myself reminding the other agent where our "fiduciary responsibility" belongs. Perhaps it's time for more agents to become certified as "Buyers Brokers" in this market.

Buying Property Abroad: CNNMoney

Gerri Willis had a great spot on CNN Money :

http://money.cnn.com/2006/03/23/real_estate/tips/willis_tips/index.htm

This doesn't look like Kansas (and we don't keep records like they do)

Today I recieved an email:

To: Michael F Daly, True North Realty Associates
From: Stephen Schramke, Instant Home Valuations.com
Subject: Exclusive Introductions to Active Sag Harbor Sellers and Buyers!

And Mr. Schramke promises:

Get qualified Sag Harbor sellers and buyers delivered exclusively to your email box.
The Instant Home Valuations Report Sponsorship Program GUARANTEES targeted introductions to Sag Harbor sellers and buyers who are using the Internet to purchase automated online home valuation reports.

So, I went on their website as a consumer wanting to see what they offered consumers... http://www.instanthomevaluations.com/home.php

ONLINE HOME VALUATIONS!
BUY OR SELL WITH CONFIDENCE AND KNOWLEDGE!
FREE SALES HISTORY REPORT!
Enter Your Address Below:

...and looked up my own property...

Most Recent Sales Date: 09-june-1989

...sorry, I bought this home in August 2004. Next!

In this market (South Fork of the East End) the problem that many home evaluation websites have is that they rely on data from the local municipalities and the area MLS to form their "valuations" or "(z)estimates" as you may have seen on www.Zillow.com .

Most "traditional" markets (like in the heartland) use MLS and keep good records, but Suffolk County along with Southampton and East Hampton townships are all far behind and have incomplete in property data. Adding the fact that only approximately 10% of the east end listings are on MLS, these digitally dynamic websites can't possibly have good data. So, what do we do?

The web is sure getting "stickey"

While the www is certainly helping us to conduct our business more efficiently and communicate with clients and customers, there are tons of websites out there fishing (or is that phishing)to get customers contact info just so they can sell them back to us.

Recently while clicking around on the Realty Times Market Conditions (TM) by "Local Real Estate Experts", it connected me to an agent who is in Florida but paid to be listed as the "Hampton" agent. I sent her an email asking her why she was listed as a Hamptons agent and she replyed "what's it to you? I get plenty of referrals from that site!" Well, isn't that special?

In a Yahoo search of "Hamptons Real Estate", one of the Sponsor Results was EscapeHomes.com. I was led down this long path and after requesting assistance with Sag Harbor real estate, I recieved an email stating that a Westhampton agent will be contacting me. No thanks. I'm sure he will refer me to another agent.

Another "Sponsor" took me to a website with palm trees and stucco - no Hamptons here, either.

Harry at Sagg Main Beach this summer?

According to Branden Keil of The New York Post, J.K. Rowling (pictured right), author of the Harry Potter books will be renting on Hedges Lane in Sagaponack this August. see http://www.nypost.com/realestate/61154.htm
The author has reportedly become a billionaire since her first Potter book was signed to be published by Bloomsbury just 10 years ago, in August of 1996.

Little Evidence of MLS Here on the East End

There are a few brokerages (Prudential, C21 and a handful of smaller offices) that are members of the Long Island Board MLS however, probably less than 10% of East End exclusives are listed there. The main objection from local brokers against MLS is that they don't want "up-island" brokers having access to East End listings.

Brokers who are not members of MLS don't have their listings on Realtor.com, the largest and most frequently viewed website in the US for buyers looking for real estate. That's because Realtor.com does not recognize listings that don't meet industry-wide protocol standards of an MLS. It also means that other brokerages need to find out about new listings through the archaic system of broadcast faxes that Hamptons brokerages use to share listings and announce Broker Open Houses. Often, faxes don't come through, multiple offices fax the same information to multiple other offices and ... So, whose interest do exclusive brokers who are not on MLS have in mind?

Last Large Southampton Village Lot Bought for Development

Robert Gianos (Bobby G) has formed East End Properties, Inc and has finally bought the 50 acre parcel of land at the corner of Wickapogue & Old Town Roads in Southampton Village from the 'Queens lady'. He has been lusting after that parcel for almost 5 years.Gianos says plans to build up to 10 homes on larger 4-8 acre lots, like they used to do in the "old days".

Want to be "in" by summer?

Here on the East End, those who want to "be in by summer" are starting to put a little 'spring' in their step. The high-end rental market has been quite healthy since the first of the year and now sales, which did see quite an ebb in January and February, are coming back. Buyers know it will typically take 60- 90 days to close on a property once contracts are signed so, let's see.... today is March 15. 60 days from now is May 15 and 90 days is June 15. Memorial Day falls on Mon May 29 this year.

The state of the hamptons

The talking heads on CNBC’s Power Lunch are discussing how interest rates are up to their highest level since 2003. There has been so much babble about “the bubble” that all of a sudden, real estate people are looking for other things to talk about, afraid that if someone else confirms that “business is slow” they will have to face the fact that perhaps the “irrationally exuberant” days of the real estate market, where every bartender, hairdresser and “retired” stockbroker got their real estate license and made money just for passing the mirror test, may be winding down. Winding down? Well, at least quieting down a bit. Nationally? Everywhere? Even in the Hamptons? It seems that there is a feeding frenzy on bad news about real estate. During a recent real estate convention in New York, one of the senior managing directors of a top firm theorized that all this talk about ‘the bubble’ is a conspiracy by the media to reduce prices because reporters don’t get paid enough and most of them couldn’t afford to buy homes. Pretty far-fetched, but I must admit, the thought crossed my mind.

Here are a few facts, according to Long Island Profiles Publishing Company, publisher of real estate sales information in Nassau and Suffolk Counties.

The yearly number of properties sold (both homes and land purchases) in East Hampton and Southampton Townships which many consider to comprise “The Hamptons”:

Year -- # Sales - Total $ Volume - Avg $ Price -- Median (est.)
2002 -- 3641 -- $2,406,044,590 -- $ 660,820 -- $ 415,000
2003 -- 3384 -- $2,727,082,500 -- $ 805,875 -- $ 505,000
2004 -- 3942 -- $4,002,921,884 -- $1,015,454 -- $ 635,000
2005 -- 3408 -- $4,447,505,182 -- $1,305,019 -- $ 750,000

So, while the actual number of properties sold in 2005 was down nearly 16% from 2004, total dollar volume increased 11%. The average sales price was up 28% and median price increased approximately 18% (the median is the point at which half the prices are higher and half are lower). For a little perspective, the median price for real estate transactions on Long Island is $445,000 and for the US it is approximately $235,000.

Southampton and East Hampton Township quarterly results for the end of 2005 show reported number of sales during the last quarter were down nearly 25% from 2004, a fairly significant drop, considering that during the same period of time there has been an increase of about 25% in the number of licensed real estate sales associates. It’s getting to the point that if we don’t have any friends “in the business”, we probably don’t have too many friends.

So far for 2006, reports are sketchy and incomplete at best, but it appears that total number of sales reported for January and February are down slightly from a year earlier. Keep in mind that these reported figures often reflect business that took place at least 3 months earlier. Remember how long it took to close on your last property purchase or sale? My last closing happened five months after the seller and I agreed to the sales price. The property needed to be re-surveyed, then scheduled for an inspection by the building department for an update C of O (certificate of occupancy) and then one of the attorneys went on vacation. After the closing, the title company lost the paperwork and it took nearly a year to have the documents re-signed by all parties because the seller lives in Sweden. All that had to happen in order for the deed to be recorded by Suffolk County and the sale to be reported. So…this is not a perfect science.

Also keep in mind that the Hamptons is a very unique place where demand is not driven by corporate relocations and other traditional reasons for real estate purchases. This market is driven much more by emotion. How else could you explain the fact that we recorded 30 sales in 2005 over $10 million? And believe it or not, that super-premium market still remains the hottest segment on the East End. I just completed a search on HREO.com and it appears that there are nearly 100 properties listed for $10 million and above.

Sag Harbor Is Evolving...

...and many are hoping it will retain it's standing as the "unHampton".

Sag Harbor still has a 5&10cent Store on Main Street and the beautifully restored neon SAG HARBOR sign in front of the artsy movie house is a familiar comfort to us all, thanks to Brenda Siemer, who risked going to jail to save the old sign and then led the charge to raise the funds necessary to restore it. The Sag Harbor Pharmacy is where we get our prescriptions filled and Schiavonies IGA has all the groceries we need along a great meat department. There are no national chains here except for real estate companies. No Ralph Lauren or Starbucks, no Tiffany's or J.Crew...yet.

Two of Sag Harbors most contentious icons are the focus of attention in 2006, and not just the LVIS and Letter to The Editor of the Sag Harbor Express type of attention.

The "Big Blue Ball" by the marina at the corner of Long Island Avenue and Bridge Street, which was used as a natural gas tank for years and was painted and covered up and painted again over the years by artists and community activists, will finally be removed by the Long Island Power Authority this spring. I'm not sure how I will feel about this, but I expect it will be something akin to seeing my great-aunt finally have that hairy mole removed from her chin; kind of sad and relieved at the same time.

And after years of inactivity and decay, the Bulova Watch Building has new owners. Cape Advisors from Cape may, NJ has reportedly purchased the building for $16mil. Cape Advisors has successfully restored several old and forgotten building from the 1800's and given them new life as hotel, residential and mixed use properties.

Paul McCartney Invests in East Hampton

Reportedly, Paul McCartney has purchased a commercial building in East Hampton Village for over $8mil. Word is that Pauls very accomplished fashion designer daughter, Stella McCartney Willis (pictured with Dad) will open her third retail shop here. Stella currently has shops in NYC and London. For more info on Stella goto: http://www.stellamccartney.com/

A little greedy are we?

Seems the story around Rich Gere's $6.9million waterfront purchase on Actors Colony Road is pretty sad, if true. Reportedly the family selling the unique property accepted an offer brought to them by the broker and then 'shopped the deal' to Gere, who was an exclusion to the exclusive agreement, thereby cutting out the commission. Sound complicated? Basically the seller may have been trying to avoid paying commission. Who knows. The laywers will sort it out.

High end still rolling...

all this talk about the real estate "buxxle" is sickening. And all the while, properties here on the east end are moving fast and furious. Just this week quite a few things have gone into contract: a Southampton oceanfront asking $25mil, a Bridgehampton property deal asking $10mil and even the $3-4mil spec homes that have been sitting, waiting for the market to 'grow into them' are seeing action. Many of these buyers are not concerned with interest rates.

There appears to be an increase in under $1mil inventory, with at least 1500 listings under seven figures and less than 200 at $500k or less. It's not unusual to see an ebb in business this time of year. Keep an eye out for end of 2005 sales figures. I'll have them in a week or so.