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.