Real Estate Information

OK, OK---the Greenwich real estate market is not the hottest we've seen.  The Greenwich Time reported last week that sales dollar volume and the number of units sold were down significantly in 2008, and that's correct. 

What was not mentioned were 2 very salient points worth noting:  The average sales price for a single family home was down only 5% +/- and the median sales price was down only slightly as compared to 2007. 

Again, it's important to get all the facts when making an important decision, such as buying or selling Greenwich real estate.  Email or call me with your question. 

The Greenwich MLS 2008 Sold book was delivered today. It's immediately apparent to those of us who've been in the business for a while (22+ yrs for me!) that the book is noticeably thinner than in recent years, indicating that the number of transactions were fewer in 2008.

Single family home sale prices in 2008 ranged from a low of $295,000 to $30,000,000, with a median sales price of $2,100,000. The average sales price fell only 6.2% from 2007, to $2,824,321 in 2008.

Condo sales prices in 2008 ranged from a low of $280,000 to $3,750,000, with a median sales price of $655,000. The average sales price fell 9.5% from 2007, to $923,554 in 2008.

In dollar volume, single family home sales lost 40.7% and condo sales lost 40% in 2008 as compared to 2007.

The biggest change was in land sales, which reported only 9 sales in 2008. That represents a nearly 60% drop in unit sales and a 75.5% drop in sales volume from 2007 to 2008. The average price for land sales was also down by 40.2%. This is merely an indication of the slowdown in local speculative building.

All in all, Greenwich real estate faired better than many markets across the US. Since the economic downturn, the number of sales contracts has diminished dramatically reflecting buyer fears and job insecurities. For those with liquidity and secure careers, current interest rates are alluring and sellers are eager for buyers. It's a great time to get a great buy!

If you've been considering a waterfront property, this one hasn't been on the market in 30+ years! It's a grand homestead built in 1900, ripe for renovation and/or renovation and can be expanded to more than 8000+ sf. It's located in the gated waterfront community of Indian Harbor close to Greenwich Avenue. Check it out at: http://www.realestateshows.com/369451

I had an interesting conversation last week with Andy Feldman, owner of Total Insurance Brokerage in Stamford.  He mentioned that anyone who's done a home renovation or improvement (and who in the Greenwich area hasn't!) and has a policy with replacement value coverage should have their home inspected by their insurance company after work is completed.  If you've done a costly improvement (again, which ones aren't in this area?), your coverage may not be sufficient and you don't want to get caught short if a disaster occurs.   Many homeowners have redone kitchens and bathrooms, so please call your insurance agent today.  If you have questions, check out Andy's site at http://www.tibllc.com

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I read this great article written by Janet Guilbault, a mortgage lending expert based out of the San Francisco Bay area, and knew I needed to share it with you:

What is the biggest misconception in the mind of the guy about to make an offer on a house? 

1. This seller must be absolutely desperate to sell this house.
2. I will ignore the asking price, because all houses are priced with plenty of negotiating room.
3. Sellers expect low ball offers in this market.
4. Any seller would be lucky to have me buy their house.
5. It can't be a good buy unless I am able to steal the house.
6. If this offer doesn't go through, I'll just keep on low balling until I get another house.
7. I am a brilliant negotiator.
8. If the seller won't take this offer, I will walk away for a few weeks and let them stew until they do.
9. No one else would want this house, anyway.
10. No one pays full price in this market unless they are stupid.

The sorry state of our economy and the desperation of the retail world have combined to brainwash our clients about buying real estate. Somewhere along the way, "stealing the house" and "winning the negotiations"  became more important than landing the best house in the best location at a price you can afford.

Extreme bargain hunting has become a national addiction, and it is spilling over into the real estate industry.

When EVERYTHING we buy from automobiles to clothes is marked down 50% or more, has a coupon attached for a further discount, and comes along with freebies on the side, is it any wonder buyers of real estate have developed an attitude of EXTREME superiority, believing sellers are mere beggars?

Can you see how they have been conditioned to believe that as a buyer, they can call all the shots, no matter how ridiculous?

Many think those beggar sellers must be thinking this:. "Please, buy my house. I am desperate, you know, and expecting your ridiculous offer".

And you know what they say,  beggars can't be choosers.  And so the struggle to convince buyers that a house, ANY house, is priced "right" continues.

Here's a news flash: beggars may not be able to be choosers, but losers can sure be snoozers.

Buyers should ask themselves this: Am I willing to risk losing the house I love because I am addicted to scoring an extreme bargain?

Isn't getting the BEST HOUSE in your LOCATION OF CHOICE at a hugely deflated price enough of a high? 

Or has extreme bargain shopping become like a drug addiction? You will sacrifice your long term well-being and logical thinking for that 10 minute high of feeling ever so smart because you "stole" the house?

Before you smile just thinking about how to make the seller squirm, remember this:

There is just that one piece of real estate in the whole world. That is what makes a house different from buying a car or a sweater.

Remember these things too: You cannot return it if you find it doesn’t “fit.” You can sell it, but the cost of doing so will probably be far more than any savings from your extreme bargain.

Then get your priorities straight. It is about getting the house. Not getting the extreme bargain you can brag about at your next party. That feeling of superiority will last what? For a few days?

Getting the right house can give you a lifetime of pleasure and satisfaction. Even if you pay full price, you will look back and be amazed at the EXTREME BARGAIN these economic times served you up on a silver platter.

Want to know another secret? Sellers are not nearly as desperate as you think.

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And the Greenwich market isn't so different from the San Francisco market in many aspects, so keep that in mind! 

Welcome to 2009---it's a brave new world in Greenwich real estate and if I told you I had a real grip on what would happen this year, you'd be right to doubt me.  I'm always the optimistic type, but I don't want to give anyone the idea that this year will be easy.  Realistically, there's no doubt that properties will sell because some people need to sell (downsizing, transfers, voluntary/involuntary life changes) and buyers often need to buy (all the same reasons).   The good news is that there isn't blood in the streets of Greenwich, at least not today.   

MARKET STATISTICS

Interestingly, 81 properties came off the market by the end of the year.  It gives us hope that with this reduction of inventory, serious sellers find more buyers.  We'll have to wait and see how many return to the market and if any of the sellers reduce prices.  Honestly, it may not be the right time to sell you home if you don't absolutely need to sell.  It is, however, the time to hire the best Realtor you can.  This is no time to hire your best friend/great aunt/tennis partner who does real estate part time:  this market isn't for sissies!  On the other hand, if you have liquid assets, it may be a great time to buy Greenwich homes as an investment.  If we follow the historical patterns of other recessions, not only will prices recover within 2 years, they will escalate exponentially shortly thereafter.  Again, my crystal ball doesn't give me a clear picture in today's market, so while I'm optimistic, I'm a realist. 

As of today, there are 538 single family homes on the market, 19 under contract and 397 homes were sold in 2008.  The median price of a sold home in 2008 was $2,100,000.  As for condos, there are 188 on the market, 13 under contract and 122 sold in 2008.  The median price of a condo sold in 2008 was $748,000.      All in all, not so bad, but the overall number of transactions are down between 35-40%.  Buyers were nervous in 2008, waiting for prices to drop.  I'm not sure that prices will drop far enough to make some buyers "step up" but with favorable interest rates, deals could start happening.  More good news is that everyone in the mortgage industry expects just that:  lowering interest rates.

One of my New Year's Resolutions, in addition to my yearly regular exercise/diet theoretical concepts, is to make this Monday Morning Coffee Update a regular weekly post, so please let me know if you have questions or topics you'd like to see discusssed.   I welcome your comments, it makes it more interesting for me! 

While the Greenwich real estate market has certainly seen a slow down in market activity, the statistics don't show a huge fall in prices, as many might suspect.  The greatest change has been in the number of units sold, under contract and active on the market as well as the number of days it takes a property to achieve a sales contract. 

Based on the number of single family homes on the market at the end of 2008 and the current rate of sale, there's more than a year's worth of inventory available now.  This translates to the need for sharp pricing if sellers want to close in 2009 because buyers have many homes to select from and they will undoubtedly be very discriminating in their selections. 

While many will be skeptical, multiple bids DO still occur in this market.  I had a buyer lose a home while bidding in December and I know of 2 other mutliple bids that occurred this month.  It just indicates that if a property is well priced, our savvy buyers are well aware of "value."  As a colleague recently said, "Trust the market to set the value of any property." 

In a slower Greenwich real estate market, sellers cannot afford to ignore any part of the marketing process.  Price, Preparation and Presentiation must be excellent in order to attract a buyer.

The price must be set realistically:  this step is the lion's share of good marketing!  Preparation should include fresh paint, de-cluttering and no glaring repair needs.  And presentation should be meticulous, with draperies open, lights on, lawn moved and clear of debris, with interiors spotlessly cleaned. 

Showing your home is the final step in winning the heart of a buyer.  When a buyer calls for a showing, he or she already has an interest in your neighborhood and may have viewed your home online.  They are willing to invest time to visit your home which is noteworthy because with so many homes on the market today, buyers are looking to eliminate choices.  It is worth the effort to make each showing one that will be memorable.  Here are some questions to consider: 

1.  Is your home easy to show?  Don't put roadblocks between your home and a buyer, whether it's difficulty in setting an appointment, utilizing a lockbox or being present during a showing. 

2.  Does your home have emotional appeal?  Make sure there are no unpleasant smells, barking dogs/loud televisions, cold or dark interiors.  Let the sun shine in, create an inviting scenario with fresh flowers and soft music.

3.  Are you staged and ready?  Remove collections and clutter; messiness and confusion sends a deeper message that the home is not well cared for and may speak volumes about how maintenance has been handled, whether that's accurate or not. 

4.  What would your buyer like to know?  If you were buying this home what would you want to know?  Does the school bus stop nearby?  Is there a park nearby?  Buyers are choosing a lifestyle that your home offers.

5.  What's the plan for kids and pets?  Coach the kids on the showing process and figure out a plan of action for them should they be home when an agent calls to set up an appointment or a showing occurs.  Also, make a plan to contain your pets...not everyone will love your dog like you do!  (Remember I'm a pet lover with 3 Bernese Mountain Dogs and 2 cats and that's a lot to gather up on short notice!)

6.  Is your home safe for visitors?  Carefully evaluate if there are changes that should be made such as valuables that need putting away, hoses outside that need coiling, private documents that need storing, medicines that should be secured, etc.  Also, be mindful of lamps or artwork that might be bumped and fall.  Better to be safe than sorry.  And don't expect the showing agent to run point guard for you, s/he is trying to sell your home by pointing out all its attributes!

7.  Should you stick around?  Generally the answer is No, No, NO!  It's not a social visit and buyers will shorten their visit if you are home.  They feel they are intruding and the whole idea is to make them feel comfortable while they are in your home so they will want it to be THEIR home.  If you want to make sure they show up before you leave, be ready to leave immediately upon their arrival.  If it passes the first test, there will be time to communicate details later. 

Showing your home is a very important step in getting it sold.  Potential buyers should be treated with utmost care and respect.  You only have a short time to gain their trust and interest in your home.  Every showing is important.  It is said that you only need one buyer, but you don't know which one!

If you have any questions about this or any other aspect of the home selling process or would like an update on the current Greenwich real estate marekt, please call Kaye directly at 203-618-3119.

The Spring Market is often viewed as the best time to sell your house or buy a new one.  Whether you are buying or selling, spring brings the peak of real estate activity in Greenwich.  If you want to make a move in 2008, don’t wait too long–the Spring Market doesn’t wait for spring to start!  In fact, if you wait for temperatures to start warming up and may flowers to be in bloom, you may have missed half of the Spring Market already.

In 2007, more single family home contracts were signed in March than any other month.  More than half of these were signed in the first half of the month.  And the majority of these listings had been on the market for at least a month prior to going under contract!

While the Spring Market typically lasts through June, it is important to remember that in today’s market, it often takes several months for a home to sell.  If you wait until May to list your home, you have not only missed the two strongest months of the year, but you also increase the possibility that your home will go into the summer months without a contract.

For more information on the Greenwich Real Estate Market, please visit our websites:  http://www.kayelewis.com and http://www.kayelewishomes.com.