What's New This Week In The Hamptons Real Estate Market?
by Chad Hooper with Hampton Estates Realty
In this short video, Chad shares some important information that will give you the confidence to move forward and take action in today's Hamptons Real Estate Market
For all of your real estate questions call Chad at 631.288.6333 or visit the real estate website for Chad Hooper.
Is your home's asking price in reality or fantasy land in the Hamptons?
Consider this real estate market is like an out-of-control bus speeding ahead with no brakes, you are my seller and are standing directly in front of the bus, I'm your agent and I'm trying to push you out of the way and save your life, however you are pushing back and are going to kill us both, I don't want to die, so you have a choice to make let me push you out of the way and help you avoid financial suicide or I'm going to get out of the way, because I can't help you, if you don't want my help and that bus is going to kill you. This has helped a lot of my sellers deal with the reality of today's real estate market.
Someone once told me if you want reality, go into your bedroom, lock the door, take off all your clothes, and take a good look in the mirror...that's REALITY! Now, that you have done that, you did it right? Is your home's asking price in reality or fantasy land in the Hamptons? In order to change anything, you have to deal with reality. By dealing with reality, I'm referring to look at the competition (those homes on the market that you are competing against), look at the recent solds and the most recent market statistics: the absorption rate, how many homes are selling each month(reality) Vs. how many homes are not (fantasy land). If you mention absorption rate to your agent and they don't know what you are talking about, consider finding another agent quickly.
Let's agree everyone that's in a financial position to buy a second-home in the Hamptons is well-educated, professionals...overall smart people who make good purchasing decisions. With the Internet and information available to these buyers, they totally understand what has sold and where the market is. Sometimes, I feel the buyers are in reality, the sellers are in fantasy land. Fantasy land is a fun place we would all like to go, but it just doesn't exist. Finally, if you were a buyer, would you pay your current asking price? If not, since we agreed that all the buyers are smart, how can we expect them to pay your current asking?
Is your home's asking price in reality or fantasy land in the Hamptons? In learning to deal with reality and the steps it's going to take to get your home sold, you have to quit the blame game, so stop blaming the market, your agent, the economy, stop it. Let everyone else buy into the blame game, your focus should be getting out of fantasy land and into reality, which is when you get your home sold. I have helped many sellers understand the difference and get their home sold, when others could not. If you have additional questions please visit the real estate website for Chad Hooper.
What am I seeing this week in the Hamptons real estate market?
I am still new to this whole blogging thing, it's funny when I am out in the field showing property and driving to appointments, I have all of these great ideas, this week I decided to roll with What am I seeing this week in the Hamptons real estate market?
The Hamptons has always been known as "A Playground For the Rich" but in 2010 who is the rich? Where's the Bently's, where's the Bling, who takes a month to vacation in the South of France? All of my buyers from 2009 and those that I am currently working with have recession proof careers, i.e. doctors, attorneys, accountants, and the like. By nature, a little more conservative with their money, they are not so concerned with buying into the lifestyle, as making good financial investments.
A true sign of the times, picking up a cup of coffee the the other day, I bumped in to a Town of Southampton Inspector, curious I asked how's business? (Yes, the Town is in the business of making money.) His response was interesting, "Normally, by the end of February we have about 100 pool permits for the Spring, this year we have none." Sobering thought to say the least. I was thinking to myself, you can't have a home in the Hamptons without a pool, right?
What am I seeing this week in the Hamptons real estate market? I got crystal clear a long time ago that every seller wants more than their home is worth, it's just a given. It doesn't make them bad people. I have always felt it was my job to koral their number towards where fair market value is. Anyone who claims they can get you more than fair market value, is lying to you. Meanwhile, I watch new listings come to the market at record high asking prices, I see sellers on the market for several months, actually increase their asking.
I have one question for these "fair-weather" sellers...Do you honestly believe that when the weather breaks in the Hamptons, the birds start chirping, buyers are going to hop in their cars, race out from Manhattan and overpay for your home? Really? In 2006 and in 2007 you could overprice a listing and the market would eventually catch up. Today the market is not on our side and your agent is doing you a tremendous disservice by allowing you to overprice your home.
Finally, the only thing jumping around more than interest rates this week are the agents. The lifestyle brokers have been found out, it's like watching a bad game of musical chairs. In many cases, they were products of the appreciating market, however the music stopped a long time ago. These agents who didn't have a great year last year are blaming their offices and looking for the latest magic answer, formula, and pill. When I took a look at these agents production in 2009 it was weak to say the least. My prediction for the majority of these agents is that their next step is out of the business. So there you have it that is What am I seeing this week in the Hamptons real estate market? If you have additional questions please visit the real estate website for Chad Hooper.
Why it's a myth to believe that an OPEN listing is the way to sell your home in the Hamptons?
This week while prospecting, looking for new sellers and buyers for the homes I have currently listed, I spoke to a few owner's who were offering their home for sale as an open listing, please see their comments below. So to clarify the disadvantages of selling your home as open listing, I thought I would write this blog.
I network with agents from all over the country, and owner's offering their home for sale as an open listing is unique to the Hamptons. An open listing is when a seller offers their home for sale to all the agents, instead of choosing one agent to represent them and their home. It's the shotgun approach, they blast or at least try to communicate that their home is for sale to the entire brokerage community. Generally, there is no written agreement, it's just a verbal understanding. The seller really becomes the marketer because very few agents spend much time or money working with an open listing because their is no contractual obligation. In today's market only about 2% of the homes are selling and I can't remember the last time I saw an open listing come through on the transfers.
Why it's a myth to believe that an OPEN listing is the way to sell your home in the Hamptons?
Top agents do not base their business and their financial future on verbal agreements. Top agents spend their time looking for new exclusive listings and trying to get their exclusive listings sold...they actually have a fiduciary responsibility to do so. Just think if you were a real estate agent would you want to work under the protection of a contract or based upon a verbal understanding?
"But Chad...I have lots of agents calling me about my home, which is an open listing." Your right, your sales force is the agents that don't sell any homes. No one will list their home exclusively with these agents because they have NO SALES SKILLS, NO PLAN, and SOON WILL BE OUT OF THE BUSINESS (most likely their own home is in lis pendens). These are the agents that sell to a price range...they show every home they can, in hopes that their buyer will like something, assuming their head isn't still spinning with confusion of what has just happened.
"But Chad...I will have every agent aggressively working for me and not just one agent." Please read above again. It's actually just the opposite. I know of agents that won't even tell the agent beside them in their own office about an open listing, you see only the agent that sells the home gets paid, so they don't share the information. In actuality YOUR HOME IS THE BEST KEPT SECRET IN TOWN.
"But Chad...I know too many agents and that is why I decided to offer my home as an open listing...I don't want to offend anyone." I can appreciate loyalty that is very admirable....you owe your friends friendship and you owe yourself the best. Are any of your friends prepared to write you a check every month for the equity you are losing because your home is not selling as an open listing? REMEMBER THIS MARKET IS NOT ON OUR SIDE. Interview agents that are not your friends and choose one.
These are just several of the reasons Why it's a myth to believe that an OPEN listing is the way to sell your home in the Hamptons? If you have any further questions for me please visit the real estate website for Chad Hooper.
Wondering what the High-End Sales in the Hamptons for 2009 were?
In 2009, there were 12 sales over $10,000,000 in the Hamptons, NY...
1. 2080 Meadow Lane, Southampton, NY 11968 Sold for $22,500,000 on 2/13/2009.
2. 120 Meadow Lane, Southampton, NY 11968 Sold for $27,000,000 on 1/2/2009.
3. 1215 Flying Point Road, Water Mill, NY 11976 Sold for $10,000,000 on 12/31/2009.
4. 263 Surfside Drive, Bridgehampton, NY 11963 Sold for $10,125,000 on 12/4/2009.
5. 765 Ocean Road, Bridgehampton, NY 11963 Sold for $10,000,000 on 9/18/2009.
6. 141 Highland Terrace, Bridgehampton, NY 11963 Sold for $11,700,000 on 11/12/2009.
7. 237 Gibson Lane, Sagaponack, NY 11962 Sold for 19,000,000 on 12/17/2009.
8. 461 Parsonage Lane, Sagaponack, NY 11962 Sold for $11,950,000 on 7/10/2009.
9. 42 Highway Behind the Pond, East Hampton, NY 11937 Sold for $19,000,000 on 9/28/2009.
10. 50 Middle Lane, East Hampton, NY 11937 Sold for $11,740,000 on 5/20/2009.
11. 172 Cedar Street, East Hampton, NY 11937 Sold for $11,400,000 on 5/20/2009.
12. 71 Shipwreck Drive, Amagansett, NY Sold for $11,875,000 on 3/4/2009.
Wondering what the High-End Sales in the Hamptons for 2009 were?
So there you have it, in 2009, these 12 sales combined for $176,290,000 in dollar volume.
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Chad is 100% dedicated to each customer having a positive experience regardless the size of the buy or sell range. He is constantly working to improve his skills, responsiveness & overall efficiency.
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