Christopher Pagli - REALTOR/ABR

In my last post I discussed the prpose of having a Certificate Of Occupancy, this posst will focus on the effects of not having one. A purchaser might find the following:

1) The improvements do not comply with setback requirements set by the local zoning board. This will result in the need for them to be moved or made the subject of applications to the Zoning Board Of Appeals for Variances. A variance is permission obtained by from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws.

2) The improvements may not have been made in accordance with the building code and may need to be upgraded. You will know once an inspector has looked at the work. For example some municipalities require a permit to gut renovate a kitchen because they want to make sure the structural integrity of the building hasen't been compromised and that any plumbing and electrical changes are up to code.

3) The improvements may never be the subject of a Certificate Of Occupancy without the expansion of septic fields which may or may not be able to be improved or expanded upon. For example if you want to add a 4th bedroom to a 3 bedroom home you may have to increase the septic tank size, there are cases where homes may already be approved.

4) The property has been under-assessed baed upon its actual improvements and upon compliance with all of the rules with respect to obtaining Certificate of Occupancy, therefore there is likely to be a substantial increase in property taxes.

April 28, 2009 - Westchester County First Quarter Sales Report

Deepening recessionary conditions in the autumn months of 2008 markedly reduced real
estate activity in the Westchester region. Plunging equity markets, rising unemployment,
weak corporate earnings reports, and pre- and post-election jitters about economic policy
and the unknown effects of the various stimulus and bailout plans, all combined to
discourage prospective homebuyers from entering the real estate market then.

The result
of the reduced marketing and showing activity at the end of 2008 was that far fewer
closings were posted in the first quarter of 2009.
Realtor firms participating in the Westchester-Putnam Multiple Listing Service reported
only 850 closed transactions in Westchester in the first quarter of 2009, a decrease of
37% from the first quarter of 2008. Westchester's single family house market was most
affected with a 41% decrease. Putnam County closings were down by 31% from last
year.

The first quarter normally posts the lowest closed sales volume of the year since it follows
upon reduced sales activity during the holiday season and winter months. However,
when the data are adjusted for such seasonality1, the first quarter 2009 rate of closings
was down 31% from the fourth quarter of 2008. The 850 Westchester closings were
equivalent to an annual rate of only 4,230 sales, the lowest pace recorded by the Multiple
Listing Service since the 1985-1990 period.

Prices decreased too. The first quarter median sale price2 of a single family house in
Westchester was $532,000, a decrease of $90,500 or nearly 15% from last year. That
price level was last seen in 2003. The Putnam County median of $411,250 was 20%
lower than last year's. The Westchester decrease, however, was not all a case of acrossthe-
board price depreciation. Rather, much of it reflected a severe contraction in the
volume of high-end sales. Houses selling for $1 million or more accounted for only 13%
of all sales in the first quarter whereas prior quarters have posted 20% or more. As a
result of this change in the contents of the real estate market basket, the mean2 sale price
of a Westchester house fell to $695,176, a very large 26% decrease from last year.
The condominium and cooperative sectors fared better. The median sale price of a
Westchester condominium was $352,000, a decrease of 7% or $28,000 from last year.
The median sale price of a Westchester cooperative unit actually increased by 2%, to
$179,500.

The inventory of MLS-listed Westchester properties stood at 6,324 units at the end of the
first quarter, an increase of 7% since last year. Putnam County inventory decreased by
14%. The 2009 Westchester inventory was actually less than that of the first quarter of
2007, once again illustrating the volatility of this local market indicator in terms of the
different forces that affect it. In 2007 the inventory was "high" because sellers were
attracted to list by the still-favorable market conditions then. In 2009 the inventory could
also be regarded as "high", but for the opposite reason. At the same time, the 2009
inventory could also be regarded as exceptionally low, considering the 37% decrease in
sales volume. The wild card that defeats ordinary supply and demand analysis in

Westchester continues to be the ability of potential sellers to time their listing activity to
market conditions. As of March 30, 2009, they were still largely withdrawn from the
market.

It appears from the dismal first quarter results that the Westchester real estate market
was particularly hard hit by the chaos that occurred in the equity markets during the
autumn of 2008. The Dow Jones index fell by 25% from late September to mid October,
followed by a similar large decline in the first half of November. Higher-income
households heavily vested in stocks watched their portfolios plunge in value, thus putting
a chill on any thoughts of homebuying. Increasing unemployment in the financial services
industries also put a damper on the real estate market.

Our region's close dependence on the banking and financial sectors - which brought the
real estate recession home to us with special severity and speed - may also be the factor
that rejuvenates the local market as conditions improve. It appears that the "bail out"
mechanisms of the Obama administration and Congress have served to stabilize the
banking sector, and the stock markets appear to have stabilized as well.
The administration and Congress have also enacted legislation to mitigate the marketcorroding
effects of foreclosures (Making Home Affordable Program). .

Westchester does
not have a severe local problem with foreclosures but will nevertheless benefit if
nationally some measure of control is achieved. Add to this the resumption of mortgage
lending by community banks, mortgage interest rates that are still very low, and
inducements to buy such as the $8,000 first-time homebuyers credit, and it can be argued
that a framework of conditions and policies is in place to take advantage of any
confidence-building turnarounds in the general economy that may occur such as lower
unemployment and higher corporate earnings.
# # #

The Westchester-Putnam Multiple Listing Service, Inc. (WPMLS) is a subsidiary of the
Westchester County Board of Realtors, Inc. and the Putnam County Association of
Realtors, Inc. WPMLS serves nearly 900 real estate offices having listings in Bronx,
Westchester, Putnam and Dutchess Counties. All data tables refer to Westchester
County sales unless expressly noted otherwise. The reported transactions do not include
all real estate sales in the area or all sales assisted by the participating offices but they
are fairly reflective of general market conditions. WPMLS does not provide data on subcounty
geographic areas. Persons desiring sub-county data are invited to contact
participating real estate offices in the desired areas. Any text or data from this report may
be reprinted, but not altered, with attribution to Westchester-Putnam Multiple Listing
Service, Inc. as the source.

1 The seasonally adjusted rate is an annualized rate for a given quarter. It represents what the total sales volume
would be for the whole year based on the quarter's customary share of total sales. For example, if a quarter
customarily accounts for 20% of annual sales, the seasonally adjusted rate would be five times the actual number of
sales reported for that quarter. This allows the four quarters to be compared to each other according to their
equivalent annual rates.

2 The median sale price is the mid-point of all reported sales, i.e., half of the sales were for more than the median price
and half were for less. The median is not affected by unusually low or high sale prices. The mean sale price is the
arithmetic average, i.e., the sum of all sales prices divided by the number of sales. The mean does reflect the influence
of sales at unusually low or high prices.

A Certificate Of Occupancy or better know as a C of O, represents that a municipality is aware that a home is legally occupied and conforms to zoning and minimum repair and maintenance standards as of the date the C of O was issued. Below are five things that it ensures

1) Plans have been properly filed with the building dept before any construction took place, or if construction was undertaken, that the building dept is satisfied that the homeowner performed the work within compliance of the law.

2) Architectural drawings have been filed and the building dept has determined that they are in compliance with the setback requirements. These requirements are unique to every municipality you'll have to look into them.

3) If there have been any additional bedrooms added to a property with a septic system rather then a municipal waste system, Health Dept approvals were obtained for the expansion of the premises and the spetic system is adequate to serve the expanded needs of the property.

4) The plumbing and electrical inspectors have examined the property to determine that all improvements meets the Bulding Code regulations at the time of the inspection.

5) The Building Dept certifies that the addition has been completed in accordance with all codes, rules, and regulations and have been properly inspected.

Spring is upon us and the Real Estate market is seeing more activity then was anticipated. Spring is typically the best time for Real Estate but due to recent times it's a bit different. It's time to whip your home into shape and present it in the best possible light. I'm going to give you a few tips that will ensure more effective showings.

1) Update The Photos - If your agent listed the home earlier this year have new pictures taken to highlight the green grass, flowers, mulch, and anything else that may grow in the spring. The last thing you want is your home to still have a picture with snow in the yard, catch my drift? Remember curb appeal is going to play a very important part when it comes to a prospective buyer choosing to view your home or not. Studies have shown and proven that the majority of home buyers rely heavily on the initial online photos.

2) Spring Clean - Clean the house top to bottom anything from appliances to windows. Let the sunshine in for your showings, have the place smelling fresh and clean, and strategically place fresh flowers.

3) Clean and Organize All Closets - Buyers look into closets and a messy closet is a way of showing them how you live. Try to make everything in the house neat and orderly including kitchen cabinets. Also don't overstuff the closets, it's ok to have some stuff but don't go overboard. After all you are living in the home and that will surely be acknowledged.

4) Spruce Up The Entryway - Paint the front door, put planters on the sides, and place a nice welcome mat. If screen doors are ripped or broken fix them. This is the first point of entry and you don't want to make the wrong impression before the buyer even enters the home.

5) Accessorize - Use color coordination in the bathrooms with towels and shower curtain, even soaps and candles. Do the same in the rest of the house with bed linens, dining room place settings, and living room pieces. All colors don't have to match but should compliment the space and paint choices.

6) Remove Extra Furniture - Don't overcrowd a room with furniture and don't impede any walkways. Try to have nice flow throughout the home. If you have to store some pieces to improve the look of a room it's ok, you're moving anyway.

The 7 Sins of Greenwashing

1. Sin of the Hidden Trade-Off: If a product claims to be green in one sense, but ignores other significant impacts, the marketers sin. According to TerraChoice: "Paper, for example, is not necessarily environmentally-preferable just because it comes from a sustainably-harvested forest. Other important environmental issues in the paper-making process, including energy, greenhouse gas emissions, and water and air pollution, may be equally or more significant."

2. Sin of No Proof: If you can't prove it with reputable third-party verification, you can't claim it, according to TerraChoice: "Common examples are facial or toilet tissue products that claim various percentages of post-consumer recycled content without providing any evidence."

3. Sin of Vagueness: Terms such as "all-natural," "environmentally friendly" and other vague or unregulated descriptors can mislead consumers. TerraChoice points out: "Arsenic, uranium, mercury, and formaldehyde are all naturally occurring, and poisonous. 'All natural' isn't necessarily 'green'."

4. The (new) Sin of Worshiping False Labels: Often, a product has an official-looking seal, but the seal is meaningless because it is dreamed up by the product marketers themselves, without any application of third-party standards.

5. Sin of Irrelevance: If a claim is true, but doesn't distinguish the product in any meaningful way, marketers have sinned. According to TerraChoice: "'CFC-free' is a common example, since it is a frequent claim despite the fact that CFCs (that's chlorofluorocarbons -- the chemical that depletes the ozone layer) are banned by law."

6. Sin of the Lesser of Two Evils: Even if a green marketing claim is true -- the cigarette is organic, or the SUV has a hybrid engine -- it fails this TerraChoice test if the claim fails to recognize the overall harm caused by the product. The SUV may get better mileage than others in its class, but still achieve dismal fuel economy when compared to other vehicles; the cigarette, however organic, still causes lung cancer.

7. Sin of Fibbing: Simple. It's a lie. Some companies will go as far as claiming to be certified organic or Energy Star-certified, but cannot back up the certification.