J Philip Faranda

Here in New York just about every buyer north of New York City working with brokerage uses a buyer agent. It just makes sense; the seller has an advocate in the listing agent looking out for them, so buyers should have the same advantage in the largest transaction of their life. Moreover, it almost never costs the buyer anything out of pocket beyond their purchase. A good buyer agent can help with many things, but there are some things we can't do.

Let's start with what a good agent can do.

• Due diligence on the property background, sales history, and condition. I'm the guy that advises you to test that oil tank, septic system, and presence of radon. I check with the municipality to ensure that the taxes are correct, the square footage is accurate, and everything represented by the listing agent is true.
• Market activity- Is the house overpriced? Underpriced? Competitive for the area? Listed previously with another broker? I can tell you what houses like it are selling for, and in many cases I know the other sales in the area very well. I may have personally made some of those sales!
• Negotiate- I can sniff out a divorce. I know what questions to ask. I probe for weaknesses. I know exactly how to handle the listing agent, certainly far better than an unlicensed, first-timer. I have seen listing agents hang buyers out to dry in cases where the buyer thought themselves wise to deal directly with the lister.
• Advise- I can tell you if the time is right to raise your offer, stay put, how to handle a counter offer, and tons of other things you may not have even thought of. I do it all the time.
• Refer you to competent lawyers, mortgage sources, inspectors, and other specialists you need to make sure you have proper representation and assistance. Need an estimate on a new deck? I'll get you 2 contractors. Need to know if a roof is going to need a replacement? I'll get you 2 honest roofers who'll tell you the truth, not shake you down for a job.
• Serendipity- I have verified estimated fuel and utility costs, listened for train noise of a nearby line, timed a commute, and hundreds of other things you may not be able to do yourself.
• Is there more? I could probably write for hours. But you get the point.

• Predict the future. I have NO IDEA what a seller will take. Don't ask me to ask their agent. They are ethically bound to represent the asking price, period. I have NO IDEA what the house will sell for in 5 years. There is no way to tell. I have NO IDEA when the roof or furnace will go.
• Steal a house. Well, in most cases. Yes, it is a buyer's market. No, that doesn't mean that you can insult the seller and presume they are desperate and will take anything. Have we gotten some fantastic deals done well below asking price? I have. But once that lowball offer is rejected or countered at full price, you need to understand that the odds of a steal are remote.
• Hypnotize the seller and their agent into taking your 80c on the dollar offer. This is especially the case with highly desirable properties with recent price reductions and plenty of interested people looking. People are all about the money. If you are in a competitive bidding situation, they take best and highest.
• Manipulate reality. This is somewhat like hypnosis. If you are making a low offer with a low downpayment and a pre approval from some Internet lender, you are not giving me the sufficient tools to make you look good in the eyes of the seller or their agent.
• Beat the other side into submission. Being adversarial doesn't work. Sellers aren't bad people for wanting to maximize what they net for their property, so getting insulted when they counter offer or don't accept all of your terms the first go around doesn't make them unreasonable. It makes them people with their own wants and needs which should be respected and considered. Advocacy is not pillaging.

A few other observations to keep in mind, especially in this environment where the buyer has the upper hand:

• Not every seller is desperate.
• A win/win outcome, or even the appearance of one, is superior to a win/lose outcome. I have seen sellers who felt like they were held over a barrel by a smug buyer replace large appliances with cheaper ones and do other things the buyer didn't like but couldn't fight because of ill feelings over how they were treated.
• Never underestimate the importance of psychology and perception. If you are going to offer $395,000 on an opening bid consider 400k instead.
• Nobody likes a bully. Sellers bullied buyers back in the hot market. It wasn't wise. It isn't wise to demand that a 75 year old vacate their home of 40 years in 30 days instead of 60 just because it works for you. Think win/win again.
• Don't overplay your hand. A 10-year old kitchen with corian counters and black appliances instead of chrome isn't outdated or 3rd world.
• If you adore a fantastically priced, spectacularly appointed property you probably aren't alone. Don't be shocked if such a home has competitive bidding.

Here's the bottom line: if it sounds like I am defending sellers I am not. I am trying to portray that there are people on the other side just like you. Empathy makes you a better negotiator, and better negotiators get better deals.

****Caution: Bragging Father Alert*******

One of the neat things about parenthood is seeing your son or daughter do well at something, especially if it is unexpected. This morning our oldest son had to put in a shift, in the rain, at the local grocery for a cub scout fundraiser. They had a table set up outside the Stop & Shop in Ossining, where they were selling popcorn to benefit Pack 49. Luke was part of the first shift, from 11-12am, and the first 10 minutes was punctuated by 2 other scouts sort of mumbling to passersby with limited success. 

Now, you have to sort of appreciate the setting; it is raining, people are in a hurry to get to their cars, and nobody really wants to part with more money after leaving the store, especially for popcorn at double what they just passed in aisle 7. Moreover, Luke was a little slow to get started this morning, a bit shy with strangers, and very sensitive. I sort of hoped he'd blend into the background to avoid rejection, frankly. 

However, I can't not sell. I knew the kids could do a better job with their pitch, so I stationed Luke right by the exit and had him get the line down cold:

"Would you like to buy some popcorn to support our pack?"

Then, yes, no or maybe, say "Thank you!" cheerfully. 

The first 2 or 3 people walked on by, but after about 5 minutes of practice, Luke was a natural. Every person who left the store got a faceful (and earful) of the little guy's well-articulated pitch, followed by that adorable tooth-deficient grin. Even many of the people who didn't want to buy anything would look right at him and say "wow, aren't you cute!" or something like it. The little bugger stole the show. 

As every parent will attest, our children do the cutest things right before or after we turn on the camera. However, I was able to capture on my cell phone, Luke turning around a "NO" with his cheerful attitude. As you can see, he is standing right at his little station, and the lady compliments him on his politeness and sweetness, and then heads over to the table to make a purchase. The quality is a bit Zapruder-like, and another scout puts his hand up in front of the camera to be a wise guy, but you can still make it all out. 

Whats the moral of the story? Attitude is everything. It could have been a rainy, boring hour but Luke's decision to give his all made my day. I am very proud of him. He might end up being a better salesman than his old man. 

I have a listing that is a "mystery." Nice house, aggressive price, well exposed location, and no deal. We've had two offers, but neither went together. One factoid: I get more lawn sign calls on this property than any other. What to do?

Hold an open house? Are you crazy? I HATE open houses.

An open house on a weekday afternoon? Are you nuts?

Well, I guess I'm nuts. Given the close proximity to a local school which dismisses at 3pm and the nice weather, mortgage broker Trevor Curran (who came up with the idea) and I held 180 Weyman Avenue, New Rochelle, open from 2:30-4pm yesterday. No print ads, just web-driven stuff.

The tally? 4 visitors, one of whom has already scheduled to meet with the mortgage broker for a formal pre approval. Every one of them told me they had been watching the house and waiting for an open. Every one of them complimented the house, as it is very nice

Go figure. So we'll do it again next week.

180 Weyman Avenue, New Rochelle, NY 10805. $449,900, 3 BR, 1.5 Baths

OPEN HOUSE Thursday, October 29, 2:30pm-4pm

"I don’t care to belong to any club that will have me as a member"- Groucho Marx

In either a sign of the Apocalypse, recognition from my peers or a little of both, it is official: the 2010 Westchester-Putnam MLS board of directors will include me as a Vice President.

Although the term does not begin until 2010, myself and the other new board members were at this past week's meeting, which was actually pretty good brain food about where our association is going and how it will adapt to the changing times.

Other newly-elected board members include:

President - Gary Leogrande, Keller Williams NY Realty

Vice President Southern Westchester- Vanessa Jones, Paddington Stone Realty, LLC

Vice President Northern Westchester- J. Philip Faranda, J. Philip Real Estate, LLC.

Vice President Putnam County- Edward Scrivani, Century 21 Anita Ferri Realty

Secretary- Kimberly Ware, Bronxville-Ley Real Estate LLC

Treasurer- Jason Wilson, Better Homes & Gardens Rand Realty

I'm hopeful I can make a meaningful contribution. All kidding aside, I appreciate the acknowledgement of both the nominating committee and my peers. I will give the position my best.

In 1955, Dwight Eisenhower was president, the Dodgers were in Brooklyn, and there were 48 states in the Union. My parents were married only 5 years, and just 2 of their 4 sons were born. I wasn't on the scene until 1967.

In 2009, Dwight Eisenhower is gone 40 years. The Dodgers have been out of Brooklyn for over 50. Ann and I just celebrated our 8th anniversary on what would have been my parents' 59th, and we've had 50 states in the USA for 51 years.

One of my listings pending sale had a closing delayed recently because the title report indicated an open permit...this does happen sometimes. But what us unique is that the open permit is from 1955. Yes, in 1955 the then-owner of this house had work done requiring a permit around the time my father was still trying to figure out Mom (he never really did).

The current owner bought the house in the 80's, so there was at least one transaction where this obscure, open permit slipped through the cracks. Until now. Evidently, in 1955, the then owner of this home had the heating system re-done, and even that furnace is long since gone. The process here is that the work on an open permit has to be reinspected by the building department so the permit can be closed and the title declared ship shape. My client wisely decided to have a heating specialist take a look at the heating system prior to the building inspector, and the contractor did see one small thing that needed to be done to close the issue.

It would have already been done and the deal closed by now, but there was one small delay, and you can't make this stuff up. He couldn't make the repair right away. It required a permit!