Northfork Properties

Zoning and Reality

 
Posted on Saturday May 7, 2011 2:35 AM
by Joseph Kazickas Comments Off

Zoning laws surrounding the rights of landlords and those of the community at large are a hodgepodge. Enacted in large part to preserve the peace, safety and quiet of the community, zoning codes dealing with rental properties were written for a different world than the strapped one we currently endure.
Here’s why zoning codes which limit landlord rights regarding short term rentals should be re-visited.
Short term rentals have no incremental impact upon our summertime population.
Fresh wallets are brought into our economy more frequently.


Shifting Forces in the Rental Market

 
Posted on Thursday May 5, 2011 8:24 PM
by Joseph Kazickas Comments Off

Most all agents would agree that the 2011 Hamptons rental season has strengthened as compared with 2010, and certainly 2009. Weak or strong, one thing is sure: as the calendar moves into May the dynamics of the market start to shift.
Some owners of un-rented properties begin to become more flexible, others start to worry, all at the same time as rental customers feel the market shifting to their favor as they pursue a “deal”. We see it every year. The shifting battle lines are driven by supply and demand, the calendar and the weather.
By this time in the rental season most landlords who need to rent already have, and customers willing to pay for quality are looking forward to an easy going summer, plans all made.
This leaves properties, that may have been overpriced to begin with, chasing the market down; and those customers seeking a bargain, smelling blood in the water. Especially as the beginning of the Memorial Day to Labor Day summer is only a few weeks away.
Not to be ignored however is the huge pool of customers who are seeking shorter term rentals. Our experience last year was that we closed as many rental transactions after the July 4th holiday, as we did prior to it.
Many landlords earned more off their rental properties by accommodating this class of short term tenant, than they would’ve had they rented only to longer term customers.
One way or another we see enough demand in the market place to keep brokers busy until well into August, but only if they are willing to service a generally less lucrative market.


Something Off Topic

 
Posted on Thursday May 5, 2011 3:00 AM
by Joseph Kazickas 2 Comments »

We’ve just returned from a very special place in the Bahamas called Cat Cay. Cat Cay is a private island owned by the members of the Cat Cay Yacht Club and is located 25 minutes east of Fort Lauderdale, FL. Cat Cay is a very unique destination. Here is how it looked after we left earlier this morning in a Cessna Caravan from about 7-800 ft. altitude.


$43 million ‘Tear-down” Approved

 
Posted on Thursday April 28, 2011 3:37 PM
by Joseph Kazickas Comments Off

Here’s one that numbs us. The new owners of the oceanfront Sagaponack estate once owned by former New Jersey Governor Jon Corzine and his now ex-wife plan to raze the 6,200-square-foot house they paid $43.5 million for just last year, making way for a neo-Georgian design nearly double its size that affords better views of the sunset, according to the project’s architect. Read more here, courtesy of 27east.com.


How Professional Is Your Real Estate Professional?

 
Posted on Tuesday April 26, 2011 1:30 AM
by Joseph Kazickas Comments Off

In an earlier post we speculated on how much money a real estate agent earns. We’ll be the first to admit that the median professional’s income would be a better measure than the average, but only the IRS knows that value.

Honestly we would rather not know.

The question raised is the following: how professional is the agent you are working with? If the dollars suggest it isn’t likely your real estate agent depends upon real estate for his livelihood, then how valuable is he to you, if he isn’t completely committed to his profession? Did your agent come to you only as some close friend’s friend? Or perhaps as a random assignation? Is it fair to conclude that an agency with hundreds of agents has a greater percentage of the hapless 80%? Are you in bed with one of them? How would you know?

In our opinion it doesn’t really matter.

As a buyer or tenant all you want is access to the listings. As a seller or landlord all you want is results. So if you aren’t happy with the real estate “professional” you are working with, you can always engage another one.

In the age of instant and ubiquitous information, consumer loyalty is fleeting. Today’s consumer could easily be better educated than the professional he works with.

In the Hamptons real estate market, he probably is. So how does a real estate sales person win this battle for customer loyalty? Among other ways, by taking command of the dialogue, from the first point of contact.


MLSLI Local Radio Spot…Missing Three Words

 
Posted on Saturday April 23, 2011 6:48 PM
by Joseph Kazickas 1 Comment »

“…including the Hamptons.”

MLSLI -Mixdown


The Challenge of Data Integrity – 2

 
Posted on Saturday April 23, 2011 6:16 PM
by Joseph Kazickas Comments Off

Not quite on the heels of our April 14 post about the challenge of maintaining accurate data on the availability and pricing of rental properties, comes news that the market reports issued by Douglas Elliman/Miller Samuel, Brown Harris Stevens, Town and Country and Corcoran, may be flawed to the point of being meaningless. As reported by George Simpson on his blog www.eastendlistings.com, the source data sold to the four agencies by The Long Island Real Estate Report, a local data management company, is incomplete. This is no small matter.

What’s ominous to the veracity of ANY of the reports published by these agencies is that they, in turn, each contain differences in their own reporting of data. That might be  because the agencies parse the data in different ways. So long as they are, for each window, comparing the same apples with apples, and oranges with oranges, one might be able to live with the differences between the reports. But then, you wouldn’t know which one to believe. Which report provides the most accurate accounting of the market?

It turns out likely none of them does.

How hard is it to collect and process accurate data about home sales? Not very, it seems: regular visits to the county clerks office with computer to computer data transfers, parse by tax map number and usage, and that should do it.

The fact that significant differences exist between the data collected by The Long Island Real Estate Report, and the data collected by Suffolk Research Services calls everything into question.


A Marker Day

 
Posted on Thursday April 21, 2011 6:58 PM
by Joseph Kazickas Comments Off

We will never but openly advance our agenda, or proclaim our milestones. So today we announce the planting of our first South of the Highway sign in East Hampton Village. At a 70′s era contemporary style house on fast changing East Hollow Rd. Priced fairly at $3,500,000.

"A journey of 10,000 miles begins with one sign."


The Area’s Most Popular Pastime

 
Posted on Tuesday April 19, 2011 9:45 PM
by Joseph Kazickas 2 Comments »

We were recently offered the email addresses of 1,300 real estate agents, mined from their company websites, who operate in the Hamptons real estate brokerage industry. You can’t label the real estate industry as our local economy’s largest employer as, technically, real estate agents are independent contractors, eating only what they kill. The numbers suggest, however, that real estate is the region’s dominant occupation, if not pastime. By far.
Of course this caused us to start thinking… that’s a lot of people. How many of these 1,300 actually make a living in the real estate business?
Only a small handful of agents operate at the market’s highest echelon,  generating hundreds of thousands of dollars, if not millions, for themselves on a consistent basis. That leaves the vast majority of agents competing for the crumbs. And if the adage is true, that 80% of sales are generated by 20% of the salespeople, then the thousand or so agents who aren’t generating 80% of the total commission dollar cannot help but find it a tough go. For most, real estate must primarily be a way of earning extra income, rather than making a living, all the while hoping for the big deal that makes the work worthwhile.

Here’s the data…

For the 12 months ending December 2010, 1,986 properties changed hands, representing $2,829,000,000 in value, in the Towns of Southampton, East Hampton, Shelter Island and Southold.

Of that value an estimated 25% is non-commissionable, not involving a broker. This leaves $2,121,750,000 in commissionable deal value. An average commission rate of 5% results in $106,087,500 to be split between the agent and his broker. Assuming the agent shares 60% of that gross commission, we are left with about $63 million to be divided among 1,300 equally performing agents, or, $48,000 in commission income for the year, per agent. Hardly enough to support even a modest Hamptons lifestyle.

But what about that adage, that 20% of the agent pool accounts for 80% of the deal value? It gets grim at this point.

The calculation results in an average commission of $20,401.00 distributed to each of the hapless 80%.

It must be then, that most real estate agents in the Hamptons use their real estate license to supplement their income, not depend upon it for a livelihood. And this raises questions that we’ll address in a future post.

(Market data provided by Suffolk Research Service, Inc.)


After Hours

 
Posted on Saturday April 16, 2011 3:27 AM
by Joseph Kazickas Comments Off

Where in the Hamptons do the real estate industry’s Power Players rub elbows? Try the Meeting House in Amagansett. Recently seen…Martha Gunderson (BHS), Ed Petrie (Sotheby’s), James Young (Rosehip), Susan Ryan (Corcoran), Lee Minetree (Saunders), among others. But the star has to be Bill with his signature Negroni…

Bill at work. Putting things into proper perspective.