Greetings,
The real estate industry has been quite the reality show for the past four years. We should have our own channel by this point. The chances of a smooth sail out of the frenzy and now continued low inventory market were minimal all along, but the real estate industry in full shakedown with seemingly everyone suing each other presents a whole new level of chaos by any measure. Hopefully this is the encore with normalization on the other side.
This issue was delayed for introspective evaluation of passion for my profession and long time desire for positive change in the real estate industry. Both of which were concluded still strong, so it’s lean in and adjust sails. I also needed to dig past the headlines and social media to deliver to my clients, subscriber base and followers information that will hopefully lift from the noise and glean transparent and digestible perspective about what’s going on within the reality that decisions are still on tap.
Before I get on a roll, Willow Lake Farm is pictured above. This is such an amazing property and truly an honor to represent. Between it’s deep roots in history with first recorded exchange in 1683 through a stream of historic milestones to ‘Pretty Little Liars’ filming season 2 on its grounds, this property is enjoying quite a bit of press regionally and in the UK. I have additional listings coming on in April/May/June I’m excited to let you know about in upcoming issues, too! I’m never too busy for your referrals!
Let’s hit the elephant first. Here’s what’s on tap in this issue:
- Industry Address
- Value and Interview Tips with Realtors
- New Property Disclosure Laws
- Willow Lake Farm – Join me for an exhale tour of this stunning estate.
- Sales this Past Month
- Market Update – How are we looking coming into Spring Market? What municipalities are saturated in luxury? Which have most options $500,000 and under?
- Taxes – what not to do if self employed and planning to get a mortgage within the next two years.
- Garage – this cheap addition to your garage door could save you thousands.
- City of Poughkeepsie on the Rise
Let’s dive in.
There is much still to be decided with new processes already making their way with at least certain key changes anticipated. None of the below is expected to be solidified until earliest July. There is much on the table, but these appear the key points and explored further in this issue:
1) It does appear a decoupling of buyer and seller realtor commissions is on tap with each paying the commissions to their representative agent directly rather than the seller paying for both at closing, Buyer liquidity and/or finance options to compensate buyer representation is a quandary. In addition, veteran VA loans currently prohibit financing commission, which is another quandary.
2). Mandate for buyers to sign buyer representation agreement prior to seeing properties with a real estate professional.
3) Offering of commission to buyer agents can not be displayed on the MLS effective July. Nightmare in phone calls to listing agents from buyer agents inquiring on whether the seller is offering commission fully expected.
4) Currently the Department of Justice (“DOJ”) is questioning whether sellers will have option to continue paying buyer agent commissions. DOJ questions potential for “steering” should sellers have this option citing issue that certain sellers may then be at an unfair advantage over those not offering buyer agent commission. In what appears a conflicting thought process, the DOJ seems comfortable with buyers including buyer representation paid by seller at closing as part of an offer.
5) Elevate transparency in the real estate industry (which The Brick subscribers have enjoyed all along! 😉
The Industry Upside Down
Past erroneous and sensationalized headlines, past turmoil with the National Association of Realtors (“NAR”) seemingly scrambling to maintain power while MLS’ counter sue and brokerages get dissected to core, there is an underlying truth. Elevation in standards, expectations and results could benefit both the general public and the industry as a whole.
That’s not to say I agree with certain arguments, representations nor decisions being made to get there. I believe areas that stand for improvement are being overlooked due in part to what appears a lack of necessary “boots on ground” depth of industry knowledge by decision makers, which is highly unfortunate. It’s seeming at this point thought processes assumedly leading to decisions are generally half baked.
Real estate professionals put on suits of armor in 2020 to navigate unchartered landscape, guiding clients through transactions during a global pandemic. Some did this with utmost professionalism, some not. That experience magnified the good, bad and ugly in real estate professionals. The “good” should thrive in the days ahead so long as change is embraced and integrated into processes while the “bad and ugly” have likely seen the last of their rope with industry exit imminent. With change comes opportunity.
For over a year now, certain brokerages and individual agents started moving off the split that was customarily offered from the sale side to the buy side throughout our area, which was generally 50/50 or at a minimum a certain base percentage. As more and more brokerages or individual agents moved off the customary split, paying out as customary when the listing agent if not reciprocated when the buyers agent simply doesn’t seem fair. The costs of photography and marketing a listing agent incurs begin to enter the mindset when it never did prior, as well. The split was always just a given without question.
The shift has been more contained in the Hudson Valley with certain parts of Long Island and Queens experiencing elevated extremes in reduction, as well as certain pockets within surrounding states. In over twenty years as a realtor, the thought of adjusting the buyers side was always considered untouchable. In fact, if there was a lowering, I took from my side as I assume others did, as well. It was an unwritten rule. No one messed with the buyer agent commission. Buyers agreements are not only soon to be mandated, but necessary, as while we are in limbo awaiting decisions from the “powers that be,” it has the propensity to get ugly in realtor circles if self imposed downward adjustments to buyer agent commissions continue.
Two blatantly erroneous statements warranting clear correction
“Lowering Commissions will Lower Home Prices.”
The market drives pricing, not commissions. Escalated pricing is due to supply and demand with inventory shortages that hit historic lows and have had the region in a vice for four years. So long as inventory remains low, demand will continue to hold or drive prices even higher. It’s not commissions driving prices, it’s economics 101. I have had numerous listings sell for multiple thousands, if not hundreds of thousands, over asking. Commissions were not in the equation for buyers, but rather two words: “It’s mine.” For the flurry in the news for public consumption to state how and what realtors are paid as the solution for elevated housing prices seems irresponsible and frankly deplorable.
Buyers
While buyers may think this change will increase their ability to secure a home, and even have some wait for July thinking affordability will increase, the “solutions” currently being addressed will likely translate to disappointment for buyers. With how this is unfolding in the moment, this has a much higher likelihood of creating an even larger gap between the haves and have nots as certain buyers will opt to forego or have sacrificed representation against buyers that have representation. Mix that in with low inventory and it’s not looking pretty.
Want an example of sacrificed? Lenders are scrambling to figure out how to incorporate buyer agents commissions into financing. One potential solution being tossed around is to have the loan processors get a dual license as a real estate agent. There is pushback from loan processors as they realize the skill sets are completely different between the two professions. That may be one solution for buyers regardless to still have some form of representation, albeit compromised.
There is an underlying message that keeps coming out over and over in so many “solutions” coming to the fold. It’s sobering to see how many people truly don’t value or know what solid and professional real estate agents do or contribute to a successful transaction. This isn’t meant in any way other than an honest observation that clearly the real estate industry as a whole needs to improve.
One of the core issues I have with this profession is the low bar for entry. Education that addresses the realities of this profession and mandated mentorship for newly licensed realtors before setting them free to negotiate multiple hundreds, if not millions, in transactions while managing an overall deliverables timeline in what is for most the singular largest purchase. Rather, this potential lender “solution” simply dumps more amateurs into the industry. I appreciate lenders trying to find a solution, but perhaps go back to square 1 on that thought process.
Speaking of compromised representation, let’s cover dual agency. I personally like working in dual agency, which means representing both buyer and seller. Not all agents do and some won’t work in it at all. The reason I like it is not about the “double dip” in commissions by representing both sides. It’s about accountability. By representing both sides, I have direct access to all attorneys, lender, etc. This access streamlines the process and allows me to maintain a very solid pulse on outstanding issues and areas for address to keep things on swift track for the closing table.
Dual can get very sticky for some agents, though. I take the role of mediator when negotiating in dual agency, working to have all parties leave the table feeling whole. That takes seasoned skill. Just like in any other industry, not all real estate professionals are created equal. There is enough likelihood for it to feel a disadvantaged experience to not seek dual agency unless familiar with the agents expertise. Calling a random listing agent is the same game of roulette as buyers hitting “contact agent” on an online site. It could prove prudent to carefully consider choice in representation.
Net net – so long as the market holds in a sellers market, buyers holding out for July to not pay buyers agent commissions so they can better afford a home will likely be highly disappointed by not only a hold or higher prices, but potential lack of representation to navigate the waters. It’s very upsetting to see how the opposite of this reality is what is being spun for public consumption. If I was a buyer with limited funds for representation, I would be on hustle to secure housing before all this kicks in, personally. This could also prove advantageous from a competition perspective as there will likely be buyers that wait thinking July is the magic month.
Sellers
The nationwide average commission range has 5%-6% forever regardless of inordinate gaps in skill and expertise that have always existed in the industry. That “regardless” is an important point. That is where there should be change, IMHO. Should a realtor taking pictures with a phone and/or lacking experience to properly market, negotiate and successfully sell a property be paid the same as a high caliber realtor with expertise and professional photography a given?
There are good and bad in every industry. Is it worth it to pay more for a lawyer that solidly represents? An accountant that knows how to make the numbers work? The financial advisor that consistently delivers? I have secured six figures over asking for multiple clients with several others in the tens of thousands over asking. I routinely sell properties within days to a few weeks after sitting on the market up to multiple years with other realtors. Why should it not be worth paying more for expert level service in a realtor as in any other profession and less for realtors that aren’t as skilled? They both exist in our world just like any other profession, yet we have often been paid the same. There is room to fine tune in the industry.
“Buyer Agents are Free”
Buyer agents have never been free. It has always rattled my cage whenever I would hear an agent say this. Realtor commissions have been paid out of the transaction, meaning buyers have also been paying toward the commission all along. The seller was simply the one writing the check.
It seemed to work better for all that way since the seller would usually have funds at closing with buyers at times stretched for down payment and closing costs, which are generally noticeably higher than the seller. That is not to say I don’t see validity in certain aspects of change as the reliance on all listing agents being fair with compensation to buyers agents has proven itself recently to not be the comfortable assumption it once was.
There is also the issue of veteran financing. VA loans prohibit paying fees from the loan. Will veterans no longer be able to have representation if they don’t have liquid funds to cover buyer agent costs?
On the one hand, the Department of Justice is considering prohibiting allowing sellers to pay the buyers agent at all, citing potential issues of “steering” that they believe could put a seller at an advantage over other sellers by offering buyer agent commission. It has not been uncommon through the years for sellers to increase buyer agent compensation or offer bonuses to buyer agents to spotlight attention on their home, particularly in a buyers market. This could be equated to buying any product highlighted in advertisement. It seems odd the government can actually forbid this. ?
Ironically, the Department of Justice is creating more potential for lack in transparency with their actions. It is also ironic that they clearly realize the value the buyers agent brings to the transaction for the seller by putting such effort into containing it. I can only imagine how confusing all of this must be on the general public.
Value
There is a client I am working with that is both a buyer and seller. (yes, Barbara, I’m talking about you ;). She has bought and sold properties through the years with varied realtors. She shared having experience with realtors in the past that served as a bar of expectation in real estate professionals far below the level she now enjoys working with me.
This is not the first time I’ve heard this nor to gloat. With the need for a realtor statistically every twelve years on average for single family detached home transactions, it becomes clear how not having consistent exposure to realtors could challenge the opportunity for realization that heightened services are available. This round, she made an intentional effort and utilized social media during her partner decision process. Referrals, reviews and social media can be excellent means to find real estate professionals worthy of what should be the next step, an interview. You can also just call me and cut to the chase 😉
Buyers clicking “Contact Agent” on Zillow or other online sites leading to random agents paying for leads should decrease as focus on value increases in the days ahead. There are stellar agents that pay for leads, but there are also agents that are either new to the industry without a client base or have not earned referral business from past clients due to poor performance. In both instances, paid leads can be the only means to generate clients. Expertise is often sacrificed by the unknowing buyer or seller that opt for random agents to represent. Paid leads have always been much like roulette.
It could help defray bad experiences if buyers and sellers develop a true interview process mindset when deciding on the real estate partner with whom to align, if their work is not already known. There are certain skills and background a realtor should be able to clearly articulate expertise. Here’s a cheat sheet with heightened communication skills an underlying essential in all aspects.
What to Look for in a Realtor
Project management: Ability to not only stay on top of the timeline to closing, but to recognize and diffuse issues that could delay closing in advance. Listing agents should go to the building department at the onset of listing and inquire on certificates of occupancy as a first stop among others while at the town. Waiting until title comes in with potentially flagged violations has a high aptitude to delay closing. If the listing agent you’re interviewing with shares that’s “for the buyers agent to do” – that’s a red flag. The buyers agent should also pull files, but the listing agent absolutely should be first in to get timely wheels in motion.
Negotiation skills: Clear understanding of client goals is imperative. Negotiation skills can vary considerably on the other side. The skill to work productively with the other agent, regardless, is essential. Counseling clients, whether buyers or sellers, through terms and purchase price. Carefully listening to both sides while working to find a meeting of the minds.
Market Knowledge: How does the realtor keep up with the market? Keeping a solid pulse on the market is essential for both buyers and sellers. How can an agent expertly and strategically advise sellers on pricing without expert knowledge of the market and market conditions? How can an agent advise buyer clients on value and offer without? I create custom market momentum reports. These reports slice and dice the market and serve as one prong of several to maintain expert level market knowledge.
Reviews: This isn’t about quantity. It’s about quality. I am horrible about asking clients for reviews, but when I do, they are heart warming. Nothing less than five star with comments along the lines of “I wouldn’t work with anyone else” and “Sandi is in a league of her own.” Those are the types of reviews to look for rather than numerous more that simply say “Did a good job.” You’re paying for a service. Seek stellar.
Marketing: How will the real estate professional market your property? What tools are available through the brokerage and how will the agent leverage them? What will the agent themselves bring to the table outside of those available through the brokerage?
Look at their Work: Check out their listings. Do you align with how the copy is written? Does the realtor hire professional photographers? Can you visualize this realtor representing your property? Look at the listing when it goes live in the MLS, also. Check out the photos, read the copy. The amount of times there are misspellings and grammatical errors is nutty. We all make mistakes, but there are some listings where it’s just nutty. I have seen houses actually in vertical orientation when they should have been horizontal. Snow in winter. Fingers in pictures. I don’t understand how certain agents get away with that, but they are being paid a fee for a service. It could prove prudent to check on their work.
Tidbit Alert
Per Realtor.com, their annual highest amount of views on site is the week of April 14, up over 18%. Spring Market is officially upon us! If you’re interested in what your home is worth or ways to best prepare for sale, reach out!
Market Conditions
With inventory still dripping on and numbers far below what had been “normal trending” prior to Covid, the market is still holding in a sellers market in most price points. While there are talks of some interest rate lowering, there is not expectation of significant rate drops in 2024.
There is a marginal price increase expected for Spring Market as low inventory continues. The days of double digit increase over asking are generally over. Multiple offers are still happening with certain properties, particularly those checking coveted boxes, but they also tend to generally be more contained. The market has still been up, but settling down for over a year and a half now. I have gotten multiple buyers into under ask deals.
If you are looking for homes in the $1,000,000+ price point, there are a generous amount of options on the market. If you are looking $500,000 and below, it is significantly tighter, but the following municipalities currently have the most options, with Hyde Park in the lead. Lagrange, City and Town of Poughkeepsie, Pleasant Valley and Wappingers. With less, but still more than others: Beacon, Beekman, E. Fishkill and Fishkill. Happy Hunting! Call me if you’re looking for a partner or have questions on your specific town or town(s) of interest.
The market generally slows in July and August in our area. We may see heightened activity in July this year if interest rates take a tick down. The Fall Market, as shared in the February edition of The Brick is expected to be slow as is historically the case in election years. If interested in selling, there is little doubt leveraging Spring Market with its continued low inventory could prove fruitful for those with realistic expectations. It is not recommended, however, to “test” (and likely lose) the market with overpricing. We are in a “we know what is now” window.
The end of June tends to realize increased price reductions from overpriced sellers during Spring Market that want to sell by latest August. For that reason, aiming for early June if planning to come on in later Spring Market should be goal rather than pushing further into June between reductions, graduations and summer kick off travel.
April really is a good month if ready. My winter clients did very well without leaves on the trees. Waiting for leaves is waiting for increased competition. Right now, inventory is still super tight. Properties that are priced solid and effectively marketed have been moving swiftly. Reach out for a realistic home valuation and tips on how to best prepare for sale.
Historic lows in inventory saw numbers for active listings at one point in the 300 range for single family detached in Dutchess County, a whopping 70% below “normal trending” inventory. Dutchess County is out of that space with current active and “coming soon” single family detached listings at 478 as of April 7, 2024 per HGAR/OneKey MLS. It’s still painfully low, but improving.
In February, home prices rose at nearly double the month to month nationwide versus normal prior to Covid 19 disruption. At the same time, the annual growth has overall slowed with a contained trend expected to continue for the rest of this year, per CoreLogic. There are pockets throughout the country that have moved into a buyers market.
Lacking full trust in HGAR/OneKey MLS reporting as I caught very real errors that have yet to be fixed, I have reverted back to generating my own custom market momentum reports. I am not certain, but hopeful, the median price per county info HGAR/OneKey noted is accurate. I am sharing with trepidation, but this piece doesn’t render on my reports as I always had it accurate with Mid Hudson, but here are median prices February YOY, per HGAR/OneKeyMLS:
Dutchess +12.2%($448,500), Orange +5%($420,000), Putnam +4.2% ($468,750), Ulster +10.3% ($400,000) and Westchester +13.9% ($831,250) .
FIVE HIGHEST PRICED* ACTIVE RESIDENCES PER COUNTY GOES TO…
Dutchess County – Click Here
Orange County – Click Here
Putnam County – Click Here
Ulster County – Click Here
Westchester County – Click Here
*SINGLE FAMILY DETACHED, PER HGAR/ONEKEY MLS
PRICE POINTS CURRENTLY IN A BUYERS MARKET IN DUTCHESS COUNTY
Dutchess County is by example in this analysis. There is a common theme – the $1,000,000+ space has moved into saturation in many municipalities in Dutchess County. Out of 478 current active single family detached listings as of April 7, 2024 in Dutchess County, 88 are $1,000,000+. Let’s put it another way: 10 out of 22 municipalities in Dutchess County currently have more “active” and “coming soon” single family detached listings $1,000,000+ than any other price point in its respective municipality. Nearly half! That appears to be translating to saturation in certain municipalities as noted below.
Current Buyers Market Conditions:
Amenia
$1,000,000+ (currently straddling buyers market at 7.2 mo
Beacon – Important to note: Current new construction inventory skews numbers upward. If you’re looking to buy in these price points, Beacon could be a good check.
$750,000-$800,000 – current 42 month absorption rate
$800,000-$900,000 -current 12 months absorption rate
$1,000,000+ – currently 36 month absorption rate
Dover
$1,000,000+ – current 12 month absorption rate
East Fishkill
$900,000-$1,000,000 – current 12 month absorption rate
Fishkill
$750,000-$800,000 – current 18 month absorption rate
Hyde Park –Important to note: Current new construction inventory skews numbers upward. If you’re in looking to buy in these price ranges, Hyde Park could be a good check:
$550,000-$600,000 – current 48 month absorption rate
$600,000-$700,000 – current 12 month absorption rate
$700,000-$750,000 – current 26 month absorption rate
$750,000-$800,000 – current 120 month absorption rate
$1,000,000+ – current 12 month absorption rate
Lagrange:
$750,000-$800,000 – 24 month absorption rate
Milan:
$600,000-$650,000 – current 8 month absorption rate
$1,000,000+ – current 24 month absorption rate
Northeast:
$1,000,000+ – current 12 month absorption rate
Pawling:
$450,000-$500,000 – current 12 month absorption rate
$750,000-$800,000 – current 8 month absorption rate
$1,000,000+ – current 12 month absorption rate
Pleasant Valley
$800,000-$900,000 – current 24 month absorption rate)
$1,000,000+ – current 72 month absorption rate not driven by new construction. OUCH!!!
Luxury Buyers – could find some negotiating here as there are “sitters” to have this absorption rate.
Town of Poughkeepsie:
$1,000,000+ – current 24 month absorption rate
Red Hook:
$650,000-$700,000 – teetering between neutral and buyers at 7.2 month absorption rate
$750,000-$800,000 – current 12 month absorption rate
Rhinebeck
$900,000-$1,000,000 – current 12 month absorption rate
Stanford
$550,000-$600,000 -current 18 month absorption rate
$750,000-$800,000 -current 12 month absorption rate
Unionvale
$700,000-$750,000
Washington (another OUCH!)
$1,000,000+ – current 26 month absorption rate
INTEREST RATES
Per conversations with several colleagues in the mortgage industry, the magic number for interest rate that should garner the traction needed to get sellers holding low interest rate mortgages off the perch and on the market in noticeable number is in the low, potentially mid, 5’s or below. While forecasted by Fannie Mae as potential to see 5’s in 2024, the Mortgage Brokers Association (“MBA”) has been more conservative with forecasting into 2025. See MBA forecast for interest rates. While there could be further interest rate relief in 2024, it is expected to be marginal.
Fall Market 2024 is expected to be a bit of dud as is historically the case in Fall Market of election years so even if mortgage rates take a real drop in the Fall, enough traction for noticeable shift out of the sellers market could take until 2025.
Join me on a four minute exhale property tour!
Click video link below
Movies and HBO series ‘Pretty Little Liars’ have filmed on these grounds, weddings and other special moments have graced these grounds. Then there is the history. While speaking with the county historians office, it was discovered land exchange that included this land dates back to 1683 by Treaty with the Wappingers First Nation Indians and two financiers.
Where it gets really interesting was with heiress Madam Brett in the 1700’s. Financial circumstances necessitated the sale of smaller parcels from her 28,000 acre inheritance. This land was part of sales that changed land ownership opportunities beyond the social elite. Up until that time in the colony of New York, it was land ownership by the social elite or tenant farming. No in between. This is what happens when you get a historian and a real estate nerd together. lol. The land was originally developed from farmland into the Knickerbocker Lodge in the late 1800’s for the first mayor of Fishkill as a retreat for the city elite.
The main house and three guest houses encompass over 10,000 square feet of living space with option to accommodate 20+ guests. Five acre spring fed swimming lake. 105 bucolic acres with historic horse drawn carriage trails that traverse in and out of the woods. Multiple outbuildings, including a writers retreat, two gazebos (lakeside open air and screened stream side) and the “Hen House” with coop, greenhouse and workshop/four stall barn. Historic relics intact still pepper the property. There is a peace there that is much like being in a bubble. The video is four minutes. Give it a check when you have the chance.
Accessibility in both connectivity and location are hard to beat. WiFi stations throughout the property. Sixty miles north of NYC, less than 20 minutes to Stewart International Airport, less than 15 minutes to Cold Spring and Beacon for trains, shopping, dining and entertainment, minutes to Interstate 84 and the Taconic State Parkway.
I wrote a short story about the property and history. Read it here.
FULL LISTING
Survey and other documentation available.
The marketing strategy for my properties is multi-faceted and customized to each property. I have a solid relationship with the press with properties routinely featured across price points. The below is the press prong in motion within the marketing strategy for this property.
This 1924 stone English Manor property is currently target marketed nationally and internationally (international component focused in the UK) through my personal contact base as a Global Luxury Specialist as well as through the Global Luxury Program with Coldwell Banker Realty. NYC has been defined as nexus with a personal extensive network on full notice. We are in full steam!
Contact listing agent, Sandi Park with any questions or to schedule your private golf cart powered tour. This is one of those properties that kids add to the showings. Check out 30 seconds of pre-golf cart giddy here.
Recent Press for Willow Lake Farm
(NY Post article coming April 10th. Mansion Global article also coming soon.)
Hudson Valley Magazine – website and social media
Article: “Willow Lake Farm is a Fishkill Estate with a Rich History.”
Article Link: https://hvmag.com/home-real-estate/willow-lake-farm/
TimesUnion – website and social media
Article: “Willow Lake Farm, where ‘Pretty Little Liars’ was filmed, listed for $4.38M
Article Link: https://www.timesunion.com/hudsonvalley/realestate/article/willow-lake-farm-fishkill-19375790.php
The Daily Mail – UK.
Article: “Gorgeous 1920s update NY mansion featured in upcoming season of ‘Pretty Little Liars’ lists for $4.385M
Article Link: https://www.dailymail.co.uk/news/article-13265927/Historical-New-York-Estate-Pretty-Little-Liars-sale-Willow-Lake-Farm.html
The Poughkeepsie Journal
Article: “Used in ‘Pretty Little Liars’ filming this Fishkill estate is for sale for $4.38M”
Article Link: https://www.poughkeepsiejournal.com/story/news/local/2024/03/28/fishkill-historic-english-manor-is-for-sale/73118334007/
Circa Old Houses – currently featured throughout social media and online.
(Poughkeepsie Journal story also syndicated into TimesHerald)
City of Poughkeepsie on the Rise
As of 2020, the sale of my listing at 7 St. Johns Parkway (see two minute video tour here) on the south side of Poughkeepsie was the highest sale in the City of Poughkeepsie in over fifteen years. Since then, four sales have sold for higher with the City not yet surpassing the $1,000,000 mark for single family detached, but coming right up to it. See the sales that topped my record sale in the City of Poughkeepsie here. This is across price points and not surprising. Poughkeepsie has been in transitional growth since before Covid. If you didn’t catch the minute video earlier on how certain sales push prices, here’s the link.
Taxes – Heads Up!
Those that are self employed and plan to obtain a mortgage within the next two years, careful with those deductions and expenses! Lenders look back two years and average the net income after expenses, deductions, etc… for income determination when qualifying for approval.
Speak with your lender before filing those taxes!
Home Tip – Garage Doors
Save Money with this Cheap Home Maintenance Tip for Garage Doors!
See 15 Second Video with Dutchess Overhead Doors (they humored me;)
Past Month Sales
January-March sellers have done well. In the Town of Clinton/Rhinebeck schools, the buyer was secured in two days in January for this home at 1017 Centre Road, Staatsburg, after several years on the market with other realtors. There was a marginal price adjustment for the price point before market re-entry, but a complete revamp in marketing. Closed for asking price at $1,049,000. See Full Listing.
Sunroom featuring seasonal mountain views and painted sky sunsets
“The Clincher”
When my client (pictured right) went into the bathroom of the house pictured above he immediately and excitedly adjusted the two side mirrors of the medicine cabinet to be on an angle. As he looked at himself in the center mirror, he beamed and declared “This is the clincher. This house was meant for me.”
I have been the real estate partner for this client through four buy and sell transactions in the past four years with two more on tap for 2024, yet I had no idea where this was going.
“I can cut my hair.” LOL. Well alrighty. And so it was. Fully executed contract for multiple thousands under asking.
Each client has their own priorities and needs. Never know what the “clincher” will be. It could be something expected or out of left field. Transaction number five with this client on the horizon. Have to say, this was a first as far as “clinchers” go
“The Feather”
Joy is the soon to be mother-in-law of a client I have helped buy and sell over the past few years. The feather in her hand she found on her way out of final walk through on a bush. She took it as a sign from the heavens that this first purchase on her own was meant to be. Sold for $19,000 under asking. (Sandi represented the buyer)
The “Cute Patoot”
The cute patoot above at 8 Woodland Avenue in Poughkeepsie had legs and just closed for $35,000 over asking when it already opened in the high end of range. $290,000. Sandi represented the seller. See Full Listing.
This sale could contribute to an adjustment in this price point in the City of Poughkeepsie. Watch this 30 second video for why.
New Property Disclosure
March 20th marked the date for a new property disclosure law. Up until that time, sellers could pay $500 at closing to the buyers in lieu of filling out the property disclosure form. I have yet to see an attorney do anything other than counsel their clients to pay the $500 credit. As of March 20, that option no longer exists and the property disclosure form was updated primarily with new inclusion of wetlands and flood zone related questions. See the new form here.
While Governor Hochul was likely well intended, they missed the boat on key points that could have made the new disclosure and requirements much more beneficial in the process. They require it to be delivered to the buyer “before signing contracts.” To be most beneficial it should be “before incurring expenses, including an inspection.” By the time a buyer is signing contracts, they have already spent hundreds or into the thousands (depending on how extensive the inspection and supplementals). It would also be helpful for a buyer to have to go over with their inspector as they go through the house. Definite miss with timing requirement for delivery to be of highest benefit, IMHO.
The other miss was with financial ramifications to seller for not filling it out. The $500 option went away. Nothing replaced it. The seller just “has to” do it. “But what if they don’t?” I looked into this a bit further and the New York Bar Association is wondering the same thing. I agree with the New York Bar Association in that this could have been more effective if the amount had actually increased to $5000 or $10000 for not filling it out. As is, there is now no remedy if the seller doesn’t fill it out. See New York Bar Association commentary.
This seems pretty basic to miss two key elements: timing to buyer and remedy if seller doesn’t provide. These are the ones making decisions for our industry as a whole. Little nerve wracking, but forward we roll.
