Even though this economic rough patch started several years ago the real estate market continues to change.  Today, differences in market conditions are evident in rather close proximity.  The Old Forge real estate market varies greatly from the Raquette Lake, Kayuta Lake or Forestport markets.  The differences between these markets come down to the simple principles of supply and demand.  Those properties listed for sale in the slower markets have a two pronged problem.  Not only is there an over abundance of competitive selling properties, there is also a Buyer perception problem.  Possible Buyers are left wondering:

“Why hasn’t someone else bought this house, is it a poor investment?  It has been listed for a while.  If I wait six months, the price will be lower.  This place isn’t going anywhere.” 

These perception problems keep Realtors awake at night.  It doesn’t matter if we show a Buyer several properties that meet every one of their requirements.  It doesn’t matter if we show them the property of their dreams!  With unresolved concerns and so many options on the table, Buyers are simply not motivated to purchase.  How do they know that an EVEN BETTER property won’t come on the market a month from now?   It sounds pretty hopeless doesn’t it?  Hang in there, the strategy is rather simple.  The one thing that will sell your property is the perception that your property is a reasonable value and that it might not be available tomorrow.  Perception is often reality. 

·          Don’t overprice your property coming out of the gate.  Use that “new listing momentum” to your advantage in an effort to receive competing offers.

·          List your property at the price you would sell it for.  This is the most important piece of advice I can give you!  Everyone, I mean everyone, used to believe that you had to leave a gap for negotiations.  There is no reason to overprice your property; your price does not need to be negotiable.  When Sellers price high assuming that every Buyer is a ‘wheeler dealer’, they are just chasing off the Buyer that isn’t. 

·          Nothing reinforces a Buyer’s belief that they have found the right property more than seeing another possible Buyer pull up the driveway!  The worst thing a Buyer can do is wait until they have to compete in a bidding war.  Buyers are cautious in this economy; they have a lot of options and they aren’t willing to overpay.  They are, however, still buying.  Most properties that sell in this economy have multiple interested parties because somewhere along the line the property was priced appropriately.  Price your property competitively and use the stir to your advantage.

·          Current Comps don’t lie.  Before you list your property, ask your Realtor to review several comparable recent sales with you as well as the properties that will be your competition.  Whether you like what these numbers tell you or not, the recent sales are the best gauge you have of the offers you will receive.  Your property is only worth what a willing and able Buyer will pay.  The Buyer, their appraiser, and their bank are all going to look at this information – you can’t hide it.  If the comps don’t justify the sale price the Buyer won’t be able to obtain financing and the entire exercise has been a waste of time for everyone involved.  The tail doesn’t wag the dog.

·          If your property isn’t being shown during your peak season, your property is probably over priced.

·          Let go of the notion that your property needs to turn a profit in order to have been a worthwhile venture.  Your home or camp has served a purpose and you’ve had the opportunity to enjoy it; don’t expect to get back every dollar you’ve put in to it.  Please keep in mind that your upgrades may not be appealing to a Buyer.  Not everyone has the same taste.  These upgrades have a value in use for you that may not result in an increase in the properties value.  In addition to upgrades, you may have endured the expense of replacing the roof or furnace.  Unfortunately, maintenance and repairs rarely increase the value, they simply protect the investment.  It is unlikely that you will completely recoup these costs.

·          Hire the Real Estate Team that will give your property the best exposure!  Print advertisements are great but most buyers look for properties online these days.  Hop on the internet and Google real estate for sale in your area.  What websites come up?  Does your agent have properties listed on these sites?  Is your Agent a Realtor and a member of the local Multiple Listing Services (MLS)?  This is a second home market, most Buyers are not local, the large websites like Realtor.com will give your property the biggest audience.

·          Last, but not least, don’t forget the reason why you want to sell in the first place!  Is your property keeping you from moving on to the next phase of your life?  Are you missing another opportunity because you need to unload this asset first?  You only get one shot at this life (as far as I know).  Are you putting your life on hold for a higher offer that you might not receive?

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If you spend much time on-line looking at properties you have probably stumbled across a real estate website called Zillow.  There are abundant real estate websites out there, the three biggest are Realtor.com, Trulia and Zillow.   All three sites have their merits.  I’m partial to Trulia myself as I find the site to be user friendly.  There are a few companies in the area that do not have listings on the Adirondack MLS or Realtor.com which makes these collaborative websites a bit of a life saver. 

I am often amazed by how well informed my Buyers and Sellers are as a result of the internet.  I appreciate working with well informed clients but it makes me a little sad when someone mentions a property's "Zestimate" (Zillow’s opinion of the property's value).   I understand that Zestimates aren't meant to be misleading and in some markets they are even in the ball park of being accurate.  Unfortunately, the Zestimates for Adirondack Park properties can be downright comical.  It is not uncommon to find a custom waterfront home directly across the street from a seasonal hunting camp here.  Obviously the two properties can not be compared.  Zillow doesn’t understand the difference and averages the sales prices together creating a messy mathematical algorithm that is truly worthless.  Over the years I have read quite a bit of criticism of Zestimates on Realtor Forums and I was relieved to hear that Zillow has finally “Manned Up” and released their Zestimate Accuracy Data.  For Herkimer County, Zillow has a 16% median of error and over 59% of their Zestimates are 20+% higher or lower than the actual market value.  For Oneida County, Zillow has a 14.3% median of error and over 58% of their Zestimates are 20+% off the correct market value.  (Click this link to see the results for yourself). 

If you are interested in finding property data your best sources online are the Town of Webb Assessor's Real Property Database or the Town of Forestport Assessor's Real Property Database.  Please keep in mind that there is usually a healthy gap between the assessed property value and the true market value of a property.  Often the data used to arrive at the assessed value can be several years old. 

For those of you who are not familiar with Adirondack By Owner, let me take a moment to explain to you what it is.  Adirondack By Owner (www.adkbyowner.com) is a website that allows Sellers and landlords to market their own properties for a flat fee.   The site provides Sellers with the opportunity to enter quite a bit of information and a good number of photos.  In my opinion, AdkByOwner isn't an entirely bad idea.  However, I do not believe this is the best marketing strategy for every Seller.

Most Buyers do search for property online; if they can’t find your property, they can’t buy it.  This brings up an important issue.  Your property needs to be easy to find online.  Website developers need to understand what search terms will drive Buyers to their site.  Adirondack By Owner has done a great job with their Google search results for “Adirondack Real Estate” in both Pay-Per-Click and organic searches.  Unfortunately, the site fails to appear in Google searches for most of the individual towns.  I encourage you to Google “real estate (your town), NY” before listing with ANY Realtor or on AdkByOwner to see how their website ranks . 

My next area of concern is the level of service.  There isn’t any.  If a Seller lives outside the area they simply can’t be available everyday to show their property.  Unfortunately, most Buyers are from outside the area as well.  Unless the stars align perfectly, a Buyer may not have the opportunity to view the property on short notice. 

One of the most important facets of my job as a Realtor is to report back to the Seller with feedback after a showing.  Most Buyers won’t make negative comments in front of a Seller.  My job is to help the Seller learn what needs to be done to sell the property; this is best accomplished with Buyer feedback.  A Seller showing their own property may be left wondering why their home or camp hasn't received any offers when it has appeared that every prospect has liked it.

There are rarely listings on AdkbyOwner that include the term “Buyer Agents Welcome” or “Broker Protected”.  Broker Protected is the industry term that clarifies that the Seller is willing to cooperate with and compensate a Buyer’s Agent.  Most Buyers are from outside the area; they want local representation and guidance.  If a Seller is unwilling to work with the Buyer’s Agent, their property might not make the short list. 

My next concern is the public perception of Adirondack By Owner.  The very nature of this site is to make it easy for ANYONE to list their property for ANY PRICE.  You know what that means; quite a few properties listed for “I have a dream" prices.  No one has vetted these properties to ensure that the asking prices are in the ball park of the market value.  A business savvy Realtor will not list a severely overpriced property, it's simply a waste of marketing dollars and time.  Overpriced properties are damaging to Buyer perception of the local market and may lead those considering buying to believe that the area is out of reach.

Please keep in mind there are hundreds of real estate websites.  Most real estate companies make sure their listings are on the most popular sites.  AdkByOwner is just one little ‘ol website.  It’s a great, inexpensive tool for those casually interested in selling.  However, if you are serious about selling a property, or if you NEED to sell a property, please don’t waste your valuable time. 

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If you own property in New York State you may want to take note of an approaching day.  The Fourth Tuesday in May is Property Assessment Grievance Day in New York (some municipalities may choose to schedule it on a different day but it is always in May).  This year Grievance Day in the Towns of Webb, Forestport and Inlet falls on the 24th.  Please keep in mind that your Assessor does not have any control over how much you pay in Taxes, they only have a say in the value assigned to your property.  Generally, if your full value assessment reflects roughly the amount for which you could sell your property, then your assessment is relatively fair. 

The process of challenging your assessment is the same throughout the state of New York, details can be found on the Office of Real Property Services website (click here).  The same form is used in every municipality.  The form, RP–524, can be found here.  In addition to RP-524, you will need to have your own estimate of the market value of your property and supporting documentation.  There are four arguments you can use to dispute the assessed value of your property:

A. UNEQUAL ASSESSMENT (in comparison to other similar properties)

B. EXCESSIVE ASSESSMENT (The market value assigned to your property is  higher than what you could sell your home for in the current market)

C. UNLAWFUL ASSESSMENT

D. MISCLASSIFICATION

This would be a rather long blog post if I were to get into the specifics of each of these arguments!  My primary concern is for those Buying or Selling properties in this current environment.  If you recently purchased a property or if you are under contract to purchase a property (for the less than the assessed value of the property) your contract is all the supporting documentation you need.  If you currently have your property listed with an agent (for less than your assessed market value) then your listing agreement will serve as the supporting documentation.  If you have recently had your property appraised, your appraisal can also serve as supporting documentation. 

In most municipalities you can fax or mail your documents to the assessor.  I strongly advise you to confirm receipt of all of your documents several business days before the 24th.  The Town of Webb is slated for a reassessment in 2012, however between now and when the reassessment takes effect you will encounter 2 tax bills (one School and one Town/County). Wouldn’t it be nice if you could lower both of those bills!? 

Town of Forestport Assessor      Phone 315-392-5547      Fax 315-392-4607

Town Of Webb Assessor            Phone 315-369-6880      Fax 315-369-3021

Town of Inlet Assessor                Phone 315-357-5726      Fax 315-357-3570

Here are some links to recent Adirondack Express articles regarding the Town of Webb Re-Assessment.

Work continuing on reval in Webb

By September 2012 Town properties will be reassessed

It all comes down to the chassis.  If it has a permanent chassis, it’s a Manufactured home not a Modular.  Don’t know exactly what a chassis is?  I don’t either, but I do know you need one to put wheels on a house!  So basically, a manufactured house is a trailer, otherwise known by the terms “Mobile Home”, “Single-Wide” or “Double-wide”.  Since June 15, 1976, manufactured homes have had to meet U.S. Department of Housing and Urban Development (HUD) Code and Manufactured Home Construction and Safety Standards.  The HUD Code requires that manufactured homes display a red certification label on the exterior of each transportable section.  Like Modular Homes, they may be transported in one or more sections.

Modular homes are built in a controlled environment (such as a warehouse) to the same state and national codes as stick-built or site-built homes.  These homes usually arrive at the site partially assembled or as panelized wall systems.  Some will argue that a Modular home could be more structurally sound than a stick built home due to the larger floor joists necessary for travel.  The wall and floor components are often glued for additional strength.  Having a modular home built is usually significantly less expensive than a stick built home.  With the assistance of computer aided design and the ability to view dealer models, consumers can select a custom floor plan and design with ease.

When purchasing a manufactured or modular home please be aware that these homes may not be eligible for all loan programs.

Here in the Adirondacks it is not unusual for a Realtor to receive an anxious phone call from a party interested in seeing a few properties at the last minute as they head out of town.  When this happens, I do my best to spring in to action but it’s disappointing.  Not because it is mildly inconvenient for me but because I know I am not able to provide the best customer service to these possible new clients.  I am sure many agents feel this way; you aren’t successful in this business if you don’t have a strong urge to please people.  This is a service industry after all.  Most of our clients aren’t from the area and usually they are in town rather briefly, however rarely on a whim.  Why not call a few days ahead of time and let me know what you are looking for?  Since I work in this business full-time, it is likely that after a few questions I will think of several properties that meet your qualifications.  Armed with your wish list and several days notice, I will make appointments, gather information, preview properties for you and take additional pictures if necessary.  Before we head out to look at properties we can touch-base and make sure all the properties in question meet your criteria.  You’re on vacation right?  Why waste your time looking at properties that you would not consider if you had the right information? 

 

Selecting properties is only half the battle, scheduling can also be a challenge.  It is not unusual for a listed property to also be a rental.  Cell phone service in the Adirondacks is still rather spotty, contacting tenants can be a little challenging.  Accessibility in the winter provides yet another challenge and arrangements may need to be made to clear the driveway of snow.  Please keep in mind a vacant/winterized structure can be 10 degrees colder than the temperature outside; high snow boots, gloves and several layers or clothing are highly recommended. 

Surprisingly enough we actually had a pretty busy Summer and Fall in Adirondack real estate.  EVERYONE is looking for a deal in this market!  Unfortunately, deals are few and far between and often receive multiple offers.  While our market has and is still adjusting, I would hardly say we are having the “fire sale” that some Buyers have been hoping for!  The idea that this may be the lowest market the Adirondacks will see in the foreseeable future has increased demand in several segments of our market; namely year-round waterfront and mid-range year-round lake rights properties.  In my personal opinion we are at the "low" for waterfront real estate.  Going forward, the sale prices fetched by those properties currently under contract will have a large effect on the asking prices of new inventory for the next year or so.  It is possible there will still be some adjustment necessary for off water properties.  

The properties that are selling rather quickly are year-round waterfront properties (on motorized lakes) in the $350,000 - $500,000 range; if there were more of these available I would have several very pleased clients!  There is also a high demand for properties with lake rights (on motorized lakes) in the $200,000 to $275,000 range.  I have had quite a few calls from individuals looking for off water properties with deeded dock space.  The first four lakes of the Fulton Chain Lakes and White Lake receive more inquiries than the Old Forge Pond, Otter Lake or Sixth and Seven Lake.  Raquette Lake lakefront properties sell rather quickly, however they are rarely available.  Waterfront properties on non-motorized lakes and rivers do sell for quite a bit less than those on more navigable waterways.  I usually ask Buyers a little bit about their hobbies; sometimes a non-motorized lake or river suits their needs and may have been overlooked.  If you are into paddle sports and enjoy peace and quiet then a non-motorized lake might be a budget friendly alternative to the popular motorized lakes.

Seasonal property sales are very slow.  The rising popularity of snowmobiling has changed the demand for Seasonal properties; many Buyers will not even consider them.  For year-round properties, I have noticed a high preference for those with garages and/or convenient trailer parking.  Quite a few investors are interested in properties that can be rented one season and used as a personal vacation home in the other.  My concern is that this possible increase in rentals will flood the rental market, perhaps lowering revenues for those properties currently offered as rentals. 

In regard to purchase prices, several years ago low offers were often completely rejected; in this economy Sellers have entertained/countered offers 15-20% below asking.  We advise our Sellers to at least counter an undesirable offer.  When the opportunity to sell presents itself versus continued maintenance and tax bills, sales prices can be rather surprising.  If you would like to purchase Adirondack Real Estate don't wait for the bottom or you may miss it.