A Real Estate Reality Check for Suburban Baby Boomers

Dear Boomers,

Occasionally, a reality check is in order.  As your friendly residential broker, here’s one thing you might not want to think about, but you should.

 

The kids are grown. They’ve flown the coop and left behind an empty nest, double-wide fridge and three car garage. You love your four bedroom home and yard, and cherish the memories, furniture, trophies and “stuff”.  But be honest: the house requires more attention, money and love than you’re willing to give.

You look outside and see a lawn that needs mowing, leaves that need raking or a walk that needs shoveling, and that’s just the routine maintenance. What about the roof that’s already been patched three times? The CAC that no longer hums? The cutting edge kitchen, circa 1998? These things, plus escalating property taxes, utility bills and gas prices have put a strain on the love affair with your half-empty house.  And the commute to The City, which once seemed so easy, now crimps your style. Who has the energy to remain awake for the entire 10:00 news, never mind staying after work for an 8:00 pm Broadway show?

It’s time to reconsider what a house in the suburb means and <GASP> investigate other options.

What are your choices? Enroll in Sunset Village, FL – A Tranquil Setting for Retirement? <Gasp again!>  Breathe, Boomers.  Let’s look at three more realistic options.

Does A Buyer Really Need A Broker?

ABSO-FREAKIN-LUTELY! 

In the era of DIY and HGTV, where Streeteasy and NYTimes.com put listing data just a mouse click away, today’s buyers often think they can purchase without representation.  Truth: they can tackle the job alone, just as a hiker can trek Everest alone.  But the question I’ve asked and will ask again, is: Why would anyone want to?

Although it’s a rhetorical question, I’m always surprised when I get answers.  Below are some responses as well as my replies.  Long story short: what may seem like a good idea initially can quickly reveal itself to be a bad one, with just a bit more information added.

Your Beautiful Life

Your Beautiful Life at 50 Central Park West

Special thanks to Carson Alexander and Sean Scanlin...

The Board Interview

BEING invited to an interview is a good sign.

It is the next logical step in the purchase process.  But it is not a guarantee of a happy ending. 

The interview is the Board's opportunity to meet you in person, belly-to-belly, so to speak, and ask specific questions about your application, finances, lifestyle and how you intend to use the apartment.  What are your pets like?  What is your bonus history? The interviewing Board members will want to know what kind of neighbor you will be and how you will interact with the rest of the coop community. The style of the interview can range from an informal gathering of Board members in someone’s living room, to a formal grilling with Board members lined up on one side of the table and with you in the hot seat.  Regardless of the style of interview here are eight tips on how to prepare and what to expect.

1.     Dress-up and be prompt. In terms of dress and promptness, a Board interview should be treated no differently than a professional job interview. Dress conservatively but appropriately for the day, time and location. An interview right after work, at a building on the Upper East Side, will be more formal than a weekend meeting in Greenwich Village.

2.     They are likely ask personal questions.  Prepare for a lack of privacy; the Board has great latitude in the kinds of questions it may ask.  Be prepared for whatever might come.  Don’t avoid answers to personal questions or be angered by their intrusion.

3.     Know your Application. You should be able to quickly and concisely answer any questions asked regarding your application, preferably without having to look at it. However, if necessary, bring along a copy.

4.     Couples should decide in advance who will answer what types of questions. For example, one of you may agree to answer all financial questions and the other will answer all other questions. Avoid discussing answers to questions with each other at the Board interview.

5.     Unlike a job interview, do not try to sell yourself. Only answer questions asked and let the Board run the show. Boards rarely turn down applicants for being too boring.

6.     Don’t volunteer information or engage in unsolicited conversations except for basic cordial remarks and greetings.

7.     Do Not ask Questions! Questions may unintentionally convey negative information to the Board. For Example: "Do you have any plans to renovate the lobby?" This kind of seemingly innocent question is likely to offend the Board member who was in charge of the most recent lobby renovation. If you have additional questions you can direct them to your real estate broker.

8.     Minimize discussion about proposed renovations. Most Boards will cooperate with a shareholder but may be reluctant to approve a prospective purchaser if they think their renovations will be too disruptive, noisy, lengthy or costly.

9.     A short interview is better than a long one. While there are no hard and fast rules, a short and cordial interview with a few Board questions and remarks is often the best co-op Board interview. Do not expect an answer at the end of the meeting. Most Boards do not give their decision until a day or two after wards. 

Manhattan Real Estate / Michael Shapot / Keller Williams NYC

What's It Really Like To Be A Buyer In Manhattan

Actually experiencing what my clients go through has been a total revelation. I have new appreciation for my clients’ angst while looking for a new home. The process has made me a better agent, but --- OUCH! It is really painful!

As an experienced agent, I know what to expect. Despite there being fewer surprises for me personally, the process remains difficult and archaic. Seeing the market from my family’s perspective has given me additional insight. Here are my observations:

Looking for properties on line is difficult - Don’t fall in love on line. On line listings that seem too good to be true usually are. Many are no longer available because they are not updated as frequently as they should be. Certain listing databases are better than others and unfortunately, there is not one truly reliable spot for buyers to search for accurate, up-to-the-minute listings. Once a buyer finds a listing, the fun begins. Why there are no uniform rules for measuring square footage is beyond me. Sellers and their representatives lie about square footage the way they lie about their ages and weight, except that square footage us almost always estimated high.

The Shoe's On The Other Foot: Feeling the Sellers' Pain

Empathy is one thing.  But actually experiencing what my clients go through has been a total revelation.  I have new appreciation for my clients’ angst while placing a home on the market for sale and looking for a new one.  The process is making me a better agent, but --- OUCH!  It is really painful!

Making the decision

Our home of almost ten years has been comfortable and we’ve loved it, but the time was ripe for a change.  My wife and I explored a renovation; we worked with a designer to analyze our needs and taste, put the project out to bid, submitted plans to our coop’s managing agent and negotiated with the building’s architect/engineer.  After all that, we realized that the expense and annoyance might not be worth it.  Jeez – we were frustrated and annoyed at the tortoise pace and red tape of even these preliminary steps.  What would it be like for the four of us (and our dog and cat) to live in a construction site and to breathe dust and to share one bathroom for months?  Perhaps now was the right time to move.

Technology and Tools of the Trade

To remain relevant and avoid extinction, real estate professional must employ innovative technology.  Our clients use it; our clients expect us to use it. Top agents use technology to give themselves a competitive edge as they take their businesses to the next level. What are today’s “must have” technological tools?

 HARDWARE

Smart Phone

Remember how clever that TV gadget-loving G-man Maxwell Smart seemed, using his shoe phone for telephone calls? The idea of communicating with mobile telephones is not as ridiculous as we once thought.  Today’s smart phones are tiny and durable, like Max’s, but they have other features and tools that a creative real estate professional should use for maximum communication punch. Smaller than a small wallet, smart phones:

• Take great pictures
• Make movies
• Store and update calendars
• Send and receive email and text messages
• Connect to the internet, and
• Run the latest apps.

A sophisticated PDA is an absolute MUST HAVE for the successful real estate professional.

Still in love with your tried and true—perhaps a flip phone that has all the contacts of your nears and dears? Afraid of the cost of those contracts and data rates? Too busy or too tired to navigate yet another device? Get over it!  If you don’t have a mobile phone with the latest features--or if you do have one but don’t know how to use it--you’re in trouble. The world is digital, wireless, and internet connected at all times.  You must be, too, else you’ll be as dated as good old Maxwell Smart.

Breathe easy. The competition for mobile phone customers is fierce.  Packages are far more reasonably priced than ever.  Also, phone stores have trained professionals who can transfer your data and walk you through the features of your new gadget. 

 Notebook

A notebook, small laptop, iPad or the equivalent is quickly becoming a real estate necessity. You already have an smart phone you say?  That’s a good start.  But to show your clients’ available options and the latest opportunities, nothing sells as well as an image on a good-sized screen.  Smart phones are simply too small.

Furthermore, today’s notepads allow you to run extensive databases and records that the average smart phone cannot.  Your office is often on the go.  Make your computer on-the go, too.