The Lion's Head November 2009

Inside This Edition

Introduction To The Lion's Head E-Newsletter

Mortgage Matters by Adam Turkewitz, Wells Fargo

Showings On Saturday?

Advertising Review

Stager's Corner, Debbie Oulvey – ASID, CSP, RESA
Amazing Space NYC LLC

What's The Message?

What's The Message?

What is the person who took this picture trying to say about this apartment? Is there anything we can learn about what this place is like?

Advertising in Real Estate is always about sending a message - regardless of the sender's intentions. In this case we can see light but little else. How many times have you seen ads for apartments with very dark rooms? How about blurry pictures?

Which picture is more likely to make you pick up the phone and call someone to take a look?

Every ad is an important opportunity to make a first impression on a buyer.

Here are some of their possible thoughts:

1) "I don't get it. Next!".

2) "I'm looking for a good amount of space and this looks very small. Next!".

3) "Wow, this looks great! Let me check out the other info."

Scenarios 1 and 2 are obviously bad for sellers but there may actually be a good side to having bad marketing. Savy buyers and agents can see this weakness and may be more motivated to view and bid on the apartment.

Introduction

This blog will serve as a hub to exchange information about Real Estate in New York City. One of the important lessons in this business is to be ready to learn from anyone, anywhere at anytime. We hope to stimulate conversation that everyone can gain from.

Stager's Corner

With the advent of tv shows Open House LXTV, Designed to Sell, The Stagers, we present a viewpoint from a Manahattan based Real Estate Stager, Debbie Oulvey, to address sellers' queries and questions for today and the future.

Debbie Oulvey, creator of Amazing Space NYC LLC, brings an Interior Design and a business background to her Real Estate Staging business. A member of ASID (American Society of Interior Designers), CSP (Certified Staging Professionals) and RESA (Real Estate Stager Association), Debbie has the ability to successfully accentuate the attributes of a room or create a focal point using color or accent pieces. Whether vacant, furnished or owner occupied, Debbie can transform a space into a picture-perfect, buyer-friendly property that offers a significant increase in marketability. Her ability to design eye-catching model apartments that cater to the lifestyle of a development’s target buying audience has earned her the respect (and repeat business) of well known real estate developers and business development brokers.

Debbie Oulvey – ASID, CSP, RESA
Amazing Space NYC LLC
www.amazingspacenyc.com
917.428.3965



STATISTICS:

· U.S. Housing and Urban Development reported that a Staged home will sell, on average, 17% higher than an un-staged home.

· Only 10% of the Buyers can visualize the real potential of a property (Home Staging Resource 2005-2009)

· Leaving a property in “as is” condition will actually help sell the competition (Home Staging Resource 2005-2009)

· According to a May 2008 RESA study: Vacant, unstaged homes remain on the market 120 days versus 26 days for similar properties that were Staged.

· According to a May 2008 RESA study: Furnished, unstaged homes were on the market for 102 days versus 45 days for similar properties that were Staged.

· 84% of buyers use websites to research properties before even contacting a broker or agent.

· According to RIS Media, 91% of the people surveyed believe Staging makes a difference when selling a home.

· In a national survey, 63% of buyers said they would pay MORE for a home that was in move-in condition.

SIMPLE STAGING TIPS from Amazing Space NYC LLC:

1. Show each room with ONE purpose. A dining-home office area translates to “not enough space” to a buyer.

2. Eliminate pet and cooking odors.

3. Pack up unnecessary items and furniture before you show the property. Stagers recommend packing and removing at least 50 per cent of the items in closets and on shelves.

4. Storage space sells; eliminate excess clutter and organize the storage areas.

5. You only get one chance to make a first impression: Make sure Buyers are greeted by an entrance you want them to remember.

What is the biggest misconception about Real Estate Staging? It is considered an expense rather than an investment and part of the overall marketing effort. A certified, Real Estate Staging professional will highlight the property’s attributes, neutralize its décor and strategically place color or accents that will draw the Buyer into the space and throughout the property. A Staged property is a powerful presentation in web pictures, brochures and in person. By investing in professional Staging, a property’s value increases as Buyers are able to see what they are really buying, understand how to use the space and ultimately move right in.

Whether a detailed assessment or a full Staging, Amazing Space NYC will design and execute a plan based on the property’s target audience, the price point, and the lifestyles of the potential buyers. The end result is a picture-perfect, buyer-ready marketable product.

Advertising Review

In this segment we show some of the more interesting aspects of ads. What does and does not work and why?



I really like the presentation of this new one bedroom Condop in the Village, particularly the picture of the living room. I don't know if they added that rug just to sell the apartment or not but it works extremely well. The room has some interest because of the shadows and bookcase but the addition of this rug adds texture and depth in ways not usually seen - a master stroke. Their ask price is $825K (and maint $1,234) - now the lowest asking one bedroom in the building probably because of the lower floor. They reference "West Exposure" and "Full skyline view..." but my only questions are 1) why not show a picture of the view if it's so great? and 2) why not show photos of the lobby and more critically of one of the best roof decks in the city?

"...By preparing studies and reports the realtor educates...himself."

Showings On Saturday?

Even in this slower paced market there are still quite a few listing agents who avoid showing their exclusives on Saturday. What can be learned about a seller with a position like this?

1) The seller's agent is serious about selling but also doesn't want to send a message of weakness to buyers. The thinking goes something like "...if the buyer is serious he will make time in his schedule to see this apartment during normal showing hours...". There may actually be some merit here. I've shown buyers apartments at 8am and 9pm and in my experience this 'tactic' is counter-productive and sends the wrong message.

2) The seller's agent is not serious about getting the most for his client - a very unfortunate turn.

I believe that within reason all agents should show their listings on Saturdays during conventional showing hours - 11am-7pm or so - depending of course on their owners availability. We have to remember how inconvenient it can be for owners to be out during showings but also understand how important ease of access is to the final result. If a buyer can't see an apartment the chances are increased he'll buy someone else's.

Mortgage Matters

We asked Adam Turkewitz of Wells Fargo to comment on one of the challenges buyers trying to get a mortgage are likely to face as a result of the new lending environment we're in today.

What is Fidelity Bond Insurance? A fidelity bond is a form of protection that covers policyholders (in the case of a cooperative apartment - the shareholders) for losses that they incur as a result of fraudulent acts by specified individuals (in the case of a cooperative apartment - members of the board and managing agent). Fidelity Bond Insurance is synonymous with Employee Dishonesty Policy.

What type of coverage is sufficient? The amount that needs to be evidenced as fidelity bond insurance is constantly evolving depending on the amount of maintenance the building collects for the year. When we look at the audited financials for a building, we are looking at the maintenance that the building took in. The insurance should be for 3 months worth of maintenance for the entire project. As an example, if the maintenance collected in 2008 was $1,200,000 the building would need to have $300,000 worth of Fidelity Bond Insurance. Furthermore, we require that the managing agent rider be apart of the fidelity bond insurance.

How did I come up with that amount for coverage? Simple...

$1,200,000 / 12 (months) = $100,000 * 3 (months) = $300,000

Do all buildings need this? No. Any buildings with less than 20 units are exempt from carrying fidelity bond insurance. Any building 20 units and over are required by Fannie Mae to have this type of coverage.

Adam W. Turkewitz, CMPS | Private Mortgage Banker, Wells Fargo Home Mortgage 530 Fifth Avenue, 15th Floor New York, NY 10036

(212) 805 1172 Office | (516) 456-3687 | adam.turkewitz@wellsfargo.com https://www.wfhm.com/loans/adam-turkewitz/index.page