Property Grunt

Tuesday, May 31, 2011

Second Wave

Running low.

Go to Google news and you will find a lot of articles about how the real estate market is going through the double dip.

Every real estate expert/journalist is giving their opinion about this matter. I am no different.

There is still a huge divide between buyers and sellers in terms of what a property is worth.

Sellers are over leveraged and they need to get as much as they can out of their properties. They do not want to be on hook for anything that is owed. It is also a matter of pride. A seller who blew a wad on a property has no desires to cut and run.

Cash is king. But only if you have it. And even if you do have it that does not mean you want to spend it. In a recent article about Jamie Dimon, his company is still hurting from the mortgage meltdown.

Easy financing is available, but you need to put at least 60% down. And if you are going to be putting down that much, you might as well buy the whole thing in cash. And buyers are not willing to commit that much money to a property and the only way a deal can happen is if prices fall.

From residential to commercial, everyone is hurting in some degree. Be very wary of anyone claiming that everything is honky dory. It is not.

If this debt ceiling crap is not resolved, this will be a summer that won't be forgotten for quite sometime.

Friday, May 20, 2011

"Macho Man:"Randy Savage

So many memories of watching you on TV as a child.

Thank you.

Elizabeth is waiting for you in heaven.

Tuesday, May 10, 2011

Barrier of Entry

A barrier of entry to live in Scarsdale and other elite areas of Westchester are the property taxes. This is a key reason why Westhchester has not truly stabilized. Buyers aren't balking at the prices, it is the property taxes that they are screaming about.

One of the rights that a homeowner has is to appeal their taxes by filing a tax grievances. And according to this NYT article a record number are successfully accomplishing that. It has also created a booming industry for contingency-fee assessment reduction.

I recommend reading this article because it explains why property taxes are a complete FUBAR in Westchester. Although there is no direct explanation, if you read between the lines, you can understand why towns like Scarsdale are against a property tax cap.

Flawed as it is, the current system allows a tremendous amount of flexibility. Since the current system issues a aggregate valuation increase each year applying to all properties. There is no individual assessment of properties. Placing a property tax cap would prevent taxes from going up, but it would also prevent them from going down.

According to Howard Rattner, the city’s finance commissioner of New Rochelle, he feels that once the housing market stabilizes, the grievances will drop because prices will be so low.

He is very wrong. Even after the market stabilizes, it is still going to cost an arm and a leg to pay for property taxes and as long as the tax grievance process is easy as pie, there will be no end to this.

Tuesday, May 03, 2011

Drop It Like It's Hot

It's dropping. But not because it is hot.

This broker's link, displays all the price reductions of they have listed from Scarsdale.

As you can see, it is getting hot out there. Hot in reductions. Regardless, it is still not enough for buyers to come out of the woodwork. There are deals out there, but there is also a lot of homes that need work or in no way in hell reflect the seller's price.

It is going to be a FUBAR of a summer in the burbs.

Sunday, May 01, 2011

About Time.

Osama Bin Laden is dead.

I hope this brings you all some peace.