Looking for a new construction in Beacon? Look no further. This post is highlighting a 4 bedroom new construction at 94 Delavan, but will also cover all new constructions currently for sale in Beacon, NY. I’m going to briefly go over the home’s features, give an overview of other comparable homes that have sold in Beacon recently, and the other new constructions that are currently on the market. Here are some images to get us started. (click to enlarge):

The home sits on 0.24 acres of property in a cul-de-sac near Memorial Park. It has an open floor plan, and features cherry cabinets in the kitchen, fireplace in the family room, and cherry floors on the entire 1st level. Upstairs are four bedrooms, with a side “bonus room” that can be used as a playroom or home office. The master bath has a jacuzzi tub. Other highlights include zoned central air, C/VAC, a 2 car garage, walk-out basement, and a large deck for entertaining in the back. The estimated taxes on the home are $8,600. Asking price on the home is $444,900. As a little bonus to sweeten the deal, I’m offering a reimbursement check for $5,000 to the buyer at the closing, to use how you like!

How’d we get the price?

OK, let’s take a look at the comparable new constructions in Beacon that have sold within the past year, so you get an idea of current market value. (click to enlarge):

Three properties with similar features have sold within the last year. The closest comp is the one at 24 Delavan, as it’s located on the very same street. It’s set on a little larger of a parcel of land, but with 3 bedrooms instead of 4, and less square footage, and sold for $469,500. The other 2 properties have sale prices that reflect their locations and interior features.

What else is on the market?

There are just three other new constructions on the market at the moment. (click to enlarge):

Two of them are also on Delavan – well, they will be on Delavan – they’re still just lots right now. The other is a cape cod located at 61 Dinan Street.

Taking into account all the above factors, we think $444,900 for this home represents fair market value. And as I mentioned above, I’m offering a $5,000 bonus check back to the buyer as a little incentive.

Contact me with any questions or if you’d like to make an appointment to see the home!

- Venessa; roostchooser@gmail.com

1. 3 Colonial Rd., #71, Beacon, NY 12508 – $99,500
Great 1 bedroom condo just minutes to Metro North & highways; Common washer/dryer in building, & personal storage unit.

2. 119 Overlook Ave., Beacon, NY 12508 – 2 unit duplex; one 1 bedroom unit, one 2 bedroom unit; $159,900

3. 316 Hudson Ave., Beacon, NY 12508 – 3 bedroom, 1 1/2 bath townhouse; $204,500

4. 12 S. Brett St., Beacon, NY 12508 – 4 bedroom, 1 1/2 bath; $224,500

5. 66 Verplanck Ave., Beacon, NY 12508 – 3 bedroom, 1 bath; $309,000

6. 61 Dinan St., Beacon, NY 12508 – 4 bedroom, 2 bath; $339,900

7. 53 Cannon St., Beacon, NY 12508 – 3 bedroom, 2 1/2 bath; $329,900

8. 18 Deerfield Pl., Beacon, NY 12508 – 3 bedroom, 2 bath; $349,900

9. 94 Delavan Ave., Beacon, NY 12508 – 4 bedroom, 2 1/2 bath; $444,900

Hope to see you this weekend!

- Venessa

email: roostchooser@gmail.com
twitter: @roostchooser

There’s a lot of confusion about how the real estate industry works, who’s best interests are being served when dealing with an agent, what questions you should be asking, and where the money goes. One of my main goals with this blog is to demystify the industry and provide quality information so that you can make information decisions when buying or selling a home. I’m going to try and give a brief but comprehensive overview of the key terms and concepts you’ll encounter so you have a better understanding of the process and what goes on behind the curtain.

The MLS

The MLS (Multiple Listing Service) is the database used by every real estate agency to list properties for sale. In Dutchess County, the Mid-Hudson MLS is used, which is comprised of over 325 agencies.

If you’re about to begin the process of buying, selling, or renting a property, understand that EVERY AGENCY is using this same system. Meaning, every agent that lists a client’s property for sale enters it into this database, and every agent assisting a buyer in finding a home searches this database. Everyone is using the same system.

It wasn’t always this way. At one time, each agency had a sacred book filled with their listings, and you had to go from agency to agency to find out who had what. Now, with the internet and it’s promise of the democratization of information, all that information can now be found online. It would hurt the client to keep their property confined to an individual agency’s book, because it limits exposure tremendously. So all properties are now in the MLS.

So, what this means is that there is no need for you to go from agency to agency when looking to buy a home or rent a property, because every agency has access to the exact same listings. If you do decide to look at properties with agents from more than one company anyway, it accomplishes 2 things:

1. you waste your time, because everyone has access to the same listings. (if you switch because you didn’t appreciate the way you were treated by an agent or didn’t like the feel you got from the agency, that’s a different story.)

2. you anger the agents, and they won’t want to help you.

I don’t know how it works in markets that are much bigger, but here in Beacon (and surrounding cities – Wappingers, Fishkill, etc) agents from all the companies are constantly connected and sharing information – it’s part of the fabric of the industry. So, if you’re looking to buy or rent a place, and are jumping from agency to agency, they will find out, and agents will be less likely to want to deal with you at all.

Wait, why is this a problem?

This comes up constantly, and is kind of comical, because you’re breaking the “rules” of engagement without ever having had them explained to you. Unfortunately, it’s usually just the agents that know the rules. (hence this post)

So, here’s the gist: If you enlist the help of an agent, ask them to email you listings, and then get into their vehicle and allow them to show you properties, you are behaving as a client. That leads to the assumption that you are one. (the technical term is “implied agency“). If you then go and have a different agent from another office take you out to see properties later that week… well, you just cheated on your real estate agent!

Real estate agents make their living based on commissions, so if you don’t buy/sell through them, they don’t bring home a paycheck. This may not be a very good thing, because you could be viewed as a means to an ends instead of as a human being with emotions who’s about to get involved in a huge financial transaction and needs proper support. No wonder people don’t trust agents – there’s such a strong ulterior motive behind helping you! Unfortunately, there are enough people like that in the business that you have every right to be wary. At the same time, there are truly wonderful people who really do want to help you and to make the experience a good one. (and sure, they’re excited to get paid too). But no agent is going to be committed to you if you’re not committed to them. Your best bet is to choose an agent and stick with them.

What if I don’t like the agent?

Why would you be working with someone you didn’t like?? When you choose an agent to help you, YOU are hiring THEM. Know your expectations before you begin the process. To avoid the messy scenario listed above, interview a few agents and get familiar with their personality and the services they say they’ll offer before you settle on one. In an upcoming post, I’ll go over some essential questions to ask when interviewing a realtor. In the meantime, just remember that you are an active participant, not a passive bystander. It’s your responsibility to do the homework to ensure you’ll be satisfied with the level of service and attention you receive.

Agency: Buyer’s Agent vs Seller’s Agent

Whom does the agent represent? This should become apparent immediately, when you’re presented with an agency disclosure form, which will look something like this. As a seller, the person you’ve chosen to represent you is the Seller’s Agent. But as a buyer, it’s not always so obvious.

When you drive by a home for sale and call the number on the sign, you’re probably being connected to the Seller’s Agent. So, of course they’ll be happy to help you (they’ll get a higher commission if you buy the house….more on this below), but just be aware that they have a responsibility towards the seller’s best interests, not yours. Don’t tell them any information that you’d prefer was kept confidential from the seller. If you’re planning to buy a house, you’re better off choosing an agent who will be your Buyer’s Agent, and represent you throughout the process. They will be able to show you any home on the market, give you the market information you need to determine an offer price, and should be able to provide basic information about the area.

The third kind of representation is Dual Agency, meaning an agent represents both the buyer and the seller. There is an apparent conflict of interest in this situation, but it’s perfectly legal, and done all the time with the written informed consent of both parties. I personally think this is a fine way to go, for a few reasons: I think that pitting a buyer and seller against each other via two agents, keeping information fuzzy, and sparking anger, frustration, and a bidding war, are unethical. The industry has operated like a poker game for far too long, where everyone is trying to call each other’s bluffs and keep their cards held tight. What if each party was an informed participant in the transaction and knowledgeable about market trends and current values? Could the agent then simply be the connector between buyer and seller, helping keep everything running smoothly? Of course, this would require the seller to forget the pie-in-the-sky number they want for their house, and the buyer to forget the rock-bottom number they think they can pay and still get a quality home. Both parties have to be realistic and honest with themselves and each other. We may not all be there yet, but I think we’re moving in that direction.

Commissions

Where does all that money go when you pay a realtor fee? It looks like this:

Now, some people will say that a buyer should always have a Buyer’s Agent because it’s a “free” service. Based on the diagram above, it would seem that the seller pays the commission for both the Seller’s Agent & the Buyer’s Agent. Well, sort of. I’d argue that without a buyer, nobody gets paid. So, if you look at it that way, it’s really the buyer who pays the commissions. I guess it’s a matter of semantics… so we can just say that both sides pay.

Back to dual agency for a moment; If you’re a seller and your agent manages to also bring in the buyer, then they’ve avoided having to split the commission with another agent.  In that case, there’s no reason you should have to pay a full commission fee. Make sure you discuss this with your agent at the time of signing a listing agreement. Negotiate an alternate commission % in case the situation arises that your agent is able to find you a buyer.

Why are commission fees so high?

I’m gonna get some opposition to this statement, but in some cases, there is no reason for them to be so high. As more people use the internet and free search resources become available, the walled garden of the MLS will start to crumble. And as people learn how to do their own research and learn the fundamentals of how things work, a growing percentage will do just fine handling their own transactions.

In the meantime, the fee you pay covers the time invested by your agent to market your listing as well as the costs to do so. The MLS costs $500 a year for access, $50 to advertise in the Beacon Free Press/Southern Dutchess News/Northern Dutchess News, $30 for a line ad in the Pennysaver, and so on. Then there’s all the other expenses – the cost of gas to bring people to your house for a showing, time spent doing an open house, printing out postcards and mailers, and advertising your listing to other agencies. Plus, since your agent splits the commission with their broker, you’re also covering the cost of doing business for that broker – insurance for the agents, rent for the physical office, utilities, printer paper, and the company’s website. (this isn’t unique to the real estate industry, of course – when you buy food, the cost to run the grocery store and pay the employees is built into the price you pay).

Unfortunately, not all agents are created equal. Some of the things I’ve seen agents say and do is rather appalling. So while one agent is working really hard to close a deal, another is literally doing nothing. And they’ve gotten away with it thus far because there’s never been a good public way of holding them accountable. I’m hoping that will change soon. (One goal I have for this site is to eventually get a ratings/testimonial section going, a la Amazon.com, where people can rate their experiences with agents throughout the area and share their good or bad experiences. I think it would be a great way to get the shysters out of the industry.) But anyway, that’s another problem with the commission structure as it is currently – not every agent ‘earns’ what they actually make.

Final Thoughts

OK, we’ve covered some basics about where properties are listed, who lists them, and how they get paid. There’s more to it all, and I’m going to cover as much as I can in upcoming posts, but at least we have a start! Any major concepts I’ve left out?

3 Colonial Road, unit #71 (click to enlarge)

Basic info:

Bedrooms: 1
Bathroom: 1
Year Built: 1970
Sq ft: 610
School District: Beacon City
HOA Fees: $250 (includes grounds maintenance, hot water, heat, cable
Taxes: $1774

This 2nd floor unit has hardwood floors throughout the main living space and a balcony off the living room. There is a shared laundry facility in the building, and the condo also comes with a personal storage unit that’s approximately 10ftx10ft. It was on the market before (at $110,999), but the couple is ready to stretch their legs and buy their first house, so have lowered the price to $99,500. That’s the lowest price for a 1 bedroom condo in Colonial Springs at the time of this post. Here’s some perks of the location – great for commuters, and walking distance to the train or Main Street shops:

How’d we come up with the price?

Well, it’s a combination of looking at what’s sold in the complex recently, what’s currently for sale in the complex (the “competition”), and good judgment.

Here’s what’s sold in the past 12 months. There are only 2. One was for $117,500, and you can see by the pictures (below) that it had an updated modern kitchen, which is always a good selling feature. The other went for only $75,000, but was vacant. The owner had already moved North, so they may have just wanted to cut their losses and get the property off their hands at that point. So now we’re looking at a range from $75,000 – $117,500.

Then we look at what other 1 bedroom condos are on the market in the complex. At the moment there are 2. Both are 1st floor units, with asking prices of $107,000 and $109,000. Here’s how they look:

So, based on the above information, we saw that $110,999 did not work, and the $107,000 and $109,000 price points of other listings haven’t moved yet either. So, we decided to boldly price it under $100,000, to be the lowest price in the complex, and to show that we mean business!

Now you’ve got the information. I hope I’ve demonstrated the thinking behind a listing, and the kind of stats you’ll want to know when you’re deciding whether a listing is fairly priced. (we think this one is!)

Feel free to email me if you want to check out this condo, or any other property on the market. [Yes, agents can show you ANY property on the market, regardless of the agency with which it's listed.]

roostchooser@gmail.com

This info is also available in Google Maps: View Beacon Real Estate Report: Nov 2009 in a larger map

Feel free to email roostchooser@gmail.com for more information on homes in Beacon or surrounding areas within Dutchess County.

I found this great graphic on PSFK that explains how money flows when it’s spent locally vs. nonlocally. The article lists 10 reasons to shop local first. Here are the first five:

1. Significantly More Money Re-circulates locally.

When you purchase at locally owned businesses rather than nationally owned, more money is kept in the community because locally-owned businesses often purchase from other local businesses, service providers and farms. Purchasing local helps grow other businesses as well as the [Beacon] tax base.

2. Non Profits Receive Greater Support.

Local business owners donate more to local charities than non-local owners.

3. Unique Businesses Create Character & Prosperity

The unique character of [Beacon] is what brought us here and keeps us here. Our tourism businesses also benefit.

4. Environmental Impact Is Reduced.

Local businesses make more local purchases requiring less transportation and usually set up shop in town centers rather than on the fringe. This generally means contributing less to sprawl, congestion, habitat loss and pollution.

5. Most New Jobs Are Provided By Local Businesses.

Small local businesses are the largest employers nationally.

Beacon’s Main Street has a diversity of shops ranging from the essential to the eclectic. Support the city and shop local first!

To read the rest of the top 10 list, go here.