What is seller financing? What does holding paper mean? What does holding a note mean?
Holding a mortgage is not an uncommon strategy especially in commercial real estate transactions. A typical scenario will involve a buyer putting a specific amount of money down and then requesting the seller to hold a mortgage usually in 1st position. The terms of the mortgage along with interest rate will be determined by the parties.

The positives for a seller to hold a mortgage for a buyer is that it gives you the ability to get some cash now and be in a position to collect cash flow. It also puts you in a position that if the buyer defaults on his obligation to you, you can get the property back. Some people have an ethical issue about foreclosing on someone while other people view it as a business deal. This is obviously something to consider when looking at a creative financing deal and whether or not you would actually be willing to initiate a foreclosure against someone.

The negatives of holding a mortgage as a seller is that if the mortgage payments stop being paid, you have to foreclose to get the property back. This can be a timely process in addition to attorney costs to recover the property. You can also be recovering the asset in worse condition than when you sold it.

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122  

In this video I share an experience I had with one of my own properties. Over the summer I had an offer on the property and the buyer walked away after the inspection due to rotting trim on the garage. I offered to repair the exterior trim and he still walked away from the deal. I would venture to guess he found a property he wanted more than mine as this was a small repair I was willing to make. Fast forward a few months and I am reducing the price of the home to sell it and competing with the surrounding active listings to sell the home.
A few days ago I start thinking about renting the property. Although my desire is to sell the home and get Cash, I did not want to reduce the home any more as I know it is priced right. The amount of buyer activity in the surrounding neighborhood and transaction volume indicates a buyers market and I would prefer and have the choice to wait until it shifts back to a sellers market. I believe keeping my money in this property would be a good position versus having cash in the bank as I can ride the appreciation wave and earn income off of the property every month while the debt is paid down.

Do you have an experience where your rented a property you wanted to sell and it worked out better for you in the long run? If so, I would love to hear your story.

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122  

In this video I discuss how to prepare your home for an open house. An agent in my office is coming with me in 2 weeks to host an open house. I have been sharing with them how to properly prepare for the open house. In my mind, open houses are more than just opening up the door and turning on the lights and hoping for buyers to show up. In order to have a successful open house, you need to market the open house weeks ahead of time. I spend marketing dollars and energy on marketing the open house on the Internet and to my existing sphere of influence.

Open houses attract a number of different people. You have people who are bored and are looking for an activity for the weekend, active buyers, and people that are nosy (generally neighbors). Depending on the property, I do certain things to stage the property. I open the window blinds, clear the clutter, put music on, put the fireplace on, etc. There have been times where I have made beds and even washed dishes. The point is you want to make the house as attractive as possible. You want to evoke all the senses in addition to just letting them experience the home with their vision (smell, touch, sound). Evoking the senses will evoke emotion or a memory and create the experience of the home. Depending on the home and the time of year, I will cater the open house. I create ideas around the home and it’s location (Beach Home – Hire an ice cream truck).

A great app I use for open houses is AM Open Houses. I highly recommend to any real estate agent.

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122  

In this video I discuss Creating Value, not value based on comparable properties but value based on creating value in a property by positioning and salesmanship. Location, Location, Location is the number 1 rule when buying real estate. Being in a great location is the surest way to create value. By purchasing in the right location, you can in fact do nothing to the property and resell the property for more money just by being in a desirable area. There are homes on the market now trading for $3M and were purchased for $300k in 1996. I rather have the worst house on the block in the best location versus the best house in the best location.

Value is also created by the style of the home. A raised ranch is less desirable than a post modern or a colonial. Age of the home will also affect value. The materials used in the home and level of craftsmanship are important and create value but most of the time they get overlooked as the real estate agent isn’t showcasing the value due to a lack of understanding. It helps when the client (buyer and seller) and real estate agent understand the finishes and cost associated with the improvements made to the home. Then when a buyer is looking at other homes, they will have an understanding of the cost associated with custom finishes (custom kitchen cabinets, interior trim package, etc). Buyers will become educated and have a clearer understanding of the value in each home (I like to compare a Toyota to a Lexus ).

“Sizzle” features are items in a home that help in standout from its competition. These can include an elevator, a wine cellar, a pool house, a bowling alley. These are things that are something unique and separate them from other properties on the market. What is the value created from these items? Are these “Sizzle features” attractive to all buyers or only to a select few? To answer that, we must understand that the value created may be only attractive to a small group of buyers or it will appeal to the masses. For instance, an indoor basketball court may appeal to a certain type of buyer and turn other buyers away. To the person that gets emotionally attached to buying a home with a basketball court, the value being offered is worth the money they are paying for the home because they can justify the purchase because they are receiving value. Value can be subjective and can also created by positioning and salesmanship. Money is an exchange of value. Is your home being presented to showcase the value and how are you creating value?

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122  

In this video I discuss why an Open Listing usually doesn’t work when selling real estate in the Hamptons. Open Listings are very popular in the Hamptons rental market. The homeowner has an agreement which each office to compensate them for bringing a tenant that rents the property. In an Open Listing for sale, the homeowner promises a commission if a buyer is brought to the table and a transaction takes place.
So why do Open Listings not work? Every top producing Real Estate agent is working with a buyer pool at any given time. When a property is on the open market, the property is getting more activity and viewings just because it is being advertised with the real estate agent. It’s important to keep in mind that not all real estate marketing is the same and every agent approaches marketing a property differently to a certain degree (topic for another video). In an open listing, the homeowner is advertising the property for sale and usually doesn’t have the resources a Real Estate agent has to get the property the right exposure. If the property is listed exclusively with the right agent, the property will get the proper online exposure and will be positioned in front of a large buyer pool and within the local real estate community.

While an Open Listing can have success, most real estate agents will keep it in the back of their mind but usually will forget about the property because it is “out of sight, out of mind”. In addition to that, there are some agents that are more concerned with their wallet than their client and may not even show their client the Open Listing because the financial incentive isn’t there for them.

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122  

In this video, I want to share an example of “Listed and Lost” Syndrome that I continually see in the marketplace. Today, I get a phone call from another Realtor looking to show one of my listings in Southampton, NY. She wants to show the property to her client in 1 hour and I need 24 hours advance notice to get access to the property. She apologizes for the short notice but she had called the previous listing agent a week before our conversation and confirmed the appointment. I have had the listing now for 3 weeks and the property expired and was off the market 2 months ago.

So why am I sharing all of this? I’m sharing this because this is just another example of “Listed and Lost” syndrome. The previous listing agent listed the property for sale and had no idea that the listing expired because she confirmed an appointment on a listing she no longer had. Not really a big deal, but the fact of the matter is that as a listing agent, you have to be on top of your listings all the time to be successful. In this case, she didn’t even knew it expired over 2 months ago. Do you think she was on top of selling the home and putting forth all effort to sell the property?

When I take on a listing, I have a Listing management tool that helps me manage my marketing and sales activity on the property. I am constantly taking action to sell the home by following a protocol of steps until I have successfully sold the property. I take the guess work out of it and follow a systematic process that constantly keeps me in the driver’s seat of marketing and selling the property.

The question I want to ask you – are you tired of being “Listed and Lost”?

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122  

Expansive Contemporary Situated On Very Private Wooded Lot Surrounded By New Construction Homes. This 5 Bed, 3.5 Ba Home Offers A Carefree Living Space And Is Ready For Your Vision And Personal Touches. Cozy Living Room With Fireplace, Den, Master Suite W/Large Bath, 2 Car Garage, Full Basement W/High Ceiling. Great Outdoor Space. Opportunity Exists To Also Build Your Dream Home!

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122 

Are you committed to your real estate business? It is not enough to do the bare bone minimum. In today’s market you need to know everything and if you dont know something, you need to study it and become an expert in it. Your value is in direct correlation to the value you bring to the market place.

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122 

Great Infograph published by Goldman Sachs on the Millennial Generation.  One of the largest generations in history is about to move into its prime spending years and I am curious to watch the effect it has on real estate nationwide in addition to the Hamptons Real Estate market. As new wealth is created and generational wealth transferred, it will be interesting to see how the Millennial generation spends its money. I look forward to being a part of the Hamptons Real Estate landscape during this time and playing an integral role in facilitating transactions.

Millennials will reshape the economy as evidence of this transition is already taking place. The millennial generation is the largest generation in US History. The Millennial Generation is slower to marry and slower to move out of their parents home and have different attitudes regarding home ownership. They believe in a sharing economy. Signs of a sharing economy are already seen in the marketplace (airbnb, Uber, Rent the Runway, Zipcar, etc). Their unique experience of growing up digitally will change the ways we buy and sell, forcing companies to examine how they do business for decades to come. Millennials have instant access to reviews, price comparison, and product info. How will this impact or change the real estate landscape? How will the real estate business be different in years to come?

When you are ready to sell your property, you should be treating the sale of your home in the same fashion as choosing a financial planner or a doctor. The sale of your home is just as important.

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122 

Market and NO results- I just got back from a listing appointment and I wanted to share something with you. The listing I just won had previously been listed for sale for close to 4 years with 2 different real estate agencies. During this time, the property listings never mentioned the property could be subdivided and there was little mention that the property was a compound. Compound properties in the Hamptons are very desirable and generally fetch a premium price point.

The point of this video is to again highlight why is it so important to find the right agent to sell your home. If you have been watching my videos, I continue to drive this point home. The stats dont lie. Most agents are chosen not based on their skills and experience but based on a family/friend referral or the first agent that was interviewed.

When you are ready to sell your property, you should be treating the sale of your home in the same fashion as choosing a financial planner or a doctor. The sale of your home is just as important.

David S. Barkstedt
David Barkstedt – Hamptons Luxury Real Estate
First Hampton International Realty

631-288-2122