West Essex Neighborhoods and Homes

Several years ago I became enthralled by the idea of disruptive technologies. At the time I read just about everything I could the subject, much of it by the author referenced below:

More than a decade ago, Clayton Christensen's breakthrough book The Innovator's Dilemma illustrated how disruptive innovations drive industry transformation and market creation. In The Innovator's Guide to Growth, Scott Anthony, Mark Johnson, Joseph Sinfield, and Elizabeth Altman take the subject to the next level: implementation. The authors explain how to create this crucial capability for unlocking disruption's transformational power. (http://www.disruptivetechnologies.com/)

Well, after a year as a licensed Realtor, and after hearing one time too many that "my client just doesn't get it," I came to see the "client is always wrong" attitude as a pretty common dysfunction, the roots of which are found in the lack of factual and actionable market information. At the same time I began the process of doing something about it.

The result of that process is a computer-based tool that disrupts how things have always been done. The name of the tool is Game Changer. Game Changer not only profiles markets down to their veritable undershorts, it helps build marketing and pricing strategies based on those profiles. By replacing opinions with facts, Game Changer puts both client and Realtor on the same side of the table...as partners rather than adversaries.

Game Changer^©is available exclusively from Brian McCabe (973-865-1863), Realtor^®, Coldwell Banker Residential Brokerage, 484 Bloomfield Avenue, Caldwell, NJ  07006. 

I came across this while browsing around the ActiveRain site:

"The quieter you become the more you hear." 

Posted by Lou Ludwig of Boca Raton, Florida, the quote caused me to recall a business training initiative on effective listeniing which became a core element of Xerox Corporation's business skills training program. In an article entitled Xerox U (Time/CNN) reported, "Since it set up its industrial-education program in 1965, the Xerox Corp. of Rochester has cranked up sales of crisp courses in business skills to 20,000 a month. Currently boasting three short (up to three days) courses that include drills on sales and problem-solving techniques as well as 'effective listening,' the program has drawn more than 500,000 students from such companies as Pfizer, General Electric, Burlington Industries and Eastern Airlines." So, effective listening is clearly a  big deal and Lou's quote, "The quieter you become the more you hear," is an elequent expression of it.

I think that the first step towards effective listening is valuing silence as an important part of a client relationship. Dead air does not have to be filled with my words.  Rather, the silence should be allowed to act as a vacuum to be filled with our clients' information...information that will help us serve them better.

Consultant Germaine Knapp, president of Wordsmart Inc., a consulting and training firm in Rochester, N.Y. notes: "Effective listening--we call it power listening--is one of the strongest assets in professional life today.  Too few of us take advantage of it, but all of us could. There are dozens of field-proven techniques and tactics for applying the power of listening, and they get results."

The second step is realizing that, as realtors, we exist only to help our clients reach their goals...and to do that we have listen.

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From the
Coldwell Banker Residential Brokerage
Market Watch Newsletter...

Two months ago, 60% of homebuyers were first-time buyers. Last month, 60% were repeat buyers showing that more homeowners are moving up. As the first-time buyers with the $8,000 tax credit incentive bought the starter homes, more sellers could move up to a new, larger home. Today's environment with lower prices is the perfect model for "moving up".

Selling High and Buying Higher

The fast moving days of 2004-2005 actually were not the best time for buyers. There was a sharp increase in home prices and although there was low inventory giving rise to those increases, a significant number of homes were sold. Sellers were selling high and buying higher as prices spiked up.

We know that this is a great market for first time home buyers, but...

Is this a move-up market?

You bet it is and here's why. If a homeowner wants to move from a townhouse or condo to a larger home, many are concerned their current home is not at the value it was a few years ago. Because all properties in the area have depreciated by the same percentage, there is a monetary advantage in moving up now. Assume a home was valued at $250,000 and then depreciated by 20%, leaving a current value of $200,000. A previously valued $500,000 home at 20% less is now $400,000. A homeowner would sell their home for $50,000 less than its high value, but could buy the larger home for $100,000 less, giving that homeowner a $50,000 positive increase.

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©2002-2009 Coldwell Banker Residential Brokerage. All Rights Reserved.

Ten years ago my wife, Linda, and I decided to do a major remodeling job on our home. We added more square feet of living space and moved the kitchen and one of the baths.  It was a big job.  The result of our efforts and investment was...and remains...the best thing we ever did.  So, what does this have to do with buying a first home or any other home, you ask?  It has to do with the clues one can look for to help in assessing the quality of a house and your potential home. 

As you probably know, building code officials need to approve the remodeling work that is done on a house including the framing, electrical and plumbing systems, fire alarm systems, etc.  With the help of our general contractor we selected subcontractors who were well known for the quality of their work.  In fact, it was common for inspectors to say things like, "This is Bob Stavella's work, isn't it?"  In other words, Bob Stavella had earned a reputation for doing outstanding electrical work, which not only made electrical inspections go more smoothly, it gave Linda and me a warm and fuzzy feeling knowing that we hired the best. 

Okay, you are out house hunting.  You step into a house for the first time and it's spotless.  It is very clear from what you see that the people who live there possess a deep affection for the house.  Then you descend into the basement and your eyes are drawn to the heating and plumbing system.  You are blown away.  Even if you don't know a whit about heating and plumbing you know you are viewing the work of a master.  In fact, if the house is in my neighborhood, you might be looking at the work of a master plumber and friend named Don Dowling, owner of Don Dowling Plumbing and Heating.  Here are some images that tell Don's story a lot better than I could. 

Pretty good, huh?  Could you confidently buy this house assuming it had the other things you were looking for?  You bet, you could and the reason is that quality in a home is viral.  It tends to spread from one system to another and from one room and floor to another.  Now, the chances are that you won't see too much work that looks like Don Dowling's, but you should be on the lookout for clues that signal quality even if it doesn't rise to the level of art. 

But, alas, many houses you will see in your search...especially a search for a first home...will have some glaring deficiencies.  Even if the house has been well cared for, the baths need redoing, the kitchen looks like it's out of a 50's sitcom, and the boiler prompts a quick look for a coal chute.  These are deals, but they are not necessarily big deals.  The key is to know what you are getting into and that's where I can help.  As a former developer and rehab contractor I have seen it all and have transformed some pretty ghastly structures into some very good homes.  I'll use that experience to help you navigate around some big deal issues that you probably don't want to tackle.  Your home inspection service (using one is an absolute must) will do the rest. 

So, you see a bunch of houses and finally buy one that you really love at a price that you love even more, because it needs some work.  Now what?  My recommendation is to hire the best contractors that you can, because it will be their work that potential buyers will see when you are ready to move to your second dream house. 

By the way, you can reach Don Dowling at (973) 228-7400.  He does wonderful work in my neighborhood.  Tell him McCabe sent you.

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There are those who will say that realtors don't make a difference and I'm not going to engage that debate except to make one point; if a realtor only facilitates the paperwork-intensive process of buying or selling property, that's a good and valuable thing.  That said, I believe, as do many of the realtors I know, that buyers have a right to expect more than that, and I suspect you do, too.

Of course, the big question is: how one can know what an individual realtor brings to the table?  In that regard the Web has made a huge impact.  For example, I spend a great deal of time, money and energy putting as much information as I can on the Web so that buyers can pretty much make a decision about me before we ever meet.  You'll find that information on my blog (www.westessexneighborhoods.com), as well as on my Web site (www.wessex-homes.com). 

The Web also enables you to see the same listings I do.  As a realtor I see more information than you do but what you see sure is useful.  I can't speak for other realtors, but I think that buyer access to this kind of information is a benefit to all concerned, and especially to first-time home buyers.  A first time buyer can identify favored home styles (ranches, capes, etc.), the must haves and the nice to haves, and what areas and towns make sense.  What online listings don't tell you, however, can make a big difference.  For example, a good realtor will tell you about the potential costly impact of a recently conducted town-wide revaluation.  Online listings also won't tell you about the oft-experienced difficulties in closing short sales.  And here's one.  I buyer showed me a new listing that seemed to meet his needs and the he wanted to see it.  What he didn't know was that the house had been on the market for over a year prior to being re-listed.  The point is that realtors can give you more information with which to work and some of that information has to do with the special knowledge that the realtor has accumulate over the years.

My special knowledge derives from my experience as a real estate investor, where I bought, rehabbed and sold formerly distressed houses.  Some purchases were conventional and some where short sales, which I negotiated.  All were adventures, especially those that had been abandoned.  What I learned with the help of some very knowledgeable contractors, was how to spot serious problems, how to modify floors plans in order to increase value, the cost of modifications and how to work with city officials.

This kind of knowledge is especially relevant to first time home buyers because lower priced houses sometimes have issues that more expensive home might not have.  Having an advisor nearby is real benefit but, as I always point out, every buyer should arrange for a home inspection. 

In short, I do not believe that I should try to direct or unduly influence a buyer's decision.  What I do believe is that I should help the buyer process and evaluate of a lot of information and, where I have special knowledge, offer to share it. 

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Note:  It is forbidden for any realtor to offer legal advice . 

I think many home buyers underestimate the importance of the area that surrounds the house they are considering. That includes the block, neighborhood, town, the surrounding towns and even the region.  That isn't to say that buyers ignore these things. Rather, I think the surrounding area should be weighted more heavily in the decision.  That is why I love living and doing business in the western-most towns of Essex County, NJ. 

It helps, of course, to have a love affair with NYC, which I unashamedly have (NYC is only 15 miles to the east), but the area also stands on its own as a wonderful place to live and raise a family.  In fact, that core idea is the reason I launched my Web site called West Essex County Neighborhoods and Homes (www.wessex-home.com).  From the home page:

Welcome to My Neighborhood
My name is Brian McCabe. Over the years I have sunk some pretty deep roots in Essex County. At one time or another, I've lived in Belleville, Nutley, Glen Ridge, East Orange and Montclair and I currently live in the Caldwells. For the past few years, I have purchased and rehabbed single- and multi-family houses in Newark, Irvington and East Orange. Now, as a realtor in the Caldwell office of Coldwell Banker Residential Brokerage, I want to share with you what I know about Essex County and help you find your dream house in this incredibly diverse and dynamic neighborhood.

Don't be under any false illusions.
You will not get a fair and balanced point of view from me because I could be New Jersey's biggest cheerleader. I love the towns, houses, restaurants, shopping, parks, mountains, road-side vegetable stands, the Jersey shore, seafood, the Giants, Jets, Nets, Devils and Essex County.

I love Essex County because of its rich mix of urban and suburban neighborhoods...and even a working farm or two...combined with its proximity to the greatest city in the world, New York City. So that's why I've made New Jersey and Essex County my home and they may be some of the same reasons that influence you to do so, as well.
____________________________________________________________________________________

Please accept my invitation to visit my wsb site at www.wessex-homes.com where you will get a hefty dose of geographic bias (did you expect anything less?). 

When you think about buying your first home, think about your first love. 

Remember how all consuming it was, and how difficult it was trying to concentrate on anything else?  It was bliss...wonderful, obsessive bliss.  But, if your experience was similar to mine, the people who cared about you cautioned against moving too fast.  "Date more people," they advised, and they were probably right.  Not to say that your first love couldn't have resulted in a lifetime of happiness, but experience is a very capable teacher.

So it is with your search for your first home.  Don't fall in love too fast.  Really think it through and don't hesitate to ask for the advice of friends and family and, of course, your realtor.  But most importantly, look at a sufficient number of houses so that you can feel comfortable with your selection.  And remember, the choice of a house also includes the choice of a block, a neighborhood, a town and an area.  My Web site, www.wessex-homes,com, covers the west Essex County neighborhood, an area comprising eight towns...Caldwell, North Caldwell, West Caldwell, Roseland, Essex Fells, Verona and Cedar Grove...each one a great town in which to live.

Now, were you to ask me how many houses you should look at, I would say that only you can answer that question.  Actually, there's a well-known saying about pornography that informs the house hunting process: it's tough to define pornography, but you know it when you see it.  In other words, you'll know when you have seen enough houses.  That said, I would caution against allowing external factors to play too much of a role in your decision-making.  For example, suppose a good buy comes on the market...one that's likely to sell fast.  Your realtor will most likely tell you that, but there are two ways that the message could be delivered. 

1. The High Pressure Way: This is a great house.  If you don't act now you are going to lose it. 
2. The Informative Way: This is a great house and it should sell fast.  If you think it's the right house for you, consider making an offer, but do so only because it's the right house for you. 

Which style of communication makes you feel most comfortable? 

That brings us around to the role that a realtor should play in your search for a first home.  If we were working together, I would want you to see me as a guide, a consultant, a set of experienced eyes, a financial advisor, an advocate and a watchdog.  While that may seem like a lot of hats to wear, it's really only one hat: the hat of someone who will do what's necessary to make the purchase of your first home a memorable and joyful experience. So, as you engage the process of buying your first home, be in the moment.  You'll only have it once.

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If you use wire transfers from time to time as I do, getting an email stating something like this is not completely unlikely:

"The money transfer you have sent on the 20th of April was not collected by the recipient. Due to the Western Union regulation the transfers which are not collected in 30 business days are to be returned to sender. To collect cash you need to print the invoice attached to this mail and visit the nearest Western Union branch."

I have learned never to open a document from an unknown source so I did not "print the invoice attached".  Had I done so, here is what would have happened according to http://fraudo.com/2009/05/21/western-union-uncollected-money/:

"The email has an attachment that is supposed to be an invoice. Instead the attachment infects your PC with a virus that waits for you to use internet banking then steals your password."

So, beware!

Brian

Many years ago, when I landed a coveted sales position at America's leading woman's service magazine, I was positively giddy.  Even though I was fairly young at the time I had made it to the big leagues of the media business.  Despite the challenges ahead, I was confident and maybe, just maybe, I was a little full of myself.  Well, early on, my boss invited himself into a meeting I had set up with a divisional vice president at a very important food advertiser.  The subject of the meeting was how to make more effective use of print advertising and I was ready to hit the ball out of the park.  I told him everything I knew about the subject...in all candor, I did know quite a bit...and thought the meeting was a great success.

During the ride back to NYC my boss asked me how I thought the meeting went.  I said I thought it went well.  He said that I obviously knew a good deal about the subject.  I said, yes, I do, adding that I had made a study of it.  He said, "No one cares about what you think." 

My life was over.  I was dead but my body just hadn't gotten the memo yet.  Little did I know that what he said, which was, at the time, incredibly painful, would turn out to be the most valuable sales and marketing lesson I would ever get.  What he meant was that clients don't care what sales people think.  Sales people are conduits for facts and they [the salespeople] exist to communicate those facts in the context of their [the client's] needs.  Everything else is ego-driven window dressing. 

It was time for me to rethink how I was going to conduct business for the rest of my life.

While that exchange took place many years ago I remain eternally grateful that my boss, who is long gone but hardly forgotten, cared enough to make me a better advocate for my clients' interests.  But, interestingly, his wise counsel, which I have sought to pass on to others along the way, has often been seen as an unnecessary burden.  After all, they argued, developing factual understandings takes work and, in their minds it isn't necessary because clients won't know the difference. 

Perhaps clients won't know the difference, but I will.