Archive for December, 2009

December 30, 2009 - What will 2010 Bring to the Hamptons?

Wednesday, December 30th, 2009

The snow has finally melted from the Hamptons! The cold is still here, but at least there is not much snow left.

As I look out the window in my office in Bridgehampton, I am wondering what will happen to the Hamptons real estate market in 2010? The Christmas bonanza has finally ended. The year is at a close and it is now a time to reflect. My mother and I did over $120 millon in sale transactions in 2009. Considering the economic climate, I think that speaks directly to the true uniqueness of the Hamptons market. There were great signs there that the Hamptons real estate market was begining to balance and that 2010 would continue those feelings. The New York Times thought a little different (http://www.nytimes.com/2009/12/30/business/economy/30econ.html?ref=business). When I read these articles though, I don’t believe every word because the Hamptons is such a different market. The Hamptons is it’s own beast. These articles that broadly span the real estate markets across the whole country should not directly correlate what is going on in the Hamptons.

The Hamptons market is it’s own geographic climate all together. It moves different. It reacts different. It most certainly grows different then 98% of the real estate markets in the country.

As I sit here and reflect about 2010, I feel that if the economic calamity of 2009 could not sink the Hamptons real estate market I don’t know if anything can. I am not saying the Hamptons are as vibrant as ever, but I am saying there is something about the Hamptons that makes it special, unique, and a place that will always hold value even while the world is burning around it. That “something” about the Hamptons is tough to pinpoint exactly. It is tough to define. The Hamptons beauty is special. The connection to New York city is special. The embilical cord to Wall Street is special. The celebrities. The beaches. The clubs. All special.

I don’t know exactly where I am going with all this, but I do know I do enjoy working and living in this special place. As I gaze out the window into the cold and crisp December air, a smile is able to creep on my face because I know 2010 cannot possibly be as disheartening and scary as 2009. Maybe it can. I am optimist though and I know once 2010 comes upon us, and the grass eventually turns green again, and the beaches open as winter turns to spring to summer. I have faith the Hamptons will once again show us how special she truly is.

December 23, 2009 - The Epic Snowstorm of 2009

Wednesday, December 23rd, 2009

What am I doing…

I am up early this morning, editing and uploading listings to one of the many websites we advertise on www.luxuryrealestate.com and writing this wonderful blog.

What’s on my mind…

The epic snowstorm of 2009. The many roads of the Hamptons are still a mess. They are a interesting collage of rutted sludge and ice. The mammoth mounds of plowed snow on the either side of the road has turned simple country roads into traffic jams. The snow is rather imposing and the size and mass of the snow mounds has reduced the size of the roads by at least 1/3. This makes for interesting turns as you usually end up facing on coming traffic, before skidding sideways and praying not to end up bumper first into a snow bank. So much for the “quattro track” Audi.

Before this once and a lifetime snowstorm, the Hamptons real estate market was seeing it’s best action in years. November and December are usually quite. This year every broker, including myself was busy. I made more money in the last few months then I did my entire real estate career. My career spans 5 years, but still, I started in a red hot market and still made more money then ever during the last few months of 2009. The Holiday season which usually balloons retail sales actually made it’s way into the Hamptons real estate market for once. This was much different from last year. I was a lot more weary shopping for Christmas gifts. I didn’t know if I’d ever make a good sum of money in real estate again.

My problem with the epic snowstorm of 2009 is…

Ever since the epic snowstorm of 2009 made it’s way up the coast. Ever since that big green and white blob showed up on weather screens up and down the east coast, the Hamptons market has once again returned to it’s traditional form. It is all quiet on the western front. The storm in a way scared people away. They didn’t make their weekend trips to the Hamptons. The storm has even delayed closings. I have a showing on Saturday at one of my listings in Water Mill. The owner, a Miami based developer, refuses to plow his driveway. His exact quote, “has all the snow gone yet?” No, it hasn’t. Not even close. He has no clue. I drove by his road yesterday. The only access into the subdivision is a one way plowed path big enough to fit about one car. I don’t even want to imagine what his driveway looks like or what it would be like to bring a customer over to view the house. That is something out of a real estate nightmare.

“Isn’t this a beautiful house?”

“Now please exit the vehicle and work your way through these 5ft. snow drifts.”

I think I speak for all real estate people when I say, let this snow leave as quickly as it came and lets get back to business.

Life in the eyes of a Hamptons Broker.

-Matt Breitenbach

Market Your Winter Rental As A Getaway

Tuesday, December 15th, 2009

Southampton - Twenty years ago, the roads of the Hamptons in winter were rolled up, and everything seem to shut down. Many restaurants were closed and the only saving grace was that the movie theaters stayed open.

Then, the Hamptons Film Festival came along to help enliven the beautiful fall here. After the horrendous 9/11 disaster in 2001, people began moving out here in the winter to feel safer.

Today, the Hamptons are vibrant in the winter, with more restaurants open, a lively arts scene active year-round, and, thanks to global warming, the weather is moderate often through December.

And so the Hamptons have become a great destination in the winter, and that means opportunities for winter rentals.

“The Hamptons seem to be becoming a winter destination as well as a summer destination,” said Matthew Breitenbach, associate broker for the Corcoran Group. “Christmas and holiday times are a draw, the restaurants have great prix fixes. It’s a lot of fun out here in the winter and it’s good for people to get away.”

Winter rentals in the Hamptons range from $1,500 to $5,000 a month for a moderately-sized house with three bedrooms and two baths, he said. “You get more for your money in the winter,” he added.

Robert Westfall, of East Hampton, is marketing his two-bedroom, one-bath house overlooking Three Mile Harbor as a winter getaway. The winter price, from now through April is $1,600 a month. “It’s really the type of place where one would come and be alone and have a knockout view any time. You can see land, bluffs, water, rare birds, deer. It’s like an ever-changing landscape in the winter. When you come here it almost like taking a pill, you just go ‘ahhh’.”

Westfall said he hasn’t done anything special to the house to make it winter-ready. “I didn’t have to do anything. As soon as you enter the house, it just feels warm. It has a new heating system, new roof, new paint and carpeting. This house would be an ideal winter spot for a writer. Last year, I rented it to an artist - a painter.” The house, at the end of Harborview Lane, off Three-Mile Harbor Road, is listed on hamptonsrentals.com, and the identification number is 295.

The most popular winter rentals are on the water, according to Tom MacNiven, senior managing director of sales, East Hampton Prudential Douglas Elliman Real Estate. “The second [most popular] would be village ‘walk to everything’ homes,” he said. The attraction of winter rentals are the peace and quiet of the Hamptons in the winter. Though there are many things to do, the roads are quieter and the crowds in town minimal. “I’m sure many a novel or screenplay gets written here off-season,” MacNiven said.

If you want to rent your house out in the winter, and market it as a get-a-way, there are many things you can do to get it rented, says Christine Karpinski, director of Owner Community for HomeAway.com (the online vacation home rental marketplace) and author of “How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment.”

“Obviously, more people vacation during peak season,” says Karpinski. “But there are still plenty of people who prefer to travel during the cooler months. Maybe they want to avoid the crowds, maybe they want to take advantage of the lower rates, or maybe they just want a break in the February doldrums. Your mission is to make your vacation home stand out from the many others that are available to potential renters. It’s that simple. You have to go the proverbial extra mile.”

Here are some of Karpinski’s tips for making your vacation property in winter climates appealing:

• First, “winterize” your marketing. It won’t matter how perfect your place is for a mid-winter getaway if people don’t know about it. If you’re like many vacation property owners, you’re already listed on at least one “rent by owner” website like HomeAway.com. Make the most of it. Play up features like hot tubs and fireplaces. Add a few “off-season” photos of your property to your website. Photos of the home framed in brilliant autumn leaves or dusted with snow will speak louder than a thousand poetic words.

• Consider off-season specials. Everyone loves a bargain, and in the winter, they expect one. “My favorite off-season booking magnet is ‘rent three nights and get one free,’” says Karpinski. “Or, when you get a call from someone looking to book for next spring or summer, offer them a winter special-say, half-price off a weekend stay - so they can come and check out the place early. That would be tough to resist.”

• Plan for snow! If guests should happen to get snowed in at your home, you want to make the experience as pleasant as possible. Make sure to have a snow shovel, ice melt, and a windshield ice scraper on the premises. The possibility of inclement weather is a good reason to have a selection of nonperishable foods on hand, as well as movies and books. You certainly don’t want a houseful of hungry, stir-crazy, cranky renters who are cursing their vacation experience (and by association, you)!

• Make your home baby and toddler-friendly. Appeal to people with children by including baby and toddler paraphernalia. A high chair and a portable crib should cost less than $150 combined, and can drastically increase your off-season bookings.

• Accept pets. Vacation properties that accept pets increase their occupancy by 10 percent to 50 percent.

By: Katy Gurly

When you accept pets, it’s okay to take an additional $20 to $25/night or $140 to $175/week. This extra (which pet owners would have to spend anyway on boarding fees) is enough to pay for any carpet cleaning that needs to be done.

Not sold on winter renting? Consider it “damage insurance.” Winter renting can ward off property damage. “I’ve heard stories of locked-up properties that have been ransacked by families of raccoons, and of broken furnaces that have led to burst pipes,” she says. “Houses that are empty for long stretches of time, especially in freezing weather, tend to have problems. If renters had periodically visited such homes, these issues could have been avoided or at least discovered early, before things worsened.”