Dan's Papers - July 3, 2009

It's now the Fourth of July weekend in the Hamptons and the forecast is for great weather. The rainy June actually helped boost real estate traffic, but did not result in a noticeable increase in sales. But the prices of homes finally seem to be stabilizing after coming down from their ambitious historic highs.

Over and over again, one hears that if a home is priced correctly it will sell, but what if that price is lower than what the owner originally paid? The simple truth is the speculator, who was coming out to buy a home, any home, to get his money to out-perform Wall Street is no longer a substantial factor in the market.

In addition, some real estate agents developed bad habits during the go-go days of just a few years ago, and had to go back to basics of knowing the house, listening to the needs of a prospective buyer, evaluating the chances of getting a mortgage, (gone are the days of, "I know somebody who will get you whatever amount you need with no questions") and finally know how to price a home in today's tricky market.

In interviewing many leading real estate icons and agents for many articles during the last year, I observed a few things. First, the agents are working harder than ever for less money. Secondly, they all love the area, and feel the pain of the fallen market, while admitting things did get out of hand. Thirdly, they all have at least one home they're representing that they'd like to buy themselves; (always ask the agent which home it is and take a look - these agents see lots of homes). Fourth, they're probably tired of questions about the bottom as much as they were tired of the question from a few years back, "Are we in the bubble?" Lastly, they are actually a very classy bunch, meaning the firms have done a very good job of recruiting bright talent and have cultivated them into great representatives of the area.

The remarks of so many off the record are funny - and enlightening. The stories of the nightmare buyer or seller are told with emotion but always admitting the occurrences are occupational hazards -speed bumps to very busy days. They are all "people-people," thus serving most of the time as real estate advisors, within the boundaries of the laws, of course. One veteran founder of a leading agency said, candidly, "I feel for today's agent. The hours seem longer when sales aren't happening. A long day becomes very long."

Another agent, who sold his firm a few years back, returned to the business, not as just an agent but by forming a new real estate agency. Obviously this is a case of someone who believes in the long-term future of East End real estate and used his own money to practice what he was preaching. He admits it's tough now, but it's a good time to start up, because he hopes to catch the post bottom bounce.

Almost never were agents too busy or stressed to weigh in on stories when asked, and when it did happen on the rarest of occasions, it had to be understood - after all it's tough to free up time during hay making season.

One thing is a certainty: The best agents call when they say they will, treat everyone as if they are the most important client they have, and do their homework. This market will not sustain the lazy, unreliable slackers who slipped into some firms during the highest pitched moments of the go-go markets. Now, agents know a credible buyer is a valuable thing to nurture, and by taking the small steps of doing their job diligently, the market will solidify.

How can it not come back? The agents represent one of the most incredible places in the universe to live, vacation, visit and own a home -the East End of Long Island.