Adjusting to market needs

The concept of value was the topic of the hour at an event hosted by Corcoran and Wells Fargo last Thursday afternoon at an estate on Highland Terrace in Bridgehampton.

The estate, a former designer showcase home currently on the market for $16.9 million, provided the backdrop for a gathering of more than 30 Corcoran agents and other local real estate experts as they discussed value, investments and the current state of the housing market on the East End.

Teresa Hall, executive vice president and director of sales at Corcoran, told the brokers and realtors in attendance the word “value” can be difficult to define.

“Value means so many different things to so many different people,” she said. “Value doesn’t only mean money.”

Ms. Hall said value is often best defined by a buyer’s desires. She instructed attendees to think about home sales in terms of what their clients want—not a property’s price tag. “It has to be something that they like, and it has to be something that they want,” she said of homes and prospective buyers on the East End. “If it’s not what they’re looking for, I don’t think they’re going to buy it.”

Christine Curiale, branch manager at Wells Fargo Private Mortgage Banking in Southampton, also stressed the importance of catering to customer’s needs and concerns. In addition, she said buyers should realize that purchasing a home or property is still one of the best investments available.

Ms. Curiale emphasized that real estate investments can still turn large profits. As an example, she estimated that an individual who buys a house in today’s market for $1 million can sell the same property for $1.5 million in five to 10 years.

Rick Hoffman, Corcoran’s regional sales vice president for the East End, concluded the afternoon’s presentations with an update on the current state of the region’s housing market. He said the market has been “very challenging” since September 2007, and acknowledged that recently released numbers from the first two quarters of 2009 have been a cause for concern.

East End median home prices and the volume of sales are down, Mr. Hoffman said, and the number of properties currently on the market is at an all-time high.

Mr. Hoffman reported that only six East End properties valued at more than $10 million have been sold this year, even though there are currently 144 properties for sale in that price range. At the current sales rate, Mr. Hoffman said, it would take 12 years to sell those properties.

Mr. Hoffman also referenced the July 13 edition of Forbes Magazine—which cited Southampton, Bridgehampton, Sagaponack and Amagansett as some of “America’s Most Troubled Luxury Neighborhoods” based on recent sales numbers.

But Mr. Hoffman said these numbers represent an anomaly, stressing that homes with “good value” are still selling. He said Corcoran has seen “an uptick in activity” and that June 2009 was the best month for the company since March 2008.

In the end, Mr. Hoffman reinforced the sentiments of both Ms. Hall and Ms. Curiale, and added that the current market may present the perfect opportunity for buyers looking to make an investment.

“Buyers need to step up to the plate,” he said. “Because they’re in the driver’s seat.”