Penelope Moore Shelter Island Market Reports 2017 and 2016 by Saunders & Associates

SHELTER ISLAND MARKET REPORT August 30th 2018

Labor Day Weekend As the summer 2018 season approaches Labor Day weekend, customers, clients and real estate agents review trends in the real estate market over the prior five months, which are considered the spring and summer selling season. The last two weeks of August through Labor Day are a popular vacation time; clients selling their properties are aiming to receive an offer and agreement; goal oriented customers are submitting offers; customers who are curious about real estate are making appointments to tour, and real estate agents are actively trying to accommodate everyone. This time of year, sellers often have guests in residence or may be renting their homes that are simultaneously listed for sale, and customers are sometimes guests at a Shelter Island home or renting, so scheduling can be tricky. The market up to $999K has been consistently active with turn-key homes and vintage farmhouses being most sought after. In the higher priced inlandhome-with-pool category, up to $1.499M is most active, with move-in ready and staged homes favored. In the waterfront category, properties having a deep water dock or in turn-key condition are leading the pack. In most years, approaching the fourth quarter, sales have been more brisk, although there has been no shortage of offers submitted; In many cases sellers are holding firm to their price. On one hand, customers who spot a property they like proceed to make an offer to purchase it. Others who sit on the sidelines have said, among other things, that they would like to know their "burn rate" at the end of the year, since many deductions have been altered with the new Federal tax reform, or in one instance, that they want to wait for the effects of Mercury and Mars in retrograde to subside. Other recent sales have included: 142G North Ferry Rd - a renovated and expanded 1995 contemporary on creek with dock and obstructed egress, carriage house and pool on one acre, listed 10/8/17 for $2.9M, last listed at $2.25M and sold 7/10/18, the highest sale published to date 80 North Ram Island Drive - a 1967 traditional on 1.56 harborfront acres

originally listed 5/25/16 for $3.25M, last listed at $1.995M, and sold for $1.811M 4 Crab Creek Road - a 1983 renovated and expanded 3,000 sq. ft. ranch on .92 acre with pool and pool cabana listed 4/13/18 for $1.795M, sold 7/25/18 for $1.725M 39 South Midway Road - a 1954 2,200 sq. ft. contemporary on 1.2 pondfront acres listed 3/22/18 for $1.575M and sold 7/13/18 for $1.51M with multiple offers 7 Gazon Road - a 1955 1,901 sq. ft. traditional on 1.55 creekfront acres listed 3/1/17 for $1.6M, last listed at $1.29M, and sold on 8/10/18 for $1.27M 12 Osprey Road - a 2001 post modern with 2,412 sq. ft. on 2 acres listed 6/10/17 for $1.25M, last listed for $999K, sold and closed 8/20/18 for $980K 44 Country Club Drive - a 1982 colonial 2,097 sq. ft. on one acre bordering golf, originally listed 10/5/16 for $985K, last listed at $945K, sold 8/8/18 for $850K The 2018 rental season for the summer was overall successful, with approximately $779K in leases generated by my office. A large portion of the 2018 rental business was signed, sealed and delivered before the 2017 holidays, so Landlords who know their plans for 2019 should update their listings. Labor Day was originally founded to unify workers and reduce long working hours with no time off. Although these issues might seem to have been resolved long ago, this issue is again a topic, not for manufacturing workers but for sometimes highly skilled white-collar workers, many of whom are constantly connected to work. If you are always working, in honor of the original spirit of Labor Day, put away your phone, computer and other electronic devices connecting you to work, go to a barbecue, like the original participants did over a century ago, celebrate having at least one day off from work during the year, and...purchase your own Shelter Island home to enjoy for future Labor Day holidays!

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com | ShelterIslandRealEstate.com

SHELTER ISLAND MARKET REPORT August 16th 2018

Distressed Properties Whenever a "Pre-Foreclosure" property appears online, customers call to ask how quickly they can purchase it - Very often the dollar value shown is what the bank is owed, and not a listing price. A few years ago, a pre-foreclosure property on Further Lane was online for $2M and a customer contacted me, breathless, saying they wanted to buy it right away. His bubble was burst when I explained how the process works. There are several types of distressed properties: Pre-foreclosures - If a mortgage is not paid for three months or so without explanation by the borrower to the lender, the file is moved out of the consumer division to the legal department and goes into "pre-foreclosure" or "lis pendens." Before the recession, there were lending practices by banks that resulted in borrowers having terms that are not widely accepted today. Some homeowners in this situation who have tried to refinance their mortgage without cooperation from their lender cease making payments to the bank, and sometimes work with an attorney to force the lender to renegotiate the terms or allow them to refinance with another bank at more favorable and generally accepted terms. There are also situations where a homeowner has experienced financial complications and simply cannot afford to pay their mortgage provider. They might contact the bank to try and negotiate a payment plan, during which their file in the legal department can languish sometimes for years. Short Sale - These are usually prompted by the homeowner, often when the value of the property drops by 20% or more and the homeowner owes more than the value. They might contact the lender, which obtains an appraisal to verify that the value has dropped, and then the bank agrees to a short sale at a price that is lower than what the homeowner owes on the mortgage. This can be a long process, taking sometimes years, with no guarantees that a sale will actually happen. Bank-Owned Properties - Also known as "REO" or "real estate owned," these are properties that have already been through the foreclosure process, often bought by the bank itself through auction at Town Hall at a price that may include interest, penalties and attorney fees, and is subsequently listed for sale, priced through appraisals and broker price opinions. Over the years, I have worked with all types of distressed properties on Shelter Island, although in the overall picture of the real estate market here, they are few and far between. With bank owned properties, because the bank wants to sell quickly, the listed price is usually attractive, designed to sell immediately. The homes are offered in "as is" condition and sometimes do not have running water,

electric or heating. While some have been occupied in recent years, other houses have sat unused for years, so a careful examination by an inspector or builder is recommended. I have represented bank-owned listings, in one case listing several at one time for one bank, where customers and their agents clamored to win and ultimately purchase the listed home. The bank lays out the ground rules in advance for how they select the buyer and provide applications which usually require customers to present proof of funds. For one particular listing, where there were a half dozen candidates vying for a vintage home, I informed all of the applicants that the bank was looking for a cash transaction only. At the end of the process, the candidate who presented the most information, the strongest credentials and highest offer bought the property, leaving the others who did not win very disappointed. There have been times a property is in "pre-foreclosure" and the seller, perhaps not fully aware of the ramifications of the situation, has listed the home with real estate agents. Once when this occurred, a customer made an offer and the seller was slow to respond. As days became weeks without a counter offer or a reply, the customer became impatient. Finally, the seller said that they could not counter or accept the offer because they did not know what their obligations and final pay-off number would be to the bank. Their loan was being handled by the legal department at the bank and they could not get anyone to respond. In this instance, the seller listed the house for rent instead and the bank eventually auctioned the house. When bank auctions are advertised as the law requires, I often receive calls from investors who attend auctions and are sometimes from out of the area seeking information on the property. Some of them recount their experiences; One described how one bidder won the auction because they brought cashiers' checks and the runner up, although at a higher bid, brought certified checks. There was a bank owned property that I sold which had been boarded up, unoccupied for over a decade. When it was a living and breathing home, I had listed it for the prior owner who had fallen on hard times and had walked away from the property. There was a massive, green wrought-iron chandelier with delicate white porcelain roses in the foyer. When the buyer mentioned they would be discarding it, I said how beautiful it would look with a different color. Many months later, the buyer, now the new owner, invited me to see their renovation. When I walked in the front door, my heart soared as I took in all of the changes. The prior owners would have been overjoyed to see their former home again thriving, with the vision that the new owners brought to it. Hanging from the foyer ceiling, the green iron had been painted black, and the buyer exclaimed "there you go, your chandelier!"

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

ShelterIslandRealEstate.com | PenelopeMoore.com nine grand avenue, shelter island heights â&#x20AC;&#x153;Saunders, A Higher Form of Realty,â&#x20AC;? is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

SHELTER ISLAND MARKET REPORT August 9th 2018

The First Full Week of August The first full week of August saw an increase in activity in the Shelter Island real estate market over all price ranges. Many customers who have been house-hunting for over a year have returned with a goal. In the starter home bracket, one customer this week expressed regret that they had not pulled the trigger on a home they had negotiated and won four years ago but had backed out of after the home inspection revealed the home was not perfect. "Because of less than $5K in repairs on that place, we are now considering houses that are priced $250K higher, in similar condition, and making offers on them," they said. In the waterfront category, the amenities along the shoreline are a draw for customers who continue to look for just the right dock. Boaters have always found Shelter Island unique when compared to other locales, particularly where deep water docks are concerned. This week, several customers, one of whom opened his wallet and showed me a photo of the family boat, came to look at homes with docks, boat houses and guest houses. In the last two weeks, several customers doing 1031 exchanges have been on the hunt for an investment property with a good rental history. Many Shelter Island homes have been rental properties for years, in some cases generations, and those that can show a solid rental history are attractive to prospective buyers looking for an investment and who are in some cases unfamiliar with potential rental income.

Interest rates continue to be historically low, about 4.65% for a 30 year fixed rate mortgage, although the rates are increasing slowly. Several customers who have been in the market a while are hoping to find a property while the rates are still low. Customers renting in another locale, such as New York City, frequently opt for a primary mortgage on their Shelter Island home. There are also other options including mortgages for second home and investment properties that still have good interest rates that are higher than a primary residence mortgage. Customers in a second home market like Shelter Island often search for a property and sometimes make offers before knowing what the mortgage scenario is. There are times they realize, happily, that they can afford to purchase a home priced higher with interest rates still competitive. This past week, new customers ventured into the Shelter Island market through friends, weddings, weekend vacation jaunts and rentals, sometimes not knowing exactly what they want in a home. It is always uplifting to introduce customers who are new to the real estate market to the homes and acreage that are a part of what makes the island so special. Some sellers who have had their properties on the market for more than a few months have re-priced their homes to attract summer customers. With a little more than three weeks left in the summer season, determination is one of the qualities that both sellers and buyers have in common.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

SHELTER ISLAND MARKET REPORT August 2nd 2018

Turnover Week This week was "turnover week" in the rental market on Shelter Island. Many July tenants moved out of rental properties on Sunday, July 29th, two days early, giving Landlords time to reset their rentals for incoming August tenants, many of whom will be arriving on Friday, August 3rd. The island felt unusually quiet this week as a result.

which is full of biting insects. Another tenant complained that the neighbors were having disruptive parties, but later called and said they were a little embarrassed but they had made a mistake; A raccoon had gotten into the rubbish, knocked over the bin, pried off the lid and strewn bottles and cans all over the driveway and must have sounded like a party.

Each rental season has its own stories to tell, and lessons for future seasons. Most of the rentals this year have been without drama, however it is through planning that we always hope to avoid unanticipated problems.

Housekeeping is a big subject with rentals. Most leases call for "professional housekeeping" however there have been occasions when new landlords have done their best to clean their home for a move-in, only to have tenants notice immediately that the house has not been professionally cleaned. Thankfully most of the leases I have worked on have had tenants who have left the house in good order, however there have been occasional hiccups, such as towels stained with self tanner and having to be laundered in bleach three times, hundreds of glitter bits from children's games stuck onto upholstery, requiring lint rollers to remove, thick egg yolk on cashmere throws, or popcorn scattered under all of the living room furniture. One landlord lamented red wine and charcoal stains on delicate finger towels that the tenant said they had mistakenly used as dinner napkins outdoors for a barbecue. I recommended to a landlord that they offer black washcloths. At the end of the season, the landlord told me that the black washcloths were still in the linen closet and they had to throw out the white ones which had been permanently stained with makeup.

For each rental, we do two walk-through's, one before the tenant takes possession at the outset of the lease and one at the end of the lease. We advise the Landlord that the initial walk through is to observe the overall condition and cleanliness of the home, and the final walk through is to ensure that the tenant has vacated the premises, with no obvious damage. No one knows a home as well as an owner, so we recommend that the owner does their own final inspection. The majority of leases have a move in and move out time, particularly properties that have another tenant moving in after the first moves out. There have been times that tenants are having such a good vacation, they forget the day and time they are scheduled to move out. Once, I went to a rental to do the final inspection, giving a 5-hour cushion for the tenants to vacate, and found them sitting down to dinner thinking the lease was to end the next day. As a result, we send reminders a day in advance to tenants that the lease is coming to a close. There are times the tenant and the landlord have agreed to extend the lease by another night or two, but have forgotten to tell the agent. Once, I went to conduct a final walk through and the tenant advised me that they had spoken with the landlord and that they were permitted to stay another night. When I contacted the landlord to confirm, the landlord said they had never spoken with the tenant. Many tenants come to Shelter Island from other parts of the country and the world, and are unfamiliar with wildlife that is commonplace here. One tenant was alarmed to find animal refuse on steps to the dock, and presumed the culprits were a pack of neighborhood dogs on the loose and roaming the property, when it was in fact raccoons. Another tenant insisted that the rental had insects in the bedding, however the mystery was solved when they mentioned that they had been on the beach and had laid in the seaweed,

This season, more landlords met tenants at the property and showed them how to use the equipment than has been the case in the past. I always feel that this is a good idea because tenants see the owner of the property and are mindful that it is the owner's home, rather than a hotel, and they don't have to guess at how to use thermostats and pool equipment. Distribution of keys and collecting them at the end of the season is also intricate. We aim to meet tenants and give them keys, which we attach to a Shelter Island key chain with a reference number on the tag. At the end of the stay, there is a drop box for return. This year, several tenants took the Shelter Island key fob as a souvenir and dropped the key without its reference number in the box. Tenants can sometimes become buyers and often tour properties to see what the real estate market is like. During the last weekend of July, many tenants interested in possibly purchasing a home scrambled to see every property that might fit their needs. With August tenants now arriving, sellers can look forward to a fresh group of possible buyers.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island

MARKET REPORT July 26th 2018

The Second Half of July In the Shelter Island real estate market, the second half of July brought with it more tour activity, an increase in the number of offers made on active listings, new listings coming to the market, and more requests from homeowners for an analysis of the value of their property with a thought toward selling. Over a period of three days, I had four tours that featured nearly 30 properties, ranging from vacant land to homes from around $700K to $4.9M. Simultaneously, cooperating brokers showed my exclusive listings to their customers.

manner that is informative, rather than sounding like a recitation of a laundry list or a lecture. There are times I might have an exclusive listing that a cooperating broker wants to show and they know it well – it might have been a rental in the past, for example – and I will ask if they prefer to lead the tour. I then listen for details they might have missed and add them in a supportive manner so I get all of my points across, without having the other broker "lose face." When there are real estate agents who are new to the business, I will tell them, "just bring the customer and I will do all of the talking about the property."

During the busiest times of the selling season, intricate coordination is required scheduling appointments with sellers and tenants in residence at the properties, especially on weekends. It encompasses showings for my customers wanting to see properties listed with our office and properties listed with other agencies, and also includes scheduling for real estate agents wanting to show their customers our exclusive listings.

When the roles are reversed and I am showing another real estate agent's listing, very often the same courtesies are extended, with the listing agent asking if I'd like to take the lead. There have been times when listing agents are so friendly with my customers on a tour, that the entire timetable gets delayed and sellers, tenants and other brokers whose listings are being shown next need to be contacted that the tour is running behind schedule.

In the not so distant past, customers would describe their search criteria to their real estate agent who, based on their knowledge of the listings, the market, and the customers' targeted price range, selected homes that best suited the customers' criteria. With the advent of real estate websites, customers now often select the properties they want to see, often a diverse selection, far from the original search criteria. This approach can often be constructive, as customers then learn what is available in the market, how properties are priced, and as homes are sold, they can get a helpful historic frame of reference, learning the final selling price of a house they had toured.

When I worked in Manhattan in commercial real estate and the market was riding high, it was often difficult to gain access to the best offerings or get calls returned because everyone was clamoring to bring their customers. When the market was in a lull, the Landlords of course reached out to encourage showings. This can happen out here in residential real estate; I recall in 2006 at the top of the market a real estate agent had a plum listing that was all but inaccessible to other brokers and cautioned that if anyone set foot on the property, the police would be notified. Fortunately, nowadays there is enough business to go around and real estate agents who focus on their work can do well.

Most customers who have been out searching in the market can have a good sense of whether a property is a good fit within 15 minutes of setting foot in a home. With this in mind, on my listings, I prepare the home so that the first impression is lasting and positive, hopefully leading to a second visit and an offer. While we all work in the same profession and follow the same regulations that are set forth by New York State, each real estate agent has their own way of communicating the best features of a home to the customer, based on the criteria and goals. Some properties are so detailed that I try to present the features in a

Most often on Shelter Island, agents do their best to accommodate everyone with appointments. Although we work at different agencies, many of us have known each other for 20+/- years, and outside of work have broken bread at a dinner table, and have been to weddings, christenings, graduations and funerals together. During open houses or before or after appointments, we frequently share perspectives on the market and give each other pointers. In an industry that can sometimes be viewed as overly competitive, on Shelter Island there is a camaraderie among real estate agents that is reflective of the community we share.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

ShelterIslandRealEstate.com | PenelopeMoore.com nine grand avenue, shelter island heights “Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

Shelter Island

MARKET REPORT July 12th 2018

The statistics for properties sold during the first six months of 2018 are starting to take shape. Closings are reported to Suffolk County which reports the numbers to the Town. Because there are delays between actual closings and when each Town receives the information, a combination of our own database, used throughout the East End of Long Island, and County and Shelter Island Town reports are what I refer to for insight to the numbers. As closings continue to be reported, final numbers will likely not be complete until later this month, however here is the real time snapshot comparing 2017 to 2018 year-to-date:

16 Westmoreland Drive, a 5 bedroom, 3 bath cape built in 1965 on 1.07 acres with pool on bayfront, listed 9/20/13 for $2.75m, last listed at $1.95M, sold for $1.715M on 5/6/18

Period 1/1/18 – 7/10/18 1/1/17 – 7/13/17

1 Sandpiper Road, a 4 bedroom, 3.5 bath traditional built in 1967 on 1.1 acres with pool, listed 5/10/17 for $1.4M, sold for $1.275M on 2/15/18

# of Sales 28 21

Total Sold 27,220,350 26,215,000

Median Price $942,500 $925,000

In 2018, the highest sale year to date has been $1,950,000 while in 2017, the highest sale for the same time frame was $4,504,500. In contract and waiting to close are 8 transactions totaling $11,595,000 based on last asking price. Several transactions, when sold and closed, will provide a solid foundation to the market with strong numbers. The 4th of July holiday week was active in our real estate market, with showings in all price ranges. Customers included those just entering the market and others who have been on the hunt for an extended period of time and who have just re-invigorated their home search. As expected, 4th of July having landed on a Wednesday, offered both sellers and buyers ten days of overlapping long weekends with good weather. After a long winter and a spring filled with inclement weather, everyone welcomed the first real glimpse of summer and the return of an active real estate market. The inventory continues to be light in every price category from starter homes to estate homes, but also provide excellent opportunities for buyers. During the first half of 2018, the lowest price home sold was $600K with 5 sales from $600K to $700K; 3 homes from $849K to $885K; 5 homes from $940K to $999K; 5 homes from $1.050M to $1.3M and 3 waterfront homes: $1.715M and two at $1.95M were at the top. The statistics for the first half of 2018 point to more transactions being completed at lower price points than for the same time frame in 2017, however summer and autumn in the last three years have been periods where higher priced sales have transpired.

4 Simpson Avenue, a 3 bedroom, 2.5 bath renovated farmhouse built in 1935 on .53 acre listed 9/30/17 for $1.395M, sold for $1.3M on 1/10/18 4 Winthrop Road, a 6 bedroom, 3.5 bath farmhouse built in 1950 on .37 acre with pool, listed 2/15/18 for $1.395M, sold for $1.2M on 4/12/18

157 North Ferry Road, a 5 bedroom, 3 bath Victorian built in 1900 on 1.74 acres comprised of two lots, one creekfront, listed 5/13/17 for $1.25M, sold for $995K on 5/8/18. The .83 acre creekfront has been re-listed by the buyer for $835K. 2 Margarets Drive, a 4 bedroom, 2.5 bath contemporary built in 1987 on .98 acre with deeded water rights and pool, listed 4/2/18 and sold 6/22/18 for $1.055M 20 Terry Drive, a 4 bedroom, 2 bath contemporary built in 1984 on .52 acre with deeded beach rights and pool, listed 7/14/16 for $875K, sold for $885K on 6/25/18 143 North Ferry Road, a 4 bedroom, 1.5 bath farmhouse built in 1893 on .47 acre, listed 7/4/16 for $795K, sold for $600K on 3/1/18 12 North Menantic Road, vacant land, 11.7 acres, listed 8/12/17 for $2.135M, sold for $1.575M on 6/1/18 6 Lord's Lane, vacant land, 2.2 acres creekfront with dock, listed 4/15/16 for $1.58M, sold for $1.1M, on 6/27/18 4 Oxford Avenue, vacant land in the Heights, .37 acre listed 7/9/17 for $485K, sold for $400K on 1/8/18 47 Lake Drive, vacant land, 1.2 acres listed 11/10/16 for $469K, sold for $445K on 1/31/18

Vacant land has been an option to buyers who had been looking for a home and decided to build their own.

17 North Midway Road, vacant land, 1.01 acres listed 5/10/17 for $395K, sold for $345K on 6/18/18

Here are some highlights of sales from the first half of 2018

For every offer that has been negotiated, agreed upon and has gone to contract, there have been many more offers that have not resulted in a handshake between buyers and sellers. With the coming of summer weather, enthusiastic buyers are aiming to invest on Shelter Island. Sellers who have prepared their properties to show for the selling season are receptive to an agreement and going to the closing table.

14 Peconic Avenue, a 3 bedroom, 2 bath ranch built in 1959 on .5 acre with pool on creekfront, listed 8/23/17 for $2.1M, sold for $1.95M on 6/27/18 68 Peconic Avenue, a 3 bedroom, 2.5 bath ranch built in 1954 on .74 acre with pool on soundfront, listed 6/12/17 for $3.125M, last listed at $2.75M, sold for $1.95M on 6/10/18

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

shelter island market report Week of July 4th

How Brokers Work Together By Penelope Moore

Licensed Associate Real Estate Broker

One of the questions both sellers and buyers often ask is: how do real estate brokers work together to sell properties? The process on the East End of Long Island, and even more so on Shelter Island, is different from other areas in New York State and indeed throughout the country. In New York State, most properties listed for sale are offered on an exclusive basis, where one agent at a brokerage works with a seller on marketing strategies, presents the nuances of a property to other brokers, and among other duties, negotiates offers and guides the post-accepted offer process to closing. On the East End, there are several types of listings that are unusual in the industry: •

•

"Co-Exclusives,” which came on the scene in the late 1990s, are a result of sellers not being able to decide on a broker with whom to list. These are listings that have two different agents from two different brokerages marketing and negotiating offers for one seller. In a perfect world, this approach would work, however more often than not, agents being individuals with their own methodology and recipe for success, do not work the same way. Frequently either one agent winds up taking the lead or the agents communicate different strategies that can sometimes confuse the seller. "Open Listings" are those given to every agency on a non-exclusive basis. Most sellers who choose this route believe that every broker will get a fair chance at achieving the sale. Many agencies will focus on the listing, when the property criteria matches the requirement of a customer they are working with.

agencies use to share their exclusive listings with over 40 real estate agencies. The agencies subscribing to this system do not necessarily need to be members of the National Association of Realtors, a trade association--members of which are called "Realtors." Through OREX, information is also shared to other non-OREX agencies so that the latter may send updated information to their customers. On the North Fork and west of the Shinnecock Canal, the Long Island Board of Realtors is the predominant multiple listing service or “MLS”. As with OREX, the listing is shared so that other brokers may introduce a property to their customers. Agencies subscribing to this service are required to be members of the National Association of Realtors and information is not shared with other agencies who are not a part of the Long Island Board of Realtors. Prior to an automated multiple listing service on the East End, exclusives were shared via "co-broke agreements," which were then physically handed to agents who attended a broker's open house for their exclusive listing. On Shelter Island, agencies share listings in a variety of methods: Two agencies provide each agent with their own access to OREX multiple listing service. Another agency is on Long Island’s MLS and has one user on OREX to update listings. The balance of Shelter Island agencies share their exclusives the old-fashioned way. Saunders & Associates is on OREX, NY State MLS and a member of the Long Island Board of Realtors. With so many methods, it is incumbent on a real estate agent to stay in touch with those agencies that do not work electronically for price updates and modifications to the listing. For listing brokers who are not a part of a multiple listing service, it is equally important to keep others in the loop with their exclusives.

Cooperating Brokerage:

The majority of real estate agencies on Shelter Island are not members of the National Association of Realtors, but work under the laws of New York State, as all NY real estate agents and brokers do.

"Co-Brokes" are exclusive listings that are shared by the listing agency with "cooperating brokers" to help him or her sell the property to the cooperating broker's customers.

To the seller, sharing listings with other real estate agencies is crucial for the exposure and sale of the property. To the buyer, having up-to-date information is important for use of time and knowledge of the market.

On the South Fork and Shelter Island, the OREX or Open Real Estate Exchange is the predominant multiple listing service or “MLS” that most

When real estate brokers work together “in harmony” it's a "win-win" situation for everyone.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

S hel t e r I sl a n d

MARKET REPORT

Week of July 4th

JULY 4 TH WEEK By Penelope Moore Licensed Associate Real Estate Broker

By Penelope Moore Licensed Associate Real Estate Broker

Over 4th of July this year, there are two opportunities for vacationers since the holiday falls on a Wednesday: a long weekend beginning Friday June 29th or a long weekend beginning Tuesday July 3rd. Either way, the calendar translates to a promising real estate week ahead for both sellers and buyers. On the sales end, customers have been methodical in their search, in many cases planning around the weather forecast and family holiday celebrations which include graduations, Mothers' and Fathers' Days. As was the case in 2017, spring this year has been rainy and on the chilly side, not conducive to a happy day of real estate tours for some customers, especially those with young children. In 2016, the first sunny and warm weekend occurred over July 4th. This season, many determined buyers who braved the inclement weather and trudged through rain and mud, found the home they were searching for. Recently, at the final walk through before a closing, the first-time home buyers appeared in colorful, light summer clothing. I marveled "this is the first time we've seen each other in warm weather clothes under blue skies!" With a series of starts and pauses, the spring to beginning of summer selling season has been one for the focused, both for sellers and buyers. For every listing sold, there have been many offers that never came together; some incredibly decent offers and others, offers which sellers determined to be too low to consider. Unlike a primary home real estate market, sellers in a second home market often say they do not necessarily need to sell, and buyers often say they can purchase at any time. There are several transactions in contract that, when closed, will point to a rising market. Many customers prefer touring vacant land during the winter and spring because the contours are more easily discernible and there is less brush to wade through. Acreage sales did well in June – coincidentally, the highlighted properties are all located close to one another.

– 17 North Midway Road, one acre bordering the former Hampshire Farms, listed 5/10/17 at $395K, last listed at $350K, sold for $345K on 6/18/18 – 6 Lords' Lane, 2.2 acres on an inlet of West Neck Creek with dock, listed 4/15/16 for $1.58M, last listed at $1.45M, sold for $1.1M on 6/25/18 – 12 North Menantic Rd, 11.7 acres bordering the former Hampshire Farms, listed 8/12/17 for $2.135M sold for $1.575M on 6/1/18 Water conservation has been an ongoing topic at Town Board meetings, particularly since Community Preservation Trust funds, derived from the 2% transfer tax a buyer pays upon purchasing a property, can now be used toward water conservation. Board members have conferred with the Town's Water Advisory Committee and are considering mandatory septic upgrades for homeowners looking to sell their properties. A customer, seeing the June 19th meeting on Channel 22, reported that they are relieved, as it would be one less renovation expense. I asked the opinion of several clients I am working with, who expressed that it would be a hardship to take on a project of this magnitude and expense. They also questioned how much time an upgrade, and possible Town approval might add to the process of selling their house. Undoubtedly, all Shelter Islanders view water quality and conservation as an important topic, however many selling a home cannot afford to upgrade septic systems in order to transfer their property. Many tenants moved into rental properties over the last couple of weeks, and happily, all have gone well. Organized landlords, who scrutinize rooms for cleanliness, leave detailed instructions, and have responsive vendors to care for their homes, are indeed a gift. There are still many incredible rentals available for all time frames, with organized Landlords who are ready for the next tenant.

Penelope Moore Licensed Associate Real Estate Broker

RANKED AMONG THE TOP .5% OF REAL ESTATE PROFESSIONALS by The Wall Street Journal, Real Trends 2017

Cell: (917)

208-5519 | PMoore@Saunders.com | ShelterIslandRealEstate.com | PenelopeMoore.com

nine grand avenue, shelter island heights |

(631) 749-2300

“Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

SHELTER ISLAND MARKET REPORT – June 21st, 2018 –

LIFE-LONG LESSONS LEARNED THROUGH A SUMMER OF INTERNSHIP By Penelope Moore Licensed Associate Real Estate Broker With graduations in full swing and vacation starting for kids in school, my thoughts wander back to summer breaks when I was in school, growing up in Washington DC. My family encouraged my sisters and me to have scheduled summer activities, lest we lounge around for three months. So whether it was selling lemonade, organizing a fan club for our family cat then designing and selling fan club t-shirts (family and close friends were the only members), or mowing lawns, my sisters and I had enterprises each summer vacation.

While I felt sometimes like an outsider because of the age difference, I observed the adults around me, their camaraderie and dedication to a common goal. Everyone there loved movies and wanted to preserve them. There were occasional flaps between departments and the hierarchy, but after work everyone got on the same elevator together, all smiles. In the evenings I went to the theater to see the programs that I had participated in promoting. To see the final, successful outcome made me proud of my new colleagues, and also of my own efforts.

In high school, I ventured beyond the confines of the neighborhood to find something more exciting to do. After applying to an urban youth employment program, I was disappointed at being placed in a position at a photocopy center in a dicey part of town. When the job counselor checked in, I expressed wanting to find something more challenging. She said if I could find a job I liked, she would make sure I was paid.

As I became acclimated at the American Film Institute, I wandered through the tunnels in The Kennedy Center in search of other things to do. I had noticed when reading the program for the American Ballet Theater that the wardrobe mistress was Japanese, so I introduced myself to her, saying I was half-Japanese and loved ballet, and asked her if I might volunteer to iron or steam costumes, and later, I became an usher at the two halls.

Throughout the school year, I would walk after class to attend shows at the Kennedy Center and films at the American Film Institute, which was situated in the same building. With my schedule of sometimes 18 films and shows a week, the price of tickets quickly mounted, so having a job there would mean not having to pay for admission. Both organizations rarely had positions available, and were not particularly interested in paying an unskilled high school student like me looking for summer work.

Once the summer was over, I was offered entry level salaries at both the AFI and the Kennedy Center for after school and weekend work. My attention favored my activities there, and as a result school studies took a back seat. In retrospect, I was fortunate to be in a school that offered euclidian geometry, acoustics learned through laying out your own fret-board and building a dulcimer from plywood, competition sentence diagramming and translating the Gallic Wars from Latin on sight. It was, however, not easy to do homework at the canteen next to the dressing rooms, with Baryshnikov, Aretha Franklin or Jack Nicholson, among others, strolling in for a vending machine sandwich. My headmaster in school, who I admired, and with whom I had stayed in touch in recent years, encouraged my after-school interests. His passing just a few weeks ago at the age of 94 felt like the loss of a close relative.

I looked up the name of the person in charge, borrowed a blazer from my mother's closet, and made a trip to the reception desk at AFI, where I asked to see the manager. When asked what it was in reference to, I quickly replied, "the internship program." The manager came out a few minutes later, scratching his head, and said they did not have a program like this. When I asked "what if you did?" he invited me into the screening room to talk. I explained that I could help his staff with whatever office tasks were needed and it wouldn't cost them a cent. I gave him my job counselor's name and phone number, and the next day I was working at the AFI. Each day was filled with new assignments in different departments. Although I was painfully shy, I mustered up the courage to walk down the corridor and ask who needed assistance. Different departments would request me, and expressed such appreciation that I was motivated to do a better job. On one day, I would spend hours in a windowless conference room proofreading galleys with an associate editor for American Film magazine. On another, I was asked to catalog a vast library of images. Their public relations department always had deadlines, and the easy-going department head, Gary, explained new things in a simple way and had a great sense of humor. His assistant taught me how to organize sometimes complicated projects, and no matter how stressful, she always maintained her composure. Much of the work entailed press packets, putting together and distributing news clippings and typing press releases. Gary taught me how he structured a press release, something I still use in my work today.

There was a 40th anniversary reunion of AFI employees recently, and for a few hours, it was as though I had been transported back to the 1970s. Through the years, I have recollected my colleagues through the eyes of a teenager, and realize now that these were accurate impressions. I am grateful for the lifelong friendships with positive people who were passionate about their work and generous of heart to a high school intern. An intern whose college studies center on real estate and business is working in my Shelter Island office this summer. I hope I can share in a constructive way some of the valuable tools I was taught when I entered the workforce. Wildlife around us is a part of our island and a gift. Turtles of all kinds venture across our roads, often to lay eggs. This past week on New York Avenue, I stopped to help a painted turtle crossing the road from the Ice Pond, only to have a truck pass my car over double yellow lines and run over the rear of the turtle, crushing its back but not killing it. Turtle Rescue of the Hamptons alerted North Fork Animal Hospital, which was was thankfully open. They euthanized the little creature, who had its head extended and was trying to walk, seeming to not realize it had been injured. Please drive carefully and give our wildlife a brake.

Penelope Moore Licensed Associate Real Estate Broker

RANKED AMONG THE TOP .5% OF REAL ESTATE PROFESSIONALS by The Wall Street Journal, Real Trends 2017

Cell: (917)

208-5519 | PMoore@Saunders.com | ShelterIslandRealEstate.com | PenelopeMoore.com

nine grand avenue, shelter island heights |

(631) 749-2300

“Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

SHELTER ISLAND MARKET REPORT – June 14th, 2018 –

SHELTER ISLAND & THE LOCAL ECONOMY By Penelope Moore Licensed Associate Real Estate Broker The biggest news this week on Shelter Island was the scheduled closing of the local Chase Bank branch at 48 North Ferry Road at the end of this September. The Shelter Island branch of Capital One, which had been located at 29 West Neck Road, closed about a year ago. These two corporate banking institutions exiting Shelter Island would leave just one bank standing here, East End based Bridgehampton National Bank, at 21 North Ferry Road.

$974K and sold in 2017 for $715K, $259K less than its assessed value, and its current property taxes are $5,809.66 a year. The Bridgehampton National Bank rents its space from an owner with deep roots on Shelter Island, who bought 21 North Ferry Road in 2017 for $1.25M, and is also reportedly the new owner of the Capital One site. The proposed 2018 assessed value for 21 North Ferry Road is $1.273M, an $11,515 increase over 2017.

At the Shelter Island Town Board meeting this week, Town Supervisor Gary Gerth said “it is a shock to all of us…a blow to the island…Probably someone out in the Midwest has just decided to cross us off.” Gerth will be meeting with Congressman Lee Zeldin on Jun 20th to ask for suggestions on how to keep Chase Bank on Shelter Island. “We have [a large] senior citizen population… they’re in there getting their checks cashed, it would be a terrible setback for our seniors who depend on this branch.” Gerth added that he would like to have a representative from Chase “come here and address the community.”

Members of the Town Board agree that online banking is likely taking the place of brick and mortar consumer services and a small town like Shelter Island may not have the revenue stream that off island branches might bring. Town Board Member Paul Sheppard added that the banking industry “has been consolidating, one bank buys another…this downsizing and cost containment, after a while it becomes an obsession. Management pats itself on the back every time they kill a branch that wasn’t bringing in X amount of dollars…I don’t know what we can do to defend ourselves, I don’t know what Mr. Zeldin has in his hat.”

Town Board Member Jim Colligan said it’s a “prime spot in the middle of town, used…heavily throughout the summer and throughout the year. We’re dependent on them here, [within] close proximity to Town Hall. It’s not for a lack of people…so hopefully they will reconsider that decision and decide to stay. It would be a big loss…People who visit the island who are looking for a little extra cash...if they run low, having that ATM right there, to be able to go to [for] spending money here on the island is nice. Without that ATM, people cut back. It’s a lose-lose situation if they leave.” A client whose property had been a short term rental home said “the Town needs to decide if they want to welcome corporations and businesses that support the local economy or if they want to, as they say, ‘keep things the way they used to be in the old days.’ The local government doesn't exactly embrace change. I think there is something in the Town Code that a franchise cannot have a business here. Tourism is what floats the economy on the island, but when you see corporate banks leaving, that’s a wake-up call for the Town to come up with some new ideas to attract businesses to invest in our community.” Another client who has a local business said that with the advent of Airbnbtype rentals, there are fewer affordable housing opportunities that has an affect on the economy. “Many locals have moved off the island and it’s a challenge finding year-round help. I can understand banks like Capital One and Chase leaving because, like the rest of the local businesses, most of the traffic is in the summertime. If you drive down Rte 114, there are so many commercial buildings that have been vacant for years. The Town should seriously start to come up with both affordable housing plans and ways to encourage businesses to invest here and support the local economy year around, the way Riverhead has done on their Main Street.” Both Chase and Capital One properties are/were property owners and not leased by them. The Shelter Island Town Assessment for the Chase Bank property is $623K with an increase of $25K from 2017 to 2018, and its property taxes are currently $3,568 a year. The Capital One bank property had been assessed at

In an October 18, 2017 article by Brian Alexander in The Atlantic, “What America is Losing as It's Small Towns Struggle,” Patrick Carr, co-author of the book “Hollowing Out the Middle: The Rural Brain Drain and What it Means for America,” says that the country has become an “increasingly urban nation” but he is “optimistic about efforts to support the nation’s smaller places. There’s been a recognition that communities must adapt or die.” Different regions have begun a variety of “rejuvenation tactics” to encourage young people to remain within the community including college prep and vocational. Educational and civic jurisdictions are pooling resources and asking employers for input about their needs. In the same article, Steven Conn, an urban and intellectual historian at Miami University said that for these initiatives to succeed, open mindedness is key. “Immigrants can boost local economies; small towns should welcome them, not oppose them. Government is not the enemy of small towns, but small towns have grown to distrust government at all levels…Today many small towns rely heavily on state and federal money to keep their economies afloat...There is a sense of place that is at risk of being lost." Conn believes that the antithesis to a small community may not be the big city but "a kind of alienated suburb that is the alternative to life in a small town or urban neighborhood. We are a nation of Walmart shoppers quickly becoming a nation of Amazon shoppers." “[A] village [is] too small a unit to fulfill the destinies of human society,” Arthur Morgan wrote in an essay in The Atlantic in February 1942. “The United States needs its cities,” writes Alexander, “but it needs its small towns and rural areas too.” Our office is one of the sponsors of the 39th Annual Shelter Island 10k Run, which is this Saturday and which brings thousands of runners to the island each year. Let's get out there and support this wonderful annual event – its mission is to provide funds to our communities' youth, adults and seniors through education and services.

Penelope Moore Licensed Associate Real Estate Broker

RANKED AMONG THE TOP .5% OF REAL ESTATE PROFESSIONALS by The Wall Street Journal, Real Trends 2017

Cell: (917)

208-5519 | PMoore@Saunders.com | ShelterIslandRealEstate.com | PenelopeMoore.com

nine grand avenue, shelter island heights |

(631) 749-2300

“Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

Shelter Island Market Report – June, 2018 –

Real Estate and a Code of Ethics By Penelope Moore

Licensed Associate Real Estate Broker

Many people I work with are not familiar with The Code of Ethics, first formed in 1858 in Baltimore by the nation’s oldest local real estate board. Real estate professionals are given important responsibilities in their work with Buyers and Sellers. The Code of Ethics was adopted by the National Association of Realtors. It serves as the “Golden Rule” for its members, called “Realtors,” when working with the general public. Not all real estate licensees are Realtors, although many mistakenly use the term synonymously. There are presently more than 1.84 million active licensed real estate professionals in the United States of which 1 million are Realtors. On Shelter Island, only two agencies, my office and one other agency, are Realtors. As a living and breathing Standard of Practice, it continues to be amended. Comprised of 17 Articles of Conduct, it includes “Duties to the Public,” “Duties to Clients and Customers” and “Duties to Realtors.” According to the National Association of Realtors, “the term ‘Realtor’ has come to connote competency, fairness and high integrity – dedication to a lofty ideal of moral conduct in business relations. No inducement of profit and no instructions from clients can ever justify departure from this ideal.” 1. Protect and promote your client’s interests, but be honest with all parties 2. Avoid exaggeration, misrepresentation, concealment of pertinent facts and respect confidences under the scope of your agency relationship 3. Cooperate with other real estate professionals to advance your client’s best interests 4. When buying or selling, make your position in the transaction or interest known 5. Disclose present or contemplated interest in any property to all parties 6. Avoid side deals without your client’s informed consent 7. Accept compensation from only one party, except with full disclosure and informed consent 8. Keep the funds of clients and customers in escrow 9. Assure, whenever possible, that transactional details are in writing 10. Provide equal service to all clients and customers 11. Be knowledgeable and competent in the fields of practice in which you ordinarily engage. Obtain assistance or disclose lack of experience if necessary 12. Present a true picture in your advertising and other public representations 13. Do not engage in the unauthorized practice of law 14. Be a willing participant in Code enforcement procedures 15. Ensure that your comments about other real estate professionals are truthful and not misleading 16. Respect the exclusive representation or exclusive brokerage relationship agreements that other Realtors have with their clients 17. Arbitrate contractual and specific non-contractual disputes with other Realtors and with your clients As the President of the National Association of Realtors said, “As the leading advocate for homeowners and real estate investors, Realtors have been subscribing to NAR’s strict Code of Ethics as a condition of membership for more than 100 years; the code separates them from other real estate licensees. Protecting the interests of consumers demands high standards of professional conduct and training…Through the Code of Ethics Realtors are providing consumers with a promise to protect and promote their best interests throughout the entire home buying, selling or investment process.”

Penelope Moore Licensed Associate Real Estate Broker

RANKED AMONG THE TOP .5% OF REAL ESTATE PROFESSIONALS by The Wall Street Journal, Real Trends 2017

Cell: (917)

208-5519 | PMoore@Saunders.com | ShelterIslandRealEstate.com | PenelopeMoore.com

nine grand avenue, shelter island heights |

(631) 749-2300

“Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

Memorial Day Weekend Market Report – May, 2018 –

By Penelope Moore Licensed Associate Real Estate Broker

As we approach the first big holiday weekend of the summer season, having experienced overcast and rainy days with a smattering of sunshine in between, the foliage has finally given Shelter Island the gift of a green canopy with an abundance of colorful shrubs in full blossom. As vacationers disembark the ferries, Shelter Island will welcome them with a full, beautiful glow of nature, as though time has stood still since Labor Day 2017. The real estate market has been on the upswing, with starts and stops, seemingly revolving around the weather forecast. Showings of properties on the market for sale up to around $1M continue to be most popular, with limited inventory. For homeowners with properties in this price range who might be contemplating selling, now is an ideal time to list. Inland homes between $1M and around $2M, particularly homes that are turnkey and have a pool, or are vintage homes, have experienced good traffic and offers, with a healthy number of listings currently in contract. Waterfront homes, spanning from the most simple cottage to estate quality, have had showings, interest and offers. With the summer season days away, many sellers are holding firm to their numbers. The rental market, always evolving through customer shopping habits, technology and Town regulations, has been steady since the autumn of 2017. Prospective tenants seem to come in waves. The first wave in the autumn are frequently those who missed out on a rental and are determined to have their pick before anyone else. The next are customers who come out during the winter holiday season, know their summer plans, and are methodical in their search. Those who search around Easter are often shopping for a home to purchase, have not found their ideal, and are prepared to rent in the interim. The customers who are realizing that summer is imminent are now making decisions. Each year, shorter term rentals are more requested, though there continue to be a fair number of full season, two month and monthly rentals. The Town of Shelter Island, like several other East End towns, has a short term rental regulation. Unlike other towns, the Shelter Island regulation can be confusing to both homeowners and prospective tenants. Several real estate agencies on the island no longer do sight-unseen rentals and others have a minimum rent threshold.

Memorial Day, created after the Civil War to honor military service members, first responders and their families as they gave their ultimate sacrifice to their country. Shelter Island remembers its own in a Memorial Day parade, rain or shine, a time to honor and celebrate the valiant.

Penelope Moore Licensed Associate Real Estate Broker

RANKED AMONG THE TOP .5% OF REAL ESTATE PROFESSIONALS by The Wall Street Journal, Real Trends 2017

Cell: (917)

208-5519 | PMoore@Saunders.com | ShelterIslandRealEstate.com | PenelopeMoore.com

nine grand avenue, shelter island heights |

(631) 749-2300

“Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

SHELTER ISLAND MARKET REPORT Shelter Island 4th Quarter and 2017 Statistics By Penelope Moore

Licensed Associate Real Estate Broker

The 2017 statistics paint a favorable portrait of the Shelter Island real estate market with 62 transactions totaling $123,636,299 and a median price of $852,500, representing a 2.08% increase to the 2016 annual total of $121,106,996.

•

142H North Ferry Road – listed 4/14/14 for $1.655M, last listed at $1.45M, sold 11/10/17 for $1.325M

•

171D North Ferry Road – listed 8/11/17 for $1.35M, sold 12/29/17 for $1.3M

Because of the time it takes the County to record sold transactions, many entities that report on sales statistics often do so with incomplete information, which can confuse buyers and sellers. The good news is that Shelter Island real estate is doing well.

•

29A Osprey Road – listed 6/16/14 for $1.2m, sold 12/8/17 for $999,999

•

63 North Menantic Road – listed 7/20/17 for $1.095M, sold 11/15/17 for $965K

Like 2016 and 2017, 4th quarter 2017 sales were strong with 31 transactions totaling $50,916,799 – 17 inland home sales of $16,900,899, waterfront sales of $31.865M and vacant land sales of $2,150,900.

•

43 Brander Parkway – listed 2/29/16 for $875K removed from the market and sold 11/17/17 for $880K

•

17 Dinah Rock Road – listed 3/7/16 for $1.050M, sold 10/31/17 for $925K

Notable Transactions for the 4th Quarter Were:

•

25 Great Circle Drive – listed 8/12/15 for $925K, sold 10/24/17 for $820K

•

27 Shore Road, Dering Harbor Village – listed 8/21/14 at $13.95M, last listed at $11.995M and sold on 12/1/17 for $9.5M

•

5 Crescent Way – listed 3/25/16 for $995K, last listed at $895K, sold 12/1/17 for $875K

•

25 Winthrop Road – originally listed 10/20/10 at $6.2M, then taken off the market and sold 11/16/17 for $6.8M

•

14 Great Circle Drive – listed 8/9/16 for $895K, sold 10/27/17 for $837,500

•

11 Westmoreland Drive – listed 9/7/16 at $5.35M last listed at $4.15M, sold 12/14/17 for $3.5M

•

10 Glynn Drive – listed 5/26/17 for $885K, sold 12/1/17 for $832,500

•

34 Little Ram Island Drive – listed 3/1/17 for $4.45M, sold 11/17/17 for $3.4M

•

16 Glynn Drive – listed 7/20/17 for $830K, sold 11/8/17 for $796K

•

79 N Midway Road – listed 7/24/17 for $2.995M, sold 10/3/17 for $2.85M

2 Hudson Avenue – listed 5/25/15 for $949K, last listed at $845K, sold 12/21/17 for $725K

•

26 Margarets Drive – listed 6/12/17 for $2.49M, sold 10/27/17 for $2.04M

12 Emerson Lane – listed 2/22/17 for $695K, last listed at $659K, sold 12/12/17 for $595K

•

46 N Midway Road – listed 3/26/10 for $1.995M, removed from the market and sold 11/29/17 for $2.1M

4 Bateman Road – listed 4/28/17 for $625K, sold 11/29/17 for $584,900

•

3 Wade Road – listed 4/11/17 for $595K, sold 10/3/17 for $575K

• • • •

2 Hagar Road – listed 9/16/16 for $2.275M, sold 10/11/17 for $1.9M

•

26 Country Club Drive – listed 10/28/15 for $1.985M, last listed for $1.689M, sold 10/17/17 for $1.5M

•

5 Sunshine Road – listed 7/15/17 for $1.575M, sold 10/31/17 for $1.45M

In 2017, many buyers moved from one Shelter Island property to another, expanded their portfolio of Shelter Island holdings, had rented here and then purchased property, or had focused their search for real estate to Shelter Island only--underscoring the love and affinity buyers have always seemed to have for Shelter Island.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917)

208-5519 | PMoore@Saunders.com | ShelterIslandRealEstate.com | PenelopeMoore.com nine grand avenue, shelter island heights (631) 749-2300 “Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

SHELTER ISLAND MARKET REPORT

Thanksgiving, 2017 By Penelope Moore

Licensed Associate Real Estate Broker

With nearly two months completed during the fourth quarter of 2017, the market on Shelter Island has been brisk with approximately $23M in sold homes and approximately $12M in properties in contract, based on listed prices, for this period so far. The activity is consistent with 2016 for the same time frame, with Post Labor Day activity again proving to be more fruitful than the summer season. With consideration to buyers and how they come to purchase on Shelter Island, it appears to continue to be the case that many purchasers have rented either short term or seasonally, have toured, have friends or relatives on the island, are returning to the island after selling a home here previously, or are trading up or downsizing. As much as sellers would like to believe that “there is a buyer sitting somewhere in Dubai browsing listings,” it seems, in most cases, that buyers have fallen in love with Shelter Island through relationships or visits.

one acre listed 10/28/15 for $1.985M, last listed at $1.59M, sold 10/17/17 for $1.5M •

5 Sunshine Road – A 2,122 sq. ft. 1860s farmhouse with pool listed 7/15/17, sold 10/31/17 for $1.45M

•

142H North Ferry Road – A 1987 contemporary listed 4/14/14 for $1.655M, last listed at $1.45M, sold 11/10/17 for $1.325M

•

63 North Menantic Road – A 1,750 sq. ft. farmhouse built in 1900 with pool house and pool, listed 8/19/17, sold 11/17/17 for $965K

•

43 Brander Parkway – A contemporary with pool on .94 acres, listed 8/10/17 for $950K, sold 11/17/17 for $880K

•

17 Dinah Rock Road – A 2,650 sq. ft. post and beam on one acre with pool, listed 3/7/16 for $1.050M, last listed at $950K, sold 10/31/17 for $925K

Here are highlights of sold properties from October to the present: •

34 Little Ram Island Drive – Listed 3/1/17 at $4.45M, last listed at $3.45M, sold 11/17/17 for 3.4M

•

25 Great Circle Drive – A 2,187 sq. ft. contemporary with pool, listed 10/30/16 for $925K, last listed at $899K, sold 10/24/17 for $820K

•

79 North Midway Road – A 6,494 sq. ft. traditional with carriage house, pool and barn on 6 acres, listed 7/24/17 for $2.995M, sold 10/3/17 for $2.85M

•

14 Great Circle Drive – A 2,180 sq. ft. ranch on 1.2 acres, listed 8/9/16 for $895K, last listed 7/9/17 for $875K, sold 10/27/17 for $837,500

•

16 Glynn Drive – A 1991 post modern on .68 acre, listed 8/5/17 for $830K, sold 11/8/17 for $796K

•

3 Wade Road – A 1,785 sq. ft. high ranch on .62 acre listed 4/11/17 for $595K, sold 10/3/17 for $575K

•

26 Margarets Drive – A 5,982 sq. ft. harborfront with dock, listed 6/12/17 for $2.49M, last listed at $2.375M, sold 10/27/17 for $2.040M 14 Margarets Drive – A 4,941 sq. ft. creek front with deep water dock and pool, listed 10/21/14 for $2.75M, last listed at $2.35M, sold 10/6/17 for $1.825M

•

2 Hagar Road – A 2,582 sq. ft. creek front with dock, pool and gardens, listed 9/16/16 for $2.275M, sold 10/11/17 for $1.9M

•

26 Country Club Drive – A 3,750 sq. ft. traditional with pool on

Thanksgiving is a time to reflect and give thanks. Real estate as a business opens doors, literally, to the lives and hearts of customers and clients, each with their own set of circumstances, goals and needs. I am grateful for the opportunity and the faith that my clientele place in me to guide them in what is sometimes the largest investment they may have or make, and to have the good fortune and honor to meet incredible people.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917)

SHELTER ISLAND MARKET REPORT October 5th, 2017

Columbus Day 2017 By Penelope Moore

Licensed Associate Real Estate Broker

The real estate market on Shelter Island in the last 4 weeks since Labor Day has been productive for sellers and buyers alike, with 14 homes in contract and 4 homes sold. The strongest sector continues to be homes up to $1M inland while competitively priced waterfront properties which had been on the market in some cases for over 2 years found enthusiastic buyers.

•

There were also several vacant land sales: •

62 Westmoreland Drive, 1.8 acres on West Neck Bay, listed 11/21/16 for $950K, sold 7/6/17 for $850K

•

10 North Brander Parkway, 1 acre on canal, sold 8/18/17 for $800K

•

9 Margarets Drive, .91 acre listed 8/14 sold 7/6/17 for $385K

Since July 1, 2017 the properties sold have included: •

13 Prospect Avenue – A renovated 1885 water view Victorian, listed 8/16 for $1.695M, last listed at $1.395M, sold 7/17/17 for $1.25M

•

21 North Ferry – A business property with retail and apartments, was listed 1/28/11 for $1.299, sold 6/19/17 for $1.25M

•

6 Country Club Drive, a 1994 4 bedroom 2,958 sq. ft. traditional on golf course with a gunite pool, was originally listed 8/24/13 for $1.785M, was last listed at $1.175M, sold 9/12/17 for $985K 181 North Ferry Road, a 3 story 4,774 sq. ft. commercial building on .15 acre of creekfront, sold for $855K on 9/29/17

•

5 Southwick Lane, a 2,090 sq. ft. contemporary built in 2000 on 1.06 acres, was listed 7/17 for $899K and sold 9/28/17 for $875K

•

12 Tim’s Trail, a 2,500 sq. ft. farmhouse built in 2002 on .5 acre, was listed 3/17 for $850K and sold 8/1/17 for $807K

•

8 North Midway Road, a 1925 cottage on 1 acre, was listed 3/7/17 for $695K and sold 9/22/17 for $640K

•

17 Worthy Way, a 1973 colonial on .62 acre, was listed 10/24/15 for $649K, was last listed at $598K and sold 6/14/17 for $590K

6 West Thomas Street, a 1948 ranch on .5 acre, was listed 12/1/14 for $409,900 was last listed at $440K, and sold 9/13/17 for $440K.

Homes in contract since August 1st have included: •

A waterfront with pool in estate area listed at over $9M

•

An inland traditional with barn, carriage house and pool listed over $2.9M

•

3 waterfront homes with pools priced over $2.2M

•

2 inland homes with pools priced over $1.5M

•

5 Inland homes priced between $800K and $999K

•

2 inland homes priced between $550K and $650K

With the weather still stellar and crisp, customers continue to search for their Shelter Island home. Inventory particularly up to $1.2M is limited, with many excellent opportunities available.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917)

SHELTER ISLAND MARKET REPORT August 31st – 2017

Labor Day Weekend By Penelope Moore Licensed Associate Real Estate Broker

There was a palpable shift in real estate activities this past week. Ensconced in rentals, tenants who have children preparing for school got in their last licks at summer vacation, and in between all their activities, toured listings for sale to consider, and dream of as the place they might call home in time for the summer of 2018. Sellers, also trying to enjoy what might be their last summer in their homes on the island, scooped up their belongings and vacated for showings. During the summertime, many appointments are last minute, and sometimes occur early morning or early evening so that customers can enjoy the beach. On certain days, a mentality much like bidding on eBay was prevalent, with multiple offers submitted on listings that have been on the market for over a year. “I am infatuated with this house!” one customer exclaimed of a property that has been on the market for nearly three years and which she lost to a higher bidder. Some customers made offers on more than one property at a time to see which property could be purchased for the lowest possible price. Others placed an offer and, upon receiving a seller’s counter offer, “vaporized” or disappeared, much to the chagrin of all other parties involved. On Saturday, after the previous week-long hustle and bustle of preparing their homes for showings, some sellers wondered why there was a momentary lull. “Not to worry, the day that the Shelter Island Crafts Fair is held has traditionally been a quiet day in real estate for some reason, so do some Christmas shopping at the fair,” I told one seller, “and please forget about real estate for a few hours.” On Sunday, many people left the island to return to their primary homes with family and luggage in tow, and others moved into homes

to enjoy the week leading up to Labor Day. The most popular category over the last two weeks has been the up to $1.6M inland home. There are farmhouses, contemporaries, modern, and post modern homes available with and without pools, which have been experiencing showings, interest and offers. Some sellers wanting to sharpen their position for the week leading to Labor Day and for the autumn real estate season have adjusted their listed price with the hope that their homes will be more attractive to a customer who might be on the fence. As the summer wraps up, many homeowners who have also been landlords with their properties on the rental market, in some cases for many years, wonder what will transpire with the legal action that has been brought by homeowners against the Town of Shelter Island surrounding the new Shelter Island rental regulation. Many Landlords continue to be confused by the regulation which one described recently as “complicated and contradictory to the Town Code.” Some people who own property but do not rent their homes feel that the free market should prevail, while others do not want to see their neighbors homes become a mini-business venture. Whatever the outcome, this coming week signals the shift to the beginning of the Autumn 2017 real estate selling season and the Summer 2018 rental season. Unlike the end of some things, real estate seasons do not actually end but are re-set and re-born. With resets, there is reason to celebrate, reflect, adjust, and begin again. On Shelter Island, where happily, little changes from season to season, many real estate gems are waiting to be discovered, appreciated, and then celebrated.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917)

SHELTER ISLAND MARKET REPORT August 24th – 2017

House Hunting Tips By Penelope Moore Licensed Associate Real Estate Broker

During the summer, many customers visiting Shelter Island dip their toes into house-hunting waters. Each customer has a different approach to searching for real estate, something that has evolved with the advent of arm-chair shopping online. Before the internet, most customers would typically call a real estate agent and share their budget, desires for a home site and creature comforts within, then listen to the agent describe offerings matching the criteria. Now, customers begin their search online in the privacy of their home or office and sometimes do not verbally share their actual thoughts and goals with an agent until they are physically on a tour. The National Association of Realtors has statistics indicating that a consumer shops online for over a year before going out in the field for a tour. Internet accessibility has its advantages and admittedly it can be fun, however there are ways customers can streamline their in-person home search: •

•

Rodgers and Hammerstein’s song “Getting to Know You” translates well to house hunting. Customers speaking with an agent via email or on the phone can be a good way to start a relationship, however meeting in person, spending time together on a tour and allowing an agent to hear feedback on each house can be the beginning of a positive rapport and trust beyond bullet points and sound bites. Allowing the agent to select properties that most closely fit the goal is an efficient route to begin the process. Customers sometimes send links to listings they would like to see which can be diverse and sometimes contrary to what they have described as their ultimate goal. After seeing the properties, they sometimes remark: “why did I pick these?” Working with a real estate agent who has expertise in a local market and experience navigating a transaction through to closing is also key. When on a tour with customers, I encourage them to absorb a house at

face value: the area, the space, and its personality, since each house has a distinct feel. Customers can get overwhelmed with details and after seeing half dozen houses, one home can blend into another. “Speed dating” is a good method to follow: say hello to a house for up to 15 minutes, be sensitive to common threads and see if you want to know more, come back for a second visit. •

Renovate later – Many customers do virtual renovations upon setting foot in the entry foyer, prior to seeing an entire house. Few houses are completely turnkey—some need updating and others can be renovated according to one’s personal taste. Pare down the properties to a short list of preferred listings and then factor in any needed or desired alterations in a chart comparing one house to another.

•

Taking notes and cell phone photos on tours can crystallize thoughts about a property. I encourage customers to shoot their own photos of areas they like in a home and jot down a few thoughts about a property when they get back into the car.

•

Sharpen your pencils – a home purchase is one of the biggest investments one can make. Contacting a mortgage lender and knowing the financial outcome can help make a dream a reality.

•

Timing – in a second home market like Shelter Island, some customers shop when it is convenient for them, often with no set time frame to purchase. Many customers express that if they see a property they like, they will pounce at the opportunity. Others express regret that they set out to hunt for a house before formulating goals, then missed out on a property they fell in love with which sold before they were prepared.

As Labor Day approaches in what is the most active period of the summer in a fast paced market, customers are busy scheduling showings. There are plum properties in every price category, so there are fine options for everyone.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917)

SHELTER ISLAND MARKET REPORT August 17th – 2017

Final 2nd Quarter Sales Statistics By Penelope Moore Licensed Associate Real Estate Broker

Each quarter throughout the year, assorted real estate entities publish statistics for each Town on the East End of Long Island, pulling numbers from a variety of sources. The statistics are based on: 1) when a deed is recorded by the County. The delay between the actual closing and when the deed is recorded can be weeks 2) data from a multiple listing service or “MLS.” Because East End real estate agencies are not affiliated with any one multiple listing service, the information can vary from agency to agency, depending on the database used 3) the Town Assessor’s office which uses the County as its primary source. Some transactions are conducted directly between principals and, as such, may not be available on databases used by real estate agencies. The only accurate method to drawing conclusions from quarterly statistics is to wait until the County records the deeds for the particular time frame, however, in the interest of news, incomplete statistics are frequently reported which can paint an inaccurate picture of the market in a particular Town. Halfway through the third quarter, the second quarter statistics are now available: • •

Qtr Year # Sales Total Dollar Amount 2nd 2017 26 $27,775,000

Median $805,000

• •

2nd 2016 2nd 2015

28 18

$33,167,810 $17,650,900

$902,500 $705,000

2nd quarter 2017 sales are down 19.31% compared to 2016, but both 2016 and 2017 are stronger than 2015. There were two additional sales with strong price points in 2016 compared to 2017, which affected the median. The first half of 2017 is 6.132% less than 2016, and both 2016 and 2017 are stronger than 2015. First 6 Months • • •

2017 48 $53,989,380 2016 53 $57,516,810 2015 30 $30,582,025

Seven weeks into the 3rd quarter, there are ten properties that have gone into contract, and others are experiencing rigorous negotiations with multiple offers. Cash offers are prevalent and although in some cases lower than financed offers, sellers are choosing to go with the cash offers. With homes in the $500K to $750K range becoming scarce, properties in over $750K to $999K are now considered starter homes. As is frequently the case during the summer, some customers new to the market dip their toe into the water with low offers, much to the consternation of sellers. Listings that have been offered for over a year have been receiving interest and offers, giving sellers an optimistic outlook toward the Post Labor Day market.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917)

SHELTER ISLAND MARKET REPORT August 10th – 2017

The First Week of August By Penelope Moore Licensed Associate Real Estate Broker

The first 10 days of August on Shelter Island have been a real estate whirlwind. August 1st brought the final summer wave of tenants moving into summer rentals, and without a moment to spare, those tenants ventured out to explore homes for sale.

people just looking for a happy summer vacation. One tenant was a family having a reunion and visiting the island for the first time with grandchildren, a sharp contrast to what municipalities fear when writing short term rental laws.

Listings in every price range were toured by both customers new to the market and those who have been searching for a while. Certain listings seemed to capture customers’ attention, and were shown multiple times a day: a renovation project priced in the mid $800Ks with four viewings; a stylish farmhouse new to the market priced in the low $1Ms with three back-to-back showings; a recently built 4600+/- sq. ft. farmhouse priced in the mid $1Ms five times; and a vintage fisherman’s cottage on the harbor priced in the high $2Ms was toured five times. Multiple requests to see a particular listing is, of course, a positive sign which sellers hope lead to offers. Indeed, listings from low to high price categories were all toured by a receptive audience.

This time of year, real estate agents on Shelter Island, though competitors, work harder to accommodate showings for one another. Most homes are occupied by sellers or tenants who leave the property for tours and allot a certain amount of time to return. During the summertime, off-island real estate agents bring customers to view listings they are often seeing for the first time themselves. They sometimes do not factor in the ferry ride or faulty GPS directions, which can have a ripple effect for everyone, if they are showing properties listed by different agencies. Over the first full weekend of August, through the chaos of scheduling, there was palpable harmony. Co-brokers showing my listings were punctual and customers I showed properties to were on time.

The 2017 rental market started in October 2016 with a bang, but fizzled earlier than anticipated. The one truism is that one never knows when a rental season starts or finishes, so the earlier a listing is placed online the better the chance of a positive outcome. The August “move-ins” were smooth and for the most part uneventful. Many fine rentals in all price brackets remained unrented this season. Many customers and landlords expressed confusion at the new Shelter Island Rental Regulation, thinking the minimum rental is thirteen nights; the regulation does not prohibit a rental of less than two weeks but does limit the number of rental opportunities per month to two, which could be as short as one night or as long as thirteen nights.

One tour I had consisted of fifteen properties the customers requested to see; the rule of thumb is that most customers cannot remember more than six houses shown on one visit. I described to my customers a time target of a half hour per house with a fifteen minute overlap and suggested that if there were any homes that caught their fancy we could return at another time. With a couple of minor hiccups we ended the tour on schedule. When shaking hands to say goodbye, customer asked if I was “part Swiss.”

A former buyer of mine who renovated a spacious, beautifully decorated farmhouse near a beach made a decision to rent around Memorial Day. Without prospects wanting to rent for the time frame and price listed, she placed the home on a direct rental website. Within days, the property was rented for the entire time frame at higher rental rates than originally projected. I helped with the move in and move out of the tenants, who were delightful, respectful

The weekends in August now consist of Thursday afternoons through Monday, which can be roller coaster rides because of all of the components that must come together to have a positive and successful result. On Tuesday, I was able to take a few deep breaths and catch up on routine office tasks. During and in between appointments over the weekend, I shot a few photos at my listings of flowers and nature, one, a flower at 26 Margarets Drive is at the top of this column. In the evening when I stepped out on my deck, I had to smile when I heard the chaos of nature: katydids arguing “Katy did, Katy didn’t!” and the neighborhood owl interjecting “Who! Who!”

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917)

SHELTER ISLAND MARKET REPORT August 3rd 2017

A Shelter Island Home Sale Primer By Penelope Moore Licensed Associate Real Estate Broker

In each market throughout the United States, home sales are dealt with differently. Indeed, the process can be different from town to town on the East End, and Shelter Island is no exception. Here is a step-by-step primer in how a home is purchased on Shelter Island once price and terms have been negotiated. •

A “Memorandum of Sale” or “term sheet” is generated by the listing agent noting the parties involved, the property, contract price and contingencies.

•

Contingencies – The following are typical contingencies: a satisfactory home inspection, satisfactory termite/wood boring insect inspection, potable water and financing.

•

Inspections – Within a day or two of the handshake, home and termite inspections are conducted. Water test results can take over a week, so contracts provide for a period of time after contracts are executed for the outcome.

•

Attorneys – There are many attorneys in the region who can do real estate closings, but depending on the property, there are times when an attorney who has a good working knowledge of the Shelter Island Building Code is particularly valuable to both Seller and Buyer when questions or complications arise that are specific to the property.

•

Contracts – Theses are generated by the Seller’s attorney and delivered to the Buyer’s attorney. Each attorney uses their own template so not all contracts are alike, although there are basic tenets in each contract.

•

Financing – Once contracts are fully executed, the Purchaser sends them to their mortgage provider and they find a program that suits them. Sellers generally do not begin packing and moving until the bank gives a commitment to the Purchaser.

•

Appraisals – Once the contracts have been signed by both parties, the bank orders an appraisal, selecting a NYS licensed appraiser

from a pool of approved professionals. Guidelines have changed post recession so that the banker or mortgage broker cannot select the appraiser or have contact with them. The appraiser inspects the house and does research to arrive at a valuation. •

Surveys – Most banks require new surveys be done or that surveys done recently are re-certified to the title company. Surveys can take several weeks and this is one item that can be overlooked until a closing date is scheduled, sometimes resulting in a delay in closing.

•

Title search – The Buyer’s attorney orders a title report which outlines details about the property. “Abstracts” or reports on older homes can be very interesting as a result. The title company calls the Building Department on Shelter Island to obtain copies of Certificates of Occupancy. If the house or pool (and accompanying gates and alarms) have not been inspected recently, the Building Department will request a walk-through for safety compliance issues, including smoke and CO detectors.

•

Walk through – Prior to the closing, as close to the time of closing as possible, the buyer performs a “walk through” of the property, testing appliances, heating and cooling, and overall condition of the house.

Closing – When the bank has completed its due diligence, it will announce that the file is “clear to close”, at which time a date, time and location of the closing is coordinated. Generally the Buyer, Seller, both attorneys, and title closer are present, and sometimes the real estate agent(s). Years ago, closings were much more formal than they are today with a room full of people around a table; Many buyers and sellers today sign a power of attorney which obviates their needing to attend. Transactions where all parties involved cooperate and do their respective jobs is a real gift. All too frequently there are surprises that complicate the process, but with a willing seller and buyer, things always manage to work out in the end. Good preparation on the part of both Seller and Buyer, diligence in communication by all parties, and working toward a common goal are key, as is working with a real estate agent who can guide the process and help solve problems that may arise along the way.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917)

SHELTER ISLAND MARKET REPORT July 27th 2017

My Shelter Island Home Purchase One week before Memorial Day, 1995, I drove onto the North Ferry. A sense of calm came over me as I breathed in the salt air. With the buoyancy of each wave, the stresses of city life seemed to dissipate. As the boat neared the dock, I noticed the quaint Beach Club to the west and the row of charming turn of the century homes, almost a beacon along the shoreline to the east. After landing and passing the “leaning tower house” I thought I had better find the closest real estate office and learn more about the real estate market on Shelter Island. Customers often ask how I came to find my home on Shelter Island. It was quick: I came, saw and bought on my first visit, but not without the stresses and self doubt that can come with a big purchase. The real estate agent, Maureen, was retired, and said she worked because she liked meeting people. She showed me four properties, each with its own pros and cons. Because I knew nothing about the island, I decided to stay overnight to explore further. I stayed at Kraus’s Motel on Crescent Beach, where Sunset Beach is today. The room was on the second floor with beautiful water views, and both the motel and beach were quiet. Maureen had suggested I try dinner at Rams Head Inn, which seemed far away from it all like a hidden gem. Without a map in hand, I got lost a few times en route but, as Maureen said, “you don’t get lost for very long around here.” My German shepherd, Lupo, had his head out the window as we drove across the causeway with Mark Knopfler singing “Telegraph Road” on the cassette player. Everything so far felt so right. The next morning, I awoke at daybreak and took Lupo out for a walk. Weck’s Pond, just in front of the motel, in contrast to everything else, was teeming with bird activity. A red-winged blackbird dove from the top of the osprey nest to the long reeds along the shoreline of the pond screeching, almost insistently, “Oh-ka-lee!” We walked past Peconic Lodge, now the Perlman Music Center, and took a left. The woods were lush, shaded and cool. As we rounded a corner, we stopped to listen to a mockingbird singing, its song echoing under the canopy of trees. The sun shone through oak trees that swayed in the morning breeze and which suddenly looked familiar. I realized it was the front yard of a house I had seen the day before. No one seemed to be home, so I walked up the driveway, which was buckling with dried out, hand painted tar, and onto the back deck, splintered with popped nails. There was a covered porch with a turquoise ceiling that had caught my eye the day before. It was a concrete block house with bile colored walls, a massive red concrete block fireplace and Formica counters with pink and blue feather patterns. There was little charm outside and less charm and sheet rock inside, but I liked it. Nuthatches, chickadees and red finches flew close to me and perched on a cedar tree just off the deck, where long neglected bird feeders still hung. I asked Maureen to show me the house again that afternoon. As she opened all of the windows to air out the scent of mothballs, I sat in the back bedroom and felt a connection with the home and the grounds. “It comes furnished!” Maureen said, pointing to a teak sideboard with matching grain drawers. I made an offer that was $45K less than the asking price and promised to send a pre approval when I returned home. The sellers responded quickly that they would accept $43K less than the listing price and I was elated. Maureen seemed to do everything following the handshake; she lined up the inspection and recommended a Shelter Island attorney. I began to get my finances together for the mortgage, which had an 8% interest rate for a 30 year fixed mortgage, typical at that time. I spent the summer upstate at a rental property, wistful about Shelter Island and

the notion of owning my own home and doing little improvements, starting with white paint for the house and some bird houses for the cedar trees. The mortgage broker called with updates and I began to get my funds together for the closing. As the big day drew nearer, I began to focus on what would remain in my bank account after the closing, and it was daunting. With every passing day my buyer’s remorse grew: What had I done? Did I really need a second home? How would I pay for it? Why had I been so impetuous? I called my attorney and told him I absolutely could not go through with the purchase. He reminded me that we were in contract, I would lose my deposit, and there was little more to worry about because the financing was almost complete. Somehow he talked me off the cliff and I decided to try and not think about the house too much, the closing would come and go and perhaps the stress would be behind me; if I decided then it was a mistake, I could sell it. In October, my attorney called with the closing date in Huntington, NY. On that day the Pope was in town and the traffic was snarled. I arrived an hour late, but figured if the sellers got really annoyed, they could cancel the closing and maybe I could get out of having to buy the house. Instead, my attorney, whom I had never met, was cheery and the closing relatively painless. The sellers were a little grumpy but handed me the keys and wished me well. Afterwards, I drove out to the house on Shelter Island for the first time since before I had made the offer. There was a potted mum with a small American flag on the back door step with a card from Maureen. As promised, the furniture was left intact, but the sellers had also left a shed and garage chocked full of junk, which included an old truck engine, tires, broken lawn furniture and dried up paint cans. It was a cool autumn night and with Lupo on the floor next to me, I slept with the windows open. Aside from an owl that hooted all night, it was so quiet I could hear the blood rushing through my ears; it was sheer bliss. The next morning, I took a walk around the Heights to explore the shops and, passing a real estate office saw a snapshot of my house in the window. A man came out of the shop to say hello. “I just closed on this house yesterday!” I exclaimed. He congratulated me and asked how much I had paid. I told him the price and he paused. He said the house had been on the market for over five years and that he would have thought it would have sold for less; the sold price was only $2K off the listed price. When I tried to clarify, he said that what I thought the list price was actually was the original price. It had been reduced a few times and the price I had paid was actually the highest ever for a house of that size. The feeling of regret returned. I had clearly overpaid, but it was done. In those days real estate brokers worked off of index cards since there was no internet or computers. I walked along the length of Crescent Beach, then back at the house, hung up the new bird houses and sat on the back door stoop with Lupo next to me. I looked out onto a row of four statuesque cedar trees along the edge of the yard. Growth on the lower branches had been eaten by deer which had also worn the bark off with their antlers, yet the upper branches were lush. With dusk coming, robins started their evening songs and flitted along the grass and in the trees. The wind changed and I could smell salt in the air. Whatever had happened with the purchase of the house, there was an overwhelming sense that Shelter Island was the right place for me and my dog. Perhaps I had not paid enough attention, but in sum total, spiritually everything seemed right. If I could not sell my house tomorrow I might be able to sell it at some in the future if I fell on hard times. In the meantime, the saltwater around and the nature on Shelter Island gave me strength and spiritual renewal which has continued to the present day. As the Edith Piaf song goes, “no I regret nothing.”

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917)

Shelter Island Market Report July 20 th, 2017

Real Estate Valuations By Penelope Moore Licensed Associate Real Estate Broker

There is no exact science to arriving at a 100% accurate value on a property, since no two houses can be 100% alike inside and outside, even two in a homogeneous development. There are many accepted methods of valuation that consider a variety of factors in a subject property to arrive at a final number, including: 1. Assessment by a municipality: Shelter Island follows NY State guidelines that aim to arrive at a market value based on comparable sales over the prior three years 2. Appraisal by a certified appraiser: There are industry-accepted formulas used by appraisers that lending institutions and the government rely upon. In a home purchase, sales of comparable properties over the prior 12 months are examined 3. Comparative Market Analysis by a real estate agent: It considers the prior twelve months of sales for comparable properties, the current market, as well as the near future. It is less scientific, however sellers, buyers and often banks (e.g. for bank owned properties) rely upon a “CMA” from an agent who is well versed in a particular market, as well as an appraisal. In recent years, the popularity of real estate websites has grown, including Zillow, Trulia, and Redfin. Each has its own formula of valuation based on public sales data, municipal assessments, multiple listing services and input from homeowners online about their own properties. The “Zestimate” home value is Zillow’s estimated market value for a home, calculated for 100 million+/- homes throughout the country. According to a Washington Post article in May, it is “the cornerstone of Zillow’s business model because it pulls in millions of house shoppers, allowing the company to sell advertising space… In the first quarter of this year, it reported $245.8M in revenue, a 32% jump over the year before, including $175M in payments” from real estate agents who pay for ads. Zestimates do not consider unique characteristics that set the home apart from others including site, views, renovations, landscaping and pools, among other amenities. BusinessWire.com writes that Zillow “has used stockholder equity and realtor ad revenue to acquire key competitors… While Zillow forecasts 2017 revenue at $1.04 Billion, it has yet to show a profit.” In January of this year, Zillow acquired Realnet, its offshoot multiple listing service “Open Real Estate Exchange” and its website HREO.com (“Hamptons Real Estate Online”). Realnet is the database for over 40 agencies throughout the Hamptons, providing Zillow a wealth of historical information for this market. Greg Hague, a real estate broker-attorney and writer for Huffington Post wrote: “Zillow is not what many perceive it to be… Zillow’s website is not designed to sell homes, it uses homes to generate traffic and revenue for Zillow.” He continued, “Zestimates hurt sale prices. Zillow typically displays its opinion of your home’s value on its website… Zestimates have been

proven to be inaccurate. Zillow’s own CEO sold his home 40% different from the Zestimate value… If Zillow’s Zestimate value is lower than your asking price, this can cause buyers to pay less. Unfortunately homebuyers rely on Zestimate values because of Zillow’s big brand.” Hague describes how his sister contacted him, “…her voice was strained and emotional, ‘Greg, my bank canceled my equity line because Zillow lowered the value of my home. Other houses in my neighborhood have appreciated. I just spent $60,000 building a barn. How can mine go down?" Linda is a retired police officer in Cincinnati. She lives on a pension. Her home equity line is a big deal, her financial lifeline. Turns out her bank relied on Zillow’s Zestimate to decide whether to renew her home equity line. They gave her a choice. Pay for an appraisal or lose the line.” Hague has a petition of over 16,000 signatures protesting Zillow which has been presented to the National Association of Realtors. “Zillow itself concedes its automated math isn’t perfect,” the Washington Post article writes. “[According to Zillow] Zestimates are within 5% of the actual sale price about 54% of the time, within 10% of the sale price about 76% of the time, and within 20% about 90% of the time.” This summer, Zillow announced a contest with a $1M prize to whoever could improve their data science. As an example, a recent Shelter Island property closed at $725K. Zillow’s Zestimate for this property was $917,793, while Redfin’s valuation was $566,551. Several other recent Shelter Island sales are not listed on Zillow. A homeowner in Illinois filed a lawsuit against Zillow, “claiming the company’s controversial Zestimate tool repeatedly undervalued her house, creating a ‘tremendous road block to its sale” according to the Washington Post… “The suit, which may be the first of its kind…alleges that despite Zillow’s denial that Zestimates constitute ‘appraisals,’ the fact that they offer market-value estimates and ‘are promoted as a tool for potential buyers to use in assessing [the] market value of a given property,’ shows that they meet the definition of an appraisal under state law. Not only should Zillow be licensed to perform appraisals before offering such estimates, the suit argues, but it also should obtain ‘the consent of the homeowner’ before posting them online for everyone to see.” Susan Athey, an economist and professor at Stanford University said in a recent NY Times article that she is impressed with Zillow’s 5% median error rate for something as variable as homes, adding that Zestimates are valuable for making a market like real estate function more smoothly. “If individuals do not understand the market value of their property, they may pass over offers, making both buyers and sellers worse off,” Ms. Athey said. “Even as they improve,” writes Nick Wingfield in the NY Times, “it makes more sense to look at internet home estimates the way we look at Yelp reviews of a restaurant — helpful but hardly the final word.”

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Cell: (917)

Licensed Associate Real Estate Broker

Shelter Island Market Report July 13 th, 2017

Second Quarter 2017 By Penelope Moore

Licensed Associate Real Estate Broker

The statistics for the second quarter sales for 2017 are starting to take shape as transfers are reported by Suffolk County. The final numbers are yet to be determined; however here is a tally so far:

•

11 Great Circle Drive – Listed 4/7/16 at $1,050,000, last listed at $995K, sold 6/9/17 for $925K, a 3,054 sq. ft. Dutch Gambrel on 1.1 acres

•

64A North Midway Road – Listed 12/26/13 at $1,099,000, last listed at $950K, sold 6/1/17 for $875k, a 3,080 sq. ft. ranch with 1150 sq. ft. carriage house on 1 acre

•

16 Lakeview Drive – Listed 8/22/11 at $1,395M, last listed at $950k, sold 5/24/17 for $915K; a 3,000 sq. ft. traditional built 1998, on 1.1 acres with water views

•

46 Lake Drive – Listed 4/8/13 at $999k, last listed at $899k, sold 4/4/17 for $835k, a 1,660 sq. ft. contemporary built 1959 on .65 pondfront acres

•

31 West Neck Road – Listed 7/15/16 at $995K, last listed at $875K, sold 4/3/17 for $775K, a farmhouse style bed and breakfast built 1850, 2,690 sq. ft. on .29 acres

•

27 East Brander Parkway – Listed 6/27/14 at $5.65M, last listed at $4.875M, sold 5/1/17 for $4,504,500, a 4102 sq. ft. harbor front traditional on .77 acre built in 2012 with pool and dock

•

2 Bay Avenue – Listed 1/29/12 for $2.45M, last listed at $2.3M, sold 5/15/17 for $2M, a 1931 traditional 2,938 sq. ft. on .66 harbor front acres with dock

•

8 Westmoreland Drive – Listed 2/22/17 for $2.29M sold 4/27/17 for $2.2M, a 1973 bayfront contemporary on 1.25 acres with dock and tennis

•

136 North Ram Island Drive – Listed 3/17/17 for $2.1M, sold 6/2/17 for $1.975M, a 2001 modern on 1.9 acres with pool and tennis

•

20 Sunshine Road – Listed 6/3/16 for $1.59M, sold 5/5/17 for $1.495M, new home construction 3,800 sq. ft. built in 2016 on .92 acres with pool

•

10 West Neck Road – Listed 5/23/16 for $825K, last listed at $749K, sold after multiple offers at $750K, a 1925 bungalow 1,574 sq. ft. on 1.4 acres

•

69 South Ram Island Drive – Listed 3/1/17 for $1.4M, sold 4/25/17 for $1.35M, a 1988 chalet style 2,835 sq. ft. on 1.8 acres with pool

•

3 Stearns Point Road – Listed 4/20/17 for $745K, sold 7/11/17 for $725K, a 1935 renovated cottage 855 sq. ft. on .17 acres

•

14 Linda Road – Listed 7/15/16 for $1.395M, sold 4/27/17 for $1.33M, a renovated 1963 contemporary 2,938 sq. ft. on 1.5 acres with carriage house

•

39 Lake Drive – Listed 1/25/15 for $979K, last listed at $745K, sold 4/13/17 for $705K, a 1991 contemporary 2,436 sq. ft. on .6 acres with pool

• •

135 North Ferry Road – Listed 3/14/17 for $1.35M, sold 6/26/17 for $1.285M, a 1932 colonial on 1.55 acres with carriage house, summer studio and pool

7 Jaspa Road – Listed 4/8/13 for $529K, last listed for $469K, sold 5/17/17 for $436,500, a 1957 ranch of 900 sq. ft. on .53 acres

•

21 Tuthill Drive – Listed 2/25/17 for $599K, sold 4/7/17 for $599K, .6 undeveloped acres with harbor views

15 Quaker Path – Listed 5/6/16 for $1.35M, sold 5/15/17 for $1.3M, a 3,084 sq. ft. postmodern built 2002 on .93 acres with pool

•

9 Ole Buck Run – Listed in 10/17/14, sold 6/2/17 for $245K, a .55 acre lot bordering preserve

• •

82 North Cartwright Road – Listed originally 7/11/15 at $945K, a pool was installed and price increased to $1.1M, sold 5/10/17 for $990K, a 1920 farmhouse on .7 acres with renovated kitchen and baths and recent addition

Inland homes with prices up to $2M lead the way for the second quarter. Activity for July so far has been brisk in all price ranges. With holidays including July 4th and school graduations in the past, Buyers seem focused on real estate.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Cell: (917)

Licensed Associate Real Estate Broker

Shelter Island Market Report July 6 th, 2017

Real Estate As a Family Affair By Penelope Moore

I grew up in Washington, DC in a family immersed in house-hunting all throughout my childhood, so I was aware from an early age that my parents wanted to purchase a new home. Because nothing ever seemed to transpire, my sisters and I believed our parents were practicing “aspirational” real estate, seeking to fill a void in their own lives by looking for a new home, without ever planning to pull the trigger. Family weekends were scheduled around open houses, in between drivethrough lunches at Hot Shoppes and yard sales. One evening, when I was 16 years old and after my parents had divorced, a smooth-talking older gent and a polite young man came to our house to see my mother. My grandmother brought green tea and cookies to them as they chatted in the living room after which my mother announced she was going to dine with the men at Alfio’s LaTrattoria, a restaurant which was considered upscale and not too kid-friendly. Weeks later, my mother invited my sister and me to see a split level house sited on a six lane thoroughfare on a postage stamp lot in Chevy Chase. It had matching sea foam green walls and carpets, faux wood kitchen cabinets and blue tiled bathrooms. After a quick look, I told my mother the house was hideous and we could leave, to which she replied, “Well, I signed contracts today!” My sisters and I were furious following this unexpected news. The older gent and his young colleague were real estate agents from a reputable real estate firm. They had signed contracts to buy our home at below market value, without it ever going on the market, and had sold the split level to my mother at an above market price. Moving vans were scheduled soon after. I never learned how the transaction progressed so quickly, but we asked her: why that house and that neighborhood, why the lack of communication? She was quick to answer that the new house was clean, the new neighborhood was upscale, and she decided our neighbors were unfriendly. My grandmother had slipped and fallen on an icy sidewalk at our home the prior winter and our next door neighbor had walked away from her. The reality was that another neighbor had come to help my grandmother. If my mother had done regular maintenance, our house would not need work. And we lived in a neighborhood with wonderful neighbors, five of whom I am in regular contact with today. I could not bear to say goodbye to the 1937 brick house with grey slate roof where we had lived for 14 years and to our neighbors and friends, so I packed my things and told my mother I was going to Nantucket for the summer. That autumn, I moved to Manhattan from Nantucket, and then came back to DC for a visit. I drove past our old house where contractors were putting

finishing touches on an extension. A grand old tree, the centerpiece of the front yard which we had named “The Amazon” had been cut down and a metal real estate agency “for sale” sign swung back and forth in the front yard. In my head I could hear the mournful strains of Nat King Cole’s rendition of “A Cottage for Sale.” My mother liked the new house; however windows could not be opened because of the constant din of traffic and car fumes. My grandparents, fearing crime and cars jumping onto the sidewalk from the street became shut-ins, creating a backyard sanctuary with Buddha statues, potted bamboo and rollout straw fences to block the neighbors. Over the years, as the roof deteriorated and the gutters gave way, rainwater emptied freely into the basement and the paint on the clapboard siding peeled. Every so often, my mother would drive by the old house, which had been sold a few times. After being broad sided backing out of the driveway onto the road and health complications, my mother could no longer drive, so my sisters decided to sell the house and move my mother to California, closer to them. A local real estate agent did a market analysis but my mother, realizing strangers would be looking at the house which was filled with artwork, was uncooperative. We decided to refinance, move my mother and sell the house vacant. The bank appraiser, who it turned out, was the husband of the real estate agent with whom we had planned to list, undervalued the property and wrote on the appraisal that my mother was an “eccentric Asian.” After my mother boarded a flight to San Francisco, the dumpsters arrived. The house was cleaned out and it was listed for sale. Weeks later, my sisters broke the news to my mother that the house was in contract for $650K and she would soon be moving to a new home with a lemon grove in Oakland. In the winter of 2015, on the day of the closing, my mother, my three sisters and I returned to Chevy Chase for a final visit. It was the first time all of us had gathered at the house which over the years had been the center of so many disagreements. My mother searched the attic for “lost treasures” including a samurai sword and was still not 100% on board, but we told her our grandparents were with us in spirit and would be happy for the new chapter in her life. The buyers of the Chevy Chase house did a renovation of the kitchen and baths, which were all original, and attempted unsuccessfully to quickly flip the house. This week it was listed again for $899K. My mother cannot traverse the Oakland hills, however my sisters attend open houses and send me links of the best properties they have seen. We are formulating a plan for my mother’s childhood home in Tokyo, a long process. Although we live on opposite coasts, real estate is still a common thread in our family.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Cell: (917)

Licensed Associate Real Estate Broker

Shelter Island Market Report June 29 th, 2017

Independence Day on Shelter Island By Penelope Moore

Licensed Associate Real Estate Broker Perhaps it was my being born and raised in Washington DC, or years of Sunday visits after Quaker meeting to the Smithsonian or having parents who read aloud Herman Melville and Nathaniel Hawthorne as bedtime stories – I have always been fascinated with American history. This interest extends to my work in real estate; there are so many stories that homes seem to yearn to tell us about their history. One of my current listings, “Sunset Hill,” located at 22 Prospect Avenue in Shelter Island Heights, is one such home. It was built in 1884 by Rev. Richard Salter Storrs, founder of the Congregational Church of the Pilgrims in Brooklyn in 1846. He and the church are referred to as “probably the most underappreciated place and person in [Brooklyn Heights]” by Robert Furman, author of “Brooklyn Heights, the Rise, Fall and Rise of American’s First Suburb.” Indeed, little is written about Rev. Storrs, who possessed distinctive connections to many historic events in American history. A piece of Plymouth Rock was owned by his church, and today it is housed at Plymouth Church in Brooklyn. He descended from a long line of Puritan ministers, including Cotton Mather, who is most often remembered for his support for the Salem witch trials. His great grandfather, John Storrs, was a chaplain in the Continental Army, which was formed after the outbreak of the American Revolutionary War and was lead by General George Washington, its commander-in-chief. In 1850, the Fugitive Slave Act was passed by the US Congress. One of its most controversial elements was the requirement that all escaped slaves were to be returned to their masters upon capture, and that Free states were required to cooperate. Rev. Storrs delivered a sermon in December, 1850 counseling to all who heard that no one had an obligation to obey an unjust law, and each person was in fact morally obligated to disobey it and actively aid fugitive slaves. In 1889, Storrs recounted the one experience that changed him from being an observer on the sidelines to an active participant in the Abolitionist movement. In 1849, returning home from Richmond, VA, he was about to board a boat. He observed two men leading twenty to thirty African-American children ranging from approximately 8 to 18 years old, and behind them was a woman who, Storrs said, had “great tears rolling down her cheeks. A little child was clinging to her dress, in one hand she carried a bundle and with the

other, [she] led along a sickly looking boy…As the woman came off the boat, she looked at me full in the face and I saw her grief, and then it came to me like a flash what the scene meant. Those children had been picked up by the dealers around Washington and were being taken to Richmond, there to be scattered over the south from the auction marts in that city. That woman was on her way to separation from her children. I was hastening home to the bedside of a sick child, and as I stood there I thought ‘Can anything make it right to sell wife and child? Could a whole book filled make it right?’ And I thought that I would be burned alive before I would consent to such a thing in my own case, and then I will be burned alive before I will excuse or palliate the system which makes such a thing possible.” Abraham Lincoln maintained a pew in his church. One wonders the conversations Storrs and Lincoln must have had. I located a copy of “Lincoln Memorial Addresses” which contains a lengthy speech Rev. Storrs gave for the President in which he said “…the entire public was his teacher. His nature drew…the wisdom of the nation into itself, and the roots of his matured opinions were as wide as the country. His policy was…legitimately progressive, as well as independent, because it represented in successive stages the popular mind…He carried their purpose and thought in himself… He was kept from becoming a mere sensitive exponent of the popular feeling, and became instead a noble chief magistrate, instructed by all, yet more instructing them in return.” In 1865, when General Robert E. Lee surrendered to General Ulysses S. Grant, Rev. Storrs was immediately commissioned to visit Fort Sumter, the location of the first battle that started the American Civil War, to re-raise the stars and stripes over the fort. On May 24, 1883, the Brooklyn Bridge opened, which had much deeper significance than transportation; it bonded Manhattan and Brooklyn together, making New York City whole. Rev. Storrs delivered the blessing at the opening ceremonies, envisioning the bridge “as a monument to peace, a peace that was felt between these two cities willing to interlink their destinies.” Here on Shelter Island at Sunset Hill, Rev. Storrs wrote that the winding path edged with rose bushes leading to the beach inspired him as he looked out onto the blue saltwater. While the rose bushes are no longer, the vistas remain virtually unchanged on “Divinity Hill” and continue to inspire today.

Ranked Among the Top .5% of Real Estate Professionals by The Wall Street Journal, Real Trends 2017 Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917) 208-5519

| PMoore@Saunders.com

ShelterIslandRealEstate.com | PenelopeMoore.com nine grand avenue, shelter island heights (631) 749-2300 “Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

Shelter Island Market Report June, 2017

Financing a Home Purchase By Penelope Moore

Licensed Associate Real Estate Broker Each year, for five seasons, I showed a couple an array of summer rentals which they would rent for Memorial Day to Labor Day. The rental market was gradually shifting from a full season market to short term, and there were fewer options in their price range. Their sweet spot was the quintessential cedar shake farmhouse with vintage appointments, popular with other rental customers as well. I finally asked them if they would consider purchasing a home, since they would be in residence a quarter of the year. They said they had been trolling sale listings but there were no farmhouses that appealed to them in their price range. I told them about a well maintained ranch that already had their favorite cedar shingle siding located close to the beach, and if they financed the purchase, it could cost them less than $3K per month with property taxes and insurance rolled in, close to what they were paying for a seasonal rental. They toured the home and agreed that the price and location were compelling, and although it was not their style, they proceeded to purchase with a conventional 30-year fixed rate mortgage. The final monthly cost wound up being less than $2700 per month. They recently said "buying this home was the best investment we have ever made." I sat down this week to discuss current trends in financing real estate with my two go-to mortgage contacts, Eve Robin Jarrett, of GuardHill Financial, which is a Mortgage Lender as well as a Mortgage Broker, and Michael Jacobs, who is a Mortgage Banker for a major lending bank. Over the years, both Eve and Mike have not only facilitated, but also saved many a transaction with their keen insight to financing, based on a customer's personal portfolio and goals. "Interest rates are still very low, particularly when taken in an historical perspective," Mike told me. "Conventional conforming and Jumbo rates are generally in the high 3s and low 4s depending on the bona fides of the individual applicants." Eve added that, "Since the Fed began increasing the Fed Fund Rate on December 16th 2015, there have been four .250% Point Rate Hikes for a total increase of 1%.” When submitting an offer to purchase a property, prospective buyers who are planning to finance present a pre-approval from a lender or mortgage broker, outlining the extent to which the buyer's financials have been reviewed, the amount that the bank is willing to lend, and the type of mortgage that has been requested. “When pricing out a loan, a lender needs to take into consideration the FICO or credit score, loan-to-value ratio and occupancy as well as the size of the loan,” Eve said.

With regard to “occupancy,” primary residence, second home and investment property are three types of loans frequently used in our market, each with its own set of requirements. “Generally, rates for primary residences and second homes are the same,” Mike said,” however where you can usually finance 90% or more for the purchase of a primary home, the loan-to-value (the percentage of the purchase price that you can borrow) for a second home may be limited to no more than 80% or 90% depending on loan amount. Purchases of investment property, a property that will not be occupied by the borrower but is held for rental income or value appreciation, will have higher rates and more limited loan-tovalue. Experience over many years and many loans indicate that this type of purchase presents greater risk of default to a lender and it is, after all, a business investment. Lenders are more comfortable when the purchaser has more ‘skin in the game.’” Over the last few years, I have worked with customers who have obtained FHA loans which seem to have distinct advantages. “The Federal Housing Administration (FHA) a division of the Department of Housing and Urban Development (HUD) provides insured financing for the purchase of primary residences and usually for a category of borrowers who have not saved enough for a large down payment,” Mike explained. “Recently I have seen an increase in inquiries for FHA loans,” Eve said, “which in our area can go as high as 96.5% Financing for a single family residence, a Primary Residence Purchase with a loan amount of 636,150.00.” “FHA will finance up to 96.5% of the purchase price,” Mike added, “BUT it also applies an upfront mortgage insurance premium AND a monthly mortgage insurance premium.” I had a transaction where the buyer wanted to finance the home but also install a pool and she did not have the upfront costs for the installation, a renovation. For this she applied for a renovation loan. “Renovation financing can be used for new purchases or refinance,” Mike explained. “The key difference between conventional and renovation loans are that reno loans calculate loan amount and loan-to-value against the “as complete” value of the home, after the renovations have been completed. This is based on the contract with the renovation contractor, plans and specs.” Cash is, of course, “king,” as they say, however with interest rates still competitive, many customers who have cash in hand choose to obtain a loan. One recent customer exclaimed that “with money available at such low interest rates, I can buy more than one property!”

Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917) 208-5519

| PMoore@Saunders.com

Shelter Island Market Report June, 2017

Moving Structures on Shelter Island By Penelope Moore

Licensed Associate Real Estate Broker

To an entranced audience a few summers ago at a cocktail party, one of the guests described how he planned to lift his 2.5 story home from its foundation and float it across the harbor to a new site. Disconnecting a structure from its foundation is simple enough, we all said, but placing it on a barge and floating it on water to a new location seemed like something out of the television show “Modern Marvels.” While floating homes across the water is extremely complicated, homeowners on Shelter Island have been picking up houses and moving them all over the island for centuries. Lora Lomuscio of the Shelter Island Historical Society said that before the industrial age, lumber to build a new home was not always accessible and it was often easier and more economical to move a structure to a new site. Several properties currently on the market for sale have had resourceful owners who have successfully moved structures: 7 Baldwin Road, named the “Beebe House,” after its first owners, was originally located at 90 South Ferry Road, “south of Mashomack Slave Quarters,” according to its history. In the early 1900s it had also been owned by “The Borax King,” Frank Smith, as part of his vast estate near South Ferry. The date the house was moved is unknown (presumably back in those days, a building permit was not required). One of its prior owners, according to the Shelter Island Reporter in 1975, was “one of Shelter Island’s most notable native sons,” Admiral Harold E. Shear, who served as Vice Chief of Naval Operations, the Navy’s second highest office, and who earned the Silver Star in World War II. At 45 Burns Road, Joseph and Josephine Margiotta, who purchased the property in 1947, made extensive renovations to turn the 1885 farmhouse into “The Harbor Inn” and converted the barn into a two story guest house. When the Margiottas' grandfather moved to Shelter Island, they purchased a cottage, named “the schoolhouse” built by Homer Griffing and located across the road. Using island ingenuity, they felled two locust trees, set the cottage atop the trimmed logs and rolled it across the street to its present site. Much of the Margiottas' renovation has been preserved, with added amenities

by its current owners, who have used the schoolhouse and barn as creative writing studios. The Griffing family name is also connected with another cottage that was moved. Located originally on Thomas Street, this 1925 cottage was slated to be torn down in 2004. John Sieni had a vacant one acre lot at 8 North Midway Road he was planning to build on, but, being a native son of Shelter Island himself with an appreciation of history, he trucked the little cottage three blocks, placed it on a new foundation with 10 foot ceilings and renovated it throughout, where it sits today, awaiting its new owner. At 1 Winthrop Road, the “Zehner House,” was built in 1890 on 1.75 acres, an L-shaped waterfront lot on Dering Harbor. As suited practical purposes of the day, it was sited close to the road for optimal accessibility. In 1987, its owners who are accomplished sailors moved the home to a new foundation overlooking their 174-foot deep water dock. Moving the massive 80’ x 30’ original two story house, undertaken by Davis Brothers house movers, was such news at the time, it was featured in the Shelter Island Reporter. “All the dishes are still in the breakfront, all the pictures are still on the walls,” the owner was quoted in the article. Placed on “cribs”, the house was pulled by a four man crew using winches over six days. “You could live in the house and not even know it was moving,” Curt Davis of Davis Brothers, said at the time. When customers say: “this house in a different location would be perfect,” the answer is: “you too can move your dream house as many before you also have done!” Shifting from the movement of homes to movement of people, this Saturday, the 38th Annual Shelter Island 10k/5k Run/Walk will be bringing over 10,000 people to the island, benefitting the East End Hospice, Timothy Hill Children’s Ranch and the Shelter Island Run Community Fund. We are proud to sponsor this exciting event. Be an everyday hero, run for a charity, run for a cause where everyone is a winner!

Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917) 208-5519

| PMoore@Saunders.com

Shelter Island Market Report June, 2017

Short Term Rentals and the Rental Market By Penelope Moore

Licensed Associate Real Estate Broker Currently there is a variety of excellent rentals available, many of which in prior years would already have been rented at this point in the season. Perhaps a combination of cold and rainy weather, holidays and Shelter Island Town passing its Short Term Rental Regulation has had a ripple effect.

permits and speed limits, then force us to have our tenants sign the brochure?” Another said it would have been helpful to have the Town suggest tenants download a mobile phone app to measure decibel levels than to generally suggest tenants keep noise to a minimum.

Over the past several weeks, I gained interesting perspective about short term rentals, a topic that has been widely debated, in recent conversations with: 1) homeowners who do not rent their homes, 2) Landlords who only do longer term rentals, and 3) landlords who offer their homes for short term rentals.

Some short term rental Landlords have said they may postpone capital improvements, using local contractors and thereby supporting the economy on the island, which were to be financed by the proceeds of their short term rentals. Others have considered selling altogether and leaving Shelter Island.

Landlords whose properties had been rented on a short term basis for many years without incident believe this rental category has been singled out because of problems at only a handful of short term rental properties surrounding noise, group occupancy and landlord supervision. They believe the issues that have led to the creation of the regulation are not limited only to short term rentals, and that, if anything, there might have been measures put into place for all rentals, such as lowering noise decibel minimums and enforcing current group rental laws currently on the books, prior to creating more regulations. A few of the concerns are:

In the past, because of the number of short term leases a Landlord could potentially turn over, the revenue from short term rentals has been more lucrative than a monthly or seasonal rental. In most cases the math does not translate from short term to long term using the Town’s new short term rental regulation formula, which allows for no more than two two-week rental opportunities per month, with no minimum length of stay. Here are two examples comparing longer term rentals to AirBnb rental rates, using the new formula under the regulation:

•

The regulation application is a “self check,” an owner’s statement that safety and code items are correct, which do not require the Town to verify. (Note: updating certificates of occupancy with a physical inspection by the Town would in reality facilitate the process of selling a home which has been a rental in the recent past, since the Town requires an on-site inspection before sending title company copies of certificates of occupancy.)

•

The regulation specifies that the rental “must comply with Town Building and Zoning Codes,” however there are inconsistencies between the regulation and these codes.

•

The Group Rental regulation in the Town Code specifies that: “Not more than one family shall occupy a one-family dwelling… A dwelling occupied by a group may be occupied by not more than two persons per conventional bedroom. In no event shall more than five persons unrelated by blood, marriage or adoption occupy a onefamily dwelling unless the owner thereof actually occupies same and uses same as his principal place of abode.” The penalty for violating the Group Rental Law is “no more than” $250 per occurrence and/or “no more than” 15 days in prison.

•

The Short Term Rental Regulation reads that: “…the rental cannot exceed more than two persons per bedroom.” As an example, a four bedroom house could accommodate 8 unrelated individuals which would be non-compliant under the Town Code. Violation of this provision under the short term rental regulation ranges from $500 to $4K with the possible suspension of the ability to conduct short term rentals. No jail time is included.

•

The sign regulation in the Town Code specifies that: “Any property owner may display anywhere on his or her property no more than one real estate sign.”

•

The Short term rental regulation reads that there can be: “No on-premises signs advertising a vacation rental.”

•

About the “Good Neighbor” brochure, one landlord said “I can understand asking tenants to respect the island, but why is it their job to talk about ticks, beach

– A three bedroom inland home with no pool: Listed with brokers for the season at $32K. The short term formula is: 5 night minimum $3,250, $6,500 per month, $19,500 per season – A four bedroom inland home with pool: Listed with brokers for July-LD for $63K. The short term formula is: 14 night minimum: $12,600, $25,200 per month, $50,400 July-LD. The popularity of short term rentals in recent years has changed the rental business for everyone: owners, tenants and real estate brokers. Traditionally, the rental rate set by a landlord was the rate at which a home was leased, with little to no negotiation. Landlords, in conducting their own rentals, began negotiating rentals rates, resulting in often extensive negotiations for utilities, amenities, and rent prior to finalizing a lease. Many short term rental properties have been purchased over the last decade or so, frequently offer more updates, and are sparsely furnished. As a result, tenants’ expectations have shifted from renting someone else’s home to renting a property that feels like a hotel suite. The longtime go-to home that was once the mainstay of the rental market in a great location, with old fashioned style décor and sometimes a tube television will often now go unrented for the season, sometimes despite an attractive rental rate. Shelter Island Town Board envisioned short term rentals being enforced through reviewing online advertisements placed by Landlords on AirBnb type websites. Because of the structure of the regulation, it will be a challenge to gauge compliance without an actual audit of each and every Landlord’s leases. Like the self-check application, compliance is through an honor system. The Town unfortunately missed a good opportunity to speak to laypersons about the importance of Fair Housing, which is not only a civic duty, but also a Federal law. On the positive side, the topic of short term rentals introduced a dialogue between homeowners and the Town Board. It appears everyone would like to preserve the character of Shelter Island as a tranquil, yet tourist-friendly place. The annual registration fee will add revenue to Town coffers that can be used toward useful projects; approximately $46K for 306 short term rentals currently on AirBnb. On the other hand, the regulation as it stands may not be enforceable and may not resolve the problems initially voiced by those who oppose short term rentals.

Penelope Moore

Licensed Associate Real Estate Broker

Cell: (917) 208-5519

| PMoore@Saunders.com

Shelter Island Market Report June 2017

Connecting with Nature Through Real Estate By Penelope Moore

Licensed Associate Real Estate Broker

At sunrise after a light rainfall a few weeks ago, my two rambunctious dogs burrowed under the fence and set out on a big adventure. Most often they gallop to their favorite spot, deep in the woods to the wetlands, where they delight in rolling through a fertile combination of mud and deer droppings, then reappear, beaming with pride in their dramatically altered fur coats. On this occasion, carrying leashes and calling out their names as I made my way through brambles, I paused to take a breath and heard the utter stillness of nature. There was an almost mechanical “swoop-swoop” sound, followed by a downdraft from the wide wings of a red-tailed hawk overhead, and a little farther ahead, bunnies scampered under the protection of a shrub and posed like statues, with paws pursed tight in front of their breasts. Although I was close to home, this undisturbed patch of land seemed far away, secret and magical. Nature plays an important role for many people who purchase property and those who already live here on Shelter Island. In the late 1990s when I began working in residential real estate at a local agency here, the broker-owner Frederick Dinkel would often share his observations of nature with me. I still cherish the infectious enthusiasm of his discoveries; a meadow of vibrant orange and red wildflowers off of West Neck Road, an osprey nest full of eggs teetering on a bulkhead on the harbor, a colony of spotted salamanders under a massive log near Camp Quinipet. A client of mine who was recently interviewed by a nationally known

publication was asked by the reporter what drew him to Shelter Island. An avid sailor and fisherman, he described how, after spending time in the Hamptons, he had ventured through the island and realizing how ideal it was for boating, he and his family promptly secured a property. “No matter where you are on the island,” he said, “there is an acute awareness of being surrounded by saltwater and wide stretches of pristine beaches and preserve.” Over Memorial Day weekend, I was on a tour with a couple and their young son. At each listing, we walked the land surrounding the home, and at each property much to everyone’s excitement, there was something wild to behold: a woodchuck ambling under a shed, bright Baltimore orioles playing tag through the branches of a cedar tree, a herd of eight heads of deer spying at us through the thicket, and at Reel Point, a fox with a long bushy tail scampering on the sand. Nearing the end of the tour, the child became restless and the parents remarked “we’ve been lucky so far but he’s going to have a meltdown.” At the final home, the boy began stomping on the ground and soon after tears flowed. Out of nowhere, a Monarch butterfly fluttered between us and alighted on the boy’s head. “Oh look!” the mother exclaimed, “he likes you!” Seconds later, the butterfly took off and then landed squarely on the boy’s nose, with its wings opening and closing slowly. He smiled from ear to ear, and giggled as he looked, almost cross-eyed at the butterfly, then beamed at us. As the Monarch fluttered away, the boy cried out, “Oh come back, come back you!” The father turned to me and said, “Ok, where do we sign, we’re sold on Shelter Island!”

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report May, 2017

Memorial Day Weekend By Penelope Moore

Licensed Associate Real Estate Broker

One week before Memorial Day, there was a noticeable change throughout Shelter Island, with foliage filling in for a full green canopy, flowers blooming, boats returning to surrounding waters, and seasonal restaurants and shops now open for business. The business of the real estate market continues to be brisk, with customers taking advantage of historically low interest rates: 30 year conventional mortgages are currently offered at an average of 4.02%. The National Association of Realtors predicted last week that interest rates will rise to 4.5% by the end of 2017 with more increases anticipated in 2018. Many buyers currently in the market are goal oriented, wanting to be in their new homes for the summer. Sales for the first quarter of 2017 are 11.55% less than the first quarter of 2016, however there is a 12.72% increase in Winter-Spring sales for the time frame October 1st 2016 to March 31st 2017 compared to October 1st, 2015 to March 31st 2016. FIRST QUARTER 2017-2015 2017 # Sold 18 Total $22,519,380 2016 # Sold 25 Total $24,349,000 2015 # Sold 12 Total $12,931,125

Median $736,440 Median $821,500 Median $797,500

OCTOBER 1ST THROUGH MARCH 31ST – WINTER/SPRING SALES 2016 – 2017 $57,891,280 2015 – 2016 $51,358,601 For the second quarter 2017, there are 13 closed sales as of this writing totaling $14,414,000 and 12 properties totaling $17,513,000 in contract. Shelter Island traditionally has limited inventory, however there are currently excellent investment opportunities in every category: starter homes, inland homes, waterfront homes, and acreage. The 2017 rental season has been a series of starts and stops, affected by inclement weather, holidays, and the outcome of Shelter Island Town short term rental regulations. Over the last five years, many seasonal tenants have opted to purchase their own vacation homes. There are still many good rental options available in all time frames. This Memorial Day, as we enjoy our beautiful island at the beginning of summer, let us also "Never Forget and Ever Honor."

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

penelope moore land exclusives NE

E RK MA

RAM ISLAND HARBORVIEW ACREAGE

3.1 ACRES IN ESTATE SECTION

CLOSE PROXIMITY TO BEACH AND HEIGHTS

Exclusive $655,000 | 49TuthillDrive.com

Exclusive $579,000 | 6DeringWoodsRoad.com

Exclusive $339,000 | 68NorthMenanticRoad.com

Shelter Island is full of nature’s great treasures, beginning with the pristine blue saltwater that surrounds us, and within, the meadows and forests in our preserves that include Mashomack, the forty acres in the middle of Ram Island, and the vast green open spaces that are a result of the 2% Community Preservation Trust transfer tax. The 2% transfer tax is a good cause that buyers contribute to when purchasing property. Within this virgin land are flora, fauna, and all manner of small creatures which co-exist with us and every so often show themselves on our roads, putting themselves at risk with “civilization.” Because of their slow pace, camouflaged shell and size, turtles are at the top of the list for being injured or worse, killed. In May, turtles can wander a great distance in search of a nest to lay eggs, often on the side of a road, or on a lawn where they can be in danger of being hit by a lawn mower or sprayed with pesticides. Turtle Rescue of the Hamptons, Inc. a non-profit organization located in Jamesport, works in coordination with local veterinarians to help injured turtles which need to be healed, as well as those which are critically injured and need to be euthanized. The slow metabolism of the turtle can be a blessing but also a complication when they are injured beyond hope, as it often takes days for them to pass on. Karen Testa, the Executive Director of the Turtle Rescue of the Hamptons, said that it is best to bring any injured turtle to a vet to be examined and assisted, rather than to assume it has passed on and leave it. Turtle Rescue currently has over 100 turtles in their care. Many will return to health and be released, hopefully to the location where they were found, as turtles are territorial. Others, which would not survive in the wild, will spend the rest of their lives in rehabilitation. Shelter Island, Testa said, ranks high on the list for most injured turtles which have come to her sanctuary in the last year or so. Whether this translates to a large number of caring Shelter Islanders who bring injured turtles to her, or a high rate of accidents compared to other East End towns is unknown. Each summer, along with so many other Shelter Island neighbors, I stop to help turtles cross the road. The safest method is to stop with the turtle in front of the car, turn hazard lights on, and assist it; carrying it in the direction it is headed. Snapping turtles cannot retract their heads into their shells to protect themselves, and instead have the ability to bite with incredible force, using their tail to maneuver them up toward you. With snapping turtles, it is often best to direct oncoming traffic around the turtle until it is out of harm’s way. Sadly, this week I came upon a turtle on Ram Island so badly injured it needed to be euthanized and another completely crushed at the busy 4-way stop at New York Avenue.

The Turtle Rescue Center of the Hamptons is looking for volunteers to be on call to bring injured turtles to the nearest vet. I posted a photo of the turtle I found on Ram Island with its story on social media and many Islanders have already offered to help. Our island is a special place, filled with kind-hearted people who appreciate our wildlife.

IF YOU CAN ASSIST, PLEASE CALL - Karen Testa at 631-779-3737

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com | ShelterIslandRealEstate.com As a licensed real estate broker, Saunders & Associates is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. Saunders & Associates encourages and supports an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin. While this information is believed to be correct, it is presented subject to errors, omissions, change and withdrawal without notice. All material presented here is intended for informational purposes only and all outlines are approximate. Real Estate statistics provided by LiRealEstateReport.com “Saunders, A Higher Form of Realty” is registered in the U.S. Patent and Trademark Office.

Shelter Island Market Report December 2016

2016 Holiday Season By Penelope Moore

Licensed Associate Real Estate Broker

2016 was a year of starts and occasional pauses in the Shelter Island real estate market, as can often be the case in second home markets. Much of the year was robust with forward planning buyers researching the market and poised to act on a property meeting their criteria. New home construction and spec homes improved in 2016; this category frequently signals confidence in the market. Post election, there was a momentary pause, however with news of the Federal Reserve increasing the prime rate, customers who had no particular timeline have come back with renewed purchasing goals. Since Thanksgiving the activity has been consistent. In December, the following properties sold and closed: •

1 Seagull Road – A 3 bedroom, 3 bath 2,138 sq. ft. inlet front with 380 ft. of waterfront, listed 9/29/13 at $2.995M and sold 12/3/16 for $2.3M

•

24-31 East Brander Parkway – Two dwellings totaling 4,198 sq. ft. with boat barn and separate deep water dock, listed 5/13 for $3.2M and sold 12/7/16 for $1.8M

•

32 Rocky Point Road – A 3 bedroom, 3 bath 1,570 sq. ft. ranch on 1.3 acres, listed 8/18/14 for $995K and sold 12/5/16 for $795K

•

49 Brander Parkway – A 3 bedroom, 1.5 bath 1,496 sq. ft. ranch with vinyl pool, listed 10/3/08 for $859K, sold 12/9/16 for $775K

•

Our market continues to have limited inventory in all categories: waterfront, inland and starter homes, while there is a healthy supply of customers waiting for the right property. Buyers continue to prefer a home in turnkey condition over others that are not updated but may be a more attractive long term investment. Over the last 6 months there have been numerous multiple offer situations on properties which in many cases have been on the market for over a year. In several that I have been involved with, the financing, or absence of, has been the deciding factor. At this time of year, the rental market generally goes into full swing. This season, it appears many landlords are undecided on pricing and/ or dates and tenants have been slow to plan their summer. There are many choice rentals available in every category. 2016 was a memorable year for me. I opened my private real estate office in the Heights across from the Post Office and Ace Hardware store, returning to the block where I once worked in the late 1990s. The Heights is indeed a very special place within Shelter Island, a warm and friendly neighborhood within a small community. My first holiday in the new office has been marked with the first Christmas tree I have had as an adult, adorned with ornaments gifted by clients, customers, friends and family over the years, which make this holiday season particularly special. Wishing my loyal clients and customers, neighbors and friends peace, good health and serenity throughout the holiday season and 2017!

75 West Neck Road – A 3 bedroom, 2 bath 1,358 sq. ft. ranch with association dock rights, listed 7/9/16, sold 12/19/16 for $625K

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report

Thanksgiving 2016 By Penelope Moore

Licensed Associate Real Estate Broker This Thanksgiving season, those involved in the real estate market on Shelter Island have much to be thankful for.

•

47 North Midway Rd – a 1931 two bedroom bungalow of 1,472 sq. ft. with pool on one acre listed 5/13/16 for $995K, sold 8/19/16 for $980K

The third quarter 2016 showed an increase of over 23% compared to the same period in 2015.

•

15 North Brander Pkwy – a 1970 ranch of 1,400 sq. ft. on .45 acres, listed 8/27/14 for $799K, sold 9/15/16 at listed price

2016: 19 sales totaling $33,468,000, with a median price of $920,000

•

44 North Menantic Rd – a 1954 ranch of 936 sq. ft. on .46 acre with studio, listed 5/9/16 for $595K, sold 9/23/16 at listed price

•

8 Wesley Ave – a bank-owned 1872 farmhouse listed 8/19/16 for $589K, sold 11/5/16 for $725K, with multiple offers 28 Smith St – an 1858 farmhouse on .34 acre listed 4/25/16 for $525K, sold 9/23/16 for $375K

2015: 24 sales totaling $27,131,339 with a median price of $792,500 Some of the highlights of the third quarter 2016 – the present have included: •

12 Clinton Ave – a 1925 traditional on 1.73 harborfront acres with pool, guest house and dock originally listed 5/13/14 for $6.95M, sold 8/11/16 for $6.3M

•

24 Locust Point Rd – a 1926 Colonial on 2.18 harborfront acres with pool, studio, and deep water dock on separate lot, listed 4/22/14 for $4.675M, sold 9/29/16 for $4.125M

There have been strong “sold” prices post-Labor Day carrying throughout the autumn months in every category: waterfront, inland, vacant land, bank owned property, new home construction, starter homes.

•

27 Bayshore Dr – a 1956 ranch on 1.11 harborfront acres with pool, cabana, garage and deep water dock, listed 8/25/16 for $4.25M, sold 10/25/16 for $4M

For sellers, there continues to be competition and limited inventory within a given property category. For buyers, there continue to be historically low interest rates and consistent financial markets.

•

121 South Ferry Rd – a post and beam built in 2000 with pool, carriage house and deep water dock, listed 9/2/08 for $6.995M and sold 11/4/16 for $3.8M

•

29 East Brander Pkwy – a 1947 cottage on .51 acres with pool, listed 2/22/15 for $2.395M, reduced to $1.995M on 4/9/16, and sold 10/17/16 for $2.22M with multiple offers

•

6 Westmoreland Dr – 2 acres of vacant bayfront acreage listed 4/9/13 at $2.39M, sold 8/26/16 for $2.06M

•

11 Island Way – a 2003 traditional on 2.3 acres with cabana and pool, listed 11/12/15 for $1.795M, and sold 10/24/16 at listed price

•

46 South Ram Island Dr – a 1957 cape of 1,665 sq. ft. on a .72 water view acre with separate harbor front beach listed 5/14/16 for $1.895M, sold 10/21/16 for $1,588,750

•

10 Cove Way – a traditional on .53 creekfront acres with dock, listed 11/21/15 for $1.6M, sold 9/15/16 for $1.18M

•

54 Country Club Dr – new construction of 2030 square feet on .93 acre bordering golf, listed 1/19/16 for $1.325M, sold 11/11/16 for $1.25M

While many may not realize it, real estate is perhaps the largest component of Shelter Island’s economy. A healthy real estate market has a trickledown effect that benefits the community as a whole, starting with the 2% Community Preservation Trust transfer tax which was renewed earlier this month; the Town’s property assessed values which translate to higher property tax rolls, most of the above properties sold at over their assessed values; and the prospect of work that could be generated from a new homeowner through renovation. Throughout 2016, The Town Board has continued to explore topics, including: “Proportionality” or the percentage that can be developed on a given property, short term rentals, water consumption, mapping septic systems and affordable housing, with an eye toward preserving Shelter Island’s delicate environment and unique character. Each is a complex subject, with direct cause and effect within the community – it has an impact on the rights of individual property owners and on future real estate values, so extensive discussion and exchange of ideas at weekly Town Board meetings are not only necessary but also healthy. This Thanksgiving, I am grateful to my loyal clients and customers who make my work in real estate possible, work that is a not only a passion but also a great responsibility that I take seriously, and for the natural beauty which surrounds us and renews my spirit each day.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report September 1 st

Labor Day By Penelope Moore

Licensed Associate Real Estate Broker The summer real estate market on Shelter Island has been brisk indeed. The weeks leading to Memorial Day fast tracked certain transactions. In between beach and BBQs, customers, some of whom had been shopping for a home off the island, decided Shelter Island is a good place to invest their real estate dollars, and placed offers.

12 Terry Drive, new construction on .5 acre with pool, sold 7/5/16 for $995K, the listed price 27 Great Circle Drive, a contemporary with pool, sold 7/15/16 for $920K, the last listed price was $990K 17 Crescent Way, a contemporary on .87 acre, sold 7/15/16 for $875K, the last listed price was $879K

Here are a few highlights: 121 North Ram Island Drive, 2.6 acres on the bay with waterside pool, pool cabana and tennis sold late spring at $4M, it had been listed at $4.575M 37D and 37F Westmoreland, 3 acres on West Neck Harbor with deep water dock, dock house, boat house and sandy beach, sold 8/28/15 for $3.8M, it had been last listed at $4.5M

10 Dickerson Drive, a cape on .52 acre with deeded water access, sold 7/28/16 at $840K, it was last listed at $875K 1 Primrose Place, a ranch with pool, sold 6/29/16 for $855K, last listed at $875K 3 Peconic Avenue, a ranch on 1.1 acres, sold 6/27/16 for $850K, the listed price

33 Prospect Avenue in the Heights, a sound front on 2.2 acres built in 2005 with pool, sold 5/16/16 for $3.2M, it had last been listed at $3.5M

12 Great Circle Drive, a ranch on 1.04 acres, sold 6/20/16 for $720K, it was last listed at $749K

82 Gardiners Bay Drive, bayfront on a shy acre with waterside pool, sold 5/22/16 for $2.8M, at full price

60 Cobbetts Lane, a split level on 1.1 acres, sold 6/3/16 for $710K, it was last listed at $749K

2 Tuthill Drive, a one acre ranch on Coecles Harbor with dock, sold 4/14/16 for $1.9M, it had been last listed at $2.3M

7 Cozy Lane, a ranch with pool on one acre, sold 8/16/16 for $725K, it was last listed at $745K

32 Hilo Drive, a one acre bayfront traditional with dock, waterfront pool and tennis, sold 6/3/16 for $1.79M, the last listed price was $2.05M

83 North Midway, a ranch with guest house on .75 acres, sold 7/3/16, it was last listed at $699K

1 Bonnie Lane, a 2.1 acre 4,734 sq. ft. traditional sold 5/13/16 for $1.33M, it had been last listed at $1.35M

13 Strawberry Lane, a farmhouse on .46 acres, sold 6/17/16, it was last listed at $675K

25 Lake Drive, a traditional with pool on .4 acres, sold on 7/1/16 at $1.25M, the listed price

72 North Menantic Road, a 2 bedroom 1940 farmhouse on .77 acres, sold 8/30/16, it was last listed at $659K

5 Fred’s Lane, new construction with water views, sold for $1.15M on 5/2/16, the listed price

11 Baldwin Road, a 1,544 sq. ft. ranch on one acre, sold 7/16 at $655K

7 Lake Drive, a 3,800 sq. ft. contemporary with gunite pool on shy acre, sold 6/22/16 at $1.1M, the last listed price was $1.195M 33 Tuthill Drive, a 1960s cottage with harbor views, sold 6/28/16 for $995K, the listed price 47 North Midway Road, a 2 bedroom 1930s cottage with pool, sold 8/19/16 for $980K, the last listed price was $995K

17 Smith Street, a 4 bedroom bungalow on .84 acres, sold 5/10/16 for $535K, it was last listed at $595K 89 North Ferry Rd, a 612 sq. ft. cottage, sold 6/29/16 for $340K, it was last listed at $395K Over the course of the summer, homes have been selling at or close to the listed price. For home buyers on the hunt, there continue to be good opportunities in all categories. Happy Labor Day to everyone!

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report August 25 th

Late August By Penelope Moore

Licensed Associate Real Estate Broker

With the last two weeks of the summer season into full swing, the activity in the real estate sector has gone from very busy to a fever pitch, with many customers aiming to view properties before their vacations have ended. Scheduling has always been a challenge in real estate, but summertime requires more finesse. This time of year, sellers and their families are utilizing their properties for what might be the last summer before they sell, or properties are rented and tenants are not inclined to allow showings, despite terms of their lease. In addition, real estate agents from off the island who are showing properties here sometimes do not allocate adequate time for travel and for showing each property, which can result in a log jam for other brokers. There are real estate brokers unfamiliar with a listing their customer wants to see, cannot make the trip to the island, but want the listing broker to meet and educate their customer and do the showing, then fork over half of the total commission. And there are brokers from other areas of New York State who interject themselves after properties have been introduced by a Shelter Island broker, expecting half a commission because of past times and gasoline they invested in a particular customer. Tenants in residence at rentals are enjoying the beach and pool, with only a few small blips, thankfully. Some tenants with a view toward planning for 2017 request to tour other rentals before leaving the island on Labor Day. Inasmuch as forward-thinking tenants are respected by landlords and real estate agents, tenants occupying rentals do not feel the same way, making it incredibly difficult to show, and very often landlords do not know their plans a year in advance. On the subject of rentals, the Shelter Island Town Board met on Tuesday to continue the topic of regulating short term rentals.

The Shelter Island Association discussed the outcome of a survey concerning short term rentals they sent to their membership with 325 individuals responding. 45% of those who replied are full time, 32% are part time, and 22% are weekend residents. 74% respondents indicated that they have noticed increased activity on the island due to short term rentals, 77% have not been affected, 47% believe there is a possible effect on their personal security, 61% support owner occupied short term rentals, and 55% believe living next to a short term rental has a negative effect on their life. The majority of respondents support the Town instituting restrictions. The Shelter Island Association membership is, according to its website, open to “any resident of Shelter Island and any owner of real estate in the Town of Shelter Island” although its trustees are limited to property owners who are a part of an organized association. There was discussion at the meeting of the absence of input from property owners in areas that do not have associations, including the center of the island, among other regions. The Shelter Island Chamber of Commerce also sent out a survey to its membership, comprised of local businesses, but their results were not complete. This week, a client who has had a career in legislation in another locale, commented to me that they wonder why the Town of Shelter Island has not discussed “putting more teeth” into two existing regulations, Group Rentals and Noise, adding “who is currently enforcing these regulations, and would the proposed short term rental regulations be enforced by the same party?” Looking at the calendar with 11 days to go until Labor Day, there are three closings scheduled, all of which are transactions that commenced at the beginning of the summer season. There are serious, optimistic buyers shopping real estate on Shelter Island who may want to tour your home, if it’s listed, so preparation and readiness are imperative.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report August 18 th

August and the Town on Short Term Rentals By Penelope Moore

Licensed Associate Real Estate Broker The pace of real estate has increased as August has progressed, with showings, offers, properties going into contract, and, over the past week there were two properties that sold and closed. One closing was a 5,400+/- sq. ft. harbor front in the estate section, two lots comprising three acres with over 525 ft. of shoreline, much of it sandy, bordered by a walkway and deck with a two story dock house, deepwater dock and a boathouse with rails to the water. It was listed 11/28/14 at $4.75M, was repriced to $4.5M on 8/28/15 and sold on 8/12/16 for $3.8M. Another transaction was for a 1,956+/- sq. ft. ranch on a level acre near the beach with a gunite pool and 3 bedrooms. It was listed 12/18/15 at $765K, repriced 3/17/16 to $745K and sold and closed on 8/16/16 for $725K. The Shelter Island Town Board, with Town Supervisor Jim Dougherty out for personal leave, continued its discussions concerning licensing short term rentals. Town Board member Jim Colligan announced that two surveys were put together, one by the Shelter Island Chamber of Commerce and the other by the Shelter Island Association, and that both groups would be on the agenda for next week’s meeting. “The Shelter Island Association, with its thirteen questions covering four pages, it’s online, I just downloaded it,” he said. The Shelter Island Association website does not offer a survey to download, although Jim Colligan is listed as an Officer, Trustee at Large, and Regional Trustee of the Association. Colligan continued, “I think it’s safe to say we are prepared to move forward on this issue carefully, thoughtfully and responsibly and that it takes more time than we first thought. Not going to please all the people…it will be a step, an honest step by the Town Board to try to identify the problem clearly and attack that problem, and try to minimize the possibility of that problem happening. There is no policy that we are going to develop regardless of how many days we choose that’s going to solve the problem totally. That is just the nature of the beast. The problem has been around for a while. A lot of it is educating the public on what Shelter Island is about.” Town Board member Paul Shepherd interjected, “The problem is humanity.” Discussion ensued as to whether a license should cover a time frame of May 15th to September 15th, 12 months, one month, 2 weeks, 7 days or seasonal. Paul Shepherd said “I don’t know… if it’s about getting enough revenue to try and cover certain expenses or to have a list of who’s doing what. I’m willing to reduce the speed limit to a minimum of a week.” He added that he is in favor of allowing one lease over the course of one month. Town Board member Mary Dudley said that a study of Airbnb indicates that the

customers are “looking for a deal, I’m not buying into that they are not the shoppers.” Colligan suggested that there be a regulation for a minimum one week rental for a year, then evaluate it and if it doesn’t work, increase the minimum to 14 days. In the audience Town Zoning Board member Emory Breiner remarked that “you are still trying to regulate bad behavior that may not correlate.” There are Shelter Island Town ordinances concerning group rentals and noise, although to date there has been no discussion on how to more effectively enforce them. Shepherd continued, “All we can do is regulate the agreement. The neighbors will watch them, I’m pretty sure they’ll have a good eye on it, that’s what it’s going to come down to, we can’t run a hotel that’s 8,000 acres. So it’ll come down to neighborhood watch, like hey, these are not the same people. So, we go to the door and knock and say we want your papers, prove to me…it can be finagled, anything can be finagled.” Town Attorney Laury Dowd noted that it is easy to enforce the advertising of a one week rental. Colligan said “unless they have to send us a copy [of the lease].” Colligan said “We need to sit down with our hotels and say: hey if you want to get back into the market of short term, people coming for 2 and 3 nights, you need to take a look at your price, otherwise you are cutting your own throat, you’re losing out, it’s important for you guys to be on board with this to make it affordable to someone who can only come out for a weekend or for 3 days and not be spending $500 or $600 a night…$2 grand per weekend on Shelter Island is pretty stiff for lots of people.” An average 3 bedroom inland home with no pool on Airbnb was recently listed for $560 per night. During the weekend of August 13-14, at least two hotels and one B&B on Shelter Island had vacancies. “It’s a ‘periodicity’ [sic] issue. It’s all money,” Shepherd said. “As soon as money changes hands it’s commercial, it’s called the real estate industry…it’s our primary industry…the Chamber might remember: the real estate industry, its value is an important thing to try and protect. If there are people who are going to put their properties out there all the time, that is likely detrimental to neighborhood property values unless it’s carefully watched. I can’t tell you I am comfortable with four rental cycles in a month.” Town Board member Chris Lewis asked, “how about 2 instead of 4?” Dudley asked about occupancy, whether they are proposing two per bedroom, to which the Board said this is correct, two individuals per bedroom. “I hope they keep their records because they will be looked at,” Colligan said.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report August 11 th

August on Shelter Island By Penelope Moore

Licensed Associate Real Estate Broker

Friday, August 5th through Sunday August 7th, contrary to the calendar, felt like the official start of the month of August; July 31st fell on a Sunday at which time many tenants moved out of their rentals, and many August tenants did not move in until Friday August 5th. During the week, there was a lull that fell over Shelter Island, indeed, throughout East Hampton, Southampton, Bridgehampton and the North Fork as well. Sag Harbor, though quieter than usual, was still bustling. The search for rentals by prospective tenants quieted down as those who had secured their rentals kicked back and relaxed at their selected properties and others who had postponed a search went to a Plan B scenario. There were some mishaps, such as condensation around pipes, faulty climate controls, wasp nests and pool heaters gone awry; however everything seemed to be corrected in a timely fashion so that the business of vacationing could continue. Over the weekend, a wave of new prospective buyers, a refreshingly receptive audience, came onto the island with showings, one after the other. Explaining and then assisting the customer with selection of the listings to be shown, creating an itinerary with show times, contacting other brokers to set up appointments, collecting keys and frequently working with their schedules if the listing broker is to be present…these are just some of the items that are coordinated in planning a tour. This season, several co brokers from off the island requesting to show Shelter Island listings, opted to send their customers on their own without them, citing heavy traffic as an impediment. Every summer, having new prospective buyers explore the Shelter Island market with a fresh pair of eyes, frequently seeing a property that has been listed in some cases for several years, is not only exciting but also very often happily results in an offer. This Autumn, the statistics will bear out a fruitful summer selling season. At this time in the summer, there are some excellent price revisions

on listings with motivated sellers: •

A traditional built in 2008 on two lots totaling 16 acres with deep water dock, from $9.75M to $8.95M

•

A waterview traditional with guest house, boat barn and deep water dock from $2.15M to $1.99M

•

A 4,886 sq. ft. bay front modern with solar panels, greenhouse, recent master suite expansion from $2.314M to $2.299M

•

An 1880 farmhouse near the harbor with two guest houses on 1.3 acres from $1.495M to $1.395M

•

An 1889 farmhouse with converted barn – once the first General Store on Shelter island – in business zone near Coecles Harbor, from $949K to $898K

This week at the Shelter Island Town Board meeting, proposed regulation on short term rentals continued. The length of leases, ramifications to those who violate the regulations, how “Realtors” view rentals of a week or less, whether the regulation should focus primarily on the summer season, and how rules would be enforced, possibly through a new salaried position created through licensing fees, were explored, among other ideas. Most Shelter Island real estate professionals are not Realtors but are licensed to practice real estate by New York State; A “Realtor” is a member of the National Association of Realtors. A homeowner in the audience referenced a lease that they use and recommended the Town Board review a generic short term lease for their own edification. The Board welcomed the suggestion, inquiring where one could be downloaded online. Prior to instituting regulations that will affect how a property owner may use their home, it would be productive for the Town Board to gain better familiarity of how a short term rental is accomplished, the terminology, leases, associated fees such as security for the actual home and for utilities and who pays commissions.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report August 4 th

Early August 2016 By Penelope Moore

Licensed Associate Real Estate Broker

This past week, history was made when a major political party nominated a woman for President of the United States. I stopped to think about what my maternal grandmother, born in Japan in the early 1900s, would think if she were alive today. Although my grandmother and my mother were both raised in a different era in a country where women were not given equal footing by any measure, they were both strong women who taught my three sisters and me that we were each unique with a gift to be embraced; that our thoughts and feelings as young people were worth listening to; that we should accept those around us without judgment; that we had in us to be whatever we wanted to be; that supporting our community, including appreciating nature, was a part of who we were as a family, and that the concept of “home” was sacred. My mother worked as a translator in post World War II Tokyo, where she met and married my father who was in the Navy, stationed in Japan. The Navy sent her to classes on how to be an American housewife, but after they moved to Washington, DC in 1953, my parents bought a townhouse with a storefront on M Street in Georgetown where my mother opened the Hiratsuka Nippon Gallery. Hers was the first Asian woman-owned gallery in Washington, DC at a time when the city was still considered a Southern town. My grandmother came to the US in 1957, after which they marketed and managed the gallery together, introducing Japanese artists who were until then largely unknown to the west. The two men in the family, my father who was then a journalist and later a film editor-producer, and my grandfather supported every endeavor the women took on with unbridled enthusiasm. My grandfather, Unichi Hiratsuka, was a woodblock artist who created a movement called “Sosaku Hanga” in Japan, meaning one artist who creates artwork from start to finish: sketching, carving, printing and publishing, a veritable celebration of individuality. During my childhood, my mother and grandparents would bring my sisters and me to visit their friends and collectors of my grandfather’s woodblock prints, and frequently buyers would come to our home. As guests in others’ homes, we were told basic tenets: respect others’ sacred space, don’t allow our eyes to wander, and thank the hosts for sharing

their time and home. When buyers came to our home, dusting, cleaning, putting away our toys, and being gracious and patient was de rigueur. The artwork was presented in a particular way, not on an easel but on a wide dining chair, described simply but with a little dash of poetry, accompanied by a pot of green tea and rice crackers. If the visitor was a regular customer, a platter of mochi-gashi or rice cakes made locally, was ordered. After the guests went home, from my bed I could hear my mother and grandmother speaking Japanese in quiet tones downstairs, about how the presentation went, recounting the buyer’s reaction to each and every print, and wondering whether they had sold any of my grandfather’s works of art. Each spring on the grounds of the National Cathedral there was a festival sponsored by the Japan America Society. For several years, my mother rented a kiosk. My grandfather prepped for the event by creating small woodblock prints, and my grandmother worked through the night to cut mats to display each print. My older sister and I, both in elementary school, helped set up displays and, wearing kimonos, sat beneath the high tables on the grass listening to my mother and grandmother sell artwork, with my grandfather standing along the sidelines, chatting and being his affable and modest self. Afterwards, my grandmother bought us enough cotton candy to get a royal belly ache, but being a part of a family team, being recognized for our small contributions, and seeing complete strangers appreciate my grandfather and his talents made it a day to remember. Although my grandmother did not speak English, she followed politics as we all did, growing up in the Nation’s Capital. Every now and again when we needed encouragement, she paraphrased John F. Kennedy, “some see things as they were and say ‘why?’– we should see things that never were and say ‘why not.'” Respecting boundaries, appreciating differences and similarities in people, tapping into my own creativity and individuality, treasuring the gift of “home” and helping my community are just a few of the things that two strong women in my life gave me and which I bring to my work in real estate, and which I hope helps those who work with me and who place their trust in me.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report

Late July Trends By Penelope Moore

Licensed Associate Real Estate Broker

The last week of July has brought new group of prospective buyers to the real estate market on Shelter Island. This season, it appears many new customers are property owners on the South Fork looking to make a change. Customers I have been working with have expressed new found affection for the island and it's distinctly different appeal from the South Fork. It is uplifting to hear relative newcomers to Shelter Island wax poetic about Mashomack Preserve, the long stretches of beachfront off the Ram Island Causeway, the Shelter Island Bucks baseball games at Fiske Field and the absence of congestion and commercialization. The statistics for the first half of 2016 point toward a stronger market. As is the case with all real estate markets, inventory plays an important role. At the present time, the inventory on Shelter Island of homes and vacant land for sale is lower than at this time last year. Every real estate agent seems to have a group of customers seeking that needle in a haystack: a vintage home on open water to purchase at a below market price. Customers now have easy access to data online and come prepared with knowledge of comparable sales over the prior twelve months. Shelter Island being a small market with few sales within certain price categories, direct comparable sales are often nonexistent, a reality that many customers frequently would rather not accept. That being said, there are terrific opportunities in all ranges actively listed. As is often the case, the seller who makes an effort to prepare their property for the sale market by de-personalizing the decor, sprucing up the grounds for curb appeal, and updating certificates of occupancy with the Town experiences fewer complications and a smoother path to the closing table.

customers who are late to find a rental come back for a quick tour and make a decision about an August to Labor Day rental. This season there are many excellent monthly and two week rentals still available. Many rentals are now transacted on direct rental websites for nightly or weekend stays. Real estate agents I have spoken with have similar impressions, one commenting that their agency has a minimum $5K lease requirement because of time intensive rental transactions. Indeed, there are instances when negotiating the terms of a short term lease including rubbish removal, housekeeping, telephone and cable plans among other items, extends over a period of weeks, only to have the customer decide to rent elsewhere. An average uneventful rental transaction entails approximately 14 hours of hands on work, from tours, fielding questions, negotiations, drafting and explaining leases, processing payments, sending reminders, walk through's both upon move in and move out, and any questions that arise during the rental. This does not take into account involvement in any problems that occur during or after the rental. Both a homeowner/landlord and customer/tenant place their faith in a real estate agent to do their best and it is a serious responsibility.

Last weekend, I was happy to have sponsored Gimme Shelter Animal Rescue at their annual benefit gala at the home of Chuck and Ellen Scarborough in Southampton. It was a tremendous success and very gratifying to see clients and customers of mine from Shelter Island there to lend their support. Many dogs, who in many cases had very little time, have been adopted by generous residents here and now also call Shelter Island their home. The Scarboroughs each year graciously open their home to Gimme Shelter and to dogs wearing "Adopt me!" bandanas in the hope The rental market this season has had characteristics unique when that another life may be saved. Thank you to my clients and compared to prior years. Traditionally during the latter part of July, customers for being a part of this worthy cause.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report

Second Quarter 2016 Home Sales and Short Term Rentals By Penelope Moore

Licensed Associate Real Estate Broker

First half sales statistics in the Hamptons and Shelter Island continue to be discussed in the news. As mentioned in my prior market report earlier this month, Shelter Island experienced a strong first half. The 2nd quarter brought 19 total transactions totaling $24,277,810 with a median of $950K. This is an improvement compared to 18 total transactions in 2015, a year ago, totaling $17,650,900 and a median of $705K. The Shelter Island Town Board continued to address short term rentals at Tuesday’s work session. Councilman Jim Colligan said that he favors regulation that is “fair and reasonable, we put it on trial for a year and if we find out it doesn’t work we tweak it.” Many municipalities throughout the world debate the pros and cons of “home sharing” and frame regulations around it. The Voice of San Diego, a publication in one of the top 5 AirBnb-friendly cities in the US, wrote: “Some property owners…are exploiting the sudden popularity of the sharing economy to turn their properties into mini-hotels where they are only rented out on a short-term basis, with rentals as short as two days. They can bring noise, parking problems and trash, as well as increased crime… They are being operated as businesses, and should be treated as such. Are short-term rentals businesses or are they something else? If they’re businesses, the city has regulations about them in residential neighborhoods. If they’re hotels, they should abide by the same health and safety regulations. The properties should carry commercial liability insurance, and undergo regular inspections. If they have a pool or hot tub, those facilities need the proper safety equipment that’s mandated in hotels.” At the Town Board meeting, three homeowners with properties on Sylvan Road expressed their personal concerns and thoughts about short term rentals, which start at one night, secured on direct rental websites such as AirBnb, VRBO and Homeaway.com.

The homeowner whose property has been the subject of the recent controversy, including noise and group rentals said “we spent every penny we had on that house…we knew we would have to rent the house. We are sorry but we are going to do our absolute best. This house is our baby…I wish our neighbors would have come to us to ask questions because we would have told them how strict we are with our tenants…we strongly suggest families, we have turned down probably about 90% of the inquiries because they are not families. This is not a flop house, this is not a party house. We are doing everything we can…to screen these tenants…I ask: who are you, what do you do for a living, I think it borders on illegal the amount I screen these people.” The neighbor whose home is directly next door responded, “a point to be had here that you rent to families, families are not the issue. These are hotel operations that are unsupervised and unregulated. There is a constant flow of people coming in and out of the house… at what point do you say this is an industrial operation, a commercial operation, in a residential home.” Phil Diorio, the neighbor whose property is directly across the street from the subject property and who is a member of the Zoning Board of Appeals said, “this is the impetus to look at what is going on with the short term rentals overall on Shelter Island. I think this is nothing less than a debate about the future of Shelter Island; where we are going to be in 20 years and do we want to be an island of transient rentals? If we do not put some limits on this…we will be overwhelmed [with short term rentals] because the math works. Why put money in the stock market? Buy a house and rent it for $500-$600 a night…do that for 100 nights a year for $50K-$60K that’s a nice return on your investment…This is a debate for the soul of Shelter Island...Personally I don’t want to live on an island full of transient rentals. This is the number one issue, along with water quality and quantity.”

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report

How Brokers Work Together By Penelope Moore

Licensed Associate Real Estate Broker One of the questions both sellers and buyers often ask is: how do real estate brokers work together to sell properties? The process on the East End of Long Island, and even more so on Shelter Island, is different from other areas in New York State and indeed throughout the country. In New York State, most properties listed for sale are offered on an exclusive basis, where one agent at a brokerage works with a seller on marketing strategies, presents the nuances of a property to other brokers, and among other duties, negotiates offers and guides the post-accepted offer process to closing. On the East End, there are several types of listings that are unusual in the industry: •

•

share their exclusive listings with over 40 real estate agencies. The agencies subscribing to this system do not necessarily need to be members of the National Association of Realtors, a trade association--members of which are called "Realtors." Through OREX, information is also shared to other non-OREX agencies so that the latter may send updated information to their customers. On the North Fork and west of the Shinnecock Canal, the Long Island Board of Realtors is the predominant multiple listing service or “MLS”. As with OREX, the listing is shared so that other brokers may introduce a property to their customers. Agencies subscribing to this service are required to be members of the National Association of Realtors and information is not shared with other agencies who are not a part of the Long Island Board of Realtors. Prior to an automated multiple listing service on the East End, exclusives were shared via "co-broke agreements," which were then physically handed to agents who attended a broker's open house for their exclusive listing. On Shelter Island, agencies share listings in a variety of methods: Two agencies provide each agent with their own access to OREX multiple listing service. Another agency is on Long Island’s MLS and has one user on OREX to update listings. The balance of Shelter Island agencies share their exclusives the old-fashioned way. Saunders & Associates is on OREX, NY State MLS and a member of the Long Island Board of Realtors. With so many methods, it is incumbent on a real estate agent to stay in touch with those agencies that do not work electronically for price updates and modifications to the listing. For listing brokers who are not a part of a multiple listing service, it is equally important to keep others in the loop with their exclusives. The majority of real estate agencies on Shelter Island are not members of the National Association of Realtors, but work under the laws of New York State, as all NY real estate agents and brokers do.

Cooperating Brokerage: "Co-Brokes" are exclusive listings that are shared by the listing agency with other brokers to show and sell. The listing agent works with "cooperating brokers" to help him or her sell the property to the cooperating broker's customers.

On the South Fork and Shelter Island, the OREX or Open Real Estate Exchange is the predominant multiple listing service or “MLS” that most agencies use to

When real estate brokers work together “in harmony” it's a "win-win" situation for everyone.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report July 7 th 2016

First Half of 2016 Sales By Penelope Moore

Licensed Associate Real Estate Broker

As 4th of July vacationers enjoyed the sunshine and beaches, midyear statistics for properties sold were being tallied. The numbers are positive with a total of $57.735M sold and closed. Inland homes lead the way with $25,967,500. Properties up to the $1M mark have continued to be most in demand. With the topic of affordable housing in the news recently, it is worth noting that out of 27 homes sold in this category, three properties sold in the $300K-$399K range, six in the $400K-$499K range and five in the $500K-$599K range. The $1M-$1.5M category has continued to do well and has included spec homes, homes without pools, higher end/turnkey homes on smaller lots, and homes that have been staged to sell. Waterfront came in at $20.89M with 8 transactions which included: a spec home with dock at $3.25M, an historic creek front home at $1.6M, 2.6 bay front acres with two homes, pool and tennis at $3.95M. Water view at $6,220,000 with 5 transactions featured three properties

with no pools; all offered views of large water: bay, sound and harbor. Acreage has made a strong comeback over the last 6 months with 11 sales totaling $4.125M. Although many of these transactions were cash, others were financed with construction loans, pointing toward more available avenues through banks. Several transactions were with builders, who will eventually be constructing homes that will translate to future listings and sales. Although the topic of Brexit created a momentary cause for concern with some buyers, news that interest rates will continue to be at historic lows has actually brought new buyers to the market. I am pleased to report that of the first half 2016 figures, I was involved in nearly $35M in total transactions: close to $16M in waterfront properties or approximately 76% of total in this category; over $2M in acreage or approximately 52% in this category and nearly $7M of inland properties or approximately 27%.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report June 30 th 2016

Fourth of July on Shelter Island By Penelope Moore

Licensed Associate Real Estate Broker As 4th of July weekend approaches, the summer 2015 real estate market has officially commenced, with many customers scurrying to secure a last minute rental. At Tuesday’s Town Board meeting, the topic of short term rentals was again discussed. Town Supervisor Jim Dougherty said “AirBnb’s are an increasing phenomenon on Shelter Island. There are good sides and bad sides to this unfolding development. I want to make everyone aware that we the Town Board is going to move very slowly and deliberately, not slowly to a fault, but we want to do something that is good, rather than something that’s fast…with this very, very complex subject.” Town Attorney Laury Dowd noted that the Town Code already regulates the operation of bed and breakfasts, and read aloud the initial draft of the proposed law. “Any one family dwelling rented for less than 14 consecutive days shall also be deemed a B&B and must comply with the provisions of the B&B regulations.” And that advertising a B&B “would be prohibited unless they have the proper license which is required for a B&B with hefty fines for violating.” Town Councilwoman Chris Lewis added that “the best part is to insist that it be owner occupied.”

Town Supervisor of East Hampton regarding the new rental regulation requiring that a homeowner seeking to rent obtain a license. Cantwell, Dougherty continued, “said that from both sides of the coin the law seems to be working satisfactorily, so it’s something we should consider. It is a problem but we have to be aware of the economic realities on the island as well.” An article in the 6/29/16 New York Times described ongoing problems with AirBnb and regulations in San Francisco, where the company is based, and in New York City. On top of discussions concerning how AirBnb and home sharing has an adverse affect on quality of life and housing, AirBnb faces a class action discrimination lawsuit. According to a New York Times article on 6/19/16, the chief plaintiff claims AirBnb violated civil rights that forbid housing discrimination when a host on the service denied him accommodation last year because of his race. On the home sale front, inventory for properties in the less than $1M range is limited, and properties listed between $1M and $1.5M are experiencing more activity.

Town Councilman Paul Shepherd said “I’d rather have [a regulation] that is perhaps marginally flawed in some way or another than nothing.”

Recently I wrote about being mindful of turtles crossing the road. This week I spoke with Karen Testa of Turtle Rescue in Jamesport to check on two injured turtles. She told me that a high percentage of wounded turtles in their care come from Shelter Island, with only two Shelter Island individuals currently listed as transport volunteers. “This looks like a war zone,” she said, adding that there is a high mortality rate because slow moving turtles are “like sitting ducks” for speeding cars. One of the turtles from Shelter Island I was inquiring about died. The other, which I found on Middle Road in Riverhead upside down, shell locked up, is slowly recovering, and if all goes well, may be returned to the wild in 2016.

Dougherty said that the proposed regulation will be posted on the Town website, and then a public hearing will be scheduled. He spoke with Larry Cantwell, the

This Independence Day, enjoy all that Shelter Island has to offer, our community, natural surroundings and wildlife!

Town Councilman Jim Colligan said that he had heard from many people who “do rent and rent carefully, sometimes to the same people,” and “never have complaints from neighbors,” but “it takes a handful of people to sour the pot,” especially for the “people who live immediately next door, putting people through a mini hell,” adding that “making people on AirBnb conform is not a bad thing.”

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report June 23 rd 2016

The Rental Market By Penelope Moore

Licensed Associate Real Estate Broker On 6/21/16 The Shelter Island Town Board discussed short term rentals, those generally less than two weeks in duration, following complaints from residents whose quality of life has been affected by noise from nearby rental properties. A bill passed by the New York State legislature this week makes it illegal to advertise an entire home on direct owner rental websites for 30 days or less. New York already prohibits rentals of fewer than 30 days if residents are not present, but posting listings for such rentals was not explicitly barred. Under the new legislation, people who post such listings could be fined up to $7,500. Councilman Jim Colligan said that he is sympathetic to owners who rent a room or two short term and who without the rental income, “cannot get by,” but is less empathetic to others who purchased a residential property as an investment but “cannot continue to afford the house” without renting short term, adding “maybe you shouldn’t have bought here.” The Board described “nightmare” situations with certain blocks “inundated with vulgar, loud noise” and “16 people spending the night in a three bedroom” house. Shelter Island already has group rental laws prohibiting “any number of persons in excess of five persons, unrelated by blood, marriage or adoption occupying a one or two family dwelling unless the owner thereof actually occupies same and uses same as his principal place of abode” with “not more than two persons per conventional bedroom”. Violations can result in $250 per day or imprisonment for not more than 15 days or both for each and every violation” for the homeowner and real estate agent, if one assisted or participated. Councilman Paul Shepherd said it should be “fairly straightforward to set up” regulations “so that people with a two week window or less will have to act as a bed and breakfast or can’t operate without being owner occupied,” adding that there are also safety issues such as adequate number of smoke detectors. In East Hampton, Colligan noted, a rental registry was created this year with

a fee of $100 for two years with proof of a full certificate of occupancy which “does not interfere with rights, balances the safety and protection of tenants and first responders and drinking water.” Councilwoman Chris Lewis added that for “East Hampton, that ship has long since sailed.” With enforceability being a concern, the Town Board will be drafting a proposal that for rentals of two weeks or less, the rental is owner occupied and operated by the same rules as a B&B and that advertising a property short term and not owner occupied would be a violation. Many one month or longer rentals remain available with some Landlords considering reverting to short term despite more wear and tear. One real estate agent last week told me that they had “spent two hours and a lot of gasoline” driving potential customers to rental properties, only to discover that they had leased one of the properties that they had been shown directly through the Landlord. Another agent described a conversation with a customer who said that they had compared a list of rental properties the agent had sent to them with the map on AirBnb and rented directly, adding that Landlords “give in” to more demands. Southold Town last year passed a law prohibiting rentals of fewer than 14 days. Town Supervisor Scott Russell, in an interview with Hamptons.com said “The practice of short-term rentals has been flying under the radar for a few years. Over the past couple of years it has exploded. So many homes have been added to the inventory by Airbnb, resulting in community complaints that we felt we had to address the problem. We looked very long and hard at the issues. There were some benefits to Airbnb, presumptively, a boon to the local economy. It filled a niche for accommodation in Southold which doesn't have very many apartments, but when it's all said and done, we had to look at the impacts that it was having on the community, including the commercialization of our residential community.”

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report June 16 th 2016

SHELTER ISLAND 10K WEEKEND By Penelope Moore

Licensed Associate Real Estate Broker Over the last two weeks, the vibe on Shelter Island has shifted from laid back to energetic, with vacationers and second homeowners enjoying our beaches, restaurants and shops, which in turn sustains our local economy. I feel a sense of pride seeing the “Roadway Rembrandt” from the Highway Department painting pavement markings for the summer, the pharmacy readying themselves for the onslaught of children vying for their signature milkshakes, and farm stands carefully arranging vases of bright flowers on a Saturday morning. This weekend, our island hosts its 37th Annual Shelter Island 10K, which last year had over 2,000 runners over the 6.2 mile course, which offers glimpses to some of the most beautiful parts of the island where many of our exclusive properties are located. The starting line is in the center near the library, flowing down the hill to Ram Island Road, near the windmill at Sylvester Manor and 18 Manwaring Road, a business zoned multi-family opportunity for $1.375M. A little farther along, Acorn Cottage at 82 North Cartwright is just before the former Paard Hill Horse Farm, priced at $945K, a sweet 1920s water view bungalow expanded in 2015. Continuing down the hill is 7 Lari Lane, a 2.3-acre harborfront traditional with its own boat basin for $6.25M. After taking a left onto Cobbetts Lane and a right onto Manhanset Road, one can glimpse the farmhouse with guest cottage and pool at 11 Island Way, for $1.795M. Then after entering Dering Harbor Village, the route passes 3.1-acre parcel at 6 Dering Woods Road, bordering the golf course, one of the best land values at $599K. Gardiners Bay Country Club is to the right, where 26 Country Club Drive, a pristine traditional for $1.985M with pool and water views looks over the greens and, a stone’s throw away is 5 Crescent Way, a modernist treetop home with pool and Asian gardens at $995K.

Shortly after, tucked behind a magnificent beech hedge is a traditional on 16 acres belonging to historic Oriole Farms, for $9.75M at 31 Manhanset Road, where the course veers to the right onto Sylvester Road. Oriole Farms’ restored turn of the century boat cabana and deep water dock, one of the longest on the island are prominently featured. Also in Dering Harbor Village, while running along the waterfront with the estates, one passes 9 Shore Road, a western facing harbor front with a deep water dock, along with an impressive osprey nest and sandy beach. This waterfront, together with the restored 1926 Colonial at 24 Locust Point Road, is offered at $4.675M. When I ran the 10k in 1996, I trained on the course for months, through rain and snow. The day of the race, my first formal run, there were some mistakes: I lined up at my real time and had to pass slower runners for the first mile; I drank a sugary energy drink that made me light-headed; drank water on the course and got stomach cramps; lost the numbered tear off tab on my pinafore, and not realizing the race continues through the baseball field, I sprinted a little too early and barely had enough in me to cross the finish line. Although my final time which had been my personal best, was not included in the results, some wonderful sensory memories remain: the adrenalin and breathing from runners around me and the silence of nature just beyond them, the scent of wild roses and salt air along Dering Harbor on Winthrop Road, the photographer on a ladder happily snapping pictures of everyone sweating profusely, the incredible gazelle-like athletes, and the sight of my beautiful dog cheering me on at the finish line. The 10K is a fundraiser that has provided financial support for Timothy Hill Children’s Ranch, East End Hospice, and the 10K Community Fund, which benefits our community, and includes the Historical Society, Mashomack Preserve, the Emergency Medical Services team, local senior citizens programs, drug education and youth programs, including scholarships to graduating seniors. A special thank you to my clients Ken and Donna Wright, who match these scholarship funds.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report June 9 th 2016

Post Memorial Day

By Penelope Moore Licensed Associate Real Estate Broker Real estate activity this post Memorial Day week, ran the gamut, and included a long awaited waterfront closing, a high end rental showing, several appointments in the $1M range and showings of high end waterfront properties. Discussion of the proposed revision to the zoning code called “proportionality” which would reduce the percentage of a property that could be developed and include unfinished space in the total lot coverage continued at Friday’s Shelter Island Town Board meeting. If the proposal were made into law, waterfront and small lots, both vacant and existing homes, would be most affected. Recently appointed Councilmember Mary Dudley was asked by Planning Board member Emory Breiner from the audience if she has data on the “percentage of current homes that would become instantly nonconforming” if her proposal is adopted. Dudley said, “No, I can’t tell you that, but if you give me an opportunity to possibly look into it, there might be an answer I can get for you.” When Breiner suggested “before we go forward we should know the consequences,” Dudley said “what we presented, it was just the formula, those numbers are flexible, so what you saw as a result was not necessarily what we’re talking about doing, it was just numbers we threw in there…that’s a good point that you’ve got there, that we should really take a look at what we’ve got on the island and try to get an idea [of] what fits and how the formula can fit what we have,” and that “total proportionality is pretty standard.” Councilman Paul Shepherd said that “House size literally has been limited by financial element at this point, essentially people haven’t built a house that big because: who would build a house that big? Little by little that’s changing, we are starting to see people with the resources build things that could actually conceivably cover 25% of a lot, and the thought that some people had was maybe we need to look at that and put some limits around that, other than the 25%.” When asked why proportionality is being proposed again, Shepherd replied, “People screamed. My own aesthetic thing too, I don’t really want to see a whole lot consumed with structure and house.”

Within the framework of water usage and lot coverage, Councilman Jim Colligan last week said that “mansions” do not represent the character of Shelter Island, however estates on Nostrand Parkway, in Dering Harbor and the Victorians in the Heights, along with large historic hotels which no longer exist, were developed during the turn of the century and are a part of the fabric of the island today. The Health Department uses the number of bedrooms, not water consumption, when issuing its permits. An audience member, an architect, said “I find it ironic you are proposing proportionality and at the same time advocating multi-family rental housing on a small lot, on less than a third of an acre [in a] single family residential zone.” He asked if members of the Town Board have experience in urban planning, design and development, adding, the “Board needs to understand the implications of what they are advocating” and “there is an activist mentality tending to rush to actualizing these things before there is a full understanding of the broad implications across the island.” Through open conversation and sharing concerns, ideas can be explored which could be productive, rather than alarming. Perhaps creating a Committee, as the Town has done in the past for other important issues, comprised of those with zoning and urban planning experience would enable long range, thoughtful solutions. This coming Saturday, June 11th, The East End Hospice’s event “Soar Into Summer…Taking Care of Our Island” Cocktail Party and Silent Auction will be held at the Shelter Island Yacht Club between 5:30 and 8pm, which we are happy to sponsor for the second year. East End Hospice helps people whose life expectancy is six months or less, allowing them to conclude life with comfort and dignity. There are times in my work when I meet a family whose loved one is being cared for or is about to be cared for by hospice. There have been personally painful times when I have worked with a seller who has transitioned to hospice care. My neighbor and a colleague here on Shelter Island, two women I was fortunate to call friends, were assisted through hospice in their last days. The dedication to the work and compassion for those East End Hospice assists is palpable. Please join us in supporting East End Hospice and the important work they perform so tirelessly in our community.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report June 2 nd 2016

Zoning on Shelter Island By Penelope Moore Licensed Associate Real Estate Broker Memorial Day weekend started off with a bang, with warm summer-

have a point of view, then you run for office…this is about what’s fair and

like temperatures and crowds at our island beaches and restaurants.

right, not about the almighty dollar.”

On the real estate front, last minute customers shopped online, booked and moved into their rentals, and Friday through Sunday in between

With a direct correlation between property values and the ability to

barbecues and leisure time, customers toured homes to purchase.

develop or expand, the Town placing sweeping limits would surely have a negative effect on real estate values, particularly on waterfront

In the backdrop of summer fun, the Town of Shelter Island conducted

properties and those near the water.

its usual business. Zoning, while seemingly a boring topic, is important to all property owners and is rarely given the focus it deserves. Zoning

There are many evolving issues that are worthy of open discussion,

falls under “police power," the right of the government to make laws that

including property owners’ rights surrounding demolition of historic

surround safety, health, welfare and morals and affect a variety of laws

buildings and the ability to rent on a nightly or short term basis without

including land use, fire and building codes.

a Town or Health Department permit. Shelter Island has historically had some of the lowest property taxes on the East End, with a fiscally

This week at the Town Board meeting, new Council members Jim Colligan

responsible government and zoning that has widely been considered “fair

and Mary Dudley re-introduced a zoning and building code concept

and right." While the notion of the almighty dollar may elude some, there

called “Proportionality” that would limit development of new homes

are many instances where real estate is the greatest asset one owns, and

and expansion of existing homes, particularly in areas close to the water.

the ability to sell it at the highest price possible is crucial to the future welfare of a property owner and their family.

Currently, the total square footage of a home only factors finished or livable areas. In the proposed concept, according to Dudley, the total

The Shelter Island Town Board meetings are available online at:

square footage “would be a little more embracing” to include unheated

townhallstreams.com/locations/shelter-island-ny

and unfinished areas to “avoid possible loopholes” or future finishing by homeowners who might not notify the Town. On one inland acre

Building Inspector Bill Banks retires this month. Dedicated to his work

or 43,560 square feet, a property owner could develop a total of 11%

and a fountain of knowledge, he will be greatly missed.

or 4791 square feet including basement, garage, attic and porches, a reduction of approximately 14% currently allowed for finished space.

Where island tranquility is concerned, we are so incredibly blessed to be

Many homes that are currently standing on less than an acre, in the new

surrounded by nature. This week many turtles were assisted across our

regulation could not be built.

roads by passersby, however many were injured or did not make it at all. While enjoying our sights and sounds, please slow down and take a

Colligan responded to a speaker from the audience who opposes the

moment to consider local wildlife, which as a client said yesterday, “are

proposed regulation, “that’s your point of view and I have mine. If you

Shelter Islanders, too.”

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

Shelter Island Market Report May 2016

Memorial Day By Penelope Moore Licensed Associate Real Estate Broker

The Spring selling season has continued in brisk fashion since 2 Valley Road, a 2,101 sq. ft. ranch with pool and waterfront slip rights on .69 acre, listed 9/30/15, sold for $595K on 3/15/16 Easter, in spite of long stretches of inclement weather. The below $1M market continues to lead the way with limited inventory. Inland homes starting in the low $1Ms are beginning to gain traction with several in contract since last month. Waterfront properties up to $5M, some of which have been on the market for more than a year, are pending closing.

17 Smith Street, a 1,408 sq. ft. bungalow on .84 acre with 4 bedrooms and 1 bath, listed 12/8/15, sold 5/10/16 for $535K

With Memorial Day weekend upon us, there are still many last minute shoppers. The 2016 summer season has had its starts and stops. August to Labor Day continues to be most requested st time frame, with two week and shorter terms also prevalent. Here are properties that have sold since April 1 Shelter Island rentals have historically been priced to rent; This 121 North Ram Island Drive, 2.6 bayfront acres with tennis, season, many tenants, perhaps unfamiliar with the process, waterside pool and guest house last listed at $4.575M, sold for have been relentless negotiators. More than a few prospective customers who tour with real estate agents have contacted and $3.95M 4/21/16 leased through Landlords directly. Perhaps as a result, there are 82 Gardiners Bay Drive, a .94 bayfront acre with waterfront now more exclusive rentals being listed. pool listed 4/30/15 for $2.8M, sold 5/22/15 for $2.8M With Memorial Day weekend upon us, there are still many last 2 Tuthill Drive, 1 acre on Coecles Harbor with dock and carriage minute rental shoppers. The 2016 summer season has had its starts and stops. August to Labor Day continues to be most house, last listed at $2.3M, sold 4/14/16 for $1.9M requested time frame, with two week and shorter terms also 4 Bayview Avenue, one inland acre with carriage house, listed prevalent. Shelter Island rentals have historically been priced to rent; This season, many tenants unfamiliar with the process, 10/15, sold 4/1/16 for $1.4M have been relentless negotiators. More than a few prospective 4 North Ferry Road, a 1,921 sq. ft. traditional built in 2008 on 3.5 acres customers who tour with real estate agents have contacted and leased through Landlords directly. Perhaps as a result, there are in business zone, listed 5/15 for $1.45M, sold 4/12/16 for $1.22M now more exclusive rentals being listed. 5 Fred’s Lane, new construction on a shy creekview acre with 2,030 sq. ft., listed 12/12/15 at $1.195M, sold 5/2/16 for $1.15M I am happy to announce that I moved my office to 9 Grand Avenue, directly across from the Heights Post Office and Shelter Island 19 South Menantic Road, a 1,191 sq. ft. chalet style house on .3 Hardware store. Having spent several years working in the Heights, I am looking forward to returning to this neck of the woods. acre, listed 9/17/15 for $649K, sold 4/8/16 for $589K

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-2300 | Cell: (917) 208-5519 | PMoore@Saunders.com

ShelterIslandRealEstate.com | PenelopeMoore.com nine grand avenue, shelter island “Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

shelter island market report Easter Weekend 2016

The first day of spring, the holidays that coincide with it and the return of ospreys mark the beginning of the spring selling season on Shelter Island. As is the case with other second home markets, spring through autumn is traditionally the peak time to sell or purchase real estate on Shelter Island. The first quarter of 2016, in contrast to tradition perhaps due to mild temperatures, was active with properties moving into contract and closing, a continuation of brisk activity from the 4th quarter of 2015. Many listings that had been on the market for over a year and had been viewed by many prior prospective buyers suddenly became hot tickets in spite of the cold weather and, in many instances, had multiple offers. There was little time for winter vacationing for many of us real estate agents. A homeowner contemplating placing their property on the market might conclude that it’s a "seller’s market," however, buyers who come to shop on Shelter Island now have easy access to market information through websites designed to track real estate listings and the prices at which they have sold. The current market is sound and solid. There continues to be limited inventory across the board, particularly at the below $1M price category. A clean, well maintained home is a sought after commodity. Savvy sellers who do simple bathroom or kitchen updates and freshen up their curb appeal prior to putting their homes on the market reap rewards in terms of days on the market and final selling price. In addition to the above, revisiting the survey to ensure that there are no encroachments such as neighbors’ fences (which create problems more often than most realize), updating Shelter Island Town certificates of occupancy and conducting a pre-listing inspection with a home inspector can save time, headaches and possible buyer credits at closing. Notable sales since January 2016 have included: •

70 Peconic Avenue, which was listed 7/14 for $3.575M, was last listed at $3.45M and sold 3/3/16 for $3.25M. The 2014, 2,950 sq. ft. traditional was on .3 sound front acre with dock and had open water views.

•

37 East Brander Parkway, which was listed 5/12 for $2.945M, was last listed at $2.795M and sold 1/21/16 for $2.4M. The 1975, 3,040 sq. ft. contemporary was on one acre with dock, waterfront pool and carriage house.

•

56 South Menantic Road, which was listed 2/15 for $1.795M, sold 2/5/16 for $1.6M. The 2001, 3,100 sq. ft. traditional was on .53 acre with gunite pool and harbor views.

•

140 North Ferry Road, which was listed 7/13 for $2.7M, was last listed at $1.795M and sold 2/3/16 for $1.6M. The 1828 creek front traditional had structures dating back to the Revolutionary War and was owned by one family during that tme, with barn, dock and cottage, and was one of the Island’s historic properties.

•

2 Point Lane, which was listed 2/23/15 for $1.785M, was last listed at $1.495M and sold 2/12/16 for $1.3M. The 1991 water view contemporary on one acre was one lot from the beach and had three stories of above grade living space.

•

14 Bay Avenue sold 1/29/16 for $1.2M in a private listing/sale. Built in 1890, it had been extensively renovated recently, has views of the sound and is near Union Chapel.

•

21 Quaker Path, which was listed 3/30/15 for $1.099M, sold 2/26/16 for $950K. The 1972 “round house” with bay views on 1.56 acres had a pool, guest house and 6-car garage, and a one year rent roll of over $70K.

•

61 North Cartwright Road was listed at $1.075M and sold 2/5/16 for $975K. An 1858 traditional on 1 acre with 3,262 sq. ft. there are 5 bedrooms, fireplace and gazebo.

•

23 Shelterlands Path was listed 12/15 at $985K and sold 3/14/16 for $920K. The 1986 traditional on 1 acre had 2,594 sq. ft., renovated kitchen, 4 bedrooms and 2-car garage.

•

12 Behringer Lane was listed 3/13 at $749,500 and sold 2/19/16 at its last listed price of $550K, a 2,008 sq. ft. ranch on .5 acre, that is close to the beach.

Mortgage rates continue to be attractive; current 30-year fixed rate mortgages are around 4%. A recent buyer with good credit told me “with money so cheap, I want to buy another house!” The rental market is in full swing. Smart landlords are reaching out to real estate agents to update their listings. 4 bedroom homes with pools both inland and on the water seem to be the most requested category.

Penelope Moore

Licensed Associate Real Estate Broker

Office: (631) 749-5801 | Cell: (917) 208-5519 | PMoore@Saunders.com

three south ferry road, shelter island “Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.

shelter island market report – President's Day Weekend 2016 –

As February unfolds, the statistics for the 4th quarter of 2015 and the year in sum total are still being tallied as sales on Shelter Island are slowly recorded with Suffolk County. 24 transactions totaling $26,684,601 sold and closed during the 4th quarter with a median price of $760,181. Nearly $8M or 12 sold transactions were less than $1M continuing the strength of this category, which leads the market for the entire year. Separately, there were 2 foreclosure sales totaling $1,131,601, also during the 4th quarter of 2015. Although Shelter Island has not had many foreclosure sales, in 2015 there were a handful of bank auctions of properties that were either developed during the top of the market or had mortgages with banks that were known to have written higher risk loans. 23 transactions totaling $32,669,250 sold during the 4th quarter of 2014 with a median price of $800K with no foreclosure sales during this time frame. In October 2015, activity accelerated with many properties going into contract at a rapid pace. Once contracts were fully executed by both buyers and sellers, many transactions that were scheduled to close before the end of the year were delayed. These delays were due to banks, title companies, environmental issues and a very large piece of the pie labeled “the unknown” which includes attorneys, municipalities, appraisals and paperwork. As a result, since January 2016, 9 transactions totaling $10,694,000 have sold and closed, with nearly $30M still in contract. One of the properties in contract is priced at approximately $12M. The seller has no control over a buyer's hot buttons, the bank, title company or appraiser. It is the smart seller who addresses what they can control and approaches their home sale as a business with a pre-listing inspection of their own property, correcting any problems before a property is listed. Incredibly, there are times when a fence placed incorrectly by a neighbor on a seller’s property can derail a closing for sometimes weeks, so updating one’s survey is also a wise move. In spite of the mild weather until now, the rental market has been slow to start, possibly because many tenants have gone on to purchase properties in 2015. Many tried and true rental properties have sold and closed, resulting in lower inventory. Newer rentals that have come on the market, in many cases with more bells and whistles, are priced higher in general. Shorter term rentals, which have gained traction over the last couple of years, are more lucrative for Landlords. In sum total, it will be interesting to see how these nuances affect rentals this season and in the future.

Penelope A. Moore

Licensed Associate Real Estate Broker

Office: (631) 749-5801 | Cell: (917) 208-5519 | PMoore@Saunders.com

three south ferry road, shelter island “Saunders, A Higher Form of Realty,” is registered in the U.S. Patent and Trademark Office. Equal Housing Opportunity.