Bridgehampton - In the three months since our last installment on Hamptons.com much has happened in the world including several bailout plans, gas prices dropping back to manageable levels, and a new President taking office. The real estate market has seen changes as well.

Drew Green, VP Associate, Corcoran

Under the best of market conditions, real estate in The Hamptons generally goes pretty quiet during the holiday period (historically Nov. 15 through Jan. 15). This year was even more quiet - so quiet it became almost pointless to go into the office. Many brokers were evaluating career moves during this time and some did make a move.

Alas, in the past three weeks, not unlike the inevitable arrival of springtime, the phones in real estate offices have begun to ring once again. Buyers and renters alike have started to return to the region in the hopes of owning or renting a piece of The Hamptons and a slice of the mystique that infers. This is not to suggest that we are back to business as usual with bidding wars and the suggestion of - "buy it now before someone else beats you to it" - but it is to say real estate in The Hamptons still holds appeal; more importantly it has "measurable value" just like any commodity.

Sports enthusiasts will appreciate this analogy: Buying Hamptons real estate is like trying to sign Manny Ramirez to your baseball team. Everybody wants it (him), the price might be questionable but inevitably someone will buy (sign him) at a price. Of course, the trick is to get both at the right price, but rest assured, eventually homes will sell and Manny Ramirez will be playing baseball for someone this spring.

Bloomberg reported that existing home sales in the U.S. unexpectedly rose during the month of December. The suggestion is that this is a result of buyers currently seeing "value" with reduced prices, now roughly 25 percent to 30 percent off of their highs in The Hamptons, with the opportunity of interest rates being at all time lows and theoretically dropping even further per Patti Frank at Americana Mortgage Group and talk at the federal level.

The selling prices of homes are unquestionably down and "may" continue to go down. However, astute buyers realize that many current sellers are much more anxious than they were in the past and are making offers accordingly. Corcoran research suggests that on the East End the "average negotiability" on a home in the first quarter of 2008 was nine percent and in the fourth quarter the "average negotiability" was a little more than 15 percent (the average reduction in the "selling" price versus its last "asking" price) These stats confirm what we were suggesting three months ago, which, was to make an offer even if it is perceived as being low.

From a seller's standpoint, they must accept that this is clearly a different market than it was a year ago. If sellers truly wish to sell, it is strongly recommended that they evaluate the prices on comparable homes and then price their homes 10 percent to 15 percent "below" the competition. Recent activity suggests that owners who have adopted this strategy are, in fact, selling their homes.

In conclusion, the next six months will be interesting economically and particularly in terms of the The Hamptons real estate market, but rest assured, there will be "good opportunities" out there for buyers and sellers alike "at a price," so stay tuned.

In 2006 Drew and his sister, Cliffeton, joined forces to form "The Green Team." They both suggest their combined experience and their diverse ways of approaching real estate have expanded their business. drew.green@corcoran.com.