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Hamptons.com
June 19, 2022

Characteristics of the Recent Hamptons Real Estate Market

John A. Viterittiby John A. Viteritti
in Real Estate, Trending
Home Real Estate

Given the rising inflation and increasing interest rates, it remains to be seen if the bidding wars, cash deals, no mortgage contingencies, and urgency to close have characterized the real estate market in the Hamptons will continue.

 

For instance, while the buyerโ€™s obligation to close may not have been contingent upon financing, many chose to finance the purchase with low interest mortgages upon taking title. GIven the increase in interest rates, at what point the higher interest rates will cancel out the benefit of financing remains to be seen.

 

When it comes to financing a purchase by giving a bank a mortgage, historically, the most acceptable method for determining what a home is likely to sell is based on what similar properties sold for in a given area over a reasonable period of time, supported by a certified appraisal.

 

The definition of market value is set forth in the U.S. Department of the Treasury Regulation Section 20.2031-1(b): โ€œFair market value is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.โ€

 

To gain some insight into the subject, I spoke with a certified appraiser and an attorney.

 

Thomas G. Padden, Certified Residential Appraiser, Peconic Appraisals

 

JAV: In your experience, do you find that cash buyers who go to contract without a mortgage contingency order an appraisal?

 

TGP: I find that most buyers are pretty sophisticated about the market, at least within a reasonable percentage range. Rarely have I seen a buyer get an appraisal before making an offer on a house. With the limited inventory in this market, there is the โ€œfear factor.โ€ If I donโ€™t make a deal on this home I might lose it. So in most cases, an appraisal is not going to add any benefit to the process. An experienced real estate broker knows value, and they discourage sellers from setting prices too high. But a seller who gets an appraisal has a good marketing tool.

 

JAV: What about situations where the buyer pays cash but finances to take advantage of the low interest rates?

 

TGP: Those deals go through the usual process of an appraisal. The lender turns the appraisal over to an Appraisal Management Company (AMC) that selects a qualified appraiser who has no interest in the value of the appraisal. This prevents the use of mortgage brokers with a vested interest in the value of the appraisal from selecting the appraiser. That was a practice that contributed to the mortgage crisis in 2008.

 

JAV: Does a private lender have to go through an AMC?

 

TGP: No. Private lenders can hire the appraiser. Bank appraisals are paid for by the borrower but they’re done for the bank. By law, if the borrower wants a copy of the appraisal, they have to request it from the bank.

 

JAV: Do you think the increases in mortgage rates will discourage cash buyers from taking out a mortgage?

 

TGP: I think itโ€™s too early to tell.

 

JAV Commnet: In New York State, Appraisers are regulated by the N.Y. Department of State

 

Carl Benincasa, Esq.  – The Benincasa Group, Water Mill, NY

 

JAV: From an attorneyโ€™s perspective, what are your views about the current market?

 

CB: To start with, the market has been incredibly active, and every deal has been very competitive. Itโ€™s a seller driven market. Thatโ€™s why buyers are going to contract without mortgage contingencies. It makes their offer more attractive.

 

JAV: In those situations, do you have buyers who finance the purchase regardless of the fact that they paid cash?

 

CB: Yes. In about 90% of the deals I dealt with, the buyers assumed the risk of getting financing and took advantage of the low interest rates.

 

JAV: Explain the difference between a mortgage commitment and the funding of the loan with respect to the buyer meeting its obligation to close?

 

CB: The standard mortgage clause in the contract between the buyer and seller makes the obligation to close based on the commitment. If the loan isnโ€™t funded the buyer would still be obligated to close. But itโ€™s also true that the commitment comes with certain conditions which are dealt with. For example, one of the conditions might be that the seller has to sell his existing home. In my experience, the commitment has been tantamount to getting the funding. Having said that, I would take each situation on a case by case basis and make my client aware of the risks associated with his obligations in the contract.

 

JAV: Clarify the terms, โ€œon or aboutโ€ and โ€œtime is of the essence.โ€

 

CB: Those terms apply to when the parties to the contract must close. โ€œOn or aboutโ€ allows for either party to request a postponement of the closing without being held in breach of contract. It allows for more flexibility. โ€œTime is of the essenceโ€ is a date specified in the contract that if either party fails to close, may be held in breach of contract. In practice, which is better for the parties to the contract depends upon the circumstances. Going into the summer season, buyers are anxious to close. But you also have sellers who want to remain in occupancy for a period of time, and those we handle with post-closing occupancy agreements.

 

JAV: With respect to bidding wars, who handles the bids?

 

CB: In some cases when I am representing the seller, I handle the bids. I set a date and time when the bids must be returned and submit them to my client for consideration. In others, the real estate broker handles the bids.

 

JAV: In the early days of Covid, the process from contract to closing slowed down significantly. Has that improved?

 

CB: Yes it has. The biggest obstacle remaining is with the municipal offices being able to meet the demand. The buildings departments are overwhelmed. They do the best they can, but they donโ€™t have the personnel to be able to handle the workload. I can get a title report in seven to ten days, less for covenants and restrictions. Getting permits and new and updated certificates of occupancy is another matter. Itโ€™s something I would encourage the town officials to look at.

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LOCAL EVENTS

Events

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8th Annual Block Party at CMEE

May 31 @ 10:00 AM - May 31 @ 12:00 PM
376 Bridgehampton-Sag Harbor Turnpike, Bridgehampton, NY 11932
31
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31
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The Met: Live in HD Returns to Guild Hall

May 31 @ 01:00 PM - May 31 @ 05:00 PM
158 Main Street, East Hampton, New York, 11937
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The Matthiessen Talks: Bridging the Worlds of Spirit, Art & Activism with Chief Oren Lyons and Shane Weeks

May 31 @ 02:00 PM - May 31 @ 03:30 PM
The Church, 48 Madison St, Sag Harbor, NY 11963
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Launch Party at Stephen Talkhouse for Talkhouse Encore Tequila Pineapple

May 31 @ 03:00 PM - May 31 @ 06:00 PM
Stephen Talkhouse
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Now Playing at Sunset Theater: Karate Kid: Legends

May 31 @ 04:30 PM - June 2 @ 10:00 PM
Sunset Theater: 2 Brook Rd, Westhampton Beach, NY 11978
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Sixty-Something: Every Day on the Water is an Endless Dream

Sixty-Something: Every Day on the Water is an Endless Dream

  • Check out the Top Hamptons Events This Weekend!โ 
โ 
๐Ÿป Back to the Bays x Kidd Squid: Brew for the Bay Release Party!โ 
๐Ÿ“… Friday, May 30, 2025โ 
๐Ÿ•“ 5pm
๐Ÿ“ Kidd Squid Brewery, 11 Spring St, Sag Harbor, NYโ 
โ 
Join us as we toast to conservation! ๐ŸŒŠ๐Ÿบ Proceeds support marine restoration through @ccemarine Back to the Bays Initiative.โ 
โ 
๐Ÿ”— [Click Link in Bio for Event Info]โ 
โ 
๐ŸŽถ Sunset Serenades: A Hamptons Summer Celebrationโ 
๐Ÿ“… Fri, May 30th -31st
๐Ÿ•– 7pmโ 
๐Ÿ“ Various Hamptons Venuesโ 
โ 
An intimate concert featuring THยทFMโ€™s Salon Orchestra, soprano Greer Lyle & more โ€” conducted by Logan Souther. ๐ŸŒ…๐ŸŽปโ 
โ 
๐Ÿ”— [Click Link in Bio for Event Info]โ 
โ 
๐Ÿ† Celebrate Local Legends: Howard & Kenny Woodโ 
๐Ÿ“… Fri, May 30, 2025โ 
๐Ÿ•” 5pmโ 
๐Ÿ“ The Clubhouse, 174 Daniels Hole Rd, East Hampton, NYโ 
โ 
Join the party honoring Suffolk County Hall of Fame icons! ๐ŸŽ‰โ 
โ 
๐Ÿ”— [Click Link in Bio for Event Info]โ 
โ 
๐Ÿ Talkhouse Encore Launch Partyโ 
๐Ÿ“… Sat, May 31, 2025โ 
๐Ÿ•’ 3pm โ€“ 6pmโ 
๐Ÿ“ The Stephen Talkhouse, Amagansett, NYโ 
โ 
FREE entry, tequila pineapple cocktails, music, bites & giveaways! ๐Ÿน๐ŸŽถโ 
โ 
๐Ÿ”— [Click Link in Bio for Event Info]โ 
โ 
๐Ÿงฑ CMEEโ€™s 8th Annual Block Partyโ 
๐Ÿ“… Sat, May 31, 2025โ 
๐Ÿ•™ 10am โ€“ 12pmโ 
๐Ÿ“ CMEE, Bridgehampton, NYโ 
โ 
A FREE morning of crafts, rockets, chalk art & summer camp samplings! ๐Ÿ‘ง๐Ÿง’๐ŸŽจโ 
โ 
๐Ÿ”— [Click Link in Bio for Event Info]โ 
โ 
๐Ÿ˜‚ Saturday Night Comedy at Sticks X Stonesโ 
๐Ÿ“… Sat, May 31, 2025โ 
๐Ÿ•— 8pmโ 
๐Ÿ“ Sticks and Stones Comedy Club, Southampton, NYโ 
โ 
NYCโ€™s top comedy club talent hits the Hamptons! ๐ŸŽค๐Ÿคฃโ 
โ 
๐Ÿ”— [Click Link in Bio for Event Info]โ 
โ 
๐ŸŽฌ Sunset Theater: Karate Kid: Legendsโ 
๐Ÿ“… Opens Fri, May 30, 2025โ 
๐Ÿ• Various Timesโ 
๐Ÿ“ Sunset Theater, Westhampton Beach, NYโ 
โ 
Donโ€™t miss the latest chapter in the Karate Kid saga! ๐Ÿฅ‹โ 
โ 
๐Ÿ”— [Click Link in Bio for Event Info]โ 
โ 
๐Ÿฐ Afternoon Tea at The Baker House 1650โ 
๐Ÿ“… Sun, June 1, 2025โ 
๐Ÿ• 1:30pm โ€“ 4pmโ 
๐Ÿ“ 181 Main St, East Hampton, NYโ 
โ 
Enjoy champagne, sweets & elegant tea service in a historic setting. โ˜•๐Ÿพโ 
โ 
๐Ÿ”— [Click Link in Bio for Event Info]โ 
โ 
Check out more events at Hamptons.comโ 
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#hamptons #weekendโ 
  • Nearly two years after its debut, El Verano offers a taste of upscale Mexican cuisine in a setting inspired by the charm of vacation summer homes in Mexico. Customers enter a vibrant space filled with beautiful greenery and colorful decor as they enjoy dishes rooted in the heritage of acclaimed chef Julian Medina.โ 
โ 
Medina grew up in Mexico City, where his love for cooking first began. In pursuit of his career, he moved to New York City, where he graduated from the French Culinary Institute. Noticing a lack of refined Mexican dining in Southampton, Medina created El Verano to bring the bold flavors of his roots to the area. Blending Mexican coastal charm with rich culinary traditions, El Verano brings something new to the Southampton dining scene.โ 
โ 
Medina shared some of his signature dishes, journey through the cooking field, and highlighted El Veranoโ€™s fresh and locally sourced ingredients that shape each creation.โ 
โ 
Read the interview at Hamptons.com (Link in Bio)โ 
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#elverano #dining #southampton #mexicancuisine
  • NAMIRO made its Southampton debut in style on May 17 with a ribbon-cutting ceremony and VIP cocktail preview, joined by Mayor Manger. Guests enjoyed signature bites and high-energy vibes at this invite-only event.โ 
โ 
Conceptualized by music and hospitality heavyweights, NAMIRO Sushi is more than a restaurantโ€”itโ€™s where sleek design, elevated Asian cuisine, and nightly celebration collide. Located at 76C Jobs Lane in Southampton, NAMIRO opened its doors to the public on May 21 and is open seven days a week, year-round.โ 
โ 
๐Ÿ“ธ: Rob Rich/SocietyAllure.com ยฉ2025 โ 
โ 
Check out the gallery at Hamptons.com (Link in Bio)โ 
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#namirosushi #hamptons #southampton โ 
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โ 
  • Itโ€™s Memorial Day Weekend in The Hamptons! 

So many pop-ups, collaborations, and more! 

๐ŸŽถ Chloe Caillet & Kaytranada at The Surf Lodge
๐Ÿ“ 183 Edgemere St, Montauk, NY
๐Ÿ“… Saturday, May 24 | ๐Ÿ•“ Doors at 4PM

๐Ÿ”ฅ SlowFires NYC x Ruschmeyers Pizza Pop-Up
๐Ÿ“ Ruschmeyers, 161 2nd House Rd, Montauk, NY
๐Ÿ“… Fri, May 23 โ€“ Sat, May 24 | ๐Ÿ•“ 4โ€“9PM

๐ŸŽจ Dolce Vita Pop-Up in Southampton
๐Ÿ“ 95 Main Street, Southampton, NY
๐Ÿ“… Fri, May 23 โ€“ Sun, May 25 | ๐Ÿ•š 11AMโ€“3PM
Dolce Vita x Down the Streetโ€™s Summer Art Series: view new art drops, shop, and enjoy seasonal treats.

๐Ÿ‘œ Landsโ€™ End x Round Swamp Farm
๐Ÿ“ Round Swamp MTK โ€“ 71 S Elmwood Ave, Montauk
๐Ÿ“ Round Swamp BH โ€“ 97 School Street, Bridgehampton, NY
๐Ÿ“… Fri, May 23 โ€“ Sat, May 24 | ๐Ÿ•ฃ 8:30AMโ€“6PM
Get a custom tote with any $200+ purchaseโ€”1 per customer.
๐Ÿ“ธ AD: Ryan Woehler | ๐Ÿ“ท: Chris Klinge | ๐Ÿ‘—: Jenny Huebner | ๐Ÿ“ธ Asst: Dan Kleinschmidt

๐ŸŽค Hello Brooklyn at The Stephen Talkhouse
๐Ÿ“ 161 Main St, Amagansett, NY
๐Ÿ“… Saturday, May 24 | ๐Ÿ•ฅ 10:30PM
Itโ€™s not a true Hamptons weekend without a night at Talkhouse! Dance the night away with Hello Brooklyn.

๐Ÿช Levain Bakery X Johnโ€™s Drive-In
๐Ÿ“ Levain Bakery, 354 Montauk Hwy, Wainscott, NY
๐Ÿ“… Starts May 23 | ๐Ÿ•— 8AMโ€“5PM
Thick, gooey Levain cookies + classic scoops from Johnโ€™s = summer magic.

๐Ÿชฉ Silent Disco Dance Party at Guild Hall
๐Ÿ“ 158 Main St, East Hampton, NY
๐Ÿ“… Sunday, May 25 | ๐Ÿ•— 8โ€“11PM
Dance in the garden!

๐Ÿช Kites for Kids Benefit at Main Beach
๐Ÿ“ 101 Ocean Ave, East Hampton, NY
๐Ÿ“… Saturday, May 24 | ๐Ÿ•‘ 2โ€“5PM
Decorate & fly a kiteโ€”all proceeds benefit the Eleanor Whitmore Early Childhood Center.
๐Ÿ“ธ Photo Credit: John Musnicki

๐Ÿป Jon Divello at Kidd Squid
๐Ÿ“ 11 Spring St, Sag Harbor, NY
๐Ÿ“… Sunday, May 25 | ๐Ÿ•” 5โ€“7PM
Live music + fresh brews = perfect weekend vibes.

๐ŸŒธ Garden Club of East Hamptonโ€™s Garden Party
๐Ÿ“ Mulford Farm, 10 James Lane, East Hampton, NY
๐Ÿ“… Friday, May 23 | ๐Ÿ•• 6โ€“8PM
Enjoy hors dโ€™oeuvres, drinks, and a Silent Auction featuring art, books, and more.

๐ŸŒฟ Jenni Kayneโ€™s Hamptons Kickoff
Celebrate summer with in-store events all weekend long at the Amagansett Store and the Southampton Store!
๐Ÿ“ธ Photo Credit: Holly Sarah Burgess

Tap the link in bio for info!
  • My curiosity piqued when I saw the new, shovel-ready plans at 28 Pepperidge Lane in Amagansett. Included with this nearly two-acre property, are sophisticated and luxurious plans by the firm Resolution: 4 Architecture (RES4). New construction in the Hamptons isnโ€™t easyโ€”but what if your dream home could be architect-designed and delivered directly to you? What is the latest in prefab architecture in 2025?โ 
โ 
To explore this intriguing approach further, Scott connected me directly with Robert Luntz, the co-founder of RES4. See our conversation on redefining luxury through modern modular design, its growing relevance in the Hamptons, and the future of high-end prefabrication.โ 
โ 
For more information about the plans in place at 28 Pepperidge Lane, Amagansett, contact Scott Bradley.โ 
โ 
RES4 has been a pioneer in modern prefab architecture. What inspired you to focus on this method of construction?โ 
โ 
Weโ€™ve spent over two decades innovating ways to deliver exceptional, modern homes efficiently and affordably. Our modular methodology uniquely allows us to combine luxury, precision, and accessibility, transforming the landscape of high-end housing by delivering refined design to a broader market.โ 
โ 
@resolution4architecture @hamptons_waterman_lifestyle @hamptonsrealestateโ 
โ 
โ 
Read the full interview at Hamptons.com. (Link in Bio)โ 
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#architecture #hamptons #hamptonsrealestate #luxuryโ 
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โ 
  • NYC Second Chance Rescue hosted its 5th Annual Rescue Ball Gala โ€” a dazzling evening of compassion, community, and celebration โ€” at Pier Sixty in New York City.โ 
โ 
The event honored two inspiring individuals for their outstanding advocacy and dedication to animal welfare: Martha Stewart, iconic lifestyle entrepreneur and lifelong animal champion, and Dr. Dan Belkin, leading dermatologist and passionate rescue animal advocate.โ 
โ 
Set against the stunning waterfront views of Pier Sixty, the gala brought together philanthropists, celebrities and compassionate supporters to champion NYC Second Chance Rescueโ€™s mission. The night featured a special live performance by Rob Thomas, a special appearance by Georgina Bloomberg, a lively auction led by celebrity host Elvis Duran, host of Elvis Duran and the Morning Show on Z100, surprise guest Alexandra Daddario, and a high-energy DJ set by GEO ROC that kept guests dancing for a cause.โ 
โ 
โ 
๐Ÿ“ธ: Sylvain Gaboury/PMCโ 
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Check out the full gallery at Hamptons.com (Link in Bio)โ 
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#secondchancerescue #nyc #marthastewart #robthomas โ 
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