Low inventory presents challenges in Westchester.

A growing sense of urgency has developed among home-buyers, who face stiff competition due to a shrinking pool of available homes for sale in both Westchester and Putnam counties.

Lee Zipp, manager of the Somers and Mahopac offices of Houlihan/Lawrence Inc., says that in his nearly 25 years of selling homes in the market, he has never seen such a tight inventory situation.

"The evidence of the shortage is everywhere," says the real estate veteran. "For example, we're finding it difficult to find enough photos of houses for sale for the windows of our offices. In advertising, we're finding that often, by the time an ad for a house appears, it's already been sold. It's really pretty incredible."

Zipp traces some of the surge in popularity in the Somers and Mahopac market to a recent national survey that gave very high marks to the Mahopac public schools. "Combine good schools with generally less expensive houses than in many similar communities, and the demand for houses jumps," he says.

But, he explains, the low-inventory trend carries far beyond a single local factor. "This is a region-wide situation that has emerged over time," Zipp says. "The economy is strong, mortgage rates are unbelievably low and people are feeling confident."

Robin Friedman, manager of Houlihan/Lawrence's Tarrytown and Irvington offices, says inventory is very low in her area and is witnessing major bidding wars. "Twice in the past three weeks to be exact," she says. "One of them received seven written offers within five days. The house sold for more than the asking price."

Also fueling the inventory shortage is the fact that so far the winter has been relatively mild and snow-free. "As far as I can see we're already experiencing a spring market," Zipp says. "All the conditions are right for selling, and there are plenty of customers out there. If it's spring in January, then I can only imagine what April and May are going to be like."

Zipp, like other managers in Houlihan/Lawrence's network of 20 offices that serve Westchester, Putnam and southern Dutchess counties, says that "a seller's market" has repercussions.

"Obviously, when supply is low and demand is high there is upward pressure on prices," Zipp says. "If sellers price fairly, they're in good shape. But if they go too far, the buyers back away. Buyers today, while anxious, are still smart enough to know when to stop."

Diane Guarino, manager of Houlihan/Lawrence's Larchmont office, characterizes the residential market along Westchester's Sound Shore area as "wild and woolly." She says houses come on the market on Wednesday and they've vanished by the weekend.

In a real estate climate such as this, the help of a knowledgeable broker you can trust can prove invaluable. Guarino observes, "You have to be on top of the market if you intend to purchase a home today. Truthfully, you're best off working with a full-time Realtor who is immersed in his or her specific market. With the speed at which houses are being scooped up, you want someone who's going to call and tell you to drop whatever it is you're doing and run."

Many agents now monitor the multiple listing service like they would the stock market. A good agent checks to see if any new houses have come on the market day and night.

The Westchester Multiple Listing Service now has a program feature wherein the agent can enter criteria for a customer and be alerted when such a house is listed. "It's all meant to make things go quicker and faster," Guarino explains. "The agent who gets the information first and runs with it is best servicing the customer. A good agent knows how to glean the most instantaneous market information from the multiple listing system."

Prospective buyers might consider working with a buyer's agent. Guarino has several buyer's agents in the Larchmont office who work strictly for buyers. "A buyer's agent supplies the client with the supporting data necessary to make an informed decision quickly," she says. "The buyer's agent knows the worth of a given home in a given neighborhood and can advise the client whether the house will sell for the full asking price. In a climate that breeds multiple bidding on a single property, a buyer's agent helps the buyer be confident going forward. "

A seller needs an agent who is on top of the market, with hot buyers. "The key is to have someone who doesn't just have a license, but a knowledgeable agent who's out there working hard for you," Guarino says.

Buyers today are very well educated. "Although multiple offers will bring a higher price than a list price, it doesn't follow that a home should be listed at a higher price," Guarino says. "Pricing is market-driven, based on the number of buyers, inventory and market conditions. True, the market is hot, but only accurately priced houses will fly off the shelf."

A good agent will make sure that the property is exposed to the full spectrum of buyers and not just a few individuals, she adds. "This is especially critical in a rising market with a number of people looking, because there might be someone out there willing to pay more," Guarino says.

The best offers still come in when a home is first listed, and the seller needs to accept the guidance of the agent they've hired and trust the agent to know when an offer is good, solid and features agreeable terms and conditions, she says. "A home doesn't get better as it stays on the market - it doesn't age well like fine wine," Guarino adds.

This is the time to put your house on the market if you're planning to retire, Zipp says. "Don't wait until May, because you can sell quickly now, close in June and move then," he says. Those who've had their house on the markets for a long time should make an adjustment in price or condition and get it sold, he adds.

When you do find the right house, listen to your Realtor and get into contract as quickly as possible, because there's probably somebody right behind you waiting to buy that house, Zipp says. "You have nothing solid until it's in writing. Otherwise you can be topped," he adds.

Buyers should select a real estate company that has the largest inventory and stick with one agent there who will be loyal and call them the minute a house goes on the market he advises.

Houlihan/Lawrence Inc., headquartered in Bronxville, is Westchester and Putnam's largest independently owned real estate company, with 21 offices serving Westchester, Putnam and Dutchess counties. It is also the exclusive area affiliate for Sotheby's International Realty. The company had more than $1 billion in sales in 1997.