Until he decided to sell his country home in the Catskills, Randy Florke had been perfectly content with his career as an antiques dealer in Greenwich Village.
Florke gave the listing for the historic home to a local broker in Sullivan County, but was surprised when the 22-acre property–which was photographed for Metropolitan Home– just sat on the market. Florke decided to put an ad for the $135,000 property in the window of his Greenwich Village shop.
A real estate career was born. “I got full asking price in cash in seven days,” said Florke, who proceeded to open up a brokerage, Rural Connections, in his Manhattan storefront to sell cheap fixer-uppers in Sullivan County, two hours from the city.
Thanks to the increasing popularity of the Catskills – everyone from celebs like David Bowie and Moby to the model Giselle Bundchen have moved in recently, along with New Yorkers fleeing from the Hamptons business is booming.
Florke s company sells around 15 homes a month, not bad for only six agents “I sell about 90 percent of the property myself,” adds Florke. The median price in the area has jumped from $150,000 five years ago to around $250,000 today.
“It s been good now for around five years,” he said. “There s been so much publicity and exposure. Also, since Sept. 11, people have been more interested in getting outside the city.”
Florke s competitive advantage, of course, is that he is able to access New York buyers in a way that companies in the Catskills can t. He gets plenty of business as a result. “All the key brokers up there, if something comes up, they call me,” he said. “They know it s better to get it quickly off their plate.”
While Florke has experienced success, other Manhattan brokers aren t following him, he said, though agents at top companies provide referrals.
“Physically, its too far,” said Flocke, who drives up to show homes every weekend and once or twice on the weekdays. “It s the same reason I only specialize in one county and don t sell apartments in Manhattan.”
Florke said most of his clientele are people who want a bigger place in the city but can t afford it. Instead, they decide to buy a country home.
“Eighty percent of people who walk through my door want something larger in Manhattan, but have been priced out of the market,” he said.
Jeffersonvillle, Callicon, Narrowsburg and Livingston Manor are among the most popular areas in Sullivan county. (Ulster, Delaware and Greene counties make up the rest of the Catskill region). New Yorkers are drawn by the rolling hills, farmland, quiet lakes and rivers, and sleepy, charming towns. “There is also a wonderful community spirit that everyone enjoys,” said Phyliss Chock, a broker at Stone Realty in Roscoe, who moved to Sullivan County from Manhattan 20 years ago. Chock said that far from being isolated at their country homes, many weekenders get involved in such activities as farmers markets in the area.
Chock believes that three years ago marked the beginning of a major influx of city dwellers into the area and helped contribute to a “great renaissance” in several towns. “It happened for a number of reasons,” she said. “There was a lessening of inventory in Orange County,” that forced people farther out into the country. “A lot of people just got sick of the commute to the Hamptons,” she said.
Chock also said that an incredible 90 percent of her overall business comes from the New York City area, as well as a percentage from New Jersey. “And I think that s true of most brokers here,” she said. Locals “do not buy at the same price levels or volume as people in New York,” she added. She said that brokers in the area don t “experience co-broking on any major scale from New York City.”
Growth that the area has experienced largely come through word-of-mouth. “Friends decide to visit their friends who already own here, and they end up buying themselves,” she said. The Internet has also helped, said Chock, though some agents have been slow to adopt technology.
Chock estimates that prices have risen some 20 percent in the last year alone, and it s getting harder and harder to find bargains. “We don t have that much of an inventory market right now,” she said, adding that homes in the $75,000 to $200,000 price range are particularly scarce. “There is less available in the low-end market,” agrees Florke. “Lots of New Yorkers bought that stuff.” Chock also said that the publicity the area has received has caused some sellers “not to price realistically.”
Florke maintains that the current interest in the area is not just a fad that will fade away. “There is a base there and there is a critical mass and it will never go backwards,” he said. “Even if the economy takes a nosedive, it s still the most affordable area two hours from the city. The places that get hit hardest in a bad economy are the tony areas.” He added, however, that the area could be hurt if apartments became so affordable in the city that people wouldn t be looking for extra space in the country.
As far as working as a broker in the country, Florke, who grew up in Iowa before moving to New York to work as a model, acknowledged that it isn t for everyone. “You have to know about construction and renovation,” he said. It also helps to identify with the locals, he said. Florke calls himself “just a dirt farmer from the country.”
Florke carries that country attitude to his New York offices. “I ve kept it pretty small,” he said. “I ve got a window and an office on Perry Street. It s not slick.”