Repost: Measuring Manhattan Values By Floor Level

March 25, 2014 | 1:36 pm | | Favorites |

In the spring of 2012 my floor level valuation methodology was illustrated in a great piece in New York Magazine by Jhoanna Robledo called “What Price Height and Light?. The graphic and accompanying descriptions provide incredible clarity to a fairly convoluted subject.

In the flurry of transitioning content to our new site over the past few months, I remember the actual moment when I deleted the original post for this topic by mistake and thought, “wow this is annoying but I can always go the Wayback Machine.” However, today someone asked me about the graphic and I couldn’t find my prior post on the Wayback Machine (but I found a bunch of cool stuff) so I am reposting this piece. I really LOVE the graphic that New York Magazine came up with.

The graphic is fairly self-explanatory.

nymag4-2012301w57

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It’s time to debunk the debunking of the 3 biggest myths about your AMC

March 9, 2014 | 10:00 pm | Favorites |

aeron-chair

I saw an opinion piece written about appraisal management companies over at HousingWire that made me just about fall out of my chair – and my office chair is a sturdy Herman Miller Aeron so it was quite an unsettling piece. I’ve written about AMCs quite a bit since HVCC came into effect on May 1, 2009 and my last big piece: “Appraising for AMCs Can Be Like Delivering Pizza” prompted a senior executive at one of the largest US AMCs – who we don’t work for – to call me after he read it and say, “all of what you wrote is true – how do we change it?” He sounded very reasonable and earnest and got his Chief Appraiser to reach out to me to explore what to do. That person ended up providing me with robotic and defensive feedback before I even asked any questions – making it clear it was all about keeping his job, not improving the industry. Sad.

Make no mistake – I am not against the concept of AMCs and there are some reasonable ones to deal with – but the majority of them are poorly managed and therefore can only attract appraisers with the “form-filler” mentality.

This HousingWire editorial was called “It’s time to debunk the 3 biggest myths about your AMC” by the CEO of an appraisal management company. We don’t work with them and I don’t know of them or the author. It’s a corporate sounding piece so I’m guessing that it was pitched and written by their PR firm as a way to sell the virtues of a good appraisal management company.

What threw me for a loop was the omission of any discussion about the actual providers of valuation expertise. AMCs do not provide value opinions to banks. AMCs manage appraisers who provide value opinions to banks. My guess is they or the AMC industry in general are receiving more pressure from banks for the rising cost of the appraisal process – not because the appraisal fees are rising – but because the AMC appraisal quality is so poor that relative to the cost, the value-add of an AMC really isn’t really there.

We have started to observe national lenders push back against the poor quality of AMC appraisals and some lender personnel are now bypassing AMCs on complex or luxury properties because they don’t trust the expertise coming out of the AMC. Amazing.

Here are the 3 “myths” presented in this AMC PR piece. I restate each point being made to reflect the reality of the appraisal process:

From the Housingwire guest editorial:

THEIR Myth 1: Appraisal Management Companies add costs to the lender’s business.

So, yes, the costs of putting a solid value on a piece of real estate have gone up. But this is not due to the fact that an AMC has been added to the equation. It’s due to the fact that it costs more to do it right, to employ the technology, to manage the fee panels, to quality-check the results. Like most myths, this one has at its core the ugly truth that the price of an appraisal has gone up between $80 and $200, depending upon the circumstances.

MY Opinion of Myth 1: The rise in costs is NOT because appraisers are arbitrarily raising their fees. It is because the appraisal management industry takes half of the appraisers fee paid by the borrower at application to cover their costs and ended up driving most good appraisers out of retail bank appraisal work – now dominated by AMCs. The rising costs are being born by the AMCs who try to checklist away the poor quality. Here’s how: Imagine making a modest salary for a job well done and then one day (May 1, 2009) you get your pay cut in half. The middleman between the bank and the appraisers (the AMCs) got to keep the other half of the appraiser’s fee/salary. In reality, this 50% pay cut was the appraiser paying for bank compliance with HVCC by hiring the AMC. Would you quit your job if you got a 50% pay cut? Most would say yes. Who would replace you at 50% of an already modest wage? A lower caliber, lesser experienced person who was able to cut corners – like eliminate research – and essentially be willing to be a form filler rather than a valuation expert – quality evaporates not matter how much “review” is put in place. AMCs have been grappling with poor quality and probably have had to increase oversight as more banks push back against the poor quality. I think the additional compliance issues being touted throughout this opinion piece in this “Myth” are probably more of a scare or fogging tactic than a real reason for higher costs. The higher cost that is being represented by the AMC is more likely from the fact that AMCs are being forced to find better appraisers in certain markets and those appraisers are less willing to subsidize bank compliance with HVCC out of their own hide. We doing more and more AMC work now and we are paid a full fee and are given a fairly reasonable turnaround time. Why? Because that AMC’s panel quality was poor and their bank clients basically told the AMC to use firms like mine or the bank will go to another AMC who will use a higher caliber of appraiser.

THEIR Myth 2: AMCs deliver poor turnaround times that can’t compare to internal teams

Anyone who buys into this myth must live in a world without Service Level Agreements (SLAs) that spell out exactly what a vendor will provide to a lender. It sets the terms of the engagement and specifies penalties that the vendor will suffer should it fail to live up to the promises the document holds. Turnaround times are always part of the SLA between an AMC and a lender…Now, here’s the grain of truth at the center of this ridiculous myth: lenders are working to incorporate so many new compliance rules into their processes that the collateral valuation process is simply taking longer for many of them than it has in the past. Part of this comes from the fact that compliance checking takes time. Part of this comes from unnecessary processes within the lender’s shop that exist out of some executive’s fear of possible compliance problems. The appraisal process is taking longer in many cases, but it’s not due to the AMC. It’s just part of the new business environment we’re working in.

MY Opinion of Myth 2: This is simply a reframing of the conversation between lenders and AMCs. The biggest problem with most AMCs today is they demand an unreasonable turn around time – some require 48 hours (more with complex properties), about 1/3 the minimum average time needed to do a reasonably competent job. Because the AMC bank appraisal quality is generally poor, AMCs have to insert more and more checklists into the QC process to appease their lender clients. The lender clients require more service level agreements BECAUSE THEY DON’T TRUST THE QUALITY OF THE PRODUCT, NOT BECAUSE OF MORE FEDERAL COMPLIANCE ISSUES. In turn, the appraiser gets a gum chewing 19 year old who calls them every day to fill out a checklist. Banks were fine, pre-HVCC, with the turn times of their in-house and outside fee panel staff and it NEVER was as fast as the typical AMC requires today. Today, most AMCs have to differentiate themselves from other AMCs by cost and turn around standards. With the poor quality of the typical AMC bank appraisal, the AMC gets squeezed financially as banks and appraisers are beginning to push back with more requirements and costs. An appraisal is NOT a commodity – it is a professional service. If the AMC doesn’t respect the bank appraisal industry and pays them poorly, all the AMC can ever hope to receive in return is a poor quality product that can’t be check listed away.

THEIR Myth 3: The lender relinquishes control when they outsource to an AMC

The lender is in complete control at all times and federal regulators have made it crystal clear that the lender is the responsible party anytime they outsource to a third-party vendor. No lender will relinquish control to a third party when it knows the CFPB will come back to its front door in the event of a problem. There are some aspects of the collateral valuation process that the government has said must be removed from the control of the loan officers originating the loan and the managers who oversee them. Federal regulators do not want the lender to control the outcome of the appraisal process and so they have made it clear in the regulations that it must be moved away from the origination department. The uncomfortable truth is that the federal government wants the lending institution to lose a bit of control here, for the good of the consumer and the financial institution. But handing responsibility for a few aspects of one process to a third-party outsourcer is not the same thing as giving away control. No lender we know and no good AMC executive would equate these two.

MY Opinion of Myth 3: One of the biggest myths furthered by many AMCs is to fog lenders with the idea that HVCC requires banks to use them to be compliant. The statement “The uncomfortable truth is that the federal government wants the lending institution to lose a bit of control here” is very misleading. All the government wants is a separation between the sales function and the quality function of a bank – a firewall – which is an AMCs major selling point. The irony here is that large AMCs are just as susceptible to lender pressure as the individual appraisers, but on a much larger scale.

I am not anti-AMC. However I am against bank appraisers paying for a bank’s compliance with HVCC and being marginalized as a result. The appraiser is the expert developing the value opinion for the bank, not the AMC.

In my experience to date, the majority of AMC bank appraisals that I have seen are very poor. But it doesn’t have to be that way. If the lender paid the market rate for an appraisal and an additional fee for the AMC to administer the process, the quality would improve. Borrowers today generally don’t realize that the bank appraisers is paid a fraction of the “appraisal fee.” Today’s bank appraiser is paying for the bank’s compliance with HVCC and this has largely destroyed many of the quality firms in the appraisal industry. It doesn’t help that the residential appraisal industry has no real representation in Washington.

But I do like my chair.

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Appraising for AMCs Can Be Like Delivering Pizza

December 27, 2012 | 10:00 am | Favorites |

I recently appraised a property that was well into the 8-digit value variety – not to sound cavalier but when you are in a market like Manhattan, it’s not uncommon.

What made this assignment different was that I was contacted to appraise this property because an appraisal management company (AMC) was not comfortable using their regular panel of appraisers that do nearly all of their volume (for half the market rate and 48 hours). Although I was leery to accept the request as an exception, I had history with an exec there, they were paying our quoted fee and accepting our turn time requirements so why not?

Here’s how it went:

Day 0 – I am interviewed by the AMC representative to see whether we are experienced in this property type. The AMC rep stresses they want to be “in the loop” at all times.
Day 1 – We are engaged by the AMC to provide the report – we place a call to the property rep.
Day 2 – Property rep calls back and say they want us to inspect 3 days from now. My office informs the AMC rep the appointment via email is set for Day 5. I get a call from the AMC rep asking if a I need any help and I say “no, not at this point since we haven’t seen the property yet.” They follow with “I’ll be calling you every day of this assignment to ensure you have what you need.” I politely ask why they need to call me over the next 3 days before the inspection. The AMC rep says “yes, in case you need help.” I respond that I won’t be doing anything further until I see the property. The AMC rep said something to the effect of “Ok, I’ll wait until you inspect.”
Day 3 – The AMC representative apparently emailed me (instead of calling) but I never received it (gotta love spam).
Day 4 – The AMC representative left me a voicemail on my mobile phone and office phone chiding me because I didn’t respond to the previous day’s email (technically the AMC rep didn’t call me) and they had been forthright in saying they would contact me every day to help me and they needed to speak to me every day. I got the voicemail on my mobile during a different inspection and emailed my office asking them to let the AMC rep know I am inspecting the property the next day.
Day 5 – The AMC rep called to see how we were doing with the assignment. My assistant reminded them we were inspecting the property toward the end of the day and that they had been kept up to date. Near the end of the day I inspected the property and my office let the AMC rep know via email we had inspected the property.
Day 6 – First thing in the morning and my first chance to sit down and work on the appraisal. My office sent them an email telling them I had what I needed and confirmed the delivery date. The AMC rep called my office that afternoon to see if there was anything we needed…

This is how nearly all interaction between AMC and appraisers go. The appraiser is bombarded with meaningless status requests as the AMC industry attempts to commoditize a professional occupation. I assume the AMC rep in my case had a checklist – akin to those dated checklists with initials you see on the back of doors in highway rest stop bathrooms assuring you the bathroom was cleaned each day of the week.

The result has been the crushing of appraisal quality because trained, experienced professionals are opting out of this madness because time = money. Cut the fees 50% and then waste another 30% of an appraiser’s time with this meaningless activity and you don’t end up with a more reliable valuation opinion.

In all sincerity, I take my hat off to those professional appraisers who need to work with AMCs out of necessity that are able to put up with being treated like a teenager on their first job.

It reminds me of the canned customer service interaction we are all forced to do when we interact with a company on the phone. The call ALWAYS ends with the canned “Is there anything else I can help you with?” Yet the relationship was already established and fine up until that point and the authentic nature of the conversation is suddenly over. I pause for a second and say “Yeah, I could go for a large pizza right now.”

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A La Mode Software Tells Our Appraisal Story

December 5, 2012 | 9:00 am | Favorites |


[click to open flyer]

This post is really meant for my appraiser readers because they’ll appreciate this:

A La Mode software has well over a 50% market share of residential appraisal software used today and I was flattered when they approached me, as a user of their product, to associate our brand with theirs. They sent this flyer out to appraisers across the US this week. Very cool.

Branding and marketing…Yes they are important to an appraiser’s success (in addition to being great at analysis!)

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Valuing the Light in Your Condo or Co-op

December 3, 2012 | 11:05 am | | Favorites |

Jhoanna Robledo over at New York Magazine squeezes light from my proverbial turnip and the result is a very cool graphic on one way to value light in an apartment in her piece “What’s the Price of Light?” The topic of view have been recently explored and floor level.

Light is perhaps the most subjective of the view-floor level-light trio but this is the logic our firm has used for years (based on the “paired sales” theory that isn’t very practical in an appraiser’s daily life) but I feel it’s a good starting point, and of course it depends on the nuances of each situation.

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Change is Constant: 100 Years of New York Real Estate

February 7, 2012 | 11:28 am | | Articles |


[click to expand]

Last fall Prudential Douglas Elliman turned 100 years old and they asked me to write an article for their Elliman magazine. If you’ve been living in a cave, I’ve been writing their housing market report series since 1994.

What started as a simple project morphed into a fun, albeit gigantic, research project. I learned a lot about the evolution of the Manhattan housing market, largely through the amazing incredible New York Times archives. This was right about the time of my website revision and semi-necessary hiatus so I am cleaning out my desk of posts I have been itching to write so please indulge me.

The article I wrote for Douglas Elliman was beautifully presented by their marketing department and prominently inserted in their Elliman magazine (and iPad app!).

Diane Cardwell of the New York Times in her “The Appraisal” (an incredible column name BTW) penned a great piece: In an Earlier Time of Boom and Bust, Rentals Also Gained Favor that originated from my article and zeroed in on the 1920s and 1930s to draw a comparison to the current market.

I have the feeling my project is going to morph into something bigger – it’s just too interesting (to me). A few things I learned about the Manhattan market over this period:

  • Douglas Elliman published the first market study in 1927 [heh, heh] not counting other marketing materials written before WWI)
  • Real estate media coverage in the first half of the century was social scene fodder (same as today) but with extensive and excessive personal details presented on tenants, buyers and sellers yet housing prices and rents were rarely presented in public.
  • Manhattan made a rapid transition from single-family to luxury apartment rentals and eventually co-ops.
  • Housing prices and rents by mid-century weren’t that much different than at the beginning of the century.
  • Manhattan’s population peaked at 2.3M around WWI.
  • Wall Street in the 1920s was seen as the driver of the real estate market.
  • Federal and state credit fixes in the late 1930’s help bail out the housing market.



• Change Is The Constant In A Century of New York City Real Estate – pdf [Miller Samuel]
• My Theory of Negative Milestones [Matrix]

Read More

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[ChartFloor] Manhattan Price Per Floor Breakdown

June 9, 2010 | 6:18 pm | | Favorites |

trdfloorlevel

Floor pricing has been the stumbling block for credibility with automated valuation models (appraisal replacement tools) used by banks and for services like Zillow. StreetEasy gets it right, in the way they display information – grouped by building so the patterns are apparent.

Matthew Strozier over at The Real Deal Magazine asked me to crunch apartment prices to show some sort of floor level relationship to value. I took the down and dirty approach (because SPSS is way over my head) and looked at all closed co-op and condo sales in 2009. I broke those sales down by floor level and crunched the metrics for each floor. The results are seen in this very cool chart. Click on the graphic to the right that TRD created to open the big version.

  • First Column – % share of units on that floor compared to all sales in 2009
  • Second Column – floor level
  • Third Column – Average Price per Square Foot of all sales in 2009 on that specific floor.

Some observations

  • 1st floor – 19.3% jump to the second floor reflecting concerns about security, privacy, and noise levels.
  • 2nd floor – 11.4% jump to the third floor reflecting concerns about security (scaffolding), privacy, and noise levels.
  • 7th floor – jump reflects penthouse and roofline breaks from adjacent 6 story buildings.
  • 13th floor – data suggests only 18.4% of buildings with a 13th floor actually call it that.
  • above 13th floor – market share declines with height, reflecting fewer apartments and the floor level price per square foot continues to rise.

In addition, the erratic price per square foot patterns on the higher floors reflect the differences in views. In our appraisals, we make adjustments for floor level and view separately.

I ended the presentation at the 25th floor only because the data set gets so thin that it was more difficult to extract or infer a pattern.

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[Terra Logic] Understanding The Value of Manhattan Apartment Outdoor Space

May 5, 2010 | 9:19 am | Favorites |

terralogicimage

Through the process of valuing terrace space in Manhattan since the mid-1980’s we developed a logic or valuation methodology for this amenity. I am asked to explain the process several times a week and it finally dawned on me to write about it (I can be slow to the draw sometimes).

BACKGROUND
Back in the mid-1980’s when we began our company, attempts to value terrace space by the real estate community (appraisers and agents) was approached as a lump sum dollar value rather than establishing a relationship with the value of the interior space of the apartment itself (ie that particular terrace is worth $50k) which I derided as the PFA (pull from air) approach.

Outdoor area was valued quite primitively as fixed asset, with little consideration to variations in size (other than “small” and “large”) and its relationship to the apartment it was attached to (the same logic was incorrectly used with roof rights). We would see large terraces attached to one-bedroom apartments treated the same as if it were attached to a 12 room apartment. Crazy.

In fairness, this “terra logic” wouldn’t have been possible without the evolution of price per square foot as a core price metric in Manhattan. Market participants were talking and thinking about it but it wasn’t formally analyzed. We were the first appraisers to introduce price per square foot for co-ops in our appraisal reports by presenting all sales within the building to bracket the price per square foot of the subject apartment, and the first to introduce it into our market reports as a formal analysis. It was difficult because square footage is not a matter of public record and most co-op listings did not include square footage. We had amassed the information during our normal course of business.

Gotta love the completely ridiculous valuation metric “price per room” which admittedly we used in the early 1990’s in our first market reports until it morphed into price per square foot. Incredibly, price per room is still presented today. Imagine a buyer telling a broker “I won’t pay a dime over $135,000 per room.” Good grief.

Valuing Outdoor Space

METHODOLOGY
We have found that a ppsf analysis on finished terrace space is generally a reliable form of valuation to determine what the terrace area contributes to the overall value of the apartment being appraised. Its a relational value – if the apartment is worth more, that carries over to the outdoor space. This logic applies to patios, garden areas and balconies. Doesn’t matter whether it is a co-op, condo, highrise, lowrise or brownstone.)

Here’s how

  • Estimate the ppsf of the property without the terrace
  • The general relationship between finished terrace space and interior space – terraces are typically valued at 25-50% of the ppsf of the interior space.

For example – if the interior space was worth $1,000 psf, without considering the terrace, the outdoor space could be worth as much as $500 psf (50% of interior ppsf). If the terrace is 500 sqft, the terrace could be worth $250k ($500/sf x 500 sq ft).

That’s the basic idea. Simple. Of course there are many other factors such as:

Utility

  • Depth – a 500 sq ft could be a deep terrace or a shallow 2 ft deep wrap around – same sq ft but different value.
  • Location – a 2nd floor terrace overlooking a busy north/south avenue has more noise and soot as well as a lower perception of security
  • privacy – space that is not formally separated from the adjacent apartment terrace space has lower value
  • Obstructions – such as a parapet that blocks the view from the terrace. View itself is NOT a terrace amenity since it is considered in the ppsf of the apartment. A skylight or risers are usually deducted from the square footage.

Size

  • Oversized space – if the terrace is greater than 50% of the interior space, the ppsf contribution falls off considerably for the additional space over the 50% threshold. For example 700 sq ft 1-bedroom apartment with a 3,000 sqft terrace – only about 350 sq ft has any meaningful value (of course, if the maintenance charges reflect the entire terrace, any value of the terrace would be wiped out.

Association

  • Primary amenity – The patio or garden in a ground floor brownstone or apartment – use the same logic as when considering a terrace in a penthouse apartment.

Comparing apartments with and without outdoor space

One of the reasons penthouse or any apartments with significant outdoor space sell for a higher price per square foot is that the sq ft denominator in the price per square foot equation only considers interior square footage. To create more parity between the two types of apartments for comparison purposes, calculate the adjusted price per square foot of the apartment. In order to do that you need to theoretically convert the outdoor space into interior space.

In the prior example, we said the terrace was worth 50% psf of the of interior space ($500 v. $1000). Use the same relationship with size and give the space full credit for interior space by taking 50% of the terrace space (500 sqft x .5 = 250 sqft) and add it to the existing interior square footage: 1,000 interior square feet + 250 interior square feet representing 500 square feet of terrace = 1,250 adjusted square feet.

This makes it easier to compare units with and without terraces and is predicated on the whether your % discount assumption for your exterior space is correct.

UPDATE (May 17, 2016): Although I wrote this post almost exactly 6 years ago, it still represents how my firm and I approach the valuation of outdoor space in New York City. It has been a thirty year run – using the methodology I created in the 1980s that still reflects market conditions today. One new observation – we have seen developers of a few luxury condominiums attempt to market outdoor space square footage on par with the interior price per square foot of the adjacent unit. While there was some random traction a few years ago, it was not adopted as a market wide pattern. Given the current slowdown in the absorption of high end condos, I have not observed this pricing strategy under current conditions and believe it won’t be used going forward. Of course if I observe a market-wide change, it will be chronicled here.



Disclaimer: No comments by an appraiser would be complete without a disclaimer. It is important to note that these are only rules of thumb to guide you – the value of a terrace is not formula driven – these relationships are developed from market data and can vary significantly depending on the combination of amenities and time. If you are unable to grasp this, close your eyes very tightly, think about a cool ocean breeze on a warm breeze sandy beach, while holding a large set of perfect comps, until memories of this post fade completely away.


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Lobster Prices And Subprime Lending

July 5, 2009 | 11:51 pm | Favorites |

lobster header

This weekend I ripped through a terrific book The Secret Life of Lobsters by Trevor Corson written back in 2004. Even if you’re not a lobster fan, I marveled at how he could take a mundane subject and weave an interesting (true) story on how the lobstermen of Maine have kept the production elevated for the past several decades, despite consistent claims of overfishing. (Incidentally my lobster pots were stolen this weekend, lines probably cut by commercial fisherman, plus we had 30 family members over to our house for the 4th for a lobster/clam bake.)

No one really knew whether cyclical declines in the number of pounds caught were natural or induced by man.

In other words, this is all about subprime lending.

While trying to find my interview on NPR about last week’s market reports (I was unsuccessful) I stumbled upon a WNYC interview with the Trevor Corson last week (the day our report was released) without using keywords such as “lobster,” “fishing” or “Maine”.

He correlated the sharp drop in Lobster prices this year with the collapse of the Iceland banking system via subprime lending. It’s worth a listen.

And here’s his related piece in The Atlantic magazine. Fascinating.

Basically, lobster prices have maintained a high price level for the past decade. A large portion of the catch was diverted to processing plants in Canada keeping supply of fresh lobsters restrained in the U.S. The Canadian plants shipped lobster products all over the world and were mainly financed by Icelandic banks who provided them revolving lines of credit. When the subprime crisis hit, these banks collapsed because of their heavy investment in financially engineered subprime mortgage products. As the lines of credit dried up, so did the processing plants and the excess harvests were stuck in the U.S. driving down wholesale lobster prices.

Sound familiar?

Oversupply of housing driving down prices correlates to the “V-notch” technique to increase the lobster population. I won’t even bring up the V-shaped recovery“, since I’m still full from our lobster bake.

Somehow it all comes back to lobsters.

UPDATE On a side note, the wholesale cost to restaurants has fallen sharply but the consumer is largely unaware of the drop, so restaurants have enjoyed a larger spread between what they charge you and what it costs them. Have you ever noticed how many lobster related items appear on a typical mid to upscale restaurant menu? It seems to be 4-5 items now have lobster in them. Menus used to contain one lobster item, a whole steamed version. Now lobster mac & cheese is a popular favorite. Thank synthetic CDOs for that.


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1-Across Is No Puzzle

May 19, 2009 | 4:06 pm | | Favorites |

trdMay09crossword

The Real Deal Magazine, one of the best resources for real estate information on the New York housing market, also delves into the world of crossword puzzles in each monthly issue.

You know you’ve arrived when you make it to 1-Across.

Stumped?

Ok, back to work.


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Talk Like A Pirate Day: September 19, 2008

September 19, 2008 | 1:48 am | Favorites |

Let me see…running around on the deck violating laws…ruining lives…chasing treasure that isn’t always what it seems…I must referring to Talk Like A Pirate Day. Not investment banks…Aaarrgh.

I may not be all that consistent about many things, but let past history be your judge, yer scoundrels!
Talk Like A Pirate Day: September 19, 2007
Talk Like A Pirate Day: September 19, 2006
Talk Like A Pirate Day: September 19, 2005

You can thank Dave Barry of the Miami Herald for getting the tradition going.

Here’s the story behind the madness of Talk Like A Pirate Day.

the day is the only holiday to come into being as a result of a sports injury. He has stated that during a racquetball game between Summers and Baur, one of them reacted to the pain with an outburst of “Aaarrr!”, and the idea was born. That game took place on June 6, 1995, but out of respect for the observance of D-Day, they chose Summers’ ex-wife’s birthday, as it would be easy for him to remember.

Even Word-a-day got into the spirit.

The original site is Talklikeapirate.com but my friend runs the third ranked site called Talklikeapirateday.com after the second ranked Yarr.org.uk site in England.

Imagine legions of people googling “Talk Like A Pirate” for this holiday every year. The traffic is insanely high to these sites once a year.

This phenomenon reminds me of the immortal words (paraphrased from memory) of Guy Kawasaki, one of the early software evangelists at Apple.

Millions interacting with people they don’t know; about topics they don’t understand; for reasons they can’t explain.

Makes perfect sense to me. Arrrrgh!

Ok, it’s gettin’ late – I’ll soon address the SEC issue on short selling and the rumors of a new and improved RTC with a Johnny Depp-like delivery.

UPDATE: Number one search phrase on Google today “Talk Like A Pirate Day” and this Matrix post is the first blog mentioned. Arrrgh.

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LOL becomes ROTFLOL ;-) becomes :-@EIK becomes Eat In Kitchen

May 29, 2008 | 9:50 am | | Favorites |

I’ve been AWOL since Monday. Got out of the hospital. Ouch! In for the same reason I went in 1997 and 2003, which coincidentally were the same years the Florida Marlins won the World Series. I got the opportunity to mention this to the current owner a few years ago for a chuckle. The Marlins are in first place right now and then I go to the hospital. Coincidence?

So this emoticon thing, we think we’re pretty clever and original. It’s a language created in a growing world of Instant Message, Twitter, Text Message, etc. The emoticons in this post header are from 1881.

Abbreviations have a way of expanding (remember when MacDonald’s only served hamburgers?), creating the need for something simpler to replace it. I have talked a lot about abbreviations used in property listings in newspaper advertising, where a language of real estate abbreviations evolved incentivized by pay per word pricing which is becoming more diluted as classified listings move online.

There is an awesome article in William Saffire’s column On Language in NYT Magazine last weekend called Emoticons: The seamy side of semiotics where he makes the case that language is in the third stage of compression.

  1. Three centuries ago, we were fed the short’nin’ bread of contraction; won’t, don’t, I’m, you’re made the apostrophe the king of cant, which caused a 19th-century lexicographer to denounce writers “carrying contraction to such an excess as to make their writings unintelligible to all but the initiated.”

  2. Then came the period of portmanteau terms, named after the French suitcase with hinged compartments: chuckle and snort blended into chortle; breakfast and lunch fused into brunch; and, in our time, broadcast and the World Wide Web morphed into webcast (still capitalized as “Webcast” by the New York Times copy czar).

  3. Electronic communication has whisked us into a third phase of compression: the Age of Shortspeak. As we listen and watch replays of multicasts to suit our scheduling convenience, those above-mentioned interminable, bor-r-ing four-second pauses are edited out. Humanizing uh, er, ah, um moments of meaningless vamping are pitilessly erased; even the dramatist’s “pregnant pause” has been digitally aborted.

In other words, intro a new “short” way to communicate. It evolves. Repeat.

I know people who use IM who are not good at communicating emotional nuance and some that are. This all boils down to the constant change and evolution of language. Some people are good at adapting and some aren’t.

Arrrgh


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