Hamptons On Air Episode 7: What's in a Haus?

Haus is the German word for "house" or "building", while "best of the best" is an English idiom indicating the highest quality or most excellent.

Hosted by Hamptons Real Estate Agent Sarah Doud of Saunders and Associates and Bill Wright of PAR East Mortgage. The duo covers the Hamptons Real Estate market while highlighting local events, business owners and community organizations. In this month’s episode they share the airwaves with “owner representative" Michael Tagliavia, owner of EstateHaus to discuss Hamptons building trends and more.

Transcript

SPEAKER_00 0:03

You are listening to Hamptons on Air.

SPEAKER_01 0:06

Welcome everybody to another episode of Hamptons on Air. I'm your host, Bill Wright with Parties Mortgage, and my co-host, Sarah Dowd with Saunders and Associates. Today we have a special guest, Mike Taglavita, owner of Estate House. How are you, Mike? Doing well, doing well. Thank you guys for having me.

SPEAKER_00 0:22

I like the playful title, House, but it's not spelled like house.

SPEAKER_02 0:25

No, it's the German version, H-A-U-S, which also means in translation like best of the best. I like that.

SPEAKER_00 0:36

So actually a podcast listener at one time, now a podcast guest, which I love. Yeah, as it all, the networking all comes full circle for us. Take us through the start of this company because it's it's new.

SPEAKER_02 0:48

It is, it is. Well, it's been an accumulation of the last 24 years, um, starting in the architecture industry, going to school, getting a bachelor's in architecture, working um as a carpenter, uh owning a general contracting firm, and leading me here now to the owner's representation world, um, where I'm an advocate for the owner and I I represent through through construction projects, um, development uh all the way from the sale of the land through stewardship of estate's management. I put all the players in place and I'm doing what I love the most from the general contracting world, which is building the teams and facilitating the projects, um, just at the position of the owner's advocate.

SPEAKER_01 1:34

So an owner's advocate can substantially save an owner a lot of money if which people might not know.

SPEAKER_00 1:41

Right. So talk us through that process.

SPEAKER_02 1:43

Yeah, so uh the misconception of the added cost in a project of having an owner's representation um implemented into the process is that yeah, it's just an added cost. However, my primary goal is to watch their budget and their schedule. And both, you know, the schedule most importantly can add costs that are unforeseen through the course of project, especially with change orders and design changes along the way. Um so I essentially, you know, my role pays for itself in the managing and the proper management of the budget and the timeline.

SPEAKER_00 2:20

So you had other careers, you know, you touched on the architecture, the building, the contracting. Um, why does this owner's representation call to you now? Why is this your focus at your current time in your career?

SPEAKER_02 2:30

Well, it allows me to put on all the hats that I've worn over the years and use all those skill sets in one combined career path. Um I'm not just a general contractor, you know, worried about the build of the project. I'm I'm now uh managing the teams, assembling. If I am engaged early on, I'm assembling the architecture team, introducing them to the owners. I'm doing bid comparisons of the general contractors. So I'm the facilitator of the team that's in place and looking to set up the project for success even before you break ground. Essentially the eyes and ears for the homeowner. Exactly. And and understanding and being in the industry as an architect and as a general contractor, building those relationships. I have an upper hand on who I know will work well together for each project type.

SPEAKER_00 3:25

In all your experiences, where would you say people hit the biggest roadblock or that level of frustration when they're either trying to do it on their own or kind of manage these kind of projects?

SPEAKER_02 3:36

I think the communication within a project of all team members is the largest hurdle when uh certain members of the team sort of go astray and the the architect, the general contractor, interior designers, lighting consultants, audio, video, there's there's so many people involved. When when everybody's not included early on and understanding the full scope, um there can be a disconnect in the process and things not coordinated. So communication is the biggest. Um more directly answering your question, I think about 70% of the way through a project is always a big hang up. There's a there's a you know, a line chart. If you were to follow a line chart in the process of construction, the everybody's on a high during the design process. It's very exciting for the homeowner. Um as you break ground, again, those you know, those anticipations are very high and everybody's very excited. You get through 40-50% of the project, then the costs associated with uh potential changes or unforeseen conditions come to play, and the excitement around the project starts to dip. So there's that dip about 70% of the way through that is the hardest hurdle to get through until you start to see the light at the end of the tunnel.

SPEAKER_00 4:53

I'd like to call that either renovation fatigue or construction fatigue. Right. And then and then you think to yourself, Do I do I want to do this again? Or maybe I should just wait a while before my next project. Everyone kind of hits that point. Uh I've hit it personally. You've you've built you know your own projects too. What's the most frustrating uh spot for you when you're doing your own projects?

SPEAKER_02 5:11

Um for me like on your own house. Oh, well, my own house. That's what I want to get into. Having to give up my own space to uh, you know, people in the home. But I think well, the hardest part of uh any renovation, I think, is is the the kitchen. If you're doing just a renovation and you're you know, I always advocate to leave the house and not be living in a home or on a property during construction. You don't want to watch the sausage be made, you just want to eat it when it's done. Especially with two young children. Right.

SPEAKER_00 5:42

This is literally my life about a year and a half. Yeah, yeah. A lot of people going through that. And then call me when you need to find the rental or the place to go in between.

SPEAKER_02 5:50

Right. So there's definitely a big difference in what I would say is the hardest hurdle in my own projects versus on a project um, you know, representing someone. Um a lot of the the projects that I'm involved with are you know either ground up, you know, institutional, uh industrial, commercial, and even high-end residential, but often there's nobody occupying the spaces.

SPEAKER_01 6:12

So that's it. It seems like you're you're rolling into this this niche basically in a good time, right? I mean, I don't I think cost of projects are so much higher than they used to be. Um and there, like you said, so many people involved in it. I mean, what are you seeing as this do you see more and more owners' reps coming into play on each project? I mean, what are you thinking?

SPEAKER_02 6:35

Yes, I've experienced them on the general conquering.

SPEAKER_00 6:37

It's the first time I've ever really met one or heard of it. Yeah, I'm I'm it this is a new concept for me, and that comes from a family that's been in construction. So either I wasn't listening carefully enough or no, I think they've been more up and coming in in the sense of yeah.

SPEAKER_02 6:52

Yeah, they've they've been in existence in you know a lot of the high-end residential, but a lot more of development. You know, we here on the east end in the Hamptons are more prevalent to the residential world, but um high-end developers um do have owners representation uh to help control the budgets and the timeline. Um you're seeing it more and more, yes. And I think um a product of you know the COVID um change in the processes and having to understand cost and timelines of certain orders, you know, um lead times that were issues before are you know are are just becoming even more issues. So structuring the project and keeping track of the timeline and the budget is um what every owner is most concerned about.

SPEAKER_00 7:39

You've seen a lot of architecture and a lot of uh real estate in general. What's your what do you gravitate towards? What's your personal favorite style?

SPEAKER_02 7:48

Um I have worked in both, but I think my favorite is more in the traditional side of things. Um I live in a house that was built in 1890, um, and I've I've built more traditional homes in the past than modern. Um, and the detailing is uh on a different level. Um the simplicity of the modern design, you know, it it requires just as much attention to the detail, even though the outcome is isn't as complex uh to the visual eye, although you know the process of getting it there is as complex. So but I I lean towards traditional. What about you? I'm traditional. Yeah. Me too?

SPEAKER_00 8:28

Farmhouse. Farmhouse. Farmhouse, yeah.

SPEAKER_01 8:30

Yeah, absolutely.

SPEAKER_00 8:32

Um and where do you think modern is going out here? Because it really was very traditional in the Hamptons for a long time. Then the modern took over. It feels like the square houses, the glass, the clean lines, like all of that is very much still present. So what are you what are your thoughts when you look at that? What do you see coming our way? What do your thoughts on that?

SPEAKER_02 8:52

I I see a lot of technology being implemented into the modern aesthetic, um, like windows that have their own IP addresses where you can display images, um, their self uh shading, you know, with the sun path and and with the level of the light. So a lot of technology embedded with the modern aesthetic. So the metal and the glass um lend itself well to, you know, you have a big curtain wall and a major room in the home, and you want to show off to your friends and put a video up on the glass, and you're able to do that. Um so we've implemented some systems like that, and I think that's where technology is meeting this modern aesthetic. Technology. Yeah.

SPEAKER_00 9:33

My house is not a smart house. Um it's very beautiful, but I uh don't have all the technology things. I think life for me is so technology focused, like here we are podcasting, right? I agree. Um, that I keep it really simple at home personally. Um but I agree with you that a lot of the houses that are being built and and the money going into the Hamptons out here, a lot of it is in the technology world and smart homes.

SPEAKER_01 9:57

And you're not just based on the east end of Long Island, you're doing projects all over, correct?

SPEAKER_02 10:02

Right, yes. I have um you know family offices that I have worked for um you know for years and years that also have residences down in Florida, you know, there's some West Coast contacts and there's potential um Yellowstone Vale, you know, there's there's other areas that our clientele here in the Hamptons who I've specialized in with um in residential also have you know residences or um other structures in other states. So 90% of my job is remote, so it's it's not an issue for me to get on a plane for a site visit once a week. Right.

SPEAKER_00 10:39

Speaking of traveling, you didn't go too far, but you were in New York City for the Institute of Classical Architecture and Arts. Yes. Did I get that right? All right. So uh what was your big takeaway from that event?

SPEAKER_02 10:51

Uh just the the respect and the um the uh still existence of you know historic and classical architecture in our world today where modernism and a lot of contemporary architecture is is more prevalent uh and in our face. But you know, after seeing the awards of craftsmanship and landscape architecture, architecture and interior design, and the projects that these um very talented and and leaders in our industry have have so eloquently designed, I mean there is still that imprint of the traditional architecture, and we just maybe it's not as prevalent in the conversations nowadays. So um a lot of very talented, um very successful designers and industry leaders there, and it was a remarkable event.

SPEAKER_00 11:43

And before we get to the market report, how would you say the market is moving now?

SPEAKER_02 11:48

Um I think that um there's a lot of volume out here, there's a lot of big things happening, big development in terms of uh land use. Um specifically, you know, what I can speak to uh in my own hometown of East Quag, there's you know a lot of developing going on with um, you know, a golf course, building them a golf course, and I think that it's gonna bring people more west. Um I think there is a trend of um visitors to the Hamptons that maybe don't want to spend the extra hour and a half or two hours traveling all the way out east. So I I see a big hike in um volume in Quag, West Hampton, uh, and even you know Remsenburg.

SPEAKER_00 12:30

I find it interesting that the three of us at the table all had ties and time east of the canal, if you will. And for our viewers, that's the canal divides Hampton Bays and Southampton. Um, but all of us are now currently on the other side of the canal, which is still the Hamptons, is still, you know, the town of Southampton there. Um and for me, I love it. And I I agree with you that I see that trend.

SPEAKER_01 12:53

I actually that trend I agree with that trend. We actually see just in our own clients here, we're doing more and more financing for people on the other side of the canal, and not for any other reason that they just don't want to take the extra hour and change to get out here. And that that you know, I'm seeing that, and I think the access to the beaches and some of the restaurants are drawing people more west of the canal.

SPEAKER_02 13:14

Right.

SPEAKER_01 13:14

No, I agree.

SPEAKER_02 13:15

And and also in um you know, people within our industry, builders, uh contractors, designers, they're all have secondary satellite offices that are going up west of the canal as well.

SPEAKER_00 13:25

It's secondary everything. Hampton Coffee, Goldberg's bagels, everybody is kind of replicating that, uh, which is very interesting. And time will tell.

SPEAKER_02 13:34

Trying to stay ahead of the curve.

SPEAKER_01 13:36

So, all right, market update. I'll go first. Um rates are pretty much flatlined from the last time we talked. Uh, you know, obviously the political unrest going on in Iran is affecting things, but once that gets sorted out, I think that all predictions are rates are gonna drop to the low to mid-five. So it basically is we're gonna have to watch oil prices and see what oil does. Oil is extremely high right now. When that goes down, I think you'll start to see rates go as well. So, you know, we are extremely busy, you know, even with the rates being flatlined. I think people, you know, a year and a half ago rates were at 8% and now we're at six. So it, you know, it's still like I've always been saying the last 10 episodes, you know, 5.875 in that range keeps the market moving, you know. So anything lower just I think will stimulate it a little bit more.

SPEAKER_00 14:24

And I'm feeling that I've got four contracts out today, you know, hopefully by the end of the week they're all signed. Um, but last week was pretty nuts because there were at least four offers on each property. Some of them had just been put up, you know, they were only on the market for a week. So um people are definitely performing, and I think that the rates are, you know, in a good enough spot for people to make some decisions.

SPEAKER_01 14:45

People are comfortable enough of taking that rate now, knowing that they could either leave it or have the ability, hopefully, to bring it back down at some point. But it's not high enough where it would stop them from purchasing, which is good.

SPEAKER_00 14:57

And which is what we're seeing. And then I also just wanted to highlight, I just put up, speaking of East Quag and just opportunities that are um on that side of the canal, um, a 15-acre horse farm, which is really special. The the video actually got almost 30,000 views online. So I love that uh digital curb appeal that it's getting there. Um, but so if anybody knows anybody, it's a great buy. It's a horse farm now, but it's ag reserve. So, you know, there could be other opportunities there as well. It's good. Um, so that's a fun and exciting one that hopefully next episode we can say is in contract.

SPEAKER_01 15:26

Well, good luck with that. Thank you.

SPEAKER_02 15:27

And Mike, thanks for coming on. No, thanks for having me. This is incredible. Thank you.

SPEAKER_00 15:31

All right. For that, we are signing off and we will catch you next time.