Just a quick note that my phones are ringing considerably more than last week and there seem to be more buyers coming to the table ready to buy property, me included (see below). Inventory remains low however and we still aren’t seeing many "deals" hit the market. That said, occasionally an apartment comes on the market that is drastically under priced. Call it a sales tactic, call it agent incompetence, call it whatever you want. I choose to call it an opportunity and yes one such opportunity has presented itself to 3 of my clients. Fortunately for me, none of these 3 buyers are interested in this particular property so today at 5PM, my wife and I are going to take a look totally prepared to jump at this opportunity.
This isn’t the first time in my 16 years that such an opportunity has presented itself. Twice in the last 7 years, my wife and I purchased apartments that I stumbled upon while searching for my clients. On both occasions, I notified my clients that if they weren’t interested in the properties, that I was and that I intended to bid on them if they didn’t. The first was a 2BR/1.5BTH Co-op that had been on the market for 5 months in an incredibly hot market. The listing had become "stale" with very few agents showing and many thinking that something was wrong with the apartment. There was nothing wrong with it and thus my wife and I made it our home for 3 years having our son there. We had no intention of leaving that apartment even after we discovered that our daughter was on the way. Fate had other plans. Again, I had the fortune of showing a 3BR/2BTH condo to yet another client of mine who decided that the space wasn’t for them. It was DEFINITELY for US! I quickly called my wife who darted up from her job in Midtown to immediately agree with me that this would be the perfect home for our soon to be family of four. We bid and after a heated bidding war (they actually did a two full page spread story in the NY Post about this) we "won" the privilege of purchasing our current home (I had buyer’s remorse for 2 months!).
So fast forward to this morning. In my relentless search for my current buyers, I stumbled upon an incredible condo with stunning views that is priced at only $1100/sf! Today at 5PM I will see the space with my wife and I suspect we may be moving in the next few months unless I lose this bidding war. I will keep you posted.
My point to this story is that I’m not afraid to sell and buy in this market based on the idea that my family will likely call this place home for a long time (maybe not based on how frequently this type of scenario happens to us). Mortgage rates are incredibly low right now and I firmly believe that owning a bigger piece of Manhattan real estate is never a bad idea (unless you are forced to sell in a bad market…if that may happen to you, then don’t buy).
Congrats, Doug. 1100/sqft is not bad at all (on the UWS?)
Good Luck. I really appreciate the front line reporting on the buyers/sellers activity. This is exactly what a real estate investor and a primary residence buyer or seller needs. The financial picture I can get daily from news reports but the level of buyers calling or open house activity I cannot. Keep it up and I’ll be a frequent visitor.
A bargain about to become a bigger bargain is no bargain at all…
anon,
No congrats yet! A lot of interest and it’s going to sell over the asking price!
Steve,
Thanks for seeing the value in front lines reporting and glad to hear you will be back.
Eddie,
If your mantra were true, a lot of people would have lost many opportunities in life both in real estate and general investments. What you’re statement suggests is timing a market…good luck with that.
Doug,
Good Luck to you boss! However, keep in mind that it is very likely we are in a recession right now and dont know it yet after Fridays jobs report. Not worried about you, as you are a very savvy investor and Im sure this place is the best priced property in its group, which is why you are jumping at the opportunity. But if the bidding war gets a little nutz, use caution.
We are headed for a doozy of a recession!
Thanks Noah and you know I always appreciate your insight. The main reason that I was (past tense and I will explain in today’s post)jumping on this is because it is one of my favorite boutique Condo buildings by one of my favorite developers (The Clarett Group). It is priced at least 20% below what I think it’s worth. That said, it’s not going to sell at that price as they have multiple offers and will be going to a highest, best and final today. I’m not interested in a bidding war right now but let me tell you my friend…I was in that apartment last night a 5PM and it was reminiscent of last Winter and Spring when buyers were manic about getting what everyone else wanted. Just more evidence that pricing is EVERYTHING!!!!
Probably not by any more than the reduction in commission. Not even that, because prices are determined by what buyers are willing and able to pay. They don’t care how much commission the seller is paying.I mean collectively, there may be individuals who think otherwise but that doesn’t matter unless they are the high bidder, and such people are unlikely to be high bidders.
Lower commissions will mean higher net proceeds for the seller.
so true! Amazing how hard it is to convince sellers of this phenomenon and that to price correctly means to sell quickly and possibly with multiple offers. Again, good luck, but just take into account the macro economy that is very uncertain right now.