State of Market?
Hi, My husband and I are not first-time buyers, but it sure feels like it since we haven’t bought anything in over 5 years. We sold our apartment a couple of years ago and have been renting since. We originally planned to buy this past fall, but then decided to wait a bit longer. So,…
Hi,
My husband and I are not first-time buyers, but it sure feels like it since we haven’t bought anything in over 5 years. We sold our apartment a couple of years ago and have been renting since. We originally planned to buy this past fall, but then decided to wait a bit longer.
So, this weekend was our first open house weekend in a year, and we aren’t really sure how to read this market. It seems like a disconnect from what I expected — asking prices aren’t that far down, open houses for some of the apartments had a decent turnout, and when I contacted some brokers about listings, offers are already in.
So, my question is, for those with more experience, how different is today’s market (in Park Slope, specifically) from a year ago? How quickly to make an offer and how far below ask can you go? Is there a legitimate urgency to making an offer on a decent apartment or are these brokers just, well, being brokers?
Thanks in advance for any advice!
Thanks for all of the advice!
You need to be very thoughtful about how you proceed and also who you listen to on this site (I won’t mention names.) Brokers are always going to be brokers. But the fact is that many sellers have looked at the market, too. Prices are down, but Park Slope is still a very desirable, stable neighborhood with good schools. That is not changing. If a seller has already priced a reasonable discount into the market (you can figure this out by comparing the last two years of median sales for the type of unit you are looking at) offering 20% less will not put you into the serious buyer category. I don’t care what the people above have said. There is an opportunity cost to everything. If you want to sit on the fence and wait till the bottom falls out, well, be prepared to wait and wait. Go to open houses, take a good look at which places are closing and for how much of a discount. Remember, sellers have their numbers, too, and not all of them are in such a big hurray. And, before the mob weights in, I want to say that I am a buyer, not a seller. I plan to buy another house in this market and I expect to pay 20% less than I would have at the housing peak. But that discount is already in the prices (give or take 5 -10% ) of the houses I am looking at. That’s why I am looking at them! And I am looking at the high end of the market in Brooklyn Heights, etc. Good luck.
Brokers are denial. Prices have further to slide. I would wait unless you find your absolute dream home that you want to stay in forever, and you get a deal on the price (at least 15% below ask, although my target is more like 20%, since asks are still so high).
Market is about 20% below peak 2007 prices. Unless the place is unique–the place of your dreams, you should walk if the broker tells you there are multiple offers. I would not up an offer to more than 15% below peak. If history is any indication, the prices will continue to decline over the next few years or will stay the same at best.
On many levels the market is no different than most times. For example, brokers tend to always do the “there are multiple offers in, you should make an offer” pitch in an attempt to drum up interest. I started looking in 2001 and without fail almost every property from ’01 to ’09 had a broker saying “make an offer now or lose out” (some proved to be true, some are still languishing)
In addition, what you as an individual value will always be unique to you. Your situation might dictate faster action or the ability to wait.
What I think is as important now, as it always has been, is to do your research. Find many apartments that fit a general mold of what you are looking for. Compare them for yourself and your needs. Invariably you’ll discover the pricey one, the average, and the legitimate bargin. Then it’s all up to you and your comfort level.
Generically speaking I think 10-20% below list is an acceptable offer. If you want to offer less go ahead, but I think if you find a place you like, the price works for you, and you don’t want to lose it, 20% off ask would be as low as you could go while still being considered a legitimate offer…
… hope that helps…