The Waiting Game
The days of racing with the clock are over in NYC’s residential market (no duh), and the Times’ real estate cover story this week examines what the dynamics of a less frenzied market look like. While prices haven’t dropped much, buyers and sellers are taking their time nowadays, and a lot of people are considering…
The days of racing with the clock are over in NYC’s residential market (no duh), and the Times’ real estate cover story this week examines what the dynamics of a less frenzied market look like. While prices haven’t dropped much, buyers and sellers are taking their time nowadays, and a lot of people are considering how much rehab their properties need, or undertaking lengthy/expensive fix-ups, before listing them. Case in point:
Carolyn Walkin and her husband, Jim, wanted to move to the Long Island suburbs to find better schools for their daughters, Ava, 4, and Veronica, 2. But they were so worried about a potential recession that they did extensive research to ensure they could sell their three-family brownstone on Henry Street in Cobble Hill, Brooklyn, for the price they wanted. Ms. Walkin spent about five months and had conversations with at least seven brokers before choosing Terry Naini of Prudential Douglas Elliman. Before that, she had also researched auction houses and considered selling the brownstone without a broker. Even though they finished an extensive renovation two years ago, they added details like art on the walls to attract sellers. Within one hour of their first open house, they received an offer for their asking price of $2.5 million. But Ms. Walkin didn’t relax until the paperwork was signed.
Not a bad outcome, but perhaps indicative of the high anxiety in the air these days.
Responding to a Less Heated Market [NY Times]
Photo by TrespassersWill.
There’s always –always –a jackass who buys AOL at 300, watches it go to 400, and crows. Always. Feel free to be that jackass in Brooklyn real estate.
10:55 – Um, please define “listed a couple of months ago.” When did you go into contract? 10:21 made clear that the aprtments he/she bid on are still on the market. A lot can and has changed in a “couple of months.” Of course NYC was slower to feel the real estate pain than other markets, but the downward cycle here has not even come close to bottoming out. And with no prospect of things getting better for sellers any time soon, my guess is that 10:21, and buyers like him, will do just fine by waiting for the right price.
The people paid 1.5 3 years ago and now appear to have sold for 2.5 million. If this is a “less frenzied” market, I’ll take it.
10:31 – yes, this is one story in the ny times, but it’s incredibly similar to my situation. i’m closing this week on a co-op we listed a couple months ago; had one open house and had two offers at asking price within an hour. i feel sorry for buyers like 10:21, why would we have even entertained an offer 10% under? good thing you’re comfy in your rental.
“This is one story. There’s also stories of places sitting and not getting there price. No matter what way you see the market it’s foolish to draw broad conclusions from one story in the Times.”
“There is no place like home”. “There is no place like home”. “There is no place like home”. “There is no place like home”. “There is no place like home”.
Yep, keep repeating that shit.
“Multimillion dollar brownstones are selling out in one hour and this is slow down?”
Are they closing now? That’s the real question.
There are massive margin calls going on right now! You will give back the gains for the last couple of years. Here read this.
Hedge Funds Reel From Margin Calls Even on Treasuries
http://www.bloomberg.com/apps/news?pid=20601087&sid=aqcXY9R7AbkY&refer=home
“While lenders are most unsettled by credit consisting of real estate and consumer debt, bankers are now attempting to raise the rates they charge on Treasuries, considered the world’s safest securities, because of the price fluctuations in the bond market.”
Rates are going up for all kind of debt. The is the De-Leveraging of markets including Real Estate. RIP MREB!
The What (Tick…Tick….Tick….)
Someday this war is gonna end….
10:21-
I have had a similar experience. I put in 2 offers of 10%-12% price cuts and was immediately rejected by both. and both are still sitting on the market 2 months later. I have recently had an accepted offer at about an 8% price cut on a 3rd apartment.
The problem with the first two that rejected me were brokers who thought their units with GE Profile “stainless steel” appliances and beige craptastic bathroom tiles are the hottest shit in Brooklyn. where else could i possibly find that kind of awesomeness!!??
so i decided it would be better to make an offer on a place owned by regular people and NOT owned by a real estate company or a developer, and the offer was accepted.
10:29 – For now things, in general, are moving at close to asking, but more slowly. But I see no sign of a big pickup coming any time soon. As I said, I can wait. However, I may be more motivated now that my bank says I can get a lower jumbo rate. But not motivated enough to bid at an asking price that has been artificially inflated by a broker’s desire to get a listing.
Multimillion dollar brownstones are selling out in one hour and this is slow down? A slow down in South Beach and Las Vegas does not mean there will be slow in NYC, its that simple.
This is one story. There’s also stories of places sitting and not getting there price. No matter what way you see the market it’s foolish to draw broad conclusions from one story in the Times.
the only hitch 10:21 is that things do seem to be moving at close to asking, just more slowly.
this article had people selling within a couple of hours, a guy who painted and changed light switches and is selling at close to asking (with no place to live short-term). 10% below ask is still a lot if they have other interest. If they didn’t I’m sure they would have countered.