Some Thoughts on the Current Market

Asking Price.

Well it's been quite a few months, sort of like a ride on that old wooden roller coaster, the Cyclone at Coney Island. I think I'll just rattle off a few things that have been on my mind, let's start with the asking price of an apartment. How relevant is it? That depends on who priced it and whether it was done based on math/comps or there is some other strategy at work like maybe price low and whip everyone into a frenzy. Or maybe just pick a number out of your hat, set the bar high with hopes of exploiting the current low inventory situation (especially for 2/3 bedrooms under $2.5mm).

We recently had a couple wind up $350,000 dollars over the asking price, of course we got there in fits and starts. My client was very sensitive to this, but once we got over the "shock" of getting there, at the end of the day the number that ultimately secured the home of their dreams still made mathematical sense, so that is what we stayed focused on. So don't just get stuck on their "number", look deeper to guide you in your bidding. In this market most likely you will be paying a premium to get the deal done, but at some point you have to just let it go if the bidding get's out of control.

Best and Final.

Is it really and truly a best and final? The short answer is no. We recently had two absolute lovely buyers, extremely qualified on all fronts "win" a best and final (or so we thought).We agreed to some terms and were promised that it was our deal, I of course mentioned to the listing agent we wanted assurances that if the other buyer came back with another offer the seller would honor our deal; we were told "of course". Well two days later while due diligence was being performed I got the call all buyer brokers dread. "Keith the other buyer threw an absolute silly number at the seller and he would be foolish not to accept it. That said we will give you the opportunity to match it and this time it really will be a best and final". This recently just happened again, but this time our clients stepped up and made an offer that the seller couldn't refuse. I guess this is just the nature of the (current) beast. I never take any of this personally but my heart does go out to my clients whom I have usually formed a bond with by this time. That said even when we "win" I don't necessarily celebrate as I know there is another party that "lost". It's one thing to make a bad trade with a security, but it is so much more emotional when you have  found that perfect home and are told no.

There is a part of me that thinks that there should be some sort of guidelines for "best and final" bids.

Types of Homeowners Insurance | Co-op & Condo Boards | Habitat Magazine

Types of Homeowners Insurance | Co-op & Condo Boards | Habitat Magazine

Admissions Interview Rules 2011 / Featured Articles / 2011 June / 2011 / Publication Content / Home - Habitat Magazine

Admissions Interview Rules 2011 / Featured Articles / 2011 June / 2011 / Publication Content / Home - Habitat Magazine

Interesting read. I was recently scolded by a listing broker because I did not tell her the "citizenship status" of my client.

Good-bye, mortgage contingencies: tight inventory leads buyers to risk their down payments

I get a little mention in this article on mortgage contingencies. Unfortunately waiving your right to this protection can be the tipping point for getting a deal done. Yes, some of our clients elect to go this route, they are sophisticated enough to understand the risks and we certainly don't candy coat them or ever suggest this route. But after losing many "best and final" situations it can cause a buyer to rethink their position. In all the cases our clients have waived their right to a financing contingency they had a back stop if the worst case scenario came into play and they could not secure financing.

Good-bye, mortgage contingencies: tight inventory leads buyers to risk their down payments

Real Estate Déjà Vu.... Is this a new Bubble?

Real Estate Déjà Vu

a bit simplistic but an interesting read.

UrbanDigs: February Manhattan Market Report

UrbanDigs: February Manhattan Market Report

The Data is now reflecting what those looking for apartments have known for a few months now. As Rachel Zoe would say; "It's Bananas".

So we plod along trying to keep our wits about us. We are getting deals done, clients are finding homes that make sense for their needs.

Our Clients Are Great!

"Keith,

Thank you for the opportunity to work with you.  Elizabeth and I have nothing but wonderful things to say about working with you.  Your (and Christian's) professionalism, diligence, and attentiveness were far superior than anything I experienced with all my "full" service brokers in my prior deals.  I only wish I knew about your services earlier.  Having our check at the closing (after paying out so much) was a very nice and thoughtful touch.  We also appreciated your note.  Liz and I would like to take your team and Barry out to lunch/dinner if you have time over the next few weeks. I also appreciated your referral to Barry.  I have been involved in 5 prior purchases/sales and Barry was by far the best lawyer I worked with and have referred him to my other friends.  We have also recommended you to everyone we know. 

Thank you again.

S and E"


Things can get tense in a NYC real estate transaction, there is a lot of money involved along with the emotional complexities of buying a home. Having a happy, satisfied buyer leads to a more efficient sales process benefiting all involved with the deal. This deal like many hit some very rough waters, but because the clients were satisfied with our service it helped them move forward. We strive to offer you honest, efficient and 100% transparent service. It's working.