Readers of TrueGotham know exactly how I feel about transparency and I do believe that the real estate industry as a whole is getting much better at accurately representing property to the prospective buying public. Yet I continue to be baffled by blatant misrepresentation of properties by some of my colleagues. I just returned this morning from viewing a home with my most favorite buyers. These buyers are quite particular about their future apartment and nothing is more important to them on the priority list than views. The views must be awe-inspiring of either the city or water and they need to be somewhat protected (quite a challenge in Manhattan but possible). Because of their insistence on drop dead views, we make it our business to confirm with seller’s agents that our clients won’t be dissappointed. In this particular instance, the seller’s agent confirmed that the views were open from all rooms and that the only reason the blinds were drawn in the photos was because the windows hadn’t been cleaned.
Fast forward to our appointment this morning. Imagine our surprise and displeasure as we entered this $3M home only to be met with sweeping views of a red brick wall. No joke! The entire living room faces a brick wall. Now why would the agent boldly lie about the views of this home when we clearly expressed the importance of views? IMHO, he’s scared! The market has slowed to a snail’s pace and in order to get bodies into this apartment, this agent has obviously resorted to misrepresenting the home. In addition to "shady" photos (shades drawn), the agent has chosen to verbally misrepresent the home in hopes that someone will fall in love with it despite the lack of views. Perhaps someone will, but it won’t be my clients nor anyone seeking a home with stellar views so why waste everyone’s time.
Tactics such as these are frustrating to the majority of those in my industry who, in an effort to make an inefficient process more-so, take the time to qualify a property as appropriate for a buyer based on their priority list. Of course the buyers themselves are equally frustrated with situations such as this and it only serves to reinforce the distrust that many have for real estate agents.
So to those of you who think you’re going to fool someone into purchasing a property by misrepresenting it, do us and yourselves a favor. Represent the home exactly as it is! It will make your job much easier and much more efficient and it may even help to garner some trust among a buying public who believes little of what we say anyway.
The 3rd Quarter Hampton and North Fork Overview has been released by Prudential Douglas Elliman and Miller Samuel.
Highlights: The Hamptons/North Fork market continued to show weakness this quarter as evidenced by the decline in price indicators and number of sales, as inventory, days on market and listing discount expanded. While median sales price showed a decline of 17.3% off the record set last year at this time, median sales price was 1.6% higher than the same period two years ago. Price indicators by quintiles show declines in all segments but are roughly similar to those seen two years ago. Median sales price south of the highway was above the same period last year while the median sales price to the north continues to decline. There were fewer sales this quarter as compared with last year at this time as the continuing issues with credit and an economic slowdown impact demand. However, the rate of decline for number of sales was less than the pace seen in Manhattan, Brooklyn and Queens this quarter.
The following is more specific information by market area:
Hamptons/North Fork (Overall)
– Median sales price was $729,000 this quarter, down 17.3% from the prior year quarter amount of $882,000.
– Listing Inventory increased 11.3% to 1,991 units from the prior year quarter amount of 1,788 units.
– Number of sales decreased 16.9% to 355 units from 427 units in the prior year quarter.
Hamptons Market
– Median sales price was $830,000 this quarter, down 19.4% from the prior year quarter amount of $1,030,000.
– Listing Inventory increased 9.8% to 1,561 units from the prior year quarter amount of 1,422 units.
– Number of sales decreased 28.8% to 257 units from 361 units in the prior year quarter.
– Median sales price of all quintiles showed declines from the prior year quarter.
– Median sales prices “south of the highway” (rt 27) saw a 17.5% gain to $1,100,000 from the same period last year.
North Fork Market
– Median sales price was $575,000 this quarter, up 10% from the prior year quarter amount of $522,500.
– Listing Inventory increased 17.3% to 430 units from the prior year quarter amount of 367 units.
– Number of sales increased 48.5% to 98 units from 66 units in the prior year quarter.
– Median sales price of the first four quintiles showed increases from the prior year quarter, while the upper quintile posted a 3.3% decline.
Luxury Market (upper 10%)
– Median sales price was $4,800,000 this quarter, down 26.7% from the prior year quarter amount of $6,550,000.
– Listing Inventory increased 45.6% to 511 units from the prior year quarter amount of 351 units.
– Sagaponack had the highest average sales price at $13,000,000 but was only based on two sales. Luxury property sales were more evenly distributed this quarter.
Condo Market
– Median sales price increased 5.2% to $478,000 this quarter from the prior year quarter amount of $454,202.
– Listing Inventory fell 20% to 64 units from the prior year quarter amount of 80 units.
– Number of sales increased 43.8% to 23 units from 16 units in the prior year quarter.
Had to share this:
I’m two-faced! That’s right, I said it. But now let me explain.
In today’s very bizarre world of Manhattan real estate where everyone is trying to make sense of the market’s conditions and direction, I am finding myself sending mixed messages depending on whom I’m representing in a transaction.
For my sellers, I am careful to price their homes fairly for today’s marketplace and I arm myself with the comps and the documentation to support those asking prices. So when a colleague or prospective bidder submits a bid of 30-50% below the asking price (yes as much as 50% below ask) with a grocery list of reasons why they think their bid is "solid," I’m finding it both aggravating and frustrating. That said, current market conditions often require that these bids are considered for counter offers. The irony here is that I am also at times that irritating low bidding agent.
For my buyers, I provide in depth analysis of current market conditions including comps, perception of market health and direction, as well as consideration of a buyer’s level of qualification to purchase. In some cases, this analysis results in me submitting bids as much as 30% below asking prices on behalf of my buyers.
So navigating today’s Manhattan real estate market is indeed challenging. The role of the real estate agent has become even more important as both a defender of price and/or offers and an interpreter of a home’s value based on current market conditions. So although it appears that I may be sending mixed messages, the single message is very clear: each specific property negotiation requires independent analysis.
Oh what a difference a few weeks makes…
On September 29th I posted Making Sense of Manhattan Real Estate and described how incredibly busy I was on the day the Bailout Package was originally rejected. Well it has been 3 weeks, the Bailout Plan was approved, the stock market is experiencing volatility not seen since the Great Depression, and although I remain busy, I feel that it would be misleading of me to not update those "deals" that I was working on 3 weeks ago. So here goes:
- Accepted offer for 148 West 23rd Street, 11H. UPDATE: This deal has fallen through as Doctor is not confident that he can sell his current studio for enough money to make the move.
- Multiple offers being negotiated for 88 Jane Street, 3W after 3 days on market. UPDATE: Only one of the multiple offers remains and it is too low for the seller to consider. A counter was submitted however and many buyers continue to hover and watch.
- 35 people showed for open house yesterday at 215 West 75th Street, 9C after 10% price drop and offers expected today. Price indeed overcomes all objections! UPDATE: Contract finally going out today after unbelievably extensive negotiating points and contingencies. Should be signed tomorrow.
- Phones ringing with appointment requests for other exclusive properties that I’m representing. UPDATE: This is indeed still the case and activity seems to be picking up a bit of steam but with fewer offers being submitted. Prospective buyers are circling and being patient. Negotiations are taking place but at a pace much more palatable to buyers than in the past decade.
- Appointments being scheduled for buyer property tours later in the week. UPDATE: One of these buyers has an accepted offer and should be signing a contract in the next couple of days. Another is bidding on something today. The rest continue to wait for the "right" property at the "right" price to hit the market.
So today’s Manhattan real estate market is not without its challenges mostly due to tight credit and buyer psychology. The real estate agent’s job has become increasingly more tedious and time consuming in an effort to bring a meeting of the minds during such a period of uncertainty. Those who can stomach the turmoil and make sense of what is going on for their clients will become an even greater asset to their clients and the buying/selling process.
Yes I’m still alive! Just in case you were wondering. It has been almost 2 weeks since my last post on TrueGotham and the longest streak without a post since this blog’s inception. The lack of time to post blog entries is a function of the new market dynamics that make up today’s very challenging real estate environment. A greater amount of time is being spent on creative marketing strategies, more frequent communication is being demanded by anxious sellers, and more effort is going into creatively structuring deals that would not have been acceptable even six months ago.
Case in point…contingencies have returned to the negotiation process and I’m not only referring to financing. Of course, the desire for a financing contingency abounds in this ultra tight credit market and some are even inquiring about the availability of owner financing. In addition to these obvious changes due to the credit crisis, we are now seeing requests for contingencies on the sales of existing homes once again. Some sellers are actually granting these contingencies as they have no other option but to hope and pray that their prospective purchaser is a successful seller themselves. Then of course there are the all cash buyers who are over-confident and frequently bidding as much as 30% below already adjusted asking prices in an effort to find and take advantage of a desperate seller. So far, I’ve seen no evidence of sellers willing to accept these low-ball bids. That said, these sellers are often amenable to a counter offer which is different from the market of the last decade.
But with all of the anxiety that abounds in today’s market, the greatest challenge for a real estate agent remains pricing. In fact, it has become increasingly more important to not only do an extensive market analysis but to also consider where you believe the market is going short term when suggesting an asking price. Some agents are even developing pricing strategies that price 10% below the 5 or 6 most similar properties on the market. Others are pricing higher in an effort to make buyers feel like they are stealing a place if they get it for 20% or less than the asking price.
Whatever the strategy, navigating today’s real estate market place is not for the faint at heart. Anxiety is high! There are definitely opportunities for qualified buyers and many "real" sellers will still be selling at significant profits. Some won’t.
The Home Depot wants to know how people are saving energy in their home in its “Save Money. Save Energy. Win Big.” video contest. Just shoot a short video to show how you’re saving money and helping the environment by making your home more energy efficient.
Anyone can log on to www.homedepot.com/youtube to enter their video between now and Nov. 9, 2008.
The contest winner will receive a $5,000 Home Depot gift card and up to $2,000 for installed insulation or radiant barrier products from The Home Depot.
The energy savings videos should focus on conserving energy in your home and addressing issues to prevent high energy bills. The videos will be judged on relevance to the energy savings theme, originality and creativity. The second and third place winners will receive a $1,500 and $500 gift card, respectively.
Complete Listing Info
My colleague’s friend just sent her this email which was a response from an ad she answered online:
Hello,
My name is Burgin Badams the owner of the 1bedroom apartment and also want you to know that it was due to my transfer that makes me my wife and Son to leave the house and also want to give it out for rent and looking for a responsible person that can take very good care of it as we are not after the money for the rent but want it to be clean at the time and the person that will rent it to take it as if it were its own. So for now, We are here in west Africa, our new house and put all my worries off concerning the maintenance of the apartment for, since i am not residing there for now.I left behind some Facilities and electonics which include the rent, and a DVD player, air conditioning, alarm system. The kitchen is fully equipped with all necessary cooking utensils, arefrigerator-freezer, four-hob and oven, microwave,dishwasher and washing machine, My Computer Connected with Internet Acess Also the keys to the House are right here with me, and the lease document. Which i can send to you after all necessary agreement has be accepted. Also i will like you to know that the rent charges is not really the issue,Hope you are okay with the price of $800 with hydro,heat laundry facilities,air condition and so on,but your absolute maintenance of my apartment is most important thing so will want you to get back to me with the Application form below.
Here is the Apartment Address: 25 Tudor City Place #2118/2119, New York NY 10017
RENT APPLICATION FORM
1)Your Full Name
2)Your Full Address & Phone Number
3)How old are you?
4)Are you married?
5)How many people will be living in the house?
6)Do you have a pet?
7)Do you have a car?
8)Occupation?
9)When do you want to move in
10)How long do you want to stay in my apartment
11) Pictures of all the Occupant that will stay in my apartment
MORE DETAILS
The accomodation comprises; entrance hall/landing (21’1×5’10), reception room (17’0x16’0), kitchen breakfast room (13×11), bedroom 1 (12’10×10’5), bathroom and separate WC on the first floor.
FURNISHED
PERIOD PROPERTY
SPACIOUS AND LIGHT
KITCHEN BREAKFAST ROOM
POPULAR AREA
GOOD TRANSPORT LINKS
Landing 22’1" x 5’10" ( 6.73m x 1.78m )
Reception room 17’0" x 16’0" ( 5.18m x 4.88m )
Kitchen 13’0" x 11’0" ( 3.96m x 3.35m )
Bathroom 6’10" x 5’10" ( 2.08m x 1.78m )
Guest WC 5’0" x 2’10" ( 1.52m x 0.86m )
One McWilliam called me about the apartment,I told him that I can’t give him the apartment because he loves smoking,drinking and dont want him to get drunked and damaged my property one day so If you are still interested, No extra fees.I will like you to give me a call on this effect to know how serious you are. I personally will actually come visiting you sometimes during the year as our new tenant.Looking forward to hear from you with all this details so that i can have it in my file in case of issuing the receipt for you and contacting you. Await your urgent reply so that we can discuss on how to get the document and the keys of the Apartment to you.
Thanks
Burgin Badams
The exact same ad was posted online in Vancouver for a property there.
Well, the big 3 have released their Manhattan Market reports this morning and here they are:
- Prudential Douglas Elliman
- Halstead
- Corcoran
Again, we would assume the same data sets but the results are not exactly in line. Prices were (past tense) up from same quarter last year but down from the previous quarter of this year.
I’m much more interested in seeing the 4Q 2008 and 1Q 2009 reports which would grant much more insight into the degree of softening that is currently underway in our residential housing market.
For an excellent analysis of the reports, check out UrbanDigs.
