I’m sure that regular readers of TrueGotham have noticed that the number of blog entries here has decreased significantly over the past several weeks. I’m a broker who blogs, not a blogger who occasionally sells a home so my priority has to be my clients and their sale or purchase of property. That said, after a slow start to the Spring buying season, sales volume has picked up considerably for me.
In addition to more transactions, each transaction is requiring much more energy to both market and negotiate.
- 3 C’s: Today’s real estate market requires constant, consistent and creative marketing in order to keep a property fresh and in the minds of prospective purchasers and their agents. New buyers continue to enter the fray and you don’t want them or their agents to miss your property.
- What Tier?: The Manhattan real estate market is multi-tiered and each segment requires different marketing targeted at different buying pools.
- Patience: The number of days on the market for all tiers seems to be increasing as is inventory so more patience is required to procure the right buyer at the right price.
- Pricing: Same ole’ story here. Proper pricing has never been more important than it has become as of late. Pricing too high is the kiss of death.
- Buyer Psychology: Buyers are being bombarded with daily media reports that span the spectrum of grossly negative to somewhat positive (mostly the former of course). Agents must be able to explain and support asking prices. I have recently had a few purchasers for properties that I’m representing who have changed their minds a multitude of times before finally inking a contract.
- Seller Psychology: Ironically, but not surprisingly, sellers are reading the same media reports and some are garnering a positive spin on the Manhattan housing market often believing that their homes are worth significantly more than they were the same period last year. However, most recently I am seeing the majority of sellers being more realistic about their expectations when bringing their homes to market.
- Deal Terms: Mortgage contingencies are more prevalent, some developers are offering higher commissions to agents and incentives to buyers, and some buyers are surprised at the higher down-payment requirements in today’s lending environment.
So all in all, the Manhattan real estate market is no place for the meek agent, seller, or buyer. It is indeed a market where preparedness, knowledge, and savvy have become the most essential characteristics to completing a successful and smooth transaction.