In keeping in line with the mission of True Gotham to increase the credibility of real estate agents and prove that the "used car salesman" stigma attached to the industry is often unwarranted, I update you on the harsh reality that is the Manhattan real estate market.
Last week I waxed about a day in which I had multiple offers on a property resulting in a bid almost 8% above the asking price. I also spoke of a buyer who erroneously believed he could find a "suitable" 2 bedroom for less than $500,000. I finished the post discussing a more traditional negotiation in which I was representing a seller in a transaction with no buyer’s agent. Here’s the update and evidence that we real estate agents are not just spouting good news (it’s a tough marketplace and perhaps that’s why James R. Hagerty and Anjali Athavaley of the Wall Street Journal write about why so many are "hanging up their blazers."):
Highest, Best and NOT SO Final
Remember that 3rd bidder who stayed 5% below the asking price? Patience may have indeed paid off. The property manager of the building destroyed the confidence of the highest bidder and they backed out of the deal. The back-up offer decided that she wouldn’t be comfortable without a doorman. That left us with those "ever so patient" 3rd bidders. We didn’t proceed with them because we felt their offer was still too low. So they have raised their offer considerably and we are considering accepting their offer. Patience may have indeed paid off and it’s imperative that all of you out there who have back up bids on property understand that it is very possible that you will get that call informing you that your offer is now acceptable to the sellers. Just this week, buyer whom I have been working with for almost two years and who had signed contracts decided to back out and not deliver the contracts to the seller’s attorney. A back up bidder received "the call" and is proceeding with contract negotiations.
2 Bedroom for Under $500,000???
No update here…still not happening. But stay tuned…who knows?
The Traditional Negotiation is Much More Pleasant for Everyone
After a 2 week period of 4 showings and back and forth negotiations, the sellers and buyers have come to terms and are negotiating a contract which is likely to be signed next week. Undoubtedly, the most pleasant transaction that I have been involved with in a very long time. Each side made concessions are everyone is seemingly pleased with the terms that have been agreed upon.
What Does this All Mean?
The NYC real estate market continues to churn but not without buyer trepidation, second guessing, and good, old fashioned negotiations. It seems like a much more healthy environment than the bidding war frenzy of the past several years.