New York City Real Estate | NYC, NYNew York City Real Estate | NYC, NYNew York City Real Estate | NYC, NYNew York City Real Estate | NYC, NY
  • ABOUT
    • ABOUT SCOTT
    • ABOUT THE TEAM
    • PRESS
  • BUYERS
  • SELLERS
  • VIDEOS
  • LISTINGS
  • JOIN OUR TEAM
  • BLOG
  • CONTACT
  • CALL SCOTT NOW

Bidding Wars, 20+ Open House Attendees, Mortgage Contingencies

    Home Uncategorized Bidding Wars, 20+ Open House Attendees, Mortgage Contingencies
    NextPrevious

    Bidding Wars, 20+ Open House Attendees, Mortgage Contingencies

    By admin | Uncategorized | Comments are Closed | March 14, 2011 | 0

    We’re seeing great conditions for a busy spring- sellers are pricing apartments well, buyers are out in the marketplace and seeing value, and deal are happening.

    There is potential for doom and gloom perhaps nationwide- jobs are still difficult to find, inflation perhaps looms etc etc etc.

    However, things are growing a bit rosier in Manhattan, in Brooklyn where we do business.

    Inventory hasn’t skyrocketed.

    Sellers are being very realistic about their options.

    This post may be a bit jumbled, since I’m in DC for a conference and feel it’s very important to give you a real time sense of the markets.

    I am seeing bidding wars.

    Recently, a property on the East Side that needed $200k of work received 5 bids within 3 days on the market.

    Ultimately, a cash offer $100k over asking price was accepted, someone with multiples of the asking price in liquid assets after closing.

    For those of you in Manhattan, perhaps this isn’t so shocking.

    However, my takeaway was that for this type of apartment, which could be argued to be not a trophy apartment, but a practical investment for a growing family- this was a bit of a shocker.

    5 bids?

    Qualified people with $5-10mm in assets for a property worth about $1.25mm?

    We’re just seeing this expression of activity after a long time of folks sitting on the sidelines.
    Open Houses- sure, there are the tire kickers.

    There are the neighbors who are nosy and want to see what has been done in the building.

    There are the lowballers who drive in from NJ for fun and put in crazy bids.

    Those who feel the sky is still falling.

    I hate to break it to folks, but the days of real catastrophe may be behind us, and the days of chicken little are growing less noisy by the minute.

    The sky may not be falling anymore.
    Now the last bit, which is definitely a sensitive subject- is the matter of mortgage contingencies.

    If you bought an apartment from 1997-2008, you probably didn’t have to worry about this.

    You simply threw a number on a contract and there was a bank to lend to you.

    Deals almost never had mortgage contingencies.

    The first deal where a buyer demanded a mortgage contingency in recent memory was December 2008.

    Major concern that he wouldn’t get a loan, and rightfully so.

    It was the right thing to ask for, and a good thing, too- since it took us three banks before we found one willing to lend- shocking, given the years of living high on the hog.
    Fast forward to 2011.

    Buyers are still asking for mortgage contingencies, and it’s killing deals.

    Sellers are beginning to feel much more confident in the value of their properties.

    I’m hearing that lenders are opening the floodgates – see my mortgage post- and in essence, many buyers are going to have to do some soul searching- do they want to risk their downpayment, and sign a contract without a mortgage contingency?

    Or do they want to lose the deal?

    It’s going to be a very interesting spring!

    New listings coming to market from my team- looking forward to keeping you posted on the market.
    All the best!

    No tags.

    NextPrevious

    Recent Blog Posts

    • (VIDEO) The Last Greatest Real Estate Deal in the United States (Hint: It’s Manhattan) June 29, 2022
    • (VIDEO) Our Big Win of the Month! “The Search” Goes Upper East Side June 29, 2022
    • What Are You Waiting For? Math of the Month- Mortgage Rates vs Sales Prices June 28, 2022
    • (VIDEO) Visionary Brokerage Is For Times Like These May 31, 2022
    • The New Waldorf-Astoria Towers – and The Resurgence of Midtown May 30, 2022
    • When You Can’t Let Go of Your Apartment- Or Your Stuff. May 30, 2022
    • (VIDEO) Trading Masks for Armor? The Battle For New York Real Estate is On. April 29, 2022
    • Miami Comes To New York- In The Form of Regulation April 27, 2022
    • My First New York City Real Estate Deal April 27, 2022
    • The Flight To Quality, and 4 Other Good Reasons Why the RE Market Stays Strong in 2022 in NYC March 30, 2022

    Archives

    Call us: (646) 400-0769
    Email us: sharris@bhsusa.com
    Visit us: Brown Harris Stevens
    1926 Broadway
    New York NY 10023

    © 2022 The Harris Residential Team. All rights reserved.
    • About Scott Harris
    • About the Team
    • Press
    • Buyers
    • Sellers
    • Videos
    • Listings
    • Blog
    • Contact
    • Call Scott Now
    • Brown Harris Stevens Fair Housing Policy
    • ABOUT
      • ABOUT SCOTT
      • ABOUT THE TEAM
      • PRESS
    • BUYERS
    • SELLERS
    • VIDEOS
    • LISTINGS
    • JOIN OUR TEAM
    • BLOG
    • CONTACT
    • CALL SCOTT NOW
    New York City Real Estate | NYC, NY