A choppy real estate market like this does a number on buyers.
Think about it this way: Buyers (1) always want a deal, (2) are anxious that they are currently in a softening market, and (3) are spending a lot of money objectively, no matter when they buy in NYC. Additionally, buyers see that (4) inventory is on the rise in some segments of the market, (5) lots and lots of articles are being written about the real estate market in negative terms, and (6) the stock market is choppy now as well.
Using any or all of these pieces of information, buyers jump to conclusions- and it often the wrong one.
One conclusion is this: that
every
overpriced apartment means that the entire market is overpriced. It’s not that there isn’t any truth to this statement.
It’s just that assuming unrealistic sellers creates cynicism, a defeated attitude, and no action.
Buyers end up looking at every listing sideways, without nearly enough scrutiny or due diligence, and they don’t make offers.
yeah, tell me about it.
Here’s a situation easy to approach the “wrong way.” Any unit that’s been on the market for more than six (6) months.
Instead of wondering “what’s wrong?” – you can immediately know two things:
(1) The seller had to extend a listing agreement or hire a new agent over the course of the listing’s lifetime and (2) the seller clearly is interested in selling-
People rarely put their apartment on the market for that long and tolerate showings, open houses, staging etc. without legitimately wanting to sell for some reason.
Instead of getting cynical, get excited and make an offer where you see value.
Here are some other data points:
I spoke to a room of 200 agents recently, and asked them “how many of you have been in bidding wars in the last month?”
Not one raised hand.
This tells you something, too.
I guess what I’m trying to say is this:
Sure, your default should be to question an asking price.
But if that assumption makes you exhausted, or cynical, then throw it out.
Instead, just look around at apartments that look good to you, and leave it to your trusty agent (me) to put the pricing conversation into motion.
And yet- there can always be that one buyer who somehow ends up paying more than the market.
And a seller is hoping against hope for that buyer.
If that buyer shows up in the middle of a negotiation, then you may lose the apartment, unless you’re willing to pay up a bit.
That’s the wildcard that creates “the one that got away.”
I guess I’d advise against getting too emotionally attached to any property.
Putting that to the side, since I am starting to sound like I’m talking about dating… I really do think that there isn’t any one apartment for a person, just as there isn’t one person for a person!
In the end, opportunity could be staring you in the face, and you won’t know it.
There are opportunities in every market.
And sellers are more flexible than you think.
Keep an open mind and keep looking for that dream home, through this bizarro market.
-S