Should I Sell Now?

The answer to the question "Should I sell now?" depends very much on where you will be moving after you sell.

Your answer will be very different depending on whether or not you're staying in the same area or relocating to a different real estate market.

There's a saying that helps answer this question for you; "All boats in the harbor rise and fall together with the tide". This simply means that in a given real estate market, when prices go up for one home, they go up for all homes and vice-versa.

Consider this: Is it better to sell in a rising or a falling market? If you will be buying in the same market after you sell, it's better to sell in a falling market. The reason is that you will be buying someone else's property at a price point that continues to drop in the declining market after you've sold your property and pulled your money safely off the table.

Conversely, if you sell in a rising market, you will be buying someone else's property at a higher price since it will continue to appreciate while your money is off the table after you've sold.

Naturally, if you are relocating you must consider the new market that you're moving to. It's an altogether different "harbor" in the boat analogy, and subject to different "tides".

This is only one factor to consider in the selling decision, but it's an important one. Please feel free to contact me if you have any questions about selling your property.

Reach me at: michael.sussilleaux@gmail.com

Winds of Change

The market is shifting again. You'll read about it in the papers several months from now when all the current sales close, and the data is publicly available, but the shift is happening right now.

Buyers are buying.

Yes, the economy is still bad, and the job market is still suffering. Nevertheless, apartments are really moving again. Great properties under a million are actually becoming scarce. Every apartment that we've listed in the past month or so has had hundreds of web hits per day, and we're getting offers right from the start. On the flip side, we're struggling with inventory for our buyers because the best apartments are moving quickly.

The market is still a bit slower for larger apartments, but they're starting to move as well.

Fortunately for buyers, prices aren't rising dramatically (yet).

In previous posts, I've described how the media helps fuel the fire; exaggerating trends positively in "up" markets, and negatively in "down" markets. If the past is any indication, once the media gets wind of increasing sales activity, there will be tales of bidding wars and buyer frenzy again.

Now is the time to buy if you want to be in front of the herd.

Reach me at: michael.sussilleaux@gmail.com

No Fee Listings (Caveat Emptor!)

No one in their right mind would pay thousands of dollars for something that they can just as easily attain for nothing.

In New York City the tenant, not the landlord, is normally responsible for paying the broker's commission. This is the Bizarro-World opposite of the rest of the country, where the landlord foots the broker fee for finding a suitable tenant. (The reason for this economic inversion in New York is simply that there are many, many potential tenants all vying for the limited resource of housing. The landlords don't pay the fee simply because they normally don't "have to")

The news is not all bad for the potential tenant. There is a whole other universe of rental apartments known as "no-fee" listings. The theory is that if a landlord advertises his own apartment directly to potential tenants without involving a real estate broker, his apartment will be rented very quickly since the new tenant won't be on the hook for thousands of dollars in commission to a third party broker.

Well that's the theory.

The problem is that this reasonable idea has been almost completely perverted by individuals of questionable moral and ethical character. These include landlords, tenants and yes, real estate brokers too.

A full treatment of the world of no-fees will have to wait, simply because there is too much to get in to in this limited space, but I will touch on a just a few of the highlights.

1. Bad landlords. Bad landlords have substandard apartments that are in abysmal shape. No one with the means not to would ever live in one of these holes. Unfortunately, there are many folks who don't have the means, and they are forced to rent these hovels. The landlord takes advantage of these people since they don't have the ability to upgrade. Result: Horrible apartments offered as "no-fee".

2. Bad tenants. Bad tenants can be a nightmare beyond belief. Since it's likely that you dear reader are not a landlord and are probably none too sympathetic to their troubles, this one may be lost on you, but consider this: Picture having a "house-guest" that wantonly destroys your home and never pays you a dime, all the while you are out thousands of dollars paying your own expenses plus fixing this Bozo's damage. Furthermore, suppose that the police and courts are sympathetic to this devil of a person, and seem to believe everything this liar says. Result: Never again! The honest landlord with a nice place will use a broker next time to pre-screen potential tenants.

3. Bad brokers. Bad brokers will advertise "no-fee" listings under the guise of "owner pays commission" apartments. When you meet with the broker there's bad news. The apartment was just rented that morning. "Don't worry" he calmly reassures you, "I've got an even better apartment available on the same block. There's a small fee with this one, but ..."

Like the proverbial dusty and forgotten Ferrari tucked away under a sheet in a barn somewhere, great no-fee apartments do exist. For price points under $2,000 there is a reasonable chance of successfully finding a nice apartment if you're willing to put in the time and effort to separate the wheat from the chaff. For more expensive apartments, your best bet is to try and negotiate fees and/or rent with the landlord and hope that rental demand is soft enough that you will receive at least some concessions.

Reach me at: michael.sussilleaux@gmail.com

Light at the End of the Tunnel

No, it’s not a train coming at us, it’s daylight!

My last post speculated that we may have hit the bottom of the market here in New York. That’s great news for buyers, but what about the sellers? Where does this leave them, and what can they do to maximize their situation?

First and foremost, proper pricing is paramount. Unrealistically priced apartments are shunned by serious buyers and the subsequent dribs and drabs of marginal price reductions leave sellers in a weak negotiating position as their “time on market” stretches into months, and the property takes on the perception of being damaged goods that no one wants.

Beyond that, and choosing a top notch broker who really knows the market, the rest should fall into place. This is a marketplace for serious buyers and sellers who are willing to act rationally and reach reasonable pricing compromises.

Unfortunately, many misguided and uninformed buyers are missing the boat. They still think it’s the market of six months ago where there was a plethora of excess inventory to choose from and the dearth of transactions meant that even egregious low-ball offers were being seriously considered. That market has clearly come to an end.

On the other hand, and just as detrimentally, some eager sellers are beginning to get ahead of themselves and are already thinking the market has rebounded to that of the fictitious “eternal escalator of unending price appreciation”. This is simply not the case. The recent increase in signed contracts has not cleared the table of excess inventory just yet.

As I laid out in my previous post, we’re likely at the flat spot at the bottom of the curve where prices have stopped declining, and are beginning to turn upwards.

Buyers with reasonable budgets and realistic expectations can now purchase a home with substantial room for upside appreciation and sellers can once again find buyers willing to purchase under reasonable terms.

History has proven over and over again that these fleeting moments of affordability are short-lived and it appears we are already seeing the beginning of the end of this window of opportunity. Act wisely!

Reach me at: michael.sussilleaux@gmail.com

When is the Perfect Time to Buy (or Sell)?

Time and timing. When it comes to real estate everyone wants to peer unerringly into the future, but our best laid plans are confounded by the fact that we are only privy to knowing with certainty what happened in the past.

Interestingly, though not surprisingly, buyers want to buy at yesteryear's low prices, and sellers want to sell at the historic high-water mark (or even higher!). These "decisions" are often made without the slightest regard for what's going on in the real world. The old adage of "a property is worth exactly what someone is willing to pay for it" is a tough customer and can't be ignored.

No build-up here. The answer to the question of when is the "best" time to pull the trigger is this: Make the best decision you can based on the facts available to you at the time and the circumstances of your own situation. In a nutshell, be realistic and be reasonable and you will be rewarded.

I'm writing this on August 3, 2009. This happens to be a great time for buyers. (If you're selling to buy, then relax, as you too will hopefully be a buyer soon)

Why is it a great time for buyers?

1. Prices are off an average of 10 to 20% or more from just a year ago. It's a genuine housing SALE.
2. Inventory is abundant. The law of supply & demand reaffirmed!
3. Prices have stabilized and deals are being done. (The volatility of the market has stabilized)
   
4. Interest rates are at record lows! This is the real "Act before midnight tonight" motivator. Interest rates shouldn't be low at all. The money supply is increasing, which leads to inflation, which leads to higher interest rates. It's only a matter of time before interest rates start their inexorable climb.
   

The wildcard in all this, and the most important factor of all, is your personal situation. Is your employment stable? Do you have money saved? ...etc. I can't help you with this part. This analysis is up to you; everyone's different.

Hey, I don't have a crystal ball, no one does, but if your situations is stable and you have the means, all the signs point towards great opportunity as a buyer.

Reach me at michael.sussilleaux@gmail.com

Forest for the Trees

"Winning" a negotiation is fun! Making the right long-term decision is more fun.

Don't get caught up in negotiation fever where you live or die by that last $5,000. By sticking too closely to your negotiation "principles", you may just cut off your nose to spite your face. $5,000 is a heck of a lot of money, but is it worth losing the deal altogether?

I paid $5,000 over asking price on my first condo. It was the best thing I ever did. It was a fantastic place, and had I waited I would have not enjoyed living in a place I loved, and I would have had to eventually pay "more for less" in the future since the market was rising at the time.

Reach me at: michael.sussilleaux@gmail.com

Me, Myself & I

"I am the Platinum Club, Winner's Circle, Champion's Coven, Golden Halo, Diamond Award, Top Producer, Blazer of Excellence, Broker of the Century, Elite member of the top 1% of the top 5% in the Northeastern district of the top 7% of the entire United States of America! I'm amazing! Let me tell you even more about me! But enough about me, what do you think about me?"

Yes, there's no subject more dear to many broker's hearts than themselves.

In defense of these peacocks, many potential clients -- having no better criteria of comparison -- opt for the broker with the most impressive achievement "flair". So while we all hate listening to these conceited asses blowing their own horns ... it seems to work!

So what should you be lookng for when interviewing a broker? Is it polite to shoot them with a water pistol when they won't shut up? (Answer: No, it's not polite, but it's darned funny)

Generally speaking, the broker will have some prepared material that he or she will go through in their presentation. This is important for sure, but while you're listening I recommend that you try and pick up clues beyond the specific content of the presentation.

1. Does the broker convey the sense that he or she really knows what they're talking about? Communication -- in both directions -- is at the heart of this business. Maybe you're a "facts" person. Maybe you're a "feeling" person. Do you get the sense that the broker is comfortable speaking with you? More importantly, do you get the feeling that they would be equally comfortable speaking with someone who's not like you?
2. Is there a reasonable intelligence beyond those flapping gums? Can the broker go "off script" comfortably and cogently?
3. Ask them what differentiates them from their peers. If they are the "Universal Iridium Sales Challenge points leader for the Western Hemisphere", find out what differentiates them from all the other "Universal Iridium Sales Challenge points leaders of the Western Hemisphere"?
   

Beware the broker with 50 listings. 50 listings is not of itself a bad thing, but it raises several questions:

1. How did he or she get all those listings? Was it by promising the moon? Or was it by demonstrating success over and over again?
2. Who will physically attend to my needs? Mr. or Mrs. "Fifty Listings" is no doubt scouring the town for the 51st, and won't be able to serve cookies at your open house. Perhaps there is a team of dedicated professionals to support the load, but you won't know unless you ask.
3. Who will be doing the negotiating on your property? This is big money; your big money. You deserve to know.
   

Great brokers are successful in completing transactions, and the byproduct of this is that they have a large pool of potential references to shower them with accolades and approbations. Brokers who provide reference letters and the telephone numbers of past clients are generally worth considering since not only were they able to convince people to use their services, but they were ultimately successful with those people who in turn were happy enough with the service rendered to field questions from strangers in a positive and uplifting way.

The lesson here is that choosing a broker is not simply a popularity contest, but it is entering in to a partnership with an agent who represents you and your interests to the best of their ability. Choose wisely!

Reach me at: michael.sussilleaux@gmail.com

The Blog is Coming to Amazon's "Kindle" Platform

The blog is expanding! Amazon is trying to expand content for it's wireless reading tablet, "Kindle", so I decided to join their beta program and publish the blog on it.

I've received so much positive feedback from you on the blog, that I want to do everything I can to expand readership. I think that Terra Firma is somewhat unique in it's approach, and that there's something in it for everyone.

Real estate transactions are almost certainly the largest financial transactions that you will ever be a party to, and while there is a plethora of "how-to" fodder available, I've always felt that the vast majority of it was sorely lacking in practical advice, and more importantly, a thorough analysis of how all the relevant parties interact, what their strengths and weaknesses are, and most importantly of all; what their true motivations and agendas are. (Whew, that was one long sentence)

So whether you're a faithful reader, or a new visitor, I urge you to take a peak back at previous posts for a refresher, and stay tuned for even more juicy tidbits of insight. Keep sending me those e-mails, and I'll do my best to reach out to all of you.

Reach me at: michael.sussilleaux@gmail.com

Bottoms Up!

How do you determine when the real estate market in your area hits bottom? Or, for that matter, how do you tell when it hits the top of the market?

(The Million Dollar Question)
How do I accurately determine what the best time is for me to either buy or sell so that I get the very best deal possible?

Newspapers, magazines and television all report on the state of the real estate market, but there are two important limitations. First, they tend to deal with national data, which doesn't necessarily do you a lot of good. (Remember that real estate is a local phenomenon. If you didn't know that, or don't know why that's true, read this)

Second, sales statistics invariably report on the number of houses sold. On the face of it, it makes obvious and perfect sense, because what else can they report on? I am going to challenge this assumption, but first let's dig a little deeper in to this metric of "properties sold" and apply some common sense analysis.

The actual sale of a property is the last step of a long sales process. What are the components of this long process or "sales cycle"? (Specifically the time that transpires from the moment a sales agreement is reached to the actual closing and recording of the sale at the county clerk's office)

In my market, New York City, things probably work a bit differently than where you live simply because the overwhelming number of home sales represent condominiums and cooperative apartments and not stand alone houses. Condos and co-ops require lengthy submissions of personal and financial information followed by a review and approval process conducted by either the condo association or co-op board prior to the actual closing on the property.

Irrespective of the specific procedures applicable in your local market, most of the components of the sales cycle are the same. Typically, once an agreement is reached there is some form of down payment, an inspection, a mountain of paperwork, obtaining financing, submitting government filings, obtaining approvals, and finally scheduling a closing.

My experience is that the time from agreement on terms and conditions to closing is typically three to four months. At last! The transaction is complete.

Let's apply this three to four month time line to a hypothetical situation. You fall in love with a beautiful co-op apartment in the sweltering heat of late August and quickly reach an agreement with the seller of the property. The clock on the closing process starts ticking, and because from Thanksgiving through New Year's things slow to a crawl, the anticipated three to four months stretches to just over four, and you close the first week in January. Congratulations! You've just purchased a home in the first quarter of the next year!

Now let's get back to the media, and the sales figures they report to gauge where the market is. Where do they get the statistics? The answer is that they are either compiled by major real estate corporations or real estate data firms every quarter and published in "market reports". Your January sale will be bundled in the first quarter statistics that are released to the media in the beginning of April.

You may be thinking: "Whoa! Did he just say 'April'? I 'bought' that property in August the year before!"

And you would be correct.

Do you see the flaw in market news you get from the media? It's old. Very old.  Too old.

SUMMARY
The message is that it's important to understand that the data used to report the direction the real estate market is moving is at best several months old, and isn't necessarily reflective of what's happening now in your local market. If you were to quantitatively know where the market is today, you would have a serious advantage over everyone else.  

Many of the "best" brokers don't have the foggiest idea of how to collect and interpret the necessary data to determine where the market is now; and I mean "now" as in today.  If you want to learn more, let me know.  

Reach me at: michael.sussilleaux@gmail.com

Real Estate Myth Number 1: The Boutique Broker

Your luxury apartment or townhouse is genuinely spectacular. It's a multi-million dollar home, and when the time comes to sell it, you're not going to entrust the sale to just anyone. The broker who represents your property must be every bit as refined and pedigreed as your lovely home. This is clearly the milieu of the "Boutique Broker"

"Edwin Paddington Snodgrinckle" of "Snodgrinckle Elite Luxury Residences" is "the" most prestigious broker in the city -- or so you hear -- and fortunately for you he's been able to squeeze you in this Thursday so he can evaluate the suitability of your humble abode for inclusion in the Snodgrinckle stable of superior luxury homes.

Snodgrinckle arrives punctually, and nods casually at your tastefully decorated home. He remarks that it reminds him of the well appointed servant's quarters of the Rockefeller mansion; where he regularly attended black tie affairs when New York was "New York!".

Oh, it gets better. Old Edwin here has done $500,000,000 worth of business over his career and he conspiratorially -- "I really shouldn't tell you this, but ..." -- rattles off a gaggle of names from old New York Society whom he has represented.

Ask Mr. Snodgrinckle how he plans on marketing your property and he'll wax poetic about the thousands of buyers unique to his rolodex gathered over the course of his 45 years in the business. He'll also tell you that you'll get the best of both worlds; his premium service and the service of all the brokers in Manhattan since he distributes your listing to all the "big name" pedestrian firms.

Flushed with excitement from artfully spun tales of patrician hob-nobbing, and overwhelmed by his 45 years plus in the real estate business, you practically beg for the honor of having him represent your property.

Sounds like a dream come true to me, so what's the catch? Where is the myth?

1. Unfortunately for you the Boutique Firm has no real advertising and marketing budget. They can not hope to reach the number of qualified buyers that the largest firms do. Instead they play up their "expertise" in your type of luxury property as if this will somehow mitigate the fact that they can't and don't advertise extensively. All the alleged expertise in the world is completely worthless if buyers aren't exposed to your listing.
2. Their one page, out-of-date, homemade website; (if they even have a website); is virtually invisible to anyone searching for a property. It may appear on page 2,137 of a Google search, but who realistically looks past page 2 (at most) of the results? No buyer searching for a luxury property is ever going to find your listing on the Internet.
3. The only advertising you will likely get with a boutique firm is the occasional ad in the New York Times. Unfortunately the role of the Times as the "New York Real Estate Bible" has almost completely evaporated in recent years along with its precipitous decline in circulation. My listings typically attract over 10 times the number of visitors to my company website than I receive on the Times site! (Yes, the big firms advertise on the Times too -- we have the budget to advertise on many, many venues.)
   
4. While it (should) be true that Mr. Snodgrinckle will share the listing with other brokerage firms, the other firms will not advertise it on their multi-million dollar prominent websites, nor will they publish it in magazines, newspapers and international venues since it's not their listing. Since all the major firms share their listings, it begs the question why not invest your $500,000 commission with a firm that can actually promote your listing around the city, country and world, since all the one-man-bands like Snodgrinckle will still receive the listing information anyway?
5. Mr. Snodgrinckle almost certainly has a rolodex, but buyers at this level do not "belong" to one broker. If you're a player in New York real estate, you appear in many rolodexes. When your listing is disseminated among all the brokers in New York, you can be absolutely sure that Mr. Snodgrinckle, all the other "boutique brokers" and all the brokers from the big firms will be on the phone to their best buyers within seconds because each one of them will be competing to be the first to reach the big players and therefore share in the co-broke commission.
6. Today's buyer is younger, more educated and computer savvy. They do not read print ads. They use the Internet, and they search on their own. Having no public presence other than a newspaper ad borders on ludicrous. You would be doing yourself a egregious disservice by not doing all you can to reach these buyers.
7. Snodgrinckle's track record of success over 45 years is most likely just that: Snodgrinckle's success, not his seller's! If Snodgrinckle sells a $10,000,000 townhouse directly to someone on his rolodex, he collects $600,000. That's a tidy sum. But what if more buyers saw the property? Buyers not in Snodgrinckle's rolodex, but instead brought by a co-broker? Maybe the townhouse would have gone for $12,000,000. In this case Snodrinckle would "only" make $360,000 since he would be splitting the commission with a co-broker who brought the buyer to the deal. Can you see how it's in Snodgrinckle's best interest; and specifically not in your best interest; to keep the deal close to the vest?
   

This is just the tip of the "boutique brokerage" iceberg waiting below the surface to sink your ship. If you are considering the services of a "Mr. Snodgrinckle", please reach out to me so we can discuss it further. It simply makes no sense to pay such a significant sum of money in commission to someone who doesn't have the capablility of bringing you the best buyers so that you will receive the highest price for your property.

Reach me at: michael.sussilleaux@gmail.com

I Read the News Today Oh Boy!

Unless you live under a rock, you are undoubtedly cognizant of all the bad news of late. The first quarter 2009 Manhattan real estate sales statistics recently came out, and predictably the news was that sales are down. No surprise there.

What is surprising is that signed contracts are on the rise. Hmmm, "So what?" you may ask. "How does this affect me, and why should I care?"

If you were to "buy" or "sell" a property today, you would sign a contract of sale. This is really what the "sale" is. All the terms of the transaction are spelled out in the contract and the Buyer and the Seller both sign the document to acknowledge their agreement to the terms and conditions.

Can you move in to a property you just "bought" today by signing a contract? Heck no. You've got to "close" the deal. A closing is where the Buyer & Seller as well as a bunch of lawyers and other folks sit at the "closing table" and a myriad of documents are signed, fees paid, mortgages issued and monies exchanged. Oh, and at the end of it all, the Seller has his money and the Buyer has the keys.

The closing typically happens two to four months after the contract is signed. This creates a significant lag between when a property is "sold" and when the property "closes". The media reports on closed sales, not contracts signed, so for all intents and purposes, the media's perspective of the housing market is months behind. This lag is exacerbated by the fact that the reports come out quarterly, so if a deal "closes" in the beginning of the quarter, it won't be included in the quarterly statistics until almost three months later!

The news that contract signings are up validates my, and my colleague's "real-life" experiences that there is significantly more activity in the market than last year, and even the early part of 2009.

No one can say for certain that we have hit bottom, but the indication is that we are either there or very close since activity is on the rise. The sad thing is that Buyers who are waiting for the "official" bottom to hit, will only find out about it long after it has actually occurred. By then it may be too late.

You may want to re-read this fascinating article if you're a Buyer.

Reach me at: michael.sussilleaux@gmail.com

Seller's Math

It goes without saying that when you sell your property you want to make as much money as possible. Certainly no one wants to lose money.

Many potential sellers calculate the price that they need to sell their property such that when all their expenses are deducted, they will break even. This is very useful information and I recommend that every person considering selling their property perform this calculation.

Things can get ugly when the break-even price point is lower than what the property is actually worth. A Seller that refuses to consider an offer less than the break-even point may be suffering from a case of what I call "Seller's Math". "Seller's Math" is simply the refusal to accept the actual worth of their property in the current real estate market, and artificially value the property at a number which covers all the Seller's financial obligations.

For the past ten years, New York City real estate has been steadily appreciating. Assuming you owned your property for at least a year or two and didn't wreck the place, you were virtually assured of a profit. Times have unfortunately changed, and some people are forced to sell at a loss.

There are two pitfalls that I see Sellers fall into with alarming regularity.

1. The refusal to accept that however unpalatable the thought may be, buyers don't care that you may be losing money in the deal.
2. The misguided concept that their apartment is somehow exempt from the price declines that have affected all the other apartments in their building or neighborhood.
   

If you don't "have" to sell, then you can opt to ride the storm out and wait for the market to take a positive turn if you're not happy with the feedback you're getting on the worth of your home. On the other hand, if you positively have to sell, then you are doing yourself a disservice by not cutting your losses and taking the best offer that comes around even if you incur some out of pocket expenses. The longer a property sits on the market, the less likely that it will sell for a good price. Read this to find out why this is the case.

The news isn't all bad. With the best marketing and the best broker, you can maximize your sales price in any market. I'm happy to discuss this further, or answer any questions you may have.

Reach me at: michael.sussilleaux@gmail.com

Get "Smart" About Mortgages

Real estate is all fun and games until you have to pay for it. That's where mortgages come in. Before you even go out and start looking at property, you should have a frank discussion with a good mortgage broker to determine what you can realistically afford for housing.

I am not an expert on mortgages, and am therefore not going to spew advice on the subject other than paraphrasing what I just said:

The first step in your quest to buy a new home is a phone call to a qualified mortgage broker to determine what your housing budget is and what your financing options are.

How do you find a great mortgage broker? Ask your friends. Ask your real estate agent. Call up banks. The only thing that you should be aware of is that when you call up a bank and speak with one of their mortgage people, that person deals solely with that bank's products. When you speak with an independent mortgage broker that person has access to a wide variety of banks, and can shop arouund for the best rate for your particular situation.

Warning: Shameless plug for a fellow blogger
I recommend that you check out a blog that, like mine, is a light-hearted, yet educational disquisition designed to inform, illuminate and entertain the buying public. It's written by Dale Siegel, CEO of Circle Mortgage Group, and is called "Diaries of a Mad Mortgage Broker". You can find it at http://www.dalesiegel.com.

Along with your real estate broker and your attorney, your mortgage broker rounds out your "team" of professionals who work together to help you find the best property at the best price and terms. Choose wisely!

Reach me at: michael.sussilleaux@gmail.com

Wake Up!

Rise and shine buyers!

For the past seven years or so, buyers have been pretty much continually lamenting the high price of Manhattan real estate. Heck, I don't blame them. Year after year prices went in one direction; up, up, up.

The situation is quite different now, and I have exciting news: Prices are down, and it's a great time to buy!

So why aren't buyers buying?

There are two very legitimate reasons. First, some buyers aren't buying because their jobs are in very real danger of going away. Second, some buyers aren't moving forward because their cash reserves have diminished in value so much as to materially affect their ability to purchase. These are two very real problems, and they have a palpable effect on the buying decision. If you fall into one or both of these categories, I completely understand your reticence in moving forward.

What about the rest of the fully qualified buyers out there? Why are they on the fence, and should they act now or later?

I think that most people who are fully qualified to buy who aren't purchasing right now are waiting for the "bottom of the market". No one knows in advance when a "bottom" will actually occur, or how low it will be. By definition the "bottom" is only realized after it has occurred! There's no doubt whatsoever that the less you pay for a given property on a given date, the better off you are, but there are some very compelling reasons to suggest that now is the best time to move ahead with a purchase.

1. Interest rates are at record lows. There is normally an inverse relationship with real estate prices and interest rates. The lower the interest rate the higher the home prices, and vice versa; the higher the interest rate, the lower the home prices. This relationship exists because normally what people can afford to buy is based on their monthly payment. If they have to pay more for interest, they can afford less for the price of the home. We are in the midst of an anomaly where prices are low and interest rates are low. This can't last forever, and with inflation fears, it is very likely that interest rates will rise sharply in the near future.

2. There is no competition. Contrary to what many people would like to think, most people take great comfort in being part of the herd; doing what everyone else does, rather than acting decisively. When bidding wars were common, people lined up out the door to hurl their money at sellers all the while cursing the competition. You have your wish. The competition is gone. Prices are down. If you're the only buyer in town you name your own price. This dovetails in with reason number 3:

3. The bottom may not have yet been hit. That's right, prices may drop further -- I don't know that they won't -- but I don't know that they will either. As I pointed out above, by definition, there's no bottom until prices start to rise. What do you think will happen when the media reports that prices are on the rise and New York real estate is "back"? Do you think that you will be able to mosey into an empty open house and present a "take it or leave it" offer to the desperate seller? Do you think that you're the only one out there smart enough to ride this thing to the bottom, and then pluck up the cherry property at its nadir?

When the bottom has been declared and publicized by the media, the most likely scenario is a rapid return to normality for New York real estate, namely high prices that result from the "scarcity of resources" that has characterized this city for 200 years! It's an island, and people want to live here. Sellers whose property lost 30% or more of its value will be quick to embrace the upturn from the bottom, and price accordingly. Remember; sellers act in their own interest, and when all the buyers start knocking on their doors again, you'll be one of the herd again, and out of luck.

Here's the bottom line. If you buy now, you have an unprecedented selection of discounted inventory pretty much all to yourself. If you're not happy with the price, you can bid lower and still be taken seriously. (Just one year ago, if you didn't bid close to asking price or even above, you wouldn't even be considered -- see how quickly the worm can turn?) Buying 6 months from now for $50,000 less may seem like the thing to do, but if interest rates rise even a little bit, your $50,000 "savings" is negated; and there's absolutely no guarantee that it will be $50,000 lower 6 months from now to begin with!

I'm happy to answer all your questions and discuss the particulars of your situation. Beat the herd!

Reach me at: michael.sussilleaux@gmail.com

"e-Lies"

As professionals, real estate agents are not always perceived as being pillars of guilelessness, probity and honesty.

Unfortunately, there is good reason for this stereotype, although the majority of hard working brokers do their best to be honest and forthcoming.

Let's look at one of the most "stretched" assertions made by well meaning but ignorant, (and some neither well meaning nor ignorant) brokers...

"Our website gets 25,000,000,000 hits a week!"
"We have the second most viewed real estate website in the entire United States"
"Behind Google, Yahoo! and ebay, our website gets the most hits on the planet!"

What they're asserting is almost certainly false. Claims like this are made because buyers, sellers and renters are abandoning traditional print media in droves, and going online to transact their business. These brokers are trying to represent that they have a significant online presence.

Technology, professional web design and massive online marketing is very expensive, and none but the largest firms can realistically put forth a first class website that actually draws visitors and qualified customers to their content (i.e. your listing). It is simply too expensive for small and medium sized companies to create, maintain, and most importantly, continuously promote a first class website.

Your property will sell faster and for more money when more buyers are exposed to the property. If you don't know why this is true, you can review the reasons here. Since almost 80% of New York buyers begin their search on the Internet, it behooves you to put a professionally produced webpage of your property in front of those eyeballs.

This is really the big-time. I can't stress it enough. "Part 1" of the real estate business is now conducted on the Web in New York City. Don't be fooled by the fact that listings are shared among all the firms electronically. This is true, but it has nothing to do with your web exposure to the buyers themselves. (Exposure of your listing to the most qualified people is what I mean by "Part 1" of the real estate business. "Part 1" is everything that happens up until contact is made between a qualified buyer and the broker. "Part 2" is the actual sales process, and make no mistake; this is where the quality of the individual broker you use comes into play.)

So how do you separate the wheat from the chaff about website traffic claims?

1. Go to the website yourself and poke around. You don't need a lesson on what looks schlocky.
2. Carefully read the literature the broker gives you, if any. Web "hits" and "visitors" are two different things. One "visitor" can "hit" the website hundreds of times and it's still only one person.
   
3. Ask about international Web exposure and statistics. In New York, there are many buyers in other countries.

Summary:
Real estate today is most effectively promoted on the Web. Roughly 4 out of 5 qualified buyers begin their search on the Web, and during the buying process more than 90% of buyers use the web at some point in their search. As a seller you want to be on that Web, and you want to be in the most likely place those buyers will find you. If you want to find out more, let me know.

Reach me at: michael.sussilleaux@gmail.com

"Skin"

In the context of real estate, "skin" means commitment.

Here's an example to clarify the concept. Put yourself in the position of the owner of a small but successful 50 seat restaurant. Money comes in from your customers, but don't forget that you have expenses as well. Expenses like food, staff and overhead. If your restaurant is full, you make money; if it's empty you lose money.

You receive a phone call in the middle of the week from someone who says they are having an event for 50 people two weeks from Saturday, and want to reserve the whole restaurant from 7:00 p.m. through 10:00 p.m.

There are some things to consider. If you have a full house, you are guaranteed to make a lot of money. On the other hand, what if the alleged party of 50 does not show up at all? Your restaurant will be empty! You can't accept regular dinner reservations for that Saturday, because you need to keep all your tables available for the big party. You will be in a position where you will not have any "Plan B", and you will lose a lot of money.

In real life any successful restaurant would require that a substantial deposit be paid in advance for such a big party to protect the restaurants' interests against exactly this circumstance. In other words, the customer has to put some "skin" in the deal to demonstrate their commitment to the transaction and to provide some insurance to the other party.

In legitimate real estate transactions, no one gets something for nothing. A while back I represented a Seller who was selling a small $2,000,000 mixed-use building on a major Avenue. ("Mixed-use" means there's retail space on the street level and apartments above) One day I received the following offer:

The Buyer offered $10,000 down on the full price of $2,000,000 and would finance 500,000 of the purchase price with a third party lender. The Buyer wanted the Seller to finance the other $1,490,000 and provide a $600,000 cash credit at closing to cover the Buyer's closing costs. Yes, you read that correctly; a $600,000 cash credit, which simply means "give me $600,000".

Let's go through this fascinating proposition step by step.

1. The Seller owned the building outright, so there was no outstanding mortgage.
2. The Seller would have to pay the Buyer $600,000 to cover the Buyer's "costs".
3. The Seller would have to finance $1,490,000 for the Buyer.
   
4. If the Buyer defaults on their loan payments, the Seller would get control of the property, but there is still the $500,000 stake that the third party lender now holds in the building plus the $600,000 the Seller gave the Buyer plus all the closing costs on the Sellers' side.
   

On the other hand the Seller receives a $10,000 down payment.

Were this proposal accepted, the Buyer would in essence "buy" the $2,000,000 building for $10,000, or 1/2 of one percent of the asking price, AND receive $600,000 in cash to cover "expenses"! Can you see that there's no "skin" put in the deal on the Buyers' side?

Needless to say the Seller rejected the offer in its entirety.

Summary:
Simply put, "Skin" is akin to the risk of personal loss. The best transactions are when both parties have something to lose should the deal not go through. If only one party has capital, time and/or resources at risk, it makes for an ugly scene. Protect yourself. Whether you're buying or selling you want to have experienced representation that really knows their stuff.

Reach me at: michael.sussilleaux@gmail.com

The Commode of Gold

A commode of gold! The ultimate decorating statement. You are special! No, you're more than special ... you're regal!

New Yorkers don't have a lot of space and perhaps that's the reason they go to extreme lengths to put their personal stamp on their homes. Whatever the reasons may be, people tend to think their place is nice. More than "nice" in fact, and certainly nicer than the other 35 apartments that are exactly the same size and layout in the very same building.

Loving your own taste is easy, but recognizing that other people love their own sense of style more than they love yours may be a hurdle.

What's the best strategy to maximize the appeal, and therefore the selling price, of your home?

The goal in preparing your home for sale is to make it as "neutral" as possible. You want to create a minimalist canvas upon which potential buyers can fill in the blanks with their own things. The measure of success is the extent to which your home looks like a model home, or perhaps a very nice hotel room. When a buyer asks "Does anyone really live here?", that is the ultimate validation that you've succeeded.

How do you achieve this effect without moving out?

Tone everything down a few notches.

However boring you may find it, white walls work the best. Specifically an off-white, or antique white color for the walls, and a brighter white for the ceiling. Address the rest of the colors in the room; paintings, fabrics, rugs, furniture ...etc. Avoid excessive blue and gray tones, they're depressing. Warm colors and tones work best. This is a nest, not a hospital.

Put away your personal items. Family photos should be removed. Why? Family photos identify this as your home, not mine. I am visiting your apartment and not envisioning it as my future place. Secondly, when there are family photos, people tend to make a beeline straight to them to see if they know you, or to see if your sister is pretty, and they completely take their attention off the property.

Religion and politics are never good things to advertise to strangers. If a potential buyer shares your beliefs or views, it doesn't serve to further strengthen the appeal of the apartment, and if they don't share your views, it alienates them. I once took some buyers to see a multimillion dollar apartment which was very tastefully decorated save for a gigantic Confederate flag above the bed. My buyers couldn't stop talking about it, and that was the only thing they subsequently identified an otherwise great apartment with.

Light is better than dark -- much better than dark. If you have a bright space, open the shades, wash the windows and let the light stream in. Whether your apartment is light or dark, but especially if it's dark, make sure you have enough artificial lighting in the apartment. (Even light apartments are sometimes shown in the evening.) Ideally the lighting will be bright, but soft, and come from a variety of sources; table lamps, recessed lighting, wall sconces ...etc.

Clean your space top to bottom. Better yet, have a professional service come in and do it for you.

Finally, we get to the most ignored advice of all: NO CLUTTER! Get rid of most of your stuff! Really! I mean it. Rent a storage unit if you have to, but less is more. Closets shouldn't be packed to the gills. (You should be able to easily see the back wall through the clothes.) Get rid of your toaster, coffee maker, juicer and all the rest of your kitchen appliances. Yes, real people make toast and coffee, but people showing their homes for sale don't. Your counter tops should be clean and barren with the exception of a bowl of fruit or a vase with flowers. Remove your doll collections, CD collections, scanners, fax machines, magazines, and remove your superfluous furniture too!

SUMMARY:
Yes, what your place looks like really matters. Yes, you have control over your space. Yes, it's inconvenient and an expense to paint, rent a storage unit and clean up. Yes, you have every right to display your artwork, family and interests, but it's still a bad idea. No, the average buyer does not like your golden toilet, and only looks at it as a future expense to rip it out and replace.

Reach me at: michael.sussilleaux@gmail.com

"Inside the Meltdown"

It seems to me that every day the news is filled with stories about the growing financial crisis in the United States. Many of these stories are long on hyperbole and short on substance. Almost all of them offer "insight" that is unsurprisingly tainted by political, commercial or social agendas that only serve to cast doubt upon the veracity of the "news" reports.

The other night my wife and I caught an outstanding documentary on PBSs' "Frontline" that cogently chronicles the events leading up to the first Wall St bailout in a simple, factual presentation unclouded by blatant ulterior motives.

I highly recommend that you take an hour out of your day and watch the episode online.

Here is the link: FRONTLINE: Inside the Meltdown

Reach me at: michael.sussilleaux@gmail.com

Views, Vistas and Cityscapes

Gazing down upon the city from an apartment high in the sky in New York City is a truly amazing experience. One can't help but marvel at the sheer magnitude of the city and of the multitude of people out there living separate yet connected lives working and playing in the sprawl below your urban aerie.

Or you could be facing a brick wall less than an arm's length beyond your sooty window pane.

Views matter. They directly affect how much a space is worth. Two similar apartments across the hall from each other in the same building can vary in price by hundreds of thousands of dollars if one of those apartments overlooks a river or Central Park, while the other apartment overlooks the walls of a neighboring building.

Equally important as the view itself is the notion of how much sunlight an apartment receives. People overwhelmingly favor southern exposures that are "light & bright" over plain old "dark" whatever direction that may be facing.

If you are in the hunt for an apartment, expect to pay a premium for a great view or a space "bathed in glorious sunlight". On the flip side, if you're a person who isn't concerned with a view or who would actually prefer something darker, you're in luck. Great spaces can be had on the cheap compared to comparable apartments in the light & bright category. (One word of caution: Don't lose sight of the fact that when it's your turn to sell the apartment down the road, you too will have to price it attractively compared to the sunnier competition)

Summary:
The amount of sunlight an apartment receives as well as the quality of the view have a direct and tangible effect on the price of an apartment. If you're buying, consider that a compromise in one or both of these criteria can save you a lot of money, but consider too that when you put it up for sale you will face the same "visionary" challenges that the current seller is facing.

Reach me at: michael.sussilleaux@gmail.com

Etruscan Pottery For Sale

Are you an expert in Etruscan artifacts? It's unlikely that you have the foggiest clue about ancient pottery, yet this lovely vase is certainly extremely valuable. Knowing that it is worth a lot of money, how would you go about selling such an archaeological and aesthetically appealing treasure for maximum profit?

There are any number of things you can do. You could put it in the front window of your home and put a "for sale" sign on it; post a flyer in the local supermarket; put it on e-bay; go to the local museum ...etc.

Unless an observant collector of ancient objects d'arte happens to meander by your window, I don't think a lone "for sale" sign is the best strategy to reach the widest audience in the shortest period of time.

This is about marketing. Specifically it is about casting the widest net to attract the largest pool of qualified buyers to purchase your property at the maximum possible price.

There is a saying that "your property is worth exactly what someone will pay for it" That's true, but there's some wiggle room in the word "someone." If only one interested buyer sees your home, then that lone buyer will determine what your home is worth. But what if many qualified buyers see your property, what happens then?

The answer is that your property will sell for a higher price -- specifically at the price that it's worth to the most interested buyer. Just like the sale of your Etruscan vase, you will get the highest price not by exposing your property to the most people, but by exposing it to the most qualified and interested people.

(Broker blasphemy coming up here ...)
Here's the really interesting part: Attracting the most qualified buyers has almost nothing whatsoever to do with your real estate agent. It has almost everything to do with the company that the broker works for!

This probably runs diametrically opposed to what all the real estate agents who are vying for your listing will tell you. It's only natural. We're all trying to differentiate ourselves from the pack. There's nothing wrong with demonstrating your individuality, I strive to do that as well. What I take issue with are all these "custom marketing plans specifically tailored to your property" spiels. The fact is that your property will be marketed to the extent that the brokerage company is able to within the allocated advertising budget. There is nothing inherently wrong with this, remember that everyone wants your property to sell. But is that what's really best for you?

In New York, over 70% of buyers begin their search for a new home online. Over 90% use the Internet to look for properties at some point in the process. Unfortunately this is where most "Mom & Pop" real estate shops come up short. They simply don't have the advertising and marketing muscle to get your property noticed.

There are two separate and distinct halves to the sales process:

1. Getting qualified buyers in to see the property.
2. Everything else

You may be the world's greatest real estate broker, but until you interface with qualified buyers, it isn't worth a hill of beans. Getting buyers in to see your property is a function of marketing, and the strength of that marketing is directly related to the brokerage company's size and investment in marketing and advertising. The best firms have fully staffed marketing and technology departments devoted to getting the maximum possible exposure for your property. That costs money. Millions in fact. But it pays off in the end with higher sales prices for the Seller.

Moral:
Size matters. Branding matters. Eyeballs matter -- and you want the greatest number of qualified eyeballs as possible looking at your listing. Choose the broker to represent your property that you think is the best fit for your situation, but consider just as carefully his or her company because that directly determines the size and quality of the pool of prospective buyers your listing will be favorably exposed to.

Footnote:
Did you notice that I use the word "qualified" a lot? It's important. "Qualified" simply means financially and emotionally ready, willing and able to make a purchase. There is nothing wrong with "unqualified" people, but they are not going to buy your property. Having your Etruscan vase exposed to millions of potential buyers on Craig's List is wonderful, but having only one hundred "qualified" museum curators exposed to your vase may be more beneficial to you in the long run.

Reach me at: michael.sussilleaux@gmail.com

There Are None So Deaf As Those Who Will Not Listen

Having unrealistic expectations is a common pitfall that both buyers and sellers regularly hurl themselves in to.

There are many things that can go wrong in a real estate transaction that you have absolutely no control over. These glitches run the gamut from the insignificant to the catastrophic and everything in between. They have to be dealt with for sure, but one can't get too upset about them simply because one has; by definition; no control over them.

What you do have control over are your expectations. Expectations of cost, time, neighborhood, noise, profit, loss, neighbors, views, size, location ...etc. These subjects and many more all have to be carefully considered, but it's easy to go overboard and set criteria for yourself that just can't be met in the real world. To conquer this trap one has to observe the reality of the situation and one must listen, listen, listen!

More specifically, you have to critically listen. You cannot filter out unpleasant information that is made crystal clear to you by ignoring that which does not support your internal world view and simply "hear" what you want to hear. While living in your own reality may get you through the day and help you cope, it simply won't do when it comes to real estate transactions. Even though the purchase decision is almost always an emotional and not a rational decision, it doesn't change the fact that the processes that accompany a deal have very real limitations and pitfalls that cannot be ignored.

If you are purchasing a property, and during the negotiations the Seller indicates that they can’t vacate the property until March, but you need to move in by February at the latest, you would think that this is a problem. Well, it is! Yet you would not believe the number of times that a Buyer swept up in rapture over the "perfect place" completely dismisses information such as this simply because they don't want it to be true.

As a second example, consider this scenario: You've owned an apartment in Manhattan for fifteen years, and have accumulated fifteen years of fond memories in your home. You've long since come to terms with the fact that your basement apartment gets no sunlight and overlooks a brick wall and the dumpsters. Tragically you've been transferred to Nebraska, and have to relocate within four months time. You immediately begin to interview real estate brokers to represent you in the sale of your place. Broker after broker acknowledges the challenge of selling a basement apartment overlooking a brick wall and dumpsters. You most definitely disagree -- after all, you bought it, didn't you? Inevitably someone comes through the door who sees it your way: "Of course this is the best apartment in the building, and of course we should set the asking price higher than the last unit that sold here; the penthouse!" Finally you've found the "right" broker -- where do I sign!

I hope you see the humor in these tales, but make no mistake; they are by no means an exaggeration. These and substantially more obvious and absurd scenarios play out every day across the country.

By urging you to listen critically, I mean just that; critically. Don't simply take in everything you hear as gospel truth, and consider the source carefully. Most importantly, if you hear something that conflicts with your opinion and or current world view, take this as a red flag for further inquiry. Do not sweep it under the rug. Don't readily abandon your hopes and dreams, but be reasonable. While your interior decorating acumen and sense of "where the market is" are undoubtedly flawless, the world around you may beat to a different drum, and that is the world you are entering.

Reach me at: michael.sussilleaux@gmail.com

For the Love of Money

You probably work for a living. Most of us do. Let's cut to the chase; you work to get paid. I am not so jaded as to think that you can't like, or even love, your job. I love mine. But that's not the focus of today's message.

It's money. If you don't receive a paycheck it is unlikely that you will be able to continue to exist in whatever lifestyle you presently enjoy. Real estate brokers work on 100% commission, they receive no paycheck. Simply put, we do not get paid anything at all unless a transaction comes to fruition. The larger the amount of the transaction, or the greater the commission percentage, the more money we make on a deal.

I italicized the "or greater the commission percentage" because commission is the subject of this treatise.

People naturally strive to maximize their income. If I had two envelopes, one containing $500, and the other with $600, and I invited you take one of the envelopes home for yourself, you would choose the one with $600. This is not a manifestation of wanton greed; it is simply the intelligent thing to do.

But this isn't about the broker. It's about you -- the person paying the commission. It is in your best interest to keep as much money as you can. I understand that. After all if you had to give me one of your envelopes; one containing $500 and one with $600, which envelope would you give me?

If you want to sell your home at the highest price you should seriously consider giving your broker the envelope with $600 in it. Here's why.

Look through the brokers' eyes. Sales inventory is huge. There is a heck of a lot of property out there to choose from, and there are few buyers buying. Today, when I run a search for a buyer I may receive 50 perfect matches for that buyer, where last year at this time I would have been lucky to come up with 5 candidate properties!

(THE IMPORTANT PART)

Consider this hypothetical situation: You are a broker who has a buyer. You have the very real problem of having more properties to show the buyer than are even remotely practical to see. You are in a position where you have to choose which properties you will show the buyer. What criteria are you going to use to select 10 or so target properties to show your buyer from a list of 50 equally desirable candidates? The answer is obvious. When you look at the search results on your computer screen, the commission being paid at each property is displayed with a level of clarity and brilliance that is unmistakable from across the room. You will naturally take your buyer to the best properties for that buyer that also pay the highest commission to you first.

MORAL
Brokers are paid on a commission only basis and are always aware of what their bottom line is. In today's market with many, many properties competing for a small pool of buyers it is more important than ever to make your property attractive to the brokers who will bring in the buyers. You may have the loveliest avocado green refrigerator on the block, but if no one comes through the door to look at it, your listing will sit on the market and fester. And we all know what happens when a property sits on the market too long don't we? Not really, TELL ME MORE!

The great news is that a surpisingly pleasant byproduct of having your property appeal to brokers as much as it appeals to the buyers they bring is that there is a very strong chance you will actually make MORE money by paying an attractive commission. Stay tuned for that post!

Reach me at: michael.sussilleaux@gmail.com

Dark Side of the Moon

You can buy land on the moon for at little as $12.47 per acre. I'm serious. You can find a number of sites on the Internet willing to sell you real estate in "desirable" and "prime" locations on the moon. At these prices it's hard to resist. Apparently one also receives some sort of deed or other "official" paperwork commemorating your speculative extraterrestrial purchase.

Irrespective of the lack of an atmosphere and the specious legitimacy of selling parcels of Earth's closest celestial companion on the Internet, one may ask oneself why a 100 foot by 100 foot lot in Manhattan can sell for more than $100,000,000.00, yet the same sized lot can be snapped up to expand our embryonic lunar estate for a mere $2.86?

The answer is the oldest cliche in the book: location, location, location.

Real estate is by definition a local phenomenon. In New York City, "local" is measured in blocks, not miles. It can also be measured in stories. For example, in the same building, it's likely that the same apartment on a higher floor will be more expensive than the one on the floor below it, and less expensive than the identical apartment above it.

The current state of the economy and the recent mortgage debacle affect us all, and in that way there is a "National" component of your local real estate market, but beyond that the primary forces that affect real estate prices are in fact... local.

If you're a potential seller and you think your apartment is larger and nicer than an equivalent apartment on Park Avenue, and therefore worth more money, but your building is not on Park Avenue, think again. Conversely if you're a buyer and you've seen beautiful, large apartments in fringe locations, don't think that you'll get an apartment for the same price in a prime location. It doesn't matter if we're talking New York apartments, suburban homes, or rural farms, the same principle applies.

SUMMARY:
There are a multitude of things that appeal to people, and while location is only one of many, a great location is much more likely to appeal to the broadest demographic of potential buyers. Similarly, it can be a real challenge to sell an otherwise beautiful home in a bad location. Consider this carefully when buying, selling or renting!

Reach me at: michael.sussilleaux@gmail.com

Would You Care for Some Old Sushi?

What do sushi and real estate listings have in common?

The answer: Neither ages well. In Japan you can buy sushi in Wal-Mart. Japanese consumers are very demanding about the quality of their sushi, and although we're talking about a decidedly mass market discount vendor such as Wal-Mart, high expectations remain. Throughout the day the price of sushi in Wal-Mart is systematically reduced every few hours as the freshness of the fish fades. After a period of time, what hasn't been sold that day is tossed in the garbage. Everyone wants the freshest fish. It seems reasonable to me.

Who wants what everyone else has passed on?

Inevitably one of first questions buyers ask is "How long has it been on the market?" This question is so important that I am going to repeat it in big bold type:

"How long has it been on the market?"

Sellers, this is a seminal moment in the sale of your home. It has a tangible impact on the value of your property. Really, it does. Time on the market directly affects the amount of money you will receive for the sale, (or rental), of your property. Let's analyze the powerful fundamental psychological forces at work and how they affect the purchase decision.

The subconscious impulse to ask the question basically has it's root in either fear or aggressiveness. The fear motivation stems from the comfort we all feel to varying degrees from being like everyone else; belonging to a nice safe group. Real estate transactions are among the largest investments/expenditures one usually makes in a lifetime, and there's a palpable fear of being taken, cheated or swindled. Asking how long it's been for sale is akin to asking "Is this safe?". If months have gone by and hordes of presumably intelligent buyers just like me have passed on the property, there must be something wrong with it. Do I want to be the fool that gets hoodwinked into buying a lemon? This trepidation is not simply a matter of concern over money spent unwisely, it is in a very large part a basal fear of not conforming to the group -- of announcing ones' commitment to an "unpopular" or flat out bad decision.

The question is more literal when coming from aggressive buyers. They're driven to varying degrees by the desire to reduce the asking price. Note that I said "reduce the asking price" and not "save money". There's a subtle difference. Ironically, for those buyers who exhibit extremely aggressive behavior the quest to "get a great deal" often reaches the level of obsession, and they will never actually buy.

MORAL:

If the answer to the question "How long has it been on the market?" is some variation of "a long time" it doesn't bode well for the seller. Buyers will either walk away from tainted goods, or they will feel they have the superior position when it comes to negotiating price.

Reach me at michael.sussilleaux@gmail.com

Birth of a Blog

I am a real estate broker in New York City. It should come as no surprise that I deal with real estate professionals, buyers, sellers, landlords and tenants on a daily basis. What may surprise you is that a large percentage of these people are utterly clueless as to what they are doing and why they are doing it.

The dirty secret is that virtually all buyers, sellers, landlords and tenants – and most real estate “professionals” – don’t have the faintest idea of the underlying forces at work shaping and directing the course of all transactions.

So what?

The “So what?” is money. A lot of money. Wasted money. Your money. The saddest thing is that ignorance is bliss, and for the most part the people who have lost the most money either don’t realize that they have indeed squandered their hard earned capital, or if they do, their understanding of why or where it went is misguided and they are doomed to repeat their mistakes time after time.

I am going to change this. I want my business to be run smoothly, and frankly I want to deal with people who are prepared. This makes everyone’s life easier, and smiles all around are what’s best for me. Yes, I said me. I count too, and I will cover exactly how and why your broker is vitally important to you and your wallet in agonizing detail here.

I hope you’ll stick with me as I disect "conventional wisdom" in what I promise to be a brutally honest insider’s look into one of the most misunderstood processes we all participate in one way or another.

Reach me at michael.sussilleaux@gmail.com