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
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