What’s Wrong With That Building?
Categories: For Buyers, Hoboken Condos
Do Multiple Units for Sale Mean Trouble?
In Hoboken, there are often times when a particular building has multiple units for sale at the same time. Is this a problem or an indication that there is “something wrong” with the building? Not necessarily. Hoboken is still a somewhat transitory town. Singles become couples, families grow and need more room, people change jobs and move to other areas. Just because two or more units are both for sale simultaneously does not necessarily indicate a problem with the condo building. It may just be coincidence that multiple owners decided to sell at about the same time.
How Does a Buyer Really Know?
This is where asking questions, having a good realtor and a good lawyer come into play. Talk to the neighbors. There is nothing stopping a prospective buyer from being friendly and saying hello to people walking into or out of the building. Ask if they have lived there long and if they are happy. Ask if they have had any problems with the building or the condo association and if they think the building is well run. There is no reason you can’t simply tell them the truth – that you’re thinking of buying a unit and wondered how they like living in the building.
While you are out shopping for properties, your realtor should advise you of other units for sale in a building in which you are interested. He or she can make inquiries of the seller as to why there are multiple units on the market. If the seller doesn’t know, the realtor can urge the seller to find out. The other sellers are all neighbors, after all. The realtor might also be able to contact the other listing agents and speak with them about why the other sellers have put their homes on the market. If the building is professionally managed, the management company may be another source of information. These preliminary inquiries are a good place to start.
Then you have the attorney review process. Once you make an offer and reach agreement with a particular seller, you have the right to have your attorney review the contract, the condo documents (the master deed & bylaws) and any other associated information. It is extremely important to examine the condo association financial statements (budget, bank statements, amount held in reserves, what the reserves and maintenance have been spent on). If there is a problem, this is where you’re likely to find it.
Also, if the condo board has regular meetings and keeps minutes of these meetings those minutes can be requested. Read the minutes – is there mention of a legal action against the building that has caused costs to increase dramatically, perhaps driving owners to sell? Are there financial problems like, for example, a large loan taken out by the association that is coming due and might not be able to be refinanced resulting in a special assessment of the unit owners? Or is there some sort of major repair on the horizon that has not been budgeted for and will result in a special assessment? Have your realtor ask these questions of the listing agent and have your attorney ask the sellers’ attorney. The more you know, the better.
It’s possible many people in the building have decided to sell at once because of some underlying problem with the building or condo association. I suspect, though, that in most cases multiple units for sale are just the nature of Hoboken.
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The Weekly Wednesday Wrap Up – Hoboken Condo Sales & Activity for the Week of March 9th
Categories: Weekly Wednesday Wrap Up
Hoboken Condos Sales & Activity – Week of March 9th.
What was interesting this week is after the sort of dismal February results, which may well be a function of the holidays (it takes about 45 to 60 days to close) and the bad weather, this week we have some real action in the “under contract” or “dabo” category. Not only that, look at the two bedroom dabos – only 23 days average on the market and no price reductions! We can only hope that continues.
Now the weather is finally getting nicer but I wouldn’t be surprised if new listings continue to increase. The problem is that sales have to keep pace with those listings to absorb some of this inventory. Right now, we are averaging about 50 sales per month with about 500 units on the market so that’s about a 10 month supply of condos.
Here are this weeks numbers vs. a week’s ago numbers:
- 532 active Hoboken condo units today – vs. 507 last week.
- 36 price reductions, vs. 38
- 20 dabo (under contract) (no short sales) vs. 8
- 13 sold (no short sales) vs. 10
- 50 new listings (no short sales) vs. 27
- 4 expired listing vs. 13
Studio & 1 Bedroom Hoboken Condos:
16 new listings.
216 total active – $380,630 average asking price. Average 74 DOM.
5 dabo. Average 98 DOM
- 1125 Maxwell listed at $500k on Nov 2; reduced to $457k.
- 41 1st St. listed at $379k on Sep 8; reduced to $375k on Nov 4; $365k on Nov 22.
- 131 Madison listed at $300k on Dec 23; reduced to $292.5k on Jan 25; $285k on Feb 18.
2 sold. Average price $280,000. 67 average DOM.
19 price reductions.
Two Bedroom Hoboken Condos:
29 new listings
- 326 Madison listed at $289k on Sep 22; reduced to $259k on Oct 28; sold for $245k.
264 total listings. Average list price $573,393. Average 98 DOM.
- 186 up to $600,000
- 78 $600,000 and over
14 dabo’d. Average 23 DOM. – Wow – only 23 days and no price reductions needed!
9 sold. Average price $531,444. Average 74 DOM.
- 83 Grand listed at $615k on Oct 3; reduced to $595k on Oct 20; $575k on Oct 28; $548k on Oct 31; under contract; deal fell through; back on market at $548k; sold for $551k.
- 1331 Grand listed for $589k on Aug 14; reduced to $579k on Oct 29; sold for $550k.
- 838 Park listed at $589k on Aug 13; reduced to $569k on Oct 24; sold for $555k.
17 price reductions.
Three Bedroom and Larger Hoboken Condos:
5 new listings
51 active listings. Average price $987,872. Average 111 DOM.
1 dabo’d. Average 51 DOM.
1 sold. Price $505.000. DOM 268.
- 501 Adams listed at $599k on May 6; reduced to $575k on Jun 3; $550k on Oct 12; $523.5k on Oct 27; $515k on Dec 8; sold for $505k.
No price reductions.
Hoboken Condo Open Houses
Want to Receive New Listings & Price Reductions Daily?
If you would like to be emailed the new listings and price reductions each weekday in either 1br, 2br or 3br categories just email us at info@hobokensbest.com letting us know which size(s) you would like and we’ll add you to the daily email list.
If you attend an open house or see several properties with several different agents, that’s not an ongoing relationship. That’s the nature of our job. Despite what some agents in town would like to have you believe, simply showing a buyer a single property, or even a few, does not a relationship make. You are the consumer – you get to decide with whom you wish to work. Unless you’ve signed a “buyers agency agreement”, which is highly unusual in Hoboken, an agent doesn’t have any “hold” over you. So find an agent you like, trust and whose advice you respect. It’s your money, no?
For more information you can always contact us at 201 993 9500.
Thanks for reading and, as always, we welcome your comments!
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The February Numbers – Hoboken Condo Sales & Prices Continue to Lag
Categories: For Buyers, For Sellers, Hoboken Condos, Market Analysis, monthly results
The February results are in and there’s not much good news. Activity is still very low, new listings continue to accumulate, days on the market increased and prices are down. No surprise there. The only positive note is that units that have gone under contract are up. Here is the data:
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I always thought it was built in 2002 or so. I must be mixing it...