Archive for February, 2008
Top 7 Reasons Your Condo or Home is Not Selling (That You Can Do Something About)
Categories: Design, For Sellers
Why Hasn’t My Condo Sold Yet?
When a property has been on the market an eternity and it’s just not moving, there is a reason. It may be in a bad location. That’s not really anything the seller can do much about. The property is just ridiculously overpriced. Sellers can be greedy. That’s hard to change. Often there is a different reason and a simple fix.
If You Really Want to Sell - Let Go Of Your Attachments
Sounds like something I would hear in yoga class - and it’s true. You’ve been living in your condo with things a certain way and you’re all attached to it being a certain way. You’ve justified all the reasons you never made those little improvements and now you’ve deeply bought into your justifications. If you really want to sell you may have to make some changes. Here are 7 of the most common issues that usually have a very easy fix:
1. The Closets Are a Mess
You should have sprung for the closet organization system when you bought the place. After years of living with clothes piled on shelves and crammed on a single closet bar, it hardly seems worth the effort to change your closets now. Well, it is. One of the biggest turn-offs for buyers is a lack of closet space, a common fault with Hoboken condos.
Solution: Go to Ikea. Buy a new closet system.
They’re a fraction of the cost of California Closets and just a functional and good looking. They are easy to install yourself with nothing more than a screwdriver. If you simply can’t afford it - hide everything! That’s right, hide the mess. Buy a bunch of pretty, colorful, matching paper boxes. Pile all your stuff into the boxes and arrange them neatly on the shelf. Then get matching hangers and pretend you work at the Gap. You know what I mean. Everything in color order, facing the same way. Add a big dose of potpourri or home fragrance and you’re good to go.
2. The Bathtub Is Gross
I can’t tell you how many tubs I look at in the most pristine bathrooms that have dirty, stained caulking.
Solution: Go to Home Depot. Buy some “caulk remover” and new caulk.
This is a really inexpensive fix yet it makes a huge difference in the appearance of your bathtub. Check the sink, too. Moisture accumulates where the countertop meets the wall and often mildews. Re-caulk it if it needs it.
3. The Floors Don’t Shine
Hardwood floors get scratched by furniture and shoes and lose their shine. They need to be refinished every so often. Carpet looks nice when it’s brand new but after a while it seems more like a place where somebody else’s dirt is hiding. A small change in the appearance of your floors can make a huge difference in the attractiveness of your unit.
Solution: Have the floors refinished and replace carpet with hardwood.
If you already have hardwood, you’re ahead of the game but you need to have them sanded and refinished. A relatively small investment here has a big payoff. If your hardwood is the very 1970s style checkerboard parquet (yes, you with the condo at the Shipyard) get rid of it and put in plank flooring. Not only will it look 100% better, it will set you apart from your neighbors who are selling. If you have wall to wall carpet seriously consider ripping it out and installing hardwood, or at least a laminate like Pergo. Hardwood is way less expensive than you would imagine. Look on-line. There are plenty of discounters.
4. The Lighting is Awful
Dark, dreary, or cast in a blue/grey glow? Does this describe your space? Do you have bare, exposed bulbs in your bathroom fixture or high hats where there should be spots? Sure, the spots cost more and use more energy but now is the time to use lighting to your advantage.
Solution: Buy new bulbs!
I am all about saving the environment and not wasting energy. So while I don’t advocate ‘over lighting’ a home day-to-day, selling your property is like displaying diamonds in Tiffany’s window. Ever notice jewelers always use halogen lights in their display cases? It’s because it makes the diamonds sparkle more. You need high wattage in your kitchen and living room space so it looks bigger. Then think about accent lighting to highlight a particular feature - say next to a chair and bookshelf to create a reading nook, or strategically placed around the dining area to chreate a warm, glowing atmosphere. Again, Ikea is great for inexpensive light fixtures - and we’re talking $10 to $50 for major improvements. Those $5 Home Depot plain white ceiling-mounted globes the developer installed - replace them all with something pretty and turn blah into a benefit.
5. Who Picked Out Those Colors?
You may just love purple. Or shocking pink. The latest trend in home decor may cry out for lime green. You’ve had that wall painted bright orange since you bought the place. Guess what - not everybody likes what you like. People are thinking to themselves “why on earth would anyone paint that room purple and lime green?”
Solution: Duh - paint it neutral!
Unless you are a talented decorator by profession, it’s best to stick with warm, neutrals. My favorite paint color is Benjamin Moore’s Calming Cream (and I love the name). You want to stick with unobjectionable colors. Creams, warm toffee beige, soft moss greens. Ask they guy at Lowes which colors sell best. Go online to different paint company websites or look at the little leaflets they give out at in the paint department at places like Lowes to choose a non-personal palette. You want to go for the colors the most people will like. Plus a clean coat of paint does wonders to make your condo shine.
6. The Kitchen Hasn’t Been Updated Since 1968.
A gut renovation is ideal but can be cost prohibitive and disruptive. But short of that, there is much that can be done to bring your kitchen into the 21st century. We will assume that you will or will have it scrubbed from top to bottom so that it is clean. Beyond that, however, you need to make it inviting. Otherwise, the buyer will think: I don’t want this place because it needs a new kitchen and that’s too much work and too expensive.
Solution: Fake it.
I staged a Hoboken condo recently that had a horrible kitchen. The cabinets were dark, dated oak with ugly, worn, fake brass knobs. The counter was formica in a mottled brown and beige pattern. The appliances were half old, half replaced and didn’t match. Fortunately, it has a neutral white ceramic tile floor. Without breaking the bank, my handyman painted the outside of the cabinets glossy white. I bought new draw pulls and knobs. We got a few decorative tiles and mostly field tile to match the countertops and installed a new backsplash using the decorative tiles as a focal point. The light fixture was changed for a track style with little halogen bulbs. The seller’s big splurge was for a new refrigerator and matching micro-hood. My point is that you can make drastic changes for a reasonable amount of money.
7. It’s Too Small
Square footage is what it is. You can’t really make your condo any bigger. It would surprise you, however, to know how many buyers react badly to clutter. Any space can be made to feel bigger.
Solution: Get rid of the junk.
You’re selling so, presumably, you’re moving. Think of it as getting a head-start on packing. All the unnessesary stuff you have laying around; the extra furniture jammed into the second bedroom; the 48 different kids toys have to go. If you have to work your way around a mess no matter how large your space it is not going to show well. Even if it means temporarily renting a storage space - do it. Clutter won’t sell.There are probably a dozen more ideas I can think of but I’ll save those for a follow-up post. You get the idea, I hope. If you are really serious about selling and want to get the most money possible for your property, and who doesn’t, then a little work will have real payoffs.
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To Park or Not To Park - What To Do In The Snow?
Categories: Crazy Ball
One of the challenges that Hobokenites who park their cars on the street face is knowing when alternate side of the street parking regulations are and are not in effect. If you wake up and it’s snowing hard with accumulation, you can probably assume they are cancelled. If it’s just flurrying, they probably are not. When it’s doing something in the middle and you’re not sure whether or not you need to move your car, that’s where the confusion sets in.
Hoboken City Hall does not post suspensions on their web site, nor do they have a phone number (toll free or otherwise) dedicated to suspensions. Alert Hobokenites know to call the Sanitation Department (?!) and they have to speak to someone there. There is not even a recorded message. If someone doesn’t pick up, or if you get a busy signal, you have to wait.
Hobokenrealestatenews.com to the rescue. Beginning today we will call City Hall on snow days and post cancellations here on this blog. If you subscribe to the blog you’ll get notified when new posts go up. Just another way we here at hobokenrealestatenews.com try to add value and improve our already-great community.
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Jersey City vs. Hoboken Condos - The Absorption Rate Battle
Categories: For Buyers, For Sellers
Absorption Rate of Condo Sales
A quick and dirty way to understand what’s going on in any given real estate market is to look at absorption rate. It is essentially a number that tells you how many months it will take to sell out the current inventory on the market (assuming it is calculated on a monthly basis). Absorption rate is especially informative when comparing surrounding areas to each other. For example, Hoboken and Jersey City.
Hoboken Condos:
Looking at the 1 year period from January 31, 2007 through January 31, 2008 there were 650 sales of Hoboken condos on the MLS. Divided by 12 equals about 54.17 sales per month. As of the end of January, there were 321 active condos in Hoboken. So at 54 a month, it would take 5.9 months to sell out.
Downtown Jersey City:
During the same period there were 473 sales of downtown JC condos. That’s about 39.4 per month. At the end of last month there were 303 active properties. So there is about a 7.7 month supply of condo inventory in downtown JC. Again, that does not include any new construction. So it’s 5.9 vs. 7.7. That, together with an understanding of where the most new construction is happening, may help you decide where to put your money if you’re buying and what to expect if you are trying to sell your condo.
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The Weekly Wednesday Wrap-Up - Hoboken Property Inventory & Activity
Categories: Weekly Wednesday Wrap Up
Hoboken Real Estate - As Of Wednesday, February 13th:
Studio & One Bedroom Condos:
Total Active: 126 Under Contract (Dabo’d): 55 Sold (Deals Closed) This Week: 3
New Listings This Week: 18
Two Bedroom Condos:
Total Active: 219 Under Contract: 99 Sold: 1
New Listings: 16
Three Bedroom Condos or Bigger
Total Active: 39 Under Contract: 11 Sold: 1
New Listings: 2
One Family Houses
Total Active: 8 Under Contract: 3 Sold: 0
New Listings: 2
2 - 4 Family Houses
Total Active: 18 Under Contract: 9 Sold: 1
New Listings: 4
Remember - these figures represent only properties listed and sold on the Hudson County multiple listing service. They do NOT include new construction sold directly by developers such as Toll Brothers.
Compare to last week’s real estate activity and inventory.
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5 Familiar Problems Encountered When Buying Hoboken Real Estate - Or How to Avoid “Oh No!”
Categories: For Buyers, For Sellers
1. The Seller Got A Better Offer
You’ve been looking at properties for a year and finally found “the one”. It has everything - it’s big, has deeded parking, top floor of an elevator building, great layout, nice kitchen, good condo association. So you make your offer and, after some negotiation, it’s accepted. What happens next? You hire an attorney to begin attorney review.
Oh No!
- You get the call from your real estate agent that the seller got a better offer. What should you have done?
You should have written into the ‘additional provisions sections of your offer (which shoud be in contract form) the following: “Seller agrees that all further showings will be only for backup offers.” With this, you have a better argument that if the seller accepts the higher offer he or she will be in breach of the agreement.
2. One of the Attorneys Is Sleeping On The Job
The sales contract has been executed and distributed to all parties. Attorney review has begun. It’s been over a week and nothing is happening. The seller’s attorney has left numerous voice mail messages sent emails to your lawyer to no avail.
Oh No!
- Your realtor calls to tell you your deal is about to fall apart because the sellers are getting nervous and jerky that attorney review is not concluded yet. What should you have done?
Hire a local lawyer. Or at least one who has experience doing real estate deals in Hoboken. Real estate is local and real estate transactions and procedures tend to vary enormously from place to place. Now is not the time to hire your wife’s second cousin the New York litigator to handle your closing just to save a few hundred bucks. You need a lawyer who knows the quirks of doing a deal in Hoboken (and, believe me, they exist - things like flood zones and Fannie Mae condo requirements for example). Hoboken is a very small town so it helps the flow of communication when your lawyer sees the seller’s lawyer at lunch at Frankie & Johnny’s every week.
3. The Condo Association Has No Money
Your lawyer has been asking the seller for the condo docs for days. The seller is having a hard time getting them from the condo association. The managment company doesn’t respond to seller’s calls. Finally, the documents are delivered by seller’s agent, who has a relationship with the management company from past deals. These documents should include the condo’s Certificate of Incorporation (sometimes called the Master Deed), By-laws, rules & regs, floor plans, financial statements for the past year and copies of the condo board meeting minutes for the past several month. Often times, they don’t include the last few items. Often times, your attorney does not perform adequate due diligence and never looks at these documents. But you have a good lawyer.
Oh no!
She calls to tell you the condo is in the red. The association has used up it’s reserve fund repairing the roof last year and the current budget is underfunded. A special assessment, increased maintenance or both are surely on the way. What should you have done?
Have your agent ask for all these documents as a condition to your offer. There may be boiler plate language about it in the standard form NJAR sales contract but - have your realtor ask the sellers’ realtor for the documents when the offer is made. If they are not delivered promptly, be sure your lawyer is aware and extends the time for attorney review until they are received and reviews. Ask to see them for yourself - you might learn something interesting.
4. The Home Inspector Find Some Major Problem
Studies show that the typical buyer spends 12.5 minutes looking at each property when house hunting. You spent all of about 30 minutes total looking at the property over two visits before deciding to make an offer. It never occurred to you to try the a/c or heating system or run the water in the shower while you were there. After all, that’s what your home inspection is for. You hire a great inspector who does a very thorough job. The inspector’s report is emailed to you the next day.Oh no! There is a significant problem with the HVAC and to repair it parts would have to be ordered and installed. The cost estimate is in the thousands.What should you have done?
Well, in this case it’s not too late - ask the seller to put an amount into escrow to cover the cost of the estimated repairs while you figure out who will fix it, what it will really cost and who will pay for it. Even if the seller agrees to fix it most times it’s better for you to do the repair so you know it’s done properly. The seller can give you a credit at closing to pay for remedying the problem.
5. The Sellers Aren’t Ready to Move
The closing is scheduled for next Tuesday. You’ve given your landlord notice months ago that you’re giving up your rental. You’ve packed up millions of boxes with your possessions and the movers are coming next Thursday.
Oh no!
The seller’s new house isn’t finished being renovated and they’re not ready to move out.What should you have done?
If you’re in a time sensitive situation and there is some doubt about the seller vacating in a timely manner have your attorney write a clause into the contract that basically says if the seller isn’t out by such and such a date, they have to pay you a per diem, reimburse you for storage costs and pay for your hotel and meals until they leave. At least it will make the wait and resulting inconvenience a lot less painful.
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