Archive for April, 2008
Going “Green” in Hoboken Condos One Step at a Time
Categories: Crazy Ball, Design, For Buyers, For Sellers
Granite Counters May No Longer Help Sell Your Condo
We just celebrated the 30th anniversary of Earth Day, now expanded into Earth Week. On April 22, 1970, the first Earth Day, I happened to be on a family trip to Washington D.C. and on the mall where the first Earth Day event was taking place. I can still remember listening to a young Ralph Nader speak about the need to protect the environment. Thirty years have gone by and our environmental problems have become so much worse. Maybe it’s time for us to start taking our part in the problem more seriously. So here is my contribution for Earth Week 2008 (a tiny bit late).
There has been a lot of focus on ‘green buildings‘ lately, like the new Garden Street Lofts in Hoboken, which also happen to be some of the highest priced Hoboken condos ever. Yet every day I hear buyers ask “does that condo have granite counters and
stainless steel appliances in the kitchen?” and “are the bathrooms all tiled?” Many sellers think that putting new granite counters in the kitchen or replacing the carpets with hardwood floors is an easy, inexpensive way to upgrade their condo before selling. Granite, marble and most other stone is not green! Stones like marble, granite, slate, sandstone and limestone come from quarries. They are dug out of the earth from quarries which leave behind a huge, permanent, ugly gouge in the mountainside that disfigures the landscape for years and years. Stone quarrying causes all sorts of destruction to natural habitats, noise pollution, air pollution and water contamination from waste. We’ve all learned what damage has been done to our forests by over harvesting of trees. Now hardwoods are “FSC” certified (they come only from forests that are sustainable).
Why Not Recycled Paper or Glass For Your Next Kitchen or Bath?
Today there are hundreds of green products you can consider when renovating your condo. From recycled paper counter tops to reclaimed hardwood and even tile floors, the choices are affordable and attractive. There are many websites like the GreenHomeGuide where you can find advice and descriptions of these new options. Many of us, myself included, thought that if you wanted an upscale, luxurious finish granite, marble and stone were the way to go. Now we know better and have the information to make an intelligent, responsible choice. So before you begin selecting granite colors or looking at hardwood floors, explore the new options. Here are just a few to start:
- Bamboo for floors, cabinets and counters
- Marmoleum (made from linseed oil and natural pigments),
- Glass tile from Oceanside Glass made of recycled glass,
- IceStone (icestone.biz) produced in Brooklyn. Made of cement and glass, 75 %recycled, it is suitable for floors, walls and counters. Surfaces are available in almost any color, as the pigment can be added to the background mix and customers can select from a variety of sizes and colors of glass.
- Vetrazzo by Vetrazzo LLC (www.vetrazzo.com), which uses 80 percent postconsumer or postindustrial recycled glass and produces no off-gassing or VOCs.
- EnviroSlab (www.enviroglasproducts.com) is a recycled-glass terrazzo built in a color-pigmented epoxy resin.
- PaperStone (www.paperstoneproducts.com) composed of postconsumer waste paper and natural resin. Very strong and durable, its Certified line of counters uses 100 percent postconsumer waste.
- Richlite (www.richlite.com) another paper-and-resin counter, made from pulp derived from managed forests in the U.S. Like PaperStone, this matte slab material comes in natural colors that add a soft, comfortable feel to the room. The surface is stain-, scratch-, and heat-resistant, durable, and easy to maintain.
- Counterfeit, manufactured by shektaStone (www.shetkastone.com), is made from decommissioned paper money. Tops are scratchproof, waterproof, and stain-resistant and come in shades of green, including one that looks like marble and another that has pieces of U.S. Treasury bills visible in it.
- Reclaimed tile floors - take a look at the gorgeous ones at Pave Tile & Stone.
The list grows every day as more manufacturers are answering the demands of consumers for greener, healthier products. Remember, those same consumers are the ones willing to pay top dollar for environmentally friendly living spaces like the Garden Street Lofts. When time comes to sell, your greener floors and fixtures will lead to more green in your wallet! There are plenty of resources on the web where you can learn more about green building and remodeling alternatives. One of the most respected informational sites is buildinggreen.com. You’ll be surprised by the beauty and affordability of these new options and can sleep better at night knowing you did your part to help protect the earth while getting top dollar when you sell your Hoboken condo.
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The Weekly Wednesday Wrap Up - Hoboken Real Estate Sales Activity
Categories: For Buyers, For Sellers, Market Analysis, Weekly Wednesday Wrap Up
Hoboken Real Estate - As Of April 23rd
Studio & One Bedroom Condos:
Total Active: 181
Under Contract (Dabo’d):83
Sold (Deals Closed) This Week: 6 Average Sold Price: $408,500
New Listings This Week: 21
Two Bedroom Condos:
Total Active: 290
Under Contract: 89
Sold: 9 Average Sold Price: $545,988
New Listings: 22
Three Bedroom Condos or Bigger
Total Active: 55
Under Contract: 13
Sold: 1 Average Sold Price: $485,000 New Listings: 7
Where Are Hoboken Condo Sales & Inventory Headed?
Since I started tracking these figures back in early February there have been significant increases in the number of condos for sale in Hoboken in every size category. Studio and one bedroom condo inventory is up 43%. Two bedroom condo inventory is up 32% and three bedroom and larger condo inventory is up over 41%. Sales have not, however, increased proportionally. That means that inventory of Hoboken condos is building up.
How Does Hoboken Condo Inventory Build Up Affect Prices?
Basic laws of supply and demand would seem to indicate that when we have an increase in supply without a corresponding increase in demand, prices will drop until equilibrium is achieved. The month of April is almost over and the end of month Hoboken condo sales figures will be posted here promtly.
Compare to April 17th. Compare to April 9th. Compare to March 19th. Compare to March 12th and inventory. Compare to March 5th. Compare to Feb. 27th. Compare to Feb. 20th. Compare to Feb. 13th.
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The 10 Worst Things About Hoboken Realtors
Categories: About Realtors, For Buyers, For Sellers
Realtors Everywhere Have a Really Bad Rep - Often for Good Reason
Having been both a lawyer and a realtor, I can’t say which field is the brunt of more jokes. There is often a basis in truth for the ridicule but it is not always deserved. Like lawyers, some Hoboken realtors are just wonderful, others not. Like most things in life, though, the skill and competency of realtors falls on a bell curve. Most fall somewhere in the middle. So how do you, the Hoboken home owner or Hoboken condo buyer choose? What should you look for or avoid? Here are ten very crucial factors to help you sort out the good Hoboken real estate agents from the bad.
1. Realtors With No Experience In Real Estate
Sounds obvious, no? Yet there are plenty of Hoboken realtors out there who have never owned a home, never purchased an investment property, never been a landlord, never managed a property, never sold a condo. Without experience in real estate, a real estate agent may not understand what it is like to be in your position as a buyer or seller. An agent who has bought, sold and owned property is better able to anticipate the pitfalls of buying or selling, to advise you on what to look for or what to avoid. An agent who has redone a kitchen, for example, can tell you that you need to ask about plumbing connections, building permits and delivery times for cabinets and appliances. An agent who has sold a house probably knows that the closing date may be pushed back several times for no apparent reason. Just as it is said that the best surgeon is the one who has done a particular type of surgery many times over, the more times an agent has bought and sold, renovated and repaired, and shopped the market, the better at it he or she are likely to be when working for you. So choose a realtor who has real-world experience, preferably with a similar type transaction to yours.
2. Realtors Who Don’t Really Know the Neighborhood
It’s often said that the three most important things in real estate are location, location and location. One of those surely applies to the location of your realtor. If you are considering buying a condo in Hoboken, use a realtor who lives in Hoboken. I mean, come on, what does a real estate agent from Secaucus really know about Hoboken? Many smart buyers will rent in a given location before deciding to buy to get to know the neighborhood! Just the other day, I overheard an agent telling a tenant about the location of a rental property in Hoboken. He was badly mispronouncing the name of Elysian Park. Now anyone who lives in Hoboken knows that Elysian Park is one of Hoboken’s nicest. A property located on Elysian Park is very desirable. This guy didn’t even know what Elysian Park was, never mind why you might want to live near it. Is that really who you want working for you? Plenty of real estate agents have tried working in Hoboken perceiving it as a money making market. You’re much better served by one who really believes in the community and has made it home. That agent has a vested interest in your continued satisfaction (since they will be a neighbor) and in the continued improvement of Hoboken.
3. Realtors with No Real Relevant Education
Buying or selling a half million dollar plus condo in Hoboken? That’s a pretty sizable transaction for most of us. To succeed, you’ll probably seek out financial advice regarding both a mortgage and tax consequences of your purchase or sale, a home inspection, legal representation. For all those issues, you try to find the best advisor possible. While some people think real estate agents are just tour guides, and some may be, the good ones can be very valuable. What is your agent’s background? Did you google him? Does she have a college education and previous work experience in the financial sector or in a field relevant to real estate? Or did he take a 3 month night course to get a license with no relevant work experience or relevant education? Realtors often have to work with the lawyers and mortgage people to keep a transaction on track. Don’t you want to use someone who will actually understand the issues? There are organizations that offer all sorts of “certification” classes for agents, at hefty fees. The content of the class, however, often seem designed more to make money for the offeror than to teach anything relevant or timely. The latest trend is agents professing to offer “professional home staging” services. In some cases you can pay about $1,000 and in three weeks, you are certified as an expert. Be wary - the substance of many of these designations is not as comprehensive as you might think.
4. Real Estate Agents Who Can’t Write An Error Free Craigslist Ad
Communication should be thoughtful, concise, correct, timely, brief, clear, complete and of course, honest. It is a vital part of doing business to be able to express yourself well. If an agent can’t even write an on-line ad well, how well are they going to work for you? The realtor is the one who initially prepares the contract for sale. Don’t you want it to be clear correct? Do yourself a favor. Pay attention to details. See if your potential realtor does a good job on window displays, internet ads and even emails. If they are full of bad grammar and typos, walk away. Communication is a two way street. Not only should your agent comunicate well but he or she should really listen to you. Your needs matter. There are many agents who will show you any property just to show you something with no regard to your requirements or limited time. Look for one who is listening carefully to your concerns.
5. Realtors Who Are Afraid of Technology
Today’s market is driven by the power of the internet. Technology is crucial both to market your property if you are selling and to search the market if you are buying. A good agent knows how to use the technology well. That means more than text messaging and having an Iphone. Good agents know how to use new technology portals like Trulia.com and Zillow to your advantage. They stay up on developments and implement them for your benefit. An agent who tells you video doesn’t matter, or that the company website is all you need, or that no one looks at craigslist may not best serve your interests.
6. Realtors Who “Do a Little Real Estate” on The Side
Who would you rather have handle your transaction: someone who does a little real estate on the side, after work, or when the kids are asleep or a real professional with an assistant or team to collaborate with and cover conflicts? The best agents take their jobs seriously and do it full time.
7. Agents Who Make Promises They Don’t Keep
This one is pretty self explanatory. If an agent says “I’ll get back to you tomorrow” you have the right to expect that to happen. Of course, that’s not always the case. I learned a long time ago in business never promise anything you don’t know for sure you can deliver. It was good advice. You want to work with someone who does what they say they are going to do.
8. Realtors Who Are Not Thorough
Real estate transactions, like any legal transaction involving considerable sums of money, involve many details. While both sellers and lawyers in closing process are typically represented by counsel both agents play a big role in ensuring that a transaction closes. There are a myriad details, lots of paperwork, and many items which require follow up. A good agent will ensure that nothing falls through cracks and that the process keeps moving forward. Finding the buyer or the perfect property is just the first step in a long process. You want someone who will be on top of things for the duration of the deal.
9. Realtors Who Do Not Take Responsibility For Their Actions
To err is human and everyone makes mistakes at sometime or another. When a good agent makes a mistake, he or she will admit it and then attempt to rectify it. He or she will not blame the other side or you.
10. Realtors Who You Just Don’t Like
You will be spending a considerable amount of time with your agent. If you don’t like them it could be an unpleasant experience. Find an agent that suits your personality. While the idea is not necessarily for them to be your friend for life, you want to have a good working relationship. If you don’t like someone, move on.
It’s Worth The Effort To Find and Use a Good Agent
It may take a little time and you may need to ask around but finding a good agent when you plan to engage in a real estate transaction can save you loads of time and heartache. These guidelines may be helpful in knowing what questions to ask when you meet a realtor with whom you might work. Their knowledge, experience and insight can benefit you greatly. So take the time to find the right person. You won’t regret it.
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Weekly Wednesday Wrap Up - Hoboken Real Estate Market Sales Activity
Categories: For Buyers, For Sellers, Market Analysis, Weekly Wednesday Wrap Up
Hoboken Real Estate - As Of April 16th
Studio & One Bedroom Condos:
Total Active: 178
Under Contract (Dabo’d): 75
Sold (Deals Closed) This Week: 1 Average Sold Price: $380,000
New Listings This Week: 13
Two Bedroom Condos:
Total Active: 286
Under Contract: 94
Sold: 8 Average Sold Price: $688,162
New Listings: 25
Three Bedroom Condos or Bigger
Total Active: 54
Under Contract: 10
Sold:1 Average Sold Price: $535,000
New Listings:8
One Family Houses
Total Active: 12
Under Contract:7
Sold: 1 Average Sold Price: $1,375,000
New Listings:2
2 - 4 Family Houses
Total Active: 15
Under Contract: 10
Sold: 0
New Listings:0
Compare to April 9th. Compare to March 19th. Compare to March 12th and inventory. Compare to March 5th. Compare to Feb. 27th. Compare to Feb. 20th. Compare to Feb. 13th.
So What’s The Trend in Hoboken Real Estate?
No question - inventory is increasing steadily. How much of the increase is seasonal? Some, to be sure, but exactly how much is anybody’s guess. But if you look back at just 2 bedroom condos in Hoboken, since the start of the year the number of new units listed each week has looked like this:
19, 25, 28, 34, 49, 32, 36, 98, 119 (Metrostop & Garden Street Lofts hit the MLS), 44, 50, and 50.
There is no question that the number of Hoboken condo listings is steadily going up while the number of sales is remaining pretty constant.
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The Perception Gap In The Hoboken Real Estate Market
Categories: For Buyers, For Sellers, Hoboken Condos, Market Analysis
3 Factors Causing A Perception Gap Regarding Hoboken Condos
There has been much news of the housing crisis and in many parts of the country it truly is a crisis. Take a quick look around Manhattan and the outer boroughs, though, and you’ll see most neighborhoods still have new residential buildings going up all over the place. The New York City real estate market may have changed a bit from two or three years ago, but a crisis in New York? The sales numbers in Manhattan are still on the rise with the average sales price over $1.7 million and price per square foot up to almost $1,300. I believe the Hoboken condo market is greatly influenced by Manhattan real estate. It’s not my intention, however, to debate the market’s direction. Reasonable people will always disagree on that. Instead, my focus here is the psychology of the market news - good and bad - as it effects buyers and sellers of Hoboken real estate.
1. Buyers Are On The Fence - Many Just Can’t Commit
Having heard that the real estate market is in a tailspin, many potential buyers of Hoboken real estate take the negative view. Afraid that Hoboken real estate sales prices are going to tumble, they actively look but can’t bring themselves to actually buy. I repeatedly hear them say “we’re waiting because the market hasn’t hit bottom yet”. Inventory of Hoboken condos is fairly high. (Brownstones are a completely other story and continue to be snapped up at record prices of over $2 million). We currently have over a 6 month supply of units actively for sale.
2. Sellers Overvalue What They Own
It is an interesting phenomena that once we aquire something, we attribute greater value to it. This may be even more true with property, which is often also “home sweet home”. Most owners take great pride in their homes and have pleasant memories attached to living there. Owners tend to greatly overvalue their properties. Hoboken condo owners are especially used to hearing how the people down the hall doubled their money on the same Hoboken condo unit in just a few years. They want to do the same or at least make a nice profit. Sellers tell me all the time that they want to get their money back, plus cover the realtor commission and then tack on another 10 to 20% for ‘profit’ as if it is automatically deserved. My constant suggestion is that they go out with me and look at the other properties on the market at that price to see how they compare. After all, that’s what the buyers will be doing but they never do it. What better way to gauge market value than to go out and shop the market?
3. Nobody Trusts Realtors
Most Hoboken buyers start their search for a condo on the internet. Photos, however, only go so far. Eventually the buyer wants to see actual properties. Next, the buyer will start going to open houses. The agent hosting the open house, very often the listing agent, wants nothing more than to sell their own listing and get both sides of the commission. (It is typically split 50/50 between the listing side and the buying side). They are not likely to tell a potential buyer that a condo is overpriced. The listing agent is an agent of the seller and has a fiduciary duty to obtain the most money possible for the seller on the sale of the property. Finally, buyers may go out looking with a realtor. Since almost every condo for sale in Hoboken is listed on the MLS they can work with whichever realtor they like and see any agent’s listings. This agent, however, does not make a penny unless the buyer actually buys something. So their motivation is to convince the buyer to buy. While a good realtor may point out pros and cons of different properties and give an opinion as to value, there are agents who will say anything to make a sale. No wonder realtors as a whole have a bad rep. Sellers typically interview several agents before deciding to list a condo for sale. Realtors come in to put on their horse and pony show about the exceptional marketing they will do for the seller. What the seller wants to know is how much can I get? A good agent won’t have the interest or time to take an overpriced listing that won’t sell, but many other agents will do it just to get the listing. The seller is inclined to look most favorably on the agent who urges the highest possible listing price. That agent may already be thinking about how long after the papers are signed it will take to do a price reduction, or “improvement” as they are now called.
The Bottom Line
Until everyone takes a step back to see things more objectively, we are likely to continue to see a build up of inventory in the Hoboken condo market. Buyers have to remember the tax advantages of buying, the risk of interest rates rising, and the long term benefits of owning (stability, building up equity, possible long term capital gains). Sellers need to see what they are competing with in the market place to price their condos realistically. They also need to focus on the particular features of those units that sell quickly and how their condo stacks up in comparison. Things like location, storage & closet space, layout, and quality renovations all matter. The good news is that there are some smart buyers and sellers out there who are making deals and, as is the case in Manhattan, we are by no means in crisis mode here in the Hoboken real estate market.
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