Archive for May, 2008
The Weekly Wednesday Wrap-Up - Hoboken Condos Inventory & Activity
Categories: For Buyers, For Sellers, Hoboken Condos, Weekly Wednesday Wrap Up
Hoboken Real Estate - As Of May 14th
Studio & One Bedroom Condos:
Total Active: 176
Under Contract (Dabo’d): 80
Sold (Deals Closed) This Week: 7 Average Sold Price: $383,535
New Listings This Week: 14
Two Bedroom Condos:
Total Active: 309
Under Contract: 80
Sold: 4 Average Sold Price: $609,750
New Listings: 15
Three Bedroom Condos or Bigger
Total Active: 57
Under Contract: 15
Sold: 0
New Listings: 5
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When “Final and Best” is Neither
Categories: For Buyers, For Sellers, Hoboken Condos, Legal Matters
Beware When Buying a Condo in Hoboken - Final Doesn’t Always Mean Final
The Hoboken condo and real estate market is still reasonably strong and a surprising number of Hoboken condos and brownstones elicit multiple offers. When this happens, the listing agent can handle them in two basic ways:
- Competing bids
- “Final and Best”
Competing Bids Can Cause Chaos or Worse
With competing bids, the buyers bid against each other until the seller accepts one offer and says “stop - no more showings, no more offers”. Very often the seller will play one buyer against the other to keep outbidding each other to get the highest price. This strategy backfires when both buyers get frustrated and walk away. Occasionally a seller will accept one buyer’s offer, sign contracts and begin attorney review with that buyer. Then an even higher offer comes in, possibly even after the the end of attorney review when the sales contract is supposedly binding, and the seller will dump the first buyer or try to get the first buyer to top the bid again. This results in hard feelings, a disgruntled first buyer and may even end in a law suit.
The idea behind “Final and Best” is for the seller to be as fair as possible to everyone. The listing agent tells the buyers’ agents that each buyer should present their “Final and Best” by a certain deadline. The seller will then select which offer is most attractive and move forward with that buyer. “Final and Best” is supposed to avoid tangled mess of multiple bidders trying to out bid each other. It is often presented to the buyers as a way to “level the playing field”.
As They Say in Latin, Caveat Emptor - Buyer Beware!
Even when the seller’s agent says they are doing “Final and Best” in the end, it’s often entirely meaningless. Well how can that be, you may wonder? Here is a comon scenario:
- Seller has multiple buyers interested in the property
- Seller’s agent informs all buyers that they have until 5pm tomorrow to submit their “Final and Best” offer.
- 3 buyers (Buyer A, B, & C) submit bids in different amounts and with different terms (closing date, amount of downpayment, etc.)
- Seller chooses Buyer B. Buyers A and C are informed of seller’s decision.
- Seller and Buyer B sign contracts, hire attorneys and begin the attorney review process. They may complete attorney review. Buyer B may have even paid a significant deposit to Seller.
- Buyer A reappears raises Buyer B’s offer by $50,000.
- Seller is greedy, can’t resist the dough, and tells Buyer B to take a walk.
- Buyer B is furious, having now set his heart on the property, decided where to put the furniture and what color to paint the walls. Buyer B has also hired an attorney to the tune of $1,000 or so.
- Buyer B’s agent calls seller’s agent and reads her the riot act.
- Seller’s agent says “sorry - I’m obligated by law to present all offers to the seller and seller can do whatever”.
- Buyer B is left to move on to the next property or take legal action. As I recall from my days as a lawyer, property is unique and specific performance may be an appropriate remedy, i.e., seller may be forced by the court to sell to the Buyer B on the original terms. Of course, few buyers bother to incur the cost of a lawsuit but it is a possibility.
So much for “Final and Best”. Now, of course, there are some sellers with a sense of fairness that actually superceeds their greed. Upon having committed to a buyer, they will not entertain any further offers, even if higher than the accepted one. Buyers should remember, though, that just because the seller represents that they are doing Final and Best, it may be neither.
When is a Deal a Deal?
So when can a buyer relax and know that they’ve bought the property? At closing, of course. Prior to closing buyers should keep in mind that anything can and does happen. During attorney review, the contract is not even binding. The risk to the buyer is greater before buyer has put any money on the table. Once buyer has paid the initial deposit, done the inspection, obtained and delivered a mortgage commitment, the risk lessens. Chances are, the property is no longer being shown. In fact, a smart buyer will make a term of the offer be that upon acceptance of the offer the property is taken off the market. The more time that goes by, the fewer other buyers there are likely to still be floating around. But regardless of what the contract says, a seller can still change his or her mind and the buyer’s only recourse is an expensive lawsuit. We all know that when that happens, it’s the lawyers who win.
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The Weekly Wednesday Wrap Up - Hoboken Property Inventory & Activity
Categories: For Buyers, For Sellers, Hoboken Condos, Market Analysis, Weekly Wednesday Wrap Up
Hoboken Real Estate - As Of May 7th
Studio & One Bedroom Condos:
Total Active: 180
Under Contract (Dabo’d): 77
Sold (Deals Closed) This Week: 11 Average Sold Price: $416,373
New Listings This Week: 13
Two Bedroom Condos:
Total Active: 306
Under Contract: 97 Sold: 4 Average Sold Price: $715,722
New Listings: 42
Three Bedroom Condos or Bigger
Total Active: 51
Under Contract: 18
Sold: 0
New Listings: 4
A Picture Is Worth A Thousand Words
I always find it meaningful to look at things graphically. Here are the number of active and sold listings by condo size, by week as the count was tracked:
Compare to last week. Compare to April 23rd. Compare to April 17th. Compare to April 9th. Sorry - on vacation for week of March 26th & April 2. 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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Hoboken Condo Sales Prices Hold Steady in April
Categories: Finance, For Buyers, For Sellers, Hoboken Condos, Market Analysis
Hoboken Condos Lure Buyers in April
April was a pretty good month for Hoboken condo sales. The end of month numbers are in and Hoboken condo sales remain fairly strong. I know, there are stories in the press every day about the collapse of the housing market and we all have witnessed prices skyrocket at the gas pump and grocery store. While our country has some significant economic woes that are likely to get worse before they get better but, for various reasons, people want to live in Hoboken and continue to be willing to pay top dollar for Hoboken real estate.
Average Sales Price of Hoboken Condos is Up 8%
April sales figures represent a 8% increase in average sales price for a Hoboken condos compared to last month. The average price of condo is now just over $560,000. That’s 5% over the same period last year but 3% less than April 2006.
Price per Square Foot Down Slightly
Last month the average price per square foot for a Hoboken condo was $520 and in April it was $517. Of course, that is just an average and the real number varies depending on the usual factors - location, condition, and promotion. The mix of units sold each month also has an impact on this figure. Smaller units tend to sell for more per square foot than large ones. So if more large units sell in a given month it may tend to pull down the average. This may have been the case here since the average size jumped from 1000 square feet in March to 1087 in April.
Hoboken Property Is Selling Briskly - 72 Days on Market is Average
The standard measure of sales activity is “days on market”. This number dropped from 90 days in March to 72 days in April. Of course, the nice weather has an impact on how many buyers are willing to go out condo shopping. We are in the midst of prime selling season.
Here is a Chart View of Monthly Hoboken Condo Sales To Date:
So How Much is My Condo Worth?
This is the question I’m most frequently asked. Here is the best answer: If your condo is in average condition, in an average location, and shows decently it is worth about $515 to $520 per square foot. If it is better than average with respect to condition and location you may get a bit more. If worse, a bit less. The best way to know where your property falls is to go out and look at similar units currently on the market. Even better, bring a friend with you to give you an objective point of view. Owners are usually skewed towards overvaluing their property because of their emotional attachment to it. So get a second opinion as a reality check. Is there a real estate agent who will tell you your property is worth more than it really is just to get your listing? Absolutely, more than one. Remember, they can tell you it’s worth a lot more than it really is and you can ask for anything but that doesn’t mean you’re necessarily going to get that price. What you will get is determined by the market so the better you know the market, the better you will be able to price your property when time comes to sell.
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The Weekly Wednesday Wrap-up: Hoboken Condo Sales Activity and Inventory
Categories: For Buyers, For Sellers, Hoboken Condos, Market Analysis, Weekly Wednesday Wrap Up
Hoboken Real Estate - As Of April 30th
Studio & One Bedroom Condos:
Total Active: 188
Under Contract (Dabo’d): 80
Sold (Deals Closed) This Week: 6 Average Sold Price: $425,128
New Listings This Week: 13
Two Bedroom Condos:
Total Active: 301
Under Contract: 92
Sold: 9 Average Sold Price: $612,843
New Listings: 26
Three Bedroom Condos or Bigger
Total Active: 53
Under Contract: 16
Sold: 2 Average Sold Price: $680,000
New Listings: 4
Compare to April 24th. 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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