2015 Aug 26th

Are They Negotiable? When It Comes to Hoboken Condos, Not Much.

Can I get that Hoboken condo for less than asking price?

I get asked this question a lot.  Buyers see a list price and think they are going to be able to buy the property for significantly less than the asking price.  Some still think they are going to get “a deal”.  Overall, Hoboken condos are selling for more than the asking price.  Why is that, you might wonder?  Because there is simply not adequate inventory of nice properties to fill the constant demand for them.

Final and Best – Again

Almost every desirable condo – you know the ones, the two or more bedrooms, good light, washer/dryers and nice kitchens, in buildings with elevators and parking, or the one bedrooms with charm near the PATH, sells for over asking.  It has become the new normal in Hoboken.  Sellers receive offers from multiple buyers.  At their agent’s advice, the seller will typically call for all buyer’s “final and best” offer by a certain deadline and choose which one they will accept.  Smart agents advise the buyer that a bid significantly over the list price is what will secure the property in these multiple bid situations.  No, the buyers don’t have any idea what each other is bidding 99% of the time.

Making Snap Decisions

Which leads to another issue.  A buyer basically has to walk into a property and make an instant decision as to whether to make an offer.  There is no more looking at a bunch of nice places, going home to discuss and think about it and then a week later making an offer.  If the property is really nice, it will most likely be gone by that time.  But what buyer is ready to bid on the first place they see?  Very few.  Which is why it is so crucial for buyers to go and look at as many places as possible.  This gives you a basis from which to make a value judgement.  So when you do see that great place, you have something against which to measure its worth and make an informed decision to buy.

  1. Alexandra

    Hi Lori- I was just curious what you thought of the “for sale by owner.” No one in my building is using agents anymore.

  2. Lori

    What I think is irrelevant. What the statistic show is that sellers who list with an agent, on average, receive more for their properties than those who sell on their own, even after taking the commission proceeds into account. According to the National Association of Realtor’s 2013 Profile of Home Buyers and Sellers, the average FSBO sales price was $174,900, while the average price for a home represented by an agent was $215,000, a difference of $40,100. ( Keep in mind these are nationwide figures.) The reasons for this are multiple. I should write a blog post about it.

  3. Steve

    Hi Lori- From a seller’s perspective, do you think a higher sale price is achieved by listing at a reasonable market value and going to highest and best? With how hot the Hoboken market is, why wouldn’t a seller list extremely high and come down if necessary? Curious to get your insight on highest and best vs. listing high and coming down.

  4. Lori Turoff

    It’s simple. It’s a numbers game. The lower the price, the more views. The more views, the more visits. The more visits, the more offers. The more offers, the higher the sales price. I’ve seen it work this way over and over.

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