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.