2016 Jul 21st

When “Final and Best” is not Final or Best. Multiple Offers in NJ Real Estate is Cray-Cray!

In the current, heated Hoboken real estate market, multiple offers are a fact of life. It is up to the seller as to how to proceed when multiple offers are received. As an agent, I typically recommend that the seller call for everyone’s “final and best” offer by a given deadline. This allows all buyers the chance to increase their bid and participate fairly in the process. Normally, the seller does not disclose the amount or terms of the bids. The email we send out to all agents who had shown the property looks like this:

Thanks for showing 123 Main Street. We have received multiple offers for this property and the seller has asked for everyone’s highest and best offer to be in by Tuesday July 27th at 11:00 am.

Please submit offer in NJAR contract form, accompanied by a mortgage pre-approval or proof of funds, if a cash offer.

After the offers are reviewed, the sellers will choose with whom they wish to proceed and sign contracts immediately. We will change the status in the MLS to DABO and stop future showings of the property.

When submitting your offer, please use “H&B 123 Main” in the subject and summarize the offer in the body of your email with the following offer summary information:

  • Purchase Price:
  • Total down payment (amount/%):
  • Amount of deposit to be paid after attorney review:
  • Requested Closing Date (or range of dates acceptable to the buyer):
  • Specific Inspection Terms, if any:
  • Specific Appraisal Terms (does buyer waive all or part of the appraisal?):
  • Specific Mortgage Terms, if any:
  • Attorney Contact Information:
  • Any additional Terms/Conditions:

Thanks so much,

Once the offers are received, we would sit down with the sellers and go through the terms of each of them, pointing out differences and the pros and cons of each.  The seller then chooses with whom they wish to proceed.  We notify the winning and losing bidders and once the winning buyer signs the contract, attorney review begins.

Here is the rub – under the Realtor Code of Ethics, a realtor is required to present ALL OFFERS to a seller.  Agents know this and we have had situations where an agent came to us with an offer AFTER we conducted ‘final and best’.  We are obligated to present the offer to the sellers.  Under New Jersey law, real estate contracts do not become binding on either party until attorney review is concluded.  Even though sellers had selected a buyer through the ‘final and best’ process, when presented with the newest, much stronger offer (both in terms of dollar amount and other relevant terms) they are free to accept the new offer.  So what happened to ‘final and best’, you may wonder?  Well, it has become a meaningless formality.  Seller may be morally obligated to be true to his or her word but has no legal obligation to stick with the originally selected buyer.

Complications like this don’t happen often but it is becoming more common as the market remains so super competitive.  Yet another reason why you need a seasoned, successful agent representing you no matter if you are buying or selling.  Contact us to learn how we can help you meet your goals in this challenging real estate market.

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Posted by Lori Turoff | Currently No Comments »

2016 Jul 20th

Quarterly Hoboken Condo Sales Prices – What Do They Look Like?

There is a trend for condo sales prices in the Hoboken real estate market and its direction is quite obvious from the below graph. Scroll over each bar to see details.

Posted by Lori Turoff | Currently No Comments »

2016 Jul 20th

The Weekly Wednesday Wrap-Up – Hoboken Residential Sales and Activity for the Week of  July 20th, 2016

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As of July 20, 2016:

  • 191 active Hoboken listings
  • 162 Condo & Co-op listings, compared to 167 last week
  • 18 Single-family listings, compared to 18 last week
  • 11 Multi-family listings, compared to 11 last week

This Week’s Residential Property Sales & Activity:

  • 14 DABOs (Deposit Accepted By Owner and Under Contract) vs 14 last week
  • 22 Sold vs 24 last week
  • 21 New listings vs. 38 last week
  • 13 Price changes vs. 17 last week
  • 2 expired listings vs. 0 last week

Studio & 1-Bedroom Properties

29 Active listings

6 New listings

1 Price change

7 DABOs

  • 160 2nd St., 1 listed Jun 9 for $375K;
  • 601 Monroe St., 4C listed Jun 20 for $379K;
  • 719 Adams St., 2L listed Jun 29 for $379K;
  • 712 Willow Ave., 4A listed July 8 for $415K;
  • 416 Monroe St., R listed Jun 9 for $415K;
  • 222 Monroe St., 2RN listed Jun 21 for $490K; reduced Jun 27 to $475K;
  • 1100 Adams St., 209 listed Jun 24 for $595K;

8 Sold

  • 647 Garden St., 1W listed May 11 for $365K; sold for $375K;
  • 118 Jefferson St., 1L listed May 9 for $389K; sold for $405K;
  • 516 Adams St., 1F lsited April 8 for $420K; sold for $420K;
  • 1212 Washington St., 2N listed April 14 for $419K; sold for $435K;
  • 79 Monroe St., 1N listed Mar 17 for $459K; sold for $465K;
  • 406 Grand St., 3 listed Jun 5 for $475K; sold for $490K;
  • 1015 Washington St., 44 listed April 5 for $535K; reduced April 25 to $515K; sold for $502K;
  • 1125 Maxwell Ln., 530 listed April 27 for $849K; sold for $820K;

2-Bedroom Properties

86 Active listings

7 New listings

4 Price changes

4 DABOs

  • 807 Garden St., 3 listed July 14 for $559K;
  • 519 Adams St., 2 listed July 10 for $745K;
  • 80 Bloomfield St., 6B listed Jun 21 for $800K;
  • 1500 Hudson St., 12G listed May 31 for $1.425M;
11 Sold
  • 159 14th St., 2R listed Jun 8 for $500K; sold for $515K;
  • 508 Grand St., 2R listed May 10 for $510K; sold for $535K;
  • 202 Park Ave., 4 listed April 29 for $599K; sold for $585K;
  • 214 Park Ave., 5L listed April 20 for $699K; sold for $675K;
  • 800 Jackson St., 904 listed April 21 for $665K; sold for $685K;
  • 1004 Willow Ave., 3 listed May 12 for $700K; sold for $700K;
  • 920 Jefferson St., 604 listed April 7 for $749K; sold for $740K;
  • 904 Jefferson St., 4J listed May 9 for $850K; sold for $840K;
  • 1500 Washington St., 1O listed Mar 28 for $935K; sold for $905K;
  • 90 Madison St., 1 listed May 4 for $1.159M; sold for $1.140M;
  • 1125 Maxwell Ln., 302 listed Mar 4 for $1.60M; reduced May 11 to $1.550M; sold for $1.525M;

3-Bedroom & Larger Properties

47 Active listings

8 New listings

8 Price changes

11 Multi-Family Active listings

18 Single-Family Active listings

3 DABOs

  • 519 Adams St., 2 listed July 10 for $745K;
  • 504 Grand St., 3 listed Jun 17 for $949K;
  • 1100 Clinton St., 404 listed July 5 for $968K;

3 Sold

Posted by Nathan Turoff | Currently No Comments »

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