August 30, 2018

PRICED TO SELL RIGHT NOW! MASSIVE PRICE CUT!

A report from Bloomberg on New York. “When a three-bedroom condo in Tribeca got its fourth price cut in a year, the sales broker, Steve Snider, didn’t leave it at that. He also spiced up the listing to make sure potential buyers didn’t miss the news. ‘New price. Motivated seller. Bring offers!’ reads the pitch for the 2,287-square-foot (212-square-meter) apartment at 71 Laight St., revised last month. The current asking price, $5.795 million, is less than what the seller paid three years ago.”

“The days when Manhattan homes practically sold themselves are over. Now, buyers fearful of overpaying are on the sidelines, and sellers and their brokers are looking for ways to coax them off. Agents are reworking their listing texts to signal that their clients’ attitudes have shifted after years of clinging to lofty price goals — that they are, in no uncertain terms, willing to make a deal.”

“Phrases like ‘Price improvement!’ and ‘Bring all offers!’ — even the promise of free cupcakes — are being deployed to lure shoppers to lingering properties. ‘PRICED TO SELL RIGHT NOW! $200,000 MASSIVE PRICE CUT! OWNER SAYS TODAY!’ reads a listing by Corcoran Group’s Laurie Lewis for a Chelsea condo that’s been for sale since the end of 2017. The actual price cuts — two since it was first offered at $3.195 million — generated much more response than anything in the descriptive text, Lewis said in an interview. But every bit of cheerleading helps at a time when buyers won’t bite unless they feel they’re getting value, or a steal.”

“Especially with properties that have been on the market for a while, ‘buyers are coming in and doing tremendous lowballing — and I don’t mean 10 percent,’ Lewis said. ‘Even when the asking price can clearly be recognized and comped out as a real value, buyers are still insisting they get more for their money.’”

“That’s what prompted Kimberly Jay of Douglas Elliman Real Estate to tout a Greenwich Village townhome, now listed for $4.99 million, as a bargain. ‘Over $1 Million Dollar Price Drop! Originally $6.1 Million. Rare opportunity!’ the broker wrote after a July reduction for the four-floor property on West 11th Street.”

“Expect the come-ons to keep on coming. A surge of inventory is predicted for September, when listings that were pulled from the market make their eventual return, said Grant Long, senior economist at StreetEasy. Ultimately, the words mean nothing if the price isn’t attractive enough to back them up, Snider of Core said. ‘You’ll see a listing that says ‘Best Value in Tribeca,’ and it’s been on the market for 158 days,’ Snider said. ‘You’d think you might want to update your text, dude.’”




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29 Comments »

Comment by Ben Jones
2018-08-30 10:12:17

‘Especially with properties that have been on the market for a while, ‘buyers are coming in and doing tremendous lowballing — and I don’t mean 10 percent,’ Lewis said. ‘Even when the asking price can clearly be recognized and comped out as a real value, buyers are still insisting they get more for their money.’

The hits just keep on hitting, eh trolls?

Comment by Larry Littlefield
2018-08-30 10:18:00

“New price. Motivated seller. Bring offers!’ reads the pitch for the 2,287-square-foot (212-square-meter) apartment at 71 Laight St., revised last month. The current asking price, $5.795 million.”

By the old metrics, that would require a stable annual income of nearly $1.9 million to qualify, in the unlikely event that a mortgage was used to purchase (max 3 x income).

So the folks with that kind of income are going to be impressed by cupcakes?

Comment by Ghost of Satoshi
2018-08-30 12:47:11

The Chinese laundering their debt are starving, and probably would love a cupcake to go along with their 6 million dollar attached dwelling

 
 
Comment by jeff
2018-08-30 20:43:54

“‘buyers are coming in and doing tremendous lowballing ”

Tom Petty?

All the Realtors walkin’ through the valley
Move west down Ventura boulevard
And the sellers are home with broken hearts

And I’m low
lowballing

Yeah, I’m low, lowballing
lowballing’, now I’m lowballing’
lowballing’, now I’m lowballing’

https://www.youtube.com/watch?v=1lWJXDG2i0A

Comment by BubblevilleCA
2018-08-31 06:03:19

😂 could be a hit parady. Mabye weird Al could make a come back with that one ;)

 
 
 
Comment by Boo Randy
2018-08-30 10:17:29

“When a three-bedroom condo in Tribeca got its fourth price cut in a year, the sales broker, Steve Snider, didn’t leave it at that. He also spiced up the listing to make sure potential buyers didn’t miss the news. ‘New price. Motivated seller. Bring offers!’ reads the pitch for the 2,287-square-foot (212-square-meter) apartment at 71 Laight St., revised last month.

Well, now, if this overpriced condo has had four price cuts in a year, why should buyers leave it at that? Why not wait for the fifth, sixth, and seventh price cuts? Better yet, why not wait for the foreclosure auction?

I’ve got all the time in the world, since the real bargains are still at least a year down the road. The “motivated seller” and his lender, on the other hand, may want to act with greater urgency.

 
Comment by Mortgage Watch
2018-08-30 10:17:58

Palm Shores, FL Housing Prices Crater 23% YOY As Sellers Make Massive Price Cuts

https://www.movoto.com/palm-shores-fl/market-trends/

 
Comment by Mr. Banker
2018-08-30 10:24:15

For those RE bulls who yearn to live off the land …

“Crow Hunting Tips and Techniques - Grand View Outdoors”

https://www.grandviewoutdoors.com/guns/crow-hunting-tips-and-techniques/

Comment by Boo Randy
2018-08-30 10:46:31

For FBs and speculators who bought insanely overpriced condos around Central Park, here is a helpful video for your new, more downmarket phase of life: how to snare your dinner.

During housing bubbles, you feed the squirrels. During housing bubble busts, the squirrels can feed you.

https://www.youtube.com/watch?v=VtQVILcH9_8

 
 
Comment by Boo Randy
2018-08-30 10:27:06

‘Over $1 Million Dollar Price Drop! Originally $6.1 Million. Rare opportunity!’ the broker wrote after a July reduction for the four-floor property on West 11th Street.”

Rare opportunity to be a knife catcher? I decline. See you at the foreclosure sale.

Comment by b
2018-08-30 10:43:57

so - just people that are laundering $s from Asia or S.America or E.Europe.

 
 
Comment by Ben Jones
2018-08-30 10:32:32

‘Some of this issue boils down to homes, or as Thornberg alluded to, a lack thereof. ‘Everybody talks about housing, and you should. But how we talk about it is fairly important,’ said Thornberg. ‘It’s not a bubble; bubbles are over-building or over-borrowing; nothing like that is occurring. We need more housing, and we’re just not building it.’

http://thehousingbubbleblog.com/?p=10583

Comment by BubblevilleCA
2018-08-31 06:06:08

These RE experts ran out of excuses. The one that has worked best has been the “shortage”. Go with what you know! Realtors are liars

 
 
Comment by Mortgage Watch
2018-08-30 10:44:55

Realtor Leaves Two Young Children In Car To Barbecue While Showing Home

https://www.wcvb.com/article/police-real-estate-agent-left-2-young-girls-in-hot-car/22872728

Comment by Apartment 401
2018-08-30 14:15:15

This is normal behavior for a Realtor.

Their pathology and sociopathy knows know limit.

 
 
Comment by ibbots
2018-08-30 11:00:12

How many billions did Texas get from selling houses to foreign buyers?

‘Texas was the third most popular state for international home buyers in the last year’

Mexican buyers were the most active, totaling 38 percent of the state’s home purchases by international buyers. China (7 percent) and India (6 percent) were the next highest.

https://www.dallasnews.com/business/real-estate/2018/08/29/texas-attracts-3rd-foreign-home-buyers-last-year-mexico-leading-way

I was surprised to see MX being such a large %

Comment by b
2018-08-30 11:17:00

are these Mexicans coming to work in TX? Or are they buying 2nd homes

Comment by Tikitaka
2018-08-30 13:44:48

Looks like 2nd or 3rd homes for vacation/investment. There’s plenty of rich people in Mexico.
+ business owners and money launderers.
+ It’s right next door.
+ Houston-Mexico city is a 2 hour flight and is on the same central time.

 
 
 
Comment by Mortgage Watch
2018-08-30 11:19:13

Portland, OR Housing Prices Crater 14% YOY As Homeowners Realize They Overpaid Based On Defective Appraisals

https://www.zillow.com/rose-city-park-portland-or/home-values/

*Select price from dropdown menu on first chart

 
Comment by Boo Randy
2018-08-30 11:46:39

Sorry, FBs and Boomers in the DC/NoVA region, but federal workers who will be foregoing pay increases in 2019 won’t be as willing to sign on the dotted line for your overpriced shack.

https://www.marketwatch.com/story/trump-says-hell-cancel-raises-for-civilian-federal-workers-next-year-citing-strained-budgets-2018-08-30

Comment by Anonymous
2018-08-30 12:30:21

Will he also freeze pay for the military? What about military retirees or vets receiving compensation?

Comment by Hi-Z
2018-08-30 13:41:09

Civilian employees only.

 
 
Comment by Apartment 401
2018-08-30 14:38:47

In case anyone forgot, federal government contractors cost U.S. taxpayers over half a trillion dollars a year.

LOLZ, was federal government contractor for over 5 years.

 
Comment by rms
2018-08-30 23:26:07

Pence wants to conquer space, so you better punch a few extra holes in your belt.

 
 
Comment by near_seattle
2018-08-30 12:06:28

“The days when Manhattan homes practically sold themselves are over.”

If it can (pause pause) happen there, it’ll happen (pause) anywhere…

 
Comment by CHE
2018-08-30 12:20:44

“Price Improvement”

That’s a new one!

Improvement for the buyer, not the seller.

Comment by Anonymous
2018-08-30 19:38:59

If there’s sufficient price improvement, I might become a buyer.

 
 
Comment by trader jack
2018-08-30 13:29:28

hard days for appraisers, falling markets and prices will not make appraising easy. Rising markets cover appraising errors, and when the market goes south the appraiser run for cover.
Customers always want valuation above purchase price, and in the falling market , assuming appraiser recognizes same, the customer is never happy.

I have told customers when the appraisal comes In low, that they shouldn’t worry what I think but should consider whether they want to buy at the price they offer, as they know what the home is worth to them

LOL

 
Comment by azdude
2018-08-30 14:04:49

dump your shack now!

 
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