Property Grunt

Thursday, September 15, 2005

Bubble back on schedule.

Fed is going to raise rates again. Katrina be damned. It looks like the pop is back on schedule.

As expected, there were some dissenting comments regarding my last entry. But I am glad there is a dialogue going on. Below are some of the comments and my responses.

I went to open house upstate Sunday- HudsonValley - and was only one there. Maybe was too nice a day.
Perhaps will give a lowball offer-since I do like the place and they said owner was anxious to sell.

No offense. You went to an open house in Hudson Valley. I worked a series of open houses in Manhattan. A low turnout in Hudson Valley is a minor setback. In Manhattan it is an utter disaster. However Hudson Valley is actually a nice place live. I hope you get a good deal on the house.

I conducted 3 open houses this past weekend 1 on Saturday which i normally never do but did because of all the interest and 2 on Sunday. All had excellent turnout and enthusiastic interest. Of the 2 one has an excepted offer first showing. This is not to bragg but to inform. You are like chicken little and its getting pretty annoying. You need to refer back to your posting where you detail a course of action to a seller who queried you because she is not sure if she should switch agents and the reasons like, have you priced it right etc. Something tells me the reasons for your dead open house lie in your itemized response to her.

Chicken Little? Then I must be in good company. If you have read my previous entries you should be aware that my perspective on this market is supported by the highest authorities in economics, finance and real estate news including Robert Reich, Inman news, Curbed and the New York Times. By no means am I yelling fire in a crowded theatre. Instead I am recommending people to monitor their kool aid intake.

Something tells me that your annoyance stems from the fact that I am unwilling to march with the status quo of other brokers who keep pushing that it is still a great time to buy and chooses to present another side to this story. What I recommend you do is to figure out what your defect is and make an effort to work on it. Perhaps you should look at other sites about real estate besides mine. I recommend anything by Robert Kiyosaki because it will allow you to ignore what is happening in the real world therefore you won’t get annoyed as much.

I do congratulate you on your recent success. It is obviously due to your hard work not because you connned the owners in underpricing their homes in order to get a quick buck. As for taking my own advice regarding my open houses, you obviously know that although the real estate transaction follows a linear model it’s succesful execution is dependent on various factors that are outside the control of the broker. It doesn’t matter how much of my own advice I take, sometimes it just won’t make a difference. And if you disagree with me on that than I know you are not a broker.

As someone who put a property up for sale Saturday, I am (needless to say) extremely interested in what's going on with the market. My open house went okay, with around a dozen people and more than 10 queries/follow-ups, but based on the frenzied open houses I've been attending as a buyer I was disappointed not to have an offer by now.

To keep myself from freaking out, I've been reminding myself about when I bought a few years ago. I went to the first open house and liked it right away, but since I was buying in the post-9/11 lull I didn't feel in any hurry it would vanish. So I came back with family to check it out a couple times, bid below ask and ultimately bought $10-15K under ask in around 2-3 weeks.

All told, that doesn't seem like a lot of time to sell something worth several hundred thousand dollars! So is this "lull" really the crater we've seen predicted so often or is it just heading back to normal? Any insights from people who've been around the block for longer than the recent boom years would be very, very welcome.

You are going to be fine. If you are motivated to sell and you are doing everything in your power to do so, you will get an offer. Just keep a close eye on the comparables to see if they are in the same price bracket. Best of luck to you my friend.

Grunt, can you please offer some qualification to your observations? General location, size, sq. footage...*price*. Something to make it a a little less anecdotal.

You want qualifications? Go find a doctor. I’m a broker. My qualifications are the street. Seriously, the previous entry came from my own personal experiences doing open houses. I have been doing a series of them in the same locations for the last couple of months and there was always a high turnout until last Sunday. The change was so abrupt which made me quite concerned.

Let's be careful out there.