Property Grunt

Tuesday, August 22, 2006

Game of Chicken getting really out of hand

One of my readers sent me this ditty that was featured in Crain's.

Crains this week has an article titled "Apartment Sellers' Reality Check." This quote in the article kind of pissed me off:

"Sabine Kraut listed her Upper East Side one-bedroom apartment at $685,000. She got an offer after only four days. She hasn't accepted it because she considers it too low. But she remains confident the apartment will sell soon."

She considers the offer too low?! That's what she f-ing listed it at. Now, if she said she hoped to receive an higher offer, I could understand. But, if you think your listing price is too low, raise it--and don't waste potential buyers' time. I hope this unit sits for 6 months, and she has to sell it for significantly less than the current listing price.

I have to concur with my perturbed reader. Sabine is playing games that were best suited when the market was in the favor of the seller. Not too long ago when bidding wars seem to break out as fast as attacks on Lindsay Lohan's nether regions, sellers would play a game of last man standing by rasing the price of their homes just to see who would be stupid enough to match the offer. And it worked like a charm.But guess what my little yenta. This time dinner is on you because none of your boyfriends want to go out with you.
Hopefully the article below will have snapped her out of her seller's market stupor. I wouldn't be surprised if her broker ditches her for wasting his or her time.


Although the average price per square foot of a Manhattan apartment hit a record $1,083 in the second quarter, the number of units on the market is at its highest in more than 10 years, according to Miller Samuel, the real estate research firm. The inventory in Manhattan rose from 3,922 units at the end of 2004 to 7,640 in the second quarter.

"We have a classic stand-off between buyers and sellers in New York," said Miller Samuel CEO Jonathan Miller. "Housing inventory is at the highest level since the late 1980s and demand has cooled off."

If this doesn't convince sellers that they are officially f**ked, I don't know what will.