Tuesday, January 14, 2020 / by Vanessa Saunders
By Vanessa Saunders, MBA, MIMC , Broker Owner, Global Property Systems
You know all those ultra-slender, ultra-fancy tower condominiums that have been popping up out of the Manhattan concrete since 2015? Next time you look at one, bear in mind that half the condos in them are empty. Surprise! No buyers, according to Nancy Packes Data Services. The other half are probably Starbucks that have gone vertical.
The reason for all the empty rooms over Manhattan: a combination of overly aggressive pricing and a growing public disdain for the skyline-disrupting mansions in the clouds. But really, it's all about pricing.
Comparing the prices of new development units to resale units over the last decade tells the story. In 2012, new units sold for a 22% higher prices than resale units. At the end of last year, the premium was 118%.
Nancy Packes lists three reasons for the “extraordinary oddity of the current cycle. ”
According to Packes, buil ...
Friday, January 3, 2020 / by Vanessa Saunders
When home owners put a house on the market, they never know how long it will take to sell. Not all homes are created equal, and it's often hard to say whether one will be snapped up, or languish on the market. That said, the following are five factors that can seriously influence whether a house will sell quickly.
1. Asking Price
Finding the right price is partly based on research, and partly based on the experience of your REALTOR®. Appraisers can prepare comparative market analyses all they want, but there's nothing like having a REALTOR® with serious "boots on the ground" experience to fine-tune a price that will excite other REALTORS® and get buyers through the door. That's what gets homes sold quickly.
2. Location, Location, Location
We've all heard that one before, but what a neighborhood is like - posh or plain - and what amenities are near by will always be a factor that you can't control.
3. What's the Competition?
When you put your home o ...
Wednesday, October 30, 2019 / by Vanessa Saunders
A report just out from the Consumer Federation of America slams real estate brokers for failing to be forthright and transparent about how much in commission they charge their brokerage clients.
According to Inman News, the nation's leading real estate news service, "The report is based on a survey of 2,000 Americans, as well as conversations with 200 agents located in 20 metros and an analysis of 263 agent and broker websites across four markets.
According to the study, only 32 percent of Americans know an agent’s typical commission, which it claims is 4 to 6 percent of the selling price. Of the 453 respondents who’ve bought or sold a home within the past five years, only 44 percent knew the typical commission."
The CFA maintains that “the U.S. Department of Justice can increase cost transparency by investigating the buy-side commissions to which home buyers do not have access, and it appears to be doing so.”
In our opinion, this report is unfai ...
Thursday, October 24, 2019 / by Vanessa Saunders
We have preached here often about correctly pricing a Hudson Valley home for sale. Sellers should know how an overly-optimistic price can drive away buyers no matter how great the marketing. We've tried to pound home how important using comps and the expertise of a local area real estate specialist is in getting an idea of fair market value.
But one of the most overlooked factors sellers should consider is understanding how a search works in their particular market. What does that mean? This story should explain.
Let's say a Hudson Valley home owner believes his house is worth $410,000 because a neighboring home with the same floor-plan just sold a few blocks down the street for $400,000. But his home has a better location in a cul-de-sac and should sell for more, in theory. In reality, it would be a major mistake to price the property at $410,000. The reason being is that many real estate marketplaces such as Trulia and Zillow use search filters and the $400,000 ma ...
Wednesday, October 9, 2019 / by Vanessa Saunders
Think the housing inventory shortage is bad now? Just wait a few months. According to a study just released by realtor.com, "A seismic inventory shortage may be on the way." Realtor.com Senior Economist George Raitu said in a prepared statement, “While lower mortgage rates and the arrival of fall promised a reprieve, conditions continue to tighten as demand remains strong. September inventory trends, especially in the mid-market, may be the canary in the coal mine that we could be headed for even lower levels of inventory in early 2020.”
Inman News, the leading source of news for the real estate industry reported on the study yesterday. They explained the reason for the prediction, saying, "Increased buyer demand purred by historically low mortgage rates caused sizable drops in available inventory in starter homes priced under $200,000 and mid-market homes priced between $200,000 and $750,000. In September 2019, the starter home market experienced a 10 ...