Tag Archives: bids

Buying tips for your NYC apartment

How making a low offer can backfire on a Manhattan property

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Not that long ago, I showed an apartment on the Upper West side and the asking price was $1,975,000. The buyer asked me after seeing it what I thought of the price. I thought the price was right at the market price. They were asking pretty much exactly what the price per square foot in the building was for similar apartments. She decided to make a low offer starting at $1,800,000. Surprisingly, after a bit of back and forth, the seller negotiated the price down to $1,890,000 and accepted her offer. At that point, my buyer was very excited. But then hours after accepting our offer, the seller’s agent called to tell us that there was a full price offer now and they would be moving on to the new buyer. At which point, my client who was purchasing cash also offered the asking price. But the other party went higher. So we went higher. Thankfully in the end my client did get the apartment but she had to pay over ask and considerably more than the originally, agreed upon offer.

I think the lesson here is that you have to really understand the value of the property that you are offering. Even though it’s a buyer’s market, certain segments are still in demand and sell quickly if priced right. Also, the deal is never done until the seller signs the contract. For many reasons, starting too low may leave the door open for another buyer.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Buying tips for your NYC apartment, Luxury

How much can you negotiate on a Manhattan apartment?

Since the current market conditions are heavily in favor of buyers in Manhattan’s residential market, now is the time that you can negotiate more on a potential purchase. According to the latest market reports, in Manhattan’s luxury market, the average discount from asking price to sale price is somewhere around 8-9% percent. With new development, this number can be tougher to gauge because developers are loathe to discount the sale price but instead offer incentives from the mundane like paying transfer and mansion taxes to offering a free parking space. Generally, though now is the time when you can do a bit of negotiating but you really need to understand how motivated the seller is, how long the property has been in the market and how long the competing listings are staying on the market. In this market, some buyers might even make multiple bids and play one against another to see who will cut the best deal.

Patience is the key in today’s market as I have told a couple of buyers. Depending on the segment, you may need to let the market come to you as the seller’s expectations become more in line with the current conditions.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

BuyingtipsforManhattanproperty

Should you make a bid for a Manhattan property at or before an open house?

If you are looking at a Manhattan property which just listed and the first open house is set up for Sunday, I would say that it makes little sense to make an offer prior to the open house. At the open house, the agent can potential shop this offer to all other interested parties. I would recommend instead to have your offer submitted Monday morning. Recently, an interested client asked what would have to be done to have an open house cancelled. The answer the seller agent gave, was that it would be nearly impossible to have that happen.

The exception being if that the property is listed on Monday or maybe Tuesday and the open house is 5-6 days away, you might be able to submit an offer and have the contract fully executed prior to the open house but that will be unlikely due to the amount of time needed for due diligence.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.