Spring Fever!!

Spring Fever is in the air and the NYC Real Estate Market has lots of budding inventory, causing both Sellers and Buyers severe allergies. Symptoms include the following:

Comfort in Numbers- My clients and I have been from the Upper East Side to Tribeca, and from Harlem to Park Slope and I have not seen this many buyers in the market since its down turn 3 years ago. I am not saying that we are back to where we were where in terms of inventory or perspective buyers, but the ratio of supply and demand is keeping the market as robust as ever. That being said, if you were one of the lone brave buyers to snatch up an opportunity over the last 2 spring seasons – congratulations! If you are in this competitive market looking to purchase a home , then so are you.
At some point, over the last few weeks, open house traffic has increased, creating a herd mentality. If not careful, buyers and find themselves being manipulated into buying a home at an inflated price. Brokers have keyed into this sudden shift in the market and have made it even more frustrating for buyers with multiple rounds of “best and final”. Also feeding into this trend are new Sellers, convinced by their Brokers to put their properties on the market with way above market asking prices. Open houses are still packed, however, these homes will often miss out on the frenzy from which correctly priced homes will benefit.
Over the past 3 weeks, I have made several respectable and even full price offers on behalf of my clients, only to be told that the Seller already had multiple bids with some at more than asking. I just wonder how long the herds will keep this momentum going until the lazy days of summer kick in. Only time will tell.

Fear of loss – It seems like well priced properties are being purchased as soon as they hit the market and Sellers want to make sure that they are not leaving anything on the table. One way that savvy Brokers are creating a competitive selling process is by scheduling a midweek”first showing” for their listing. A “first showing’ will usually be on the Wednesday or Thursday prior to the first Sunday open house.
Since nearly every Buyer in the market is haunted by “The one that got away”, Agents know that buyers have set up their smart phones to notify them as soon as a new listing hits the market, even if it only remotely fits their search criteria. This generates a lot of action at a “first showing” and you can bet that anyone still interested by the time the weekend comes will be at the Sunday open house sizing up the competition.

Greed – You can most certainly expect that the Seller and the perspective Buyers are anxiously strategizing with their agents on ways to position themselves for a successful negotiation.
In the Sellers case, if the property was priced at the market or even a little below you can be sure that a bidding war will ensue, possibly causing the Seller to push the bidding skyward.
For the Buyers, this means figuring out how to place a bid that is high enough to get the Seller to make a counter offer but not so high as to feel like they over bid, causing them to have to bid out of their comfort zone on the next round. Buyers and their agents had better know everything in the market and be prepared to convey to a Seller and their Broker that they are the most qualified buyer for their property. Every situation is different and I am happy to discuss yours with you.

If you are in the market and would have a question or if would like to share your story with us please feel free to comment.