What the Hell Were They Thinking (part II)

Need I say more? See prior blog post.

What the Hell Were They Thinking?

Have you ever looked at an old photo of yourself and wondered aloud, "What the hell was I thinking?"  After shaking your head in disbelief at your haircut or style of dress, you shove the photo to the bottom of your drawer or toss it into the trash, trying to forget the peals of laughter from your friends, at your expense.  Shift gears, and now you are perusing the on-line RE ads, looking for that place that speaks to you.  And there it is.  You stare shaking your head in disbelief... again.  Only this time it is not at your expense.  The photo, of what appears to be a den, reveals a "too brightly" lit room with no carpeting and an oversized (horrible print) sofa with clothing slung over the back of it.  The television is on and if you squint really hard, you can make out the score of the Jets game.  At least they are winning!  This photo is so bad for so many reasons, but probably the most important question to ask is, "what real estate professional allowed that photo to get out there?"  We can't always control the style and decor of a home but c'mon... can we at least make sure the dirty laundry is put away?  Most agents take great pride in making sure that every listing is shown in the best light possible, but sometimes one seems to slip through the cracks.

The Summer Season Heads Toward Dusk

This post was contributed by my friend and teammate, Michael Dubour...
A collective groan was heard, throughout my office last week, as the stock market performed like the Cyclone at Coney Island.  Instead of tasting sweet cotton candy after a wild ride and giggling about the head rush, the real estate market had the mouth puckering taste of a sour lemon Italian ice.
Buyers who had been shopping and ready to make the leap, suddenly had to be coaxed back off the benches to make offers.  Sellers, cautious the market, eagerly worked with qualified buyers whose weight is worth their mortgage in gold.
This comes after somewhat of a productive summer, a traditionally slow time for sales.  The Real Deal, real estate news magazine, reported that "business, while not quite back to normal, has vastly improved over the last year, especially for new luxury rentals and large family-sized apartments."

“Don’t let your ego get too close to your position, so that if your position gets shot down, your ego doesn’t go with it.” – Colin Powell

Game Day... The Open House

“Pay attention to the journey into the apartment as opposed to just the apartment itself.  There’s plenty of time to slice the apartment once you’re in there.” 

“Do not dwell on photos and other personal effects in the home.  Picture yourself there, not someone else.”

“Peek around corners and under carpets.”

“Make note of the sights and sounds and feelings that you get.”

“Look out the window; sit on the couch.”

…All great advice for prospective buyers, according to the recent article in the Sunday New York Times (Aug. 7, 2011).  As Mr. Plambeck notes, the internet goes only so far to give buyers a “true picture” of a property’s details.  Having floor plans and photos on your laptop, while sipping morning coffee, is a ritual that most Buyers enjoy.  In the comfort of your home, you can peruse the large selection of properties, and weed out the ones that “don’t make the cut.”  But eventually, personal inspection is always necessary.

Just as this is good advice for Buyers, it is also important for sellers to note what happens when their home is “OPEN” to the public for view.  One buyer recalls falling in love with a Hell’s Kitchen apartment because of the layout and balcony, but upon closer inspection, noticed water damage behind a plant.  Not a “touchdown” for this seller and the penalty flag was down.

Sellers need to set the stage for a successful Open House, especially in this market.  Once a home is on the market for sale, it needs to be “merchandized” as one would do with any product for sale.  One would detail a car prior to selling it; why not do the same for a home.  Be sure everything is in working order and nothing is in disrepair.  Depersonalize and neutralize when possible.  Updates should be completed.  Sweat the details, because buyers will be checking them all.  Work in tandem with your broker to create an amazing first impression.  Game Day is here and as a seller you need to score big!

Getting to the Core of the (Big) Apple

Getting to the core - understanding what’s happening at the surface, what’s really happening below it, and why – is essential in any business, but imperative for today’s Big Apple real estate market. Discussing the current climate, spotting trends, going below the surface, and analyzing what one learns allows us to help buyers and sellers make informed, smart assumptions about the future, and plan accordingly.

The Peel:  What’s Happening at the Surface

Here’s what my typical buyers, sellers and colleagues are saying today, in the Summer of 2011: 

Buyers are shopping.

“There’s nothing on the market to buy.” 

“They attend our open houses and respond to our marketing.  They are looking for mint condition homes.  They demand beautiful finishes, excellent floor plan flow and convenience.  They are less interested in square footage and building amenity packages”.

“Buyers are slow to make decisions; they feel no urgency to act quickly.  They want a deal.”

Sellers seem concerned about selling.

“Make sure the listing price leaves room for negotiation.”

 “Sellers are testing the waters (especially if they bought at the market’s height) and can’t possibly sell at a loss.” 

“Well, if buyers like the property but don’t like the price, why don’t they simply make an offer?”

Experts convey mixed messages about the market.

Although appraisers and analysts provide the statistics--average prices, average days on market, listing discounts, etc. – their descriptions of the market are contradictory.  Some call it:

• Steady
•  consistent
• lackluster,

 and others describe it as:

• schizophrenic
• uncertain
•  listless.

Are these descriptions of the same market?

Have you heard these comments?  Or perhaps you have muttered them yourself. More importantly, where do we go from here? How do we direct our clients effectively and professionally in such a climate?