All good things must come to an end, as the saying goes. That’s the reality facing many in this difficult real estate climate. The truth, however, is that many good things that come to an end come back even stronger.
It’s not like we haven’t weathered brutal downturns before. In 1993 the New York market had just recovered from an unprecedented five-year decline in pricing, and there was a dangerous housing surplus. In 1979 residential mortgage rates rose more than 20 percent, making the dream of home ownership a virtual impossibility for most consumers. In both cases, the market recovered and surpassed the highwater marks previously established for home prices and demand.
What we’re experiencing now is a correction—a healthy market reaction to the unreasonable gains and glut of the speculative housing inventory from the past decade. While it has caused difficulties for some, it has created an opportunity for others. We’re already seeing sellers and developers adjusting home prices to reasonable and affordable levels. Here’s how to make it all work for you.
LOG ON AND START SEARCHING
Websites like Streeteasy.com consolidate information from most major brokerage houses, and can provide consumers—not just brokers—real-time updates on sales and activity. Information that was once available only to licensed professionals (such as time on the market and price increase/ decrease history) are now just a click away. This new paradigm is leading to more transparency, allowing buyers to make informed decisions. The site even has an iPhone application—it doesn’t get much easier than that.
LOOK, THEN LOOK AGAIN
Now’s the time to get out and see products in person. If you have a target budget and a specific list of amenity needs, you can run an open-house search on Streeteasy.com. Compare prices, square footage, common charges, features, and floor plans while getting a feel for what each building offers. It’s a great way to really sort out your options.
BE AWARE: ALL APARTMENTS ARE NOT CREATED EQUAL
Pay attention to details. Use a checklist to rate aspects of the quality and finishes. Hardwood or laminate flooring? Sub-Zero or GE Profile appliances? Custom closet interiors or a simple bar and shelf? Home theater hookups or bare-bones Internet? Handcrafted built-ins or blank Sheetrock walls? Believe me, it matters.
NEGOTIATE, NEGOTIATE, NEGOTIATE
Reduce purchase costs by negotiating closing fees, mansion taxes, and other expenses associated with an acquisition. These can add up to several hundred thousand dollars—why not talk them down?
MAKE AN OFFER
Throw manners out the window! If you’re a qualified buyer and have an interest in a particular apartment or building, make an offer. Many developers won’t publicly acknowledge markdowns but will entertain any reasonable offer by a serious buyer. The worst you’ll get is a “No.”
REMEMBER, IT IS INDEED A BUYER’S MARKET
Take advantage of the best buying opportunity in years: Do your research, visit as many homes as you can, and negotiate smartly. You could very well end up with your dream home—and at the right price.
