NYMag - On the return of bidding wars

Question from the article: "So how do you, as a buyer, avoid getting caught in this predicament?"

Answer: You already have. The tax credit is over.

It's like NY Magazine had nothing better to write about...

NY Mag has had nothing better to write about since 1977 or so.

My impression based on anecdotal evidence is that while bidding wars may be back, contract price are generally not above ask. Sellers may be getting several bids that are all 3-10% (or more) under ask and may end up a few percent off ask even with multiple bids. And the "winner" may not be the highest bid, but the most qualified buyer.

We saw three properties that went to multiple bids in February/March. On one, we had previously talked to the broker, who had an idea of our financial situation (extremely solid on all of the standard co-op metrics). Although he had four offers, including two at full price, he was encouraging us to submit an offer for 2% below ask, saying it would be "within range" and could be accepted if we presented better than the other buyers. (We passed.)

On the property we're in contract for, there were three bids, including ours, the first weekend it was on the market. We bid 3% under ask, which was our bottom line, and were countered at 1.5% under ask. We countered back with our original offer, emphasized our qualifications to get past the board (we knew that only an all-cash offer would look better), and gave an end of day deadline. Despite the "bidding war," they took it.

The sellers may not hold all the power, even in a bidding war. A lot of these so-called "bidding wars" may be holding up the floor rather than raising the ceiling. I think the psychological barrier of paying above asking price is going to take awhile to break unless a property is priced dramatically (more than 20%) below very recent comps.

So there's my anecdotal evidence, for what it's worth.

Tax credit is meaningless for most high end buyers.

Agree things are still well below 2007 levels.

Market is far from a hot market. Couple lacked common sense, choosing to enter a bidding war. Very few apartments are that unique.

"Tax credit is meaningless for most high end buyers."

True. But likely meaningful for the one and only anecdote the article provides.

A few well to tod people helped children by one bedrooms...

A cooworker of mine was mugged on UWS. Does this mean that the crime rate in NYC is up and daylight street muggings are back?

We have buyers who ended in a bidding situation. The same buyers, according to the article, just signed a contract on another 2-bdrm w/out competition.

'More than half of Manhattan and Brooklyn brokers at the Corcoran Group who responded to a recent in-house survey reported navigating at least one bidding war this year. Between 12 and 15 percent of deals struck last month by agents at Brooklyn’s Fillmore Real Estate had multiple bids, up from approximately 5 percent in March; and at Warburg Realty’s East Side Gallery office, at least 20 percent of April’s transactions incited a contest. Elliman’s Alfred Renna, an executive vice-president who analyzes contracts at the firm, says between 4 and 6 percent of their deals in the first four months of the year wound up fetching more than the asking price after multiple bids.'

Here is another way of writing the above:

Less than half of Manhattan and Brooklyn brokers at the Corcoran Group who responded to a recent in-house survey reported navigating no bidding war this year. Between 85 and 88 percent of deals struck last month by agents at Brooklyn’s Fillmore Real Estate had only one bid, down from approximately 95 percent in March; and at Warburg Realty’s East Side Gallery office, just under 80 percent of April’s transactions did not incite a contest. Elliman’s Alfred Renna, an executive vice-president who analyzes contracts at the firm, says between 94 and 96 percent of their deals in the first four months of the year did not end up fetching more than the asking price after receiving a single bid.

Oh, and the 'Your Offer Stands! Until It Doesn’t. On the return of bidding wars and how to avoid one.' title of the article can be re-written as: 'Your Offer Stands 94-96% of the time! Until It Doesn’t in 4-6% of the time. On the very rare return of bidding wars and how to avoid one.'

lol

The Upper West Side is a dangerous place with multiple street gangs -- one Puerto Rican and the other one White. They have distinctive styles of engaging in fisticuffs. And they'll continue doing so from their first cigarette 'til their last dying day.

So what's your point? That bidding wars should be well-choreographed too?

Well done UKRguy. Now can you explain that graphic for me? Why are they jumping at the hand swinging the gavel and yelling "$" at it and not the real estate on the left? And why is the gavel about to smash the building?

'So what's your point? That bidding wars should be well-choreographed too?'

The point is that taking a singular or a very rare occurrence and spinning it into something 'regular' is ridiculous. In this case it is extra-ridiculous given that the article itself provides the reader with the data which contradict the article's heading.

only on the UWS would the gangs have Jerome Robbins choreography! HK and Chelsea are totally Fosse.

Don't make me post the "Big Spender" youtube, presumably set in HK.

Alan...I LOVE LOVE LOVE that number! :) yes, i am sure it was set at one of the now-defunct places in HK. :)

Lets see. We heard bidding wars were back a year ago.
We also had SteveF telling us things were "heating up" back then, too.

Good think only the idiots listened.

and, of course SteveF misses this part:
> on a South Slope two-bedroom that had lounged on the market for months.

sounds hot to me!

also, remember that SteveF is still shilling, while STILL TRYING TO SELL HIS APARTMENT!

sucker

Hey Ms. Happiness somewhereelse is back! Hi Ms. Happiness. How's life treating you? Still miserable I see. Well sucks for you. Shilling? Selling ONE apartment is shilling? R U kidding me? It's called cash flow u wannabee.

AND YES THINGS ARE HEATING UP AGAIN.....you're the sucker :)

you have enough happiness for all of us, steve.

at least you are civilized aboutready not like that nutjob...

"Hey Ms. Happiness somewhereelse is back! Hi Ms. Happiness. How's life treating you? Still miserable I see."

SteveF, SteveF, lets get things straight. YOU were the one who freaked out and ran away crying. Sounds happy to me!

I am absolutely thrilled to have seen the stock market go up 70% and the Manhattan RE market continue to suffer, as I predicted (and which also made you absolutely wrong).

> Well sucks for you.

Well, if losing money is your goal, I guess so!

Keep on chasing performance, Steve. It didn't work for you before, and it won't now.

> Shilling? Selling ONE apartment is shilling? R U kidding me? It's called cash flow u wannabee.

Steve, you need to buy a dictionary. Seriously.

You have no idea what you are talking about, as usual.

> AND YES THINGS ARE HEATING UP AGAIN.....

Yes, stocks have been hot, as I said. Thanks for noticing.

> you're the sucker :)

From an idiot like you, thats a compliment.

Some of us like MAKING money.

Thanks steve! It was suckers like you who were on the losing side of all the trades that made me tons.

> you have enough happiness for all of us, steve.

Its called crack / delusion.

>We also had SteveF telling us things were "heating up" back then, too<

it's not me somewhereelse it's NY Magazine....I mostly just joked about the penguins :)

somewhereelse...wipe your mouth the foam is dripping on your keyboard....

> it's not me somewhereelse it's NY Magazine....

Really?

Point me to the line where they said this... "Amazing how fast the market can heat up"

> somewhereelse...wipe your mouth the foam is dripping on your keyboard....

Yes, I'm still drooling over my own market returns. SSOs up 140%. Woo fing hoo!

SteveF, please go on being the town moron. It gives us SO much amusement.

swe, sorry, steveF is amusing, but not nearly as amusing as watching you hyperventilate every time he types something. Or when anyone responds to you for that matter (as will certainly happen in the next few minutes).

Couldn't hurt to pull out some old laughs:

http://streeteasy.com/nyc/talk/discussion/10189-buy-now-or-be-priced-out-forever

rotfl

hey somewhereelse, it gets dark when the sun goes down

>it gets dark when the sun goes down<

what r u kidding me steveF????, you're the idiot who told us it stays dark when the sun comes up
can u believe this guy?? wow he's such the town drunk and I can't type this fast enough as my rabid foaming mouth is making my keyboard so slimy and slippery. SteveF get real, your such the idiot I can't take it anymore??

Panting = rapid, shallow respirations characterized by open-mouthed breathing, often accompanied by a protrusion of the tongue. It is seen commonly in dogs...and somewhereelse

SteveF, I'd call you retarded, but I'd be insulting retarded people.

wow, swe, u hurt me with that one. I've just destroyed you for everyone to see on this thread so I will bid you goodbye

ukrguy...AWESOME!

" I've just destroyed you for everyone to see on this thread so I will bid you goodbye"

Wow, delusion city, you run away from the discussions crying, come back and get called on your incorrect calls again... and thats "destroying" me.

I love it.

Thanks, Steve, you're always good for comedy.