First time buyer, disappointed so far :(

Yeah...we've been looking for a while, too...

There's not much for sale, really. You're going to lose out to all-cash buyers and they (OK, we) are legion unless, maybe, you make the highest offer, and then you might run into financing problems if the appraisal doesn't work for you. But cash is king.

It took us a full year of intense effort to find a condo to buy. We are very happy, but the place needed more work than we originally wanted to have done; previous owners were very hard on the place cosmetically. It showed poorly (things like dog-chewed draperies, holes in walls) and that worked in our favor. The repairs and cosmetics almost all done now, but we put about $40,000 into it.

We also raised our price point significantly during that year and spent far more than we ever thought we would need to spend. Brooklyn prices are as high or higher than Manhattan's in the market segment you're considering, although monthlies are usually lower in Brooklyn.

Thank your lucky stars if you are unable to buy a co-op; I think you're better off renting than doing that. The financial argument for buying is not very strong to begin with, even with a condo, and to me the co-op ownership structure tips the balance unfavorably toward buying for the vast majority of folks.

Hang in there, 3 months is not that long in this market. Seems to be a small seasonal lull happening at the moment. You'll find your place.

Keith Burkhardt
TBG

Good luck getting a broker AFTER you have found the place. Why would the seller's broker cobroke after you found the place on your own? You need to get educated sorry to say.

I looked casually for about 4 months (just browsing listings), and then much more seriously for an additional 4 months (actually going to open houses, using buyers broker to help find & advise on buildings). It can be a slow slog. The right place will eventually appear.

If you want the bar vibe, 2nd ave in the high 40s and low 50s is still a noisy hell hole that might appeal to you. Better to commute to the party and live in a quiet place where you can sleep off your hangover undisturbed.

In this market, it's a marathon, not a sprint. Keep monitoring your ideal neighborhoods so you can quickly identify when you've found the right place and get all your ducks in a row so you can move quickly to get it. Even given where interest rates are now, my guess is that you'll probably have to inch your monthly out-of-pocket budget closer to $3K in order to get a quality 1br. On retaining a broker after you find a place, sellers' agents will often respect a buyer's choice to bring in a broker to negotiate a purchase. I have been brought in on many deals after my client identified the unit, and successfully negotiated on their behalf, so I don't think you'll have a problem with that strategy. Good luck.

Dan Gotlieb
Digs Realty Group

I'm not a first time buyer, but I am actively looking in Brooklyn as well the suburbs, and I agree, the market place stinks. Especially with all the competition from all cash buyers. Been looking since 2011 and only have a sour taste in my mouth.

I had a much more positive and easier time buying my condo in Dumbo in 2007, and that was at peak of the market. But I was also lot more motivated then as well.

Sadly, there is very little inventory and fierce competition for the under-$1 million price point.

The market doesn't really start to loosen until your budget is over $3 million.

Keep the faith and keep looking. Inventory is terrible now - but that will change.

https://www.urbandigs.com/chart.php?type=ACTIVE&nbhoods%5B%5D=all&proptype%5B%5D=all&price=all&slevel=all

Here is your Manhattan Supply Chart. Pending Sales and Days on Market confirms current conditions which still significantly favor sell side. Leverage definitely shifted in that direction

https://www.urbandigs.com/chart.php?type=meddom+60MA&nbhoods%5B%5D=all&proptype%5B%5D=CONDO&proptype%5B%5D=COOP&price=all&slevel=all

Here is your Days on Market chart, broken down for condo vs coops - links should work and are free for registered ud users (free to register)

We looked for -- ready? -- four years. And we had to increase our budget. We did, however, enjoy the process, and we are happy with the end result. As others have said, hang in there.

"As others have said, hang in there."

Or lower your expectations.

Inventory is very slim right now. Keep looking. Spring will bring more listings. Re-evaluate your budget. Everyone I know who managed to buy, ended up significantly above their original budget.

brillopad (love the name btw),

Hedge against rising rates, have your docs/loan in order, & wait for the right property.

I think the mkt will be more favorable to buyers in 2015+ (who know by how much and just my opinion). We sold most of our properties this year (still selling) and looking to buy when the mkt is more reasonable.

gl

Brillo -- you say "I thought I had a pretty good package" -- and you do, for an area where the buildings care about how much you have to put down. But in the East Village -- most of the buildings -- and therefore the sellers -- don't really care that much about how much equity you've got in, once you're past their minimum requirements. So -- you're the prettiest cat at the dog show. Your advantages don't help you here.

One strategy would be to look in a neighborhood where your advantages might help -- Midtown East or the Upper East Side, perhaps. Another is to settle for a property where you can live with the flaws -- because, as you've noticed, the unflawed properties are going to cash buyers.

I predict that there will be more inventory in the spring, but I don't think there will be so much of it that it will take away the cash buyer competition problem. You can wait -- and then when you see something you want to pounce on, bid high, preemptively -- but IIWY I'd consider exploring other neighborhoods as well.

ali r.
{downtown broker}

"Everyone I know who managed to buy, ended up significantly above their original budget. "

Not always practical.

Or financially responsible, for that matter.

Unfortunately, Brillopad, the apartment you're looking for -- in your price range -- does not exist. Or it does, but only in the rough -- the VERY rough. Or in the Bronx.

With $300K down, you say you want mortgage and monthly maintenance to be around $2200. Sounds like you're looking in the $500K range. In one of the most expensive cities in the world.

To be sure, half a million dollars is hardly chump change. But in New York City, that's like walking into Hermes with a $100 budget. MAYBE that'll get you a pair of sterling silver collar stays. MAYBE.

Sterling silver collar stays seem unnecessary especially since you want stiff collar stays and won't get that from silver.

4 months is nothing, keep at it, winter is the best time for buyers!
Not sure why you would want to engage a buyer's broker after you already found a place, your negotiating position is much stronger if you tell the listing broker you are not using one (read: more commission for them), and a good real estate attorney will look after your interests once you have an accepted offer.