Strategy for price reductions

Most buyers don't watch price history or read StreetEasy.

Most brokers (even if they happen to be on the buy side of a prarticular transaction), won't mention that "if you wait a week or two, they'll probably chop it again, so don't bother bidding."

UESBuyer,
Agreed, decreasing by $20K is dumb. Looks terrible, doesn't it? Broker's fault?

I love the first line in the description "let's make a deal".

I agree that the approach is silly. However, I think most buyers expect to be in a better position if they wait than if they bid now. If you wait, the bet you're making is that no one buys before you get around to making an offer. That doesn't change whether you expect more price chops or not.

So if you are interested (which it sounds like you're not), I'd lowball at the price acceptable to you. If they accept, great, if not, you wait, which you were planning on doing anyway.

Incidentally, I think something like that will be our strategy 9-12 months from now.

There is a lot not to like about this apartment, and I agree that the price-cutting strategy is silly, but not for the reason you state. An asking price is just that: an asking price. Shouldn't matter to you if they are going to cut it in two weeks, just bid what you want. The reason it is a bad strategy is that it signals that the buyers have no confidence in their own price--that is, that they are just trying to generate interest. It signals, to me, that they could be open to a super-aggressive bid.

The problem is that rents are starting to fall fast. I just saw a quite beautiful Classic 6 in a nice building at 77th and Amsterdam being offered for rent for $5,500 per month, with no fee. Similar apartments are still asking in the range of $2 million; there's just no justification to pay that kind of premium for owning.

I think the pt drman, highish mntnc & less than 20 owners in the bld makes it hard to sell this place, notwithstanding the layout (& not everyone wants a duplex). factors like this will always make this apt tuff to sell.

"The reason it is a bad strategy is that it signals that the buyers have no confidence in their own price--that is, that they are just trying to generate interest. It signals, to me, that they could be open to a super-aggressive bid."

Yup, their strategy is dumb & amateurish

Just surprised, is all. I would think a broker would understand this, and would adjust the stragey by just making one large cut, and then trying to drum at interest at that new aggressive rate. Otherwise this thing just sits, looks pathetic and gets stale.

Does anyone know how to figure out what this sold for previously?

http://www.streeteasy.com/nyc/sale/326831-coop-440-east-79th-street-upper-east-side-new-york

In the P.R. world, there's a rule: when you have to eat sh-t, take big bites and get it over with; don't nibble on it forever. Same applies to RE imho. The impact of this broker/seller's "strategy" is to make them appear rudderless, desperate, and unprofessional. Better to have generated renewed buzz with a $500K reduction after 21-30 days on the market than to do it this way which generates no new interest and just lets the listing grow stale.

Very good point Kyle

kyle: LMAO!!! how to eat shti!!!!!!

UES-B:
STREETEASY HISTORY
08/18/2005
Previous sale closed for $1,225,000
07/28/2008
Listed in StreetEasy by Elliman at $1,399,000

dwell: Ever hear of the "free rider" problem?

UES-B:

my 2cents on 440 e 79: I would not pay over $1mil for it. A childhood friend lived there & I remember it as being a very avg post war bld.

West81:

"dwell: Ever hear of the "free rider" problem?"

Did I do something wrong? I'm not sure if it's OK to post that info. Think I've seen others do it. Please clarify.

thanks

PS: don't know why everyone doesn't pay $10 per mo for this web site. It's so worth it.

dwell: It's a fuzzy line. I post "Insider" data all the time on the "If you can demonstrate market movement" thread. Personally, I draw the line at posting a specific piece of protected data when a non-Insider requests it, but I don't think StreetEasy has an official policy on the subject.

New York Magazine quoting Streeteasy that prices for co-ops are down only slightly and that upper manhattan saw the largest decrease 6%.

Awful layout. No bathroom on first floor. "3d" bedroom on second floor at 6.5' wide is really just a lopped off part of what could be nice master suite. Very compromised. With owners gone and market souring, I'd really build some renovations into my cost calculations here. Maintenance is pretty nasty, too and with so few units in the building, I'd worry about the monthlies increasing and account for that in my valuation.

This is a good example of why it is higher risk to buy weird layouts. The resale is much trickier. On the list of items I would NOT compromise on when purchasing, I'd place good layout at the top with building quality. Location is right up there as is light, but those I guess I'd be willing to compromise on very slightly.

Thanks W81.

Previously, someone asked for insider info & I felt stingy for not posting it (I didn't post the info). But, then I saw that others were posting it, so I thought it was OK. But, I agree: if people want this info, they should support this site & pay the $10 per mo.

Cost/benefit: $10 per mo is nothing for someone intending to buy/sell an apt. C'mon people, pay up!!!

" The resale is much trickier. "

yes, when one buys, one must consider the sale potential. EZ to get in, hard to get out

I'd say post away. It's convenient for me when someone posts something relevant that I hadn't thought of - or didn't know where to find.

(I do subscribe.)