Doug Heddings now pricing all new listings 25% below comps

Now that I think about it, we already had many, many examples of price declines by Summer 08, so Doug may be pricing a good bit more than 25% below peak comps. I suppose I could perform a comps analysis on Doug's current listings, but it's brunch time...

Just another 30% to go.

Maybe.

The Merrill mess is just starting, and it won't be pretty.

Steve,
How do u see the merrill mess playing out?
Is there any legal case for bonus clawback?

bugelrex -

I've been thinking about that. Without the merger agreement with BoA, there would be a possible case for fraudulent conveyance if MER was technically insolvent at the time of the bonus payouts (it was). Then CREDITORS would have a case.

But because the company was subject to a merger agreement, even if MER covenanted not to do anything out of the ordinary course, the reps and warranties don't survive the close for a public company so BofA is SOL legally.

The government, on the other hand, can change the rules. Cuomo's investigating, but what are his options? Levy a one-time retroactive tax on MER employees?

I have a feeling this one's just gonna slip on by.

I think Cuomo is going to investigate and demand repayment, and I don't think BofA is going to lift a finger to stop him.

I also think that all of Merrill's senior management is going to be replaced & they're going to take direct control from Charlotte. The problem at Merrill is obviously at the top - the brokers are safe, but in today's environment there's going to be a lot of downsizing on the proprietary trading side.

Strategically I still think it was a good deal, but I think they vastly overpaid. However, seems that lots of the last quarter's losses came in the last quarter - trading losses - that weren't on the books when they bought.

No matter how you slice it, it's going to be sliced.

I'd love to see Cuomo try. I'd pay good money to watch that play out. But I seriously doubt he will.

There's a good case for fraud - approving bonuses without disclosing to shareholders before approving the merger that they were going to be issued early.

Don't think for a second that Doug Heddings is on top of current conditions. This is a recent quote of his
"With inventory uop almost 50% since last year, now is an excellent time to look and if you are fortunate enough to find a realistic seller you may even want to buy. That said, inventory has stabilized which likely means that all those who need to sell have put their places on the market and others are going to stay put."
Inventory has stabilized??? of what chocolate bars?, 3 headed toads? He certainly is not talking about Manhattan residential Real Estate.

patient09, the OP wasn't meant as praise for DH. I agree he's been plenty guilty of typical brokerspeak and spin. Obviously he's trying to paint a rosier picture here with his "increased buyer traffic." I did think it was interesting that a high-profile broker publicly announced he was now listing everything 25% below comps while so many others are just playing stupid.

heddings -- I am familiar with his 863 riverside listing -- it is still groslly overpriced given the location -- my recollection is that he posted multiple price increases and then started down. Given the time on market, at least this one should accelerate down if he means what he says

He's lowering prices to what they should somewhat be naturally, prices still needs and will get some additional, overdue, price drops. In his greedy mind he wants to create a bidding war to bring prices up to 25% and more, it won't happen again for a long long long time. Elvis has left the building.

If he wants a bidding war he needs to drop the prices 50%. 25% is just where the market is today, he'll be chasing the market down from there.

nyc10013, in some deranged* minds 25% off in excess of 500K a great discount today.

There was pretty good traffic for his new listing at 20 West 77th today. He'll also benefit from comparison with the crappy, higher-priced Corcoran comp one floor up, which had an open house at the same time.

I was misled by the NYTimes ad that this apartment had a W/D. Didn't bother seeing the one upstairs.

http://realestate.nytimes.com/sales/detail/46-1073868/20-West-77th-St-New-York-NY-10024

Maybe you should buy it, then sue Elliman for fraud.

I don't think the Krolls have done their own laundry for quite some time.

hsw: Not to bust too much on Doug, I do respect the fact that he trying to get the world to se prices are lower. But, it may have been a slip of typewriter/tongue. He said on his own blog that he was pricing apts 25% below summer '08 "sales". His NYT listing says 25% below summer '08 "market". Nothing comparable traded in this building. He has no comp.

Fortunately, Cuomo can't do anything. Beyond harassing real or imagined Wall Street "fat cats" for political gain, which he seems to be doing quite successfully. As for demanding repayment, good luck. It will be fun to see how that unfolds, especially when every major financial institution in New York promptly relocates to New Jersey (physically anyway - they are all Delaware companies, a fact which has presumably eluded Mr. Cuomo).

Faustus is correct, except that the solvency issue is irrelevant because there is no solvency rep in the merger agreement, and even if there was, the litigation history is probably favorable to Merrill (ask Apollo). Perhaps Bank of America should have done more than 48 of due diligence. I'm not disputing what Merrill Lynch did was unbelievably stupid, even dishonorable, but it was most certainly not illegal (Merrill was a public company, their compensation accrual through 9/30 was public and BOFA or their lawyers could have included an ordinary course covenant in the merger agreement re: compensation with teeth (they didn't)). Ken Lewis should be looking for a new job...

If Doug Heddings is pricing at 25% below peak; then what's his rationale here I wonder:

http://www.streeteasy.com/nyc/sale/356857-coop-17-west-67th-street-lincoln-square-new-york
or
http://www.prudentialelliman.com/1040463

I do think though, that he's one of the few brokers that sees the market more clearly than most...

Wow, got to love this thread. A broker prices listings 25% below comps, and he is STILL greedy. Seems to me that some people will not be satified until every listing is priced no more than $9.99.

The operative word is NEW listings. 17 West 67th has been on the market for quite a bit. The one on 161 West 61st is also a little too pricey IMO.

ap292: and that's the rub, they are 25% off, but not the comp...play on words..peak? that is a wish list....comp..thats reality, prove it

17 w 67th I am willing to pay $3 million
wonder if he can get it to that price

w67.... not worth it :)

thx -- i revise my offer to 2.2 mill
that seems fair -- has some nice features but is certainly not blow your socks off for 6 million

no blowing socks, but it is a cool terrace. give em the 2.2mm

i think this posting has to be one of the most bearish price postings ever...like i keep saying, it's going lower...