Reducing Your Price

Today, in the current market conditions, if your property is getting few showings in the first few weeks, it is reasonable to wait up to three or four weeks before reducing the price (in the non-holiday season, that is). Unfortunately, your greatest impact is those first few weeks, so starting too high can be the worst mistake you make in selling your home. If you have decluttered and homestaged your home to look its best, your only other option to entice buyers is to lower your price. (If the property is vacant, you should consider staging it with some furniture.) If you have made your property as presentable as possible, the price reduction is the next step. In the past, a $10,000 reduction was a-typical. Unfortunately, that is not enough to turn the heads of buyers these days. To initiate more serious and steady buyer traffic, even on lower-priced condos, a reduction should be at least $15,000 and you will still need to negoitate from there. If a property has been on the market a long time, it might be best to withdraw it and put it back on the market as new, with the new price. Ultimately, pricing your house or condo a bit lower than you might feel comfortable, from the start, is the best move. A property new to the market that seems like a good deal will still bring out real buyers and the possibility of a higher offer.

The New Year

Lately, I feel more like a doctor in the intensive care unit than a realtor, having to give people the "bad news" about the current value of their property and the state of the real estate market. However, I do think the patient will live. :)

No, we don't know were it is going, and in particular, we don't know how the Hoboken market will be in the early Spring market, a much better indicator of the real estate market than the current winter market. With few exceptions, properties purchased in the last two years have suffered a decline in value.

Presentation of a property (homestaging), pricing the house/condo realistically, and negotiating realistically (buyers are typically offering 10% lower bids and a seller must be willing to negotiate) will greatly increase your chances of a sale.

With the interest rates as an all time low and real estate values down, we may very well see a resurgence in Hoboken real estate this Spring. We are one of the most desirable locations in New Jersey due to our proximity to Manhattan. Manhattan too has seen an increase in value for the money but is often not an option for people who need more room, especially if they have to have a family soon.

If you are planning to sell soon, the Spring market is always the strongest market of the year and this will most likely still be true in 2009. Keep in mind that property values in the suburbs are down also so that if you are buying, you will reap the benefits of this buyers's market on your new purchase as well.

Happy New Year to you and yours!