If you’re looking to purchase a property in New York City, competition is high right now in most of Manhattan’s neighborhoods. It’s a seller’s market in well over half of Manhattan, but there are tips and tricks to winning a bid against the competition.
Here’s what you need to know:
The Market Pulse
The UrbanDigs Market Pulse is a ratio of pending sales (a measure of demand) and active inventory (a measure of supply).
Noah Rosenblatt from UrbanDigs notes, “As it rises, real-time leverage in the markets is shifting towards the sell-side. As the pulse falls, it is indicating market weakness as deal volume falls and inventory rises, telling us leverage is shifting towards the buy-side. It’s a useful tool when used in relation from one sector to another to determine if a neighborhood is outperforming or underperforming its wider marketplace.”
The Market Pulse in Manhattan is a .84 – indicating that it truly is almost completely a seller’s market.
Days on Market is Dwindling
Average days on market have fallen across the city, which means properties are selling faster (and for top dollar).
“One of the most visible signs that a market is behaving like a seller’s market is the number of days an apartment has been on the market (DOM). The lower the DOM the stronger the market – and that market usually favors the sellers,” Platinum Properties Sales Manager Michael Rider said.
Concessions Are Disappearing
Median discounts have fallen almost 20% in the past month, meaning the window to get a deal is quickly closing.
In Q3, there was a 67% increase from Q2 in sales over-asking price – meaning the days of landing a property under-ask are numbered.
Purchase Strategically
It’s a seller’s market in well-over more than half of Manhattan right now, but there are still a few neighborhoods where buyers can take advantage of the higher days on market and lower sales prices – but move fast!.
Battery Park City – Rider says, “Battery Park City has been recovering slowly since the shut down last year. Although it currently is a market more friendly to buyers, it may soon move quickly into a stronger seller’s market. Signs of this happening can be seen in the increase in the median sales price, the reduction in the supply overall, and the reduction in DOM. It would seem now is the time to take advantage of the market in BPC if you are a buyer”
Prepare Yourself
At Platinum Properties, our agents are prepared for the fall market — which is going to be extremely competitive.
“When a buyer is looking to make an offer in a market that strongly favors the seller, it is important that the buyer positions themselves strongly from the very beginning, particularly in the co-op market. Usually the phrase “cash is king’ is suitable, but when applying for a co-op, there are a number of factors that sellers look at to make sure that the buyer they go into contract with will pass the board process,” Rider says.
Cash is King – Any cash deal or non-contingent financing deals are more favorable, and are going to go to the top of the seller’s list.
Beef Up Down Payments – Those that are willing to put a higher down-payment down, or start stronger in their bid has a better chance of survival — final and best is ideal.
Get Your Ducks In A Row — Don’t make sellers wait for preapprovals or financial forms (especially in co-ops). Get all of your financial documents in order before you submit an offer. Sellers will take the strongest applicant that the board will accept — not necessarily the highest offer.
Presentation Matters – Buyers and agents should have all forms ready before submitting an offer.
Pick the Right Agent
It’s easy to fall into the trap these days of thinking that realtors are a thing of the past, especially with the growth in online services to help home buyers and sellers do it themselves.
While skipping the realtor and doing it all yourself may save you money in the short term, in the long term not working with a Realtor can cost you both financially and emotionally.
If you’re looking for a deal in Manhattan, start your search in Battery Park City or the Financial District. If you’re looking to be elsewhere, prepare for competition – but don’t get discouraged!
Platinum Properties agents are trained to be expert negotiators, getting their sellers top dollar for their units, and buyers the best deals possible – even in an ultra-competitive marketplace.
Message us to learn more about how to formulate a winning bid and land your dream property.
