The Truth About Seller Incentives

Seller Incentives Real and Imaginary. Know the difference.

Real:

Plasma TV.

Furniture.

Anything negotaited After The Price.

Imaginary:

Money for closing costs

Prepaid maintenance

These "faux" incentives are built into the sale price. The seller isn't going to give you his rock bottom price and then throw in a few thousand dollars on top of it. The incentinve just raises the seller's bottom line. Now TVs and furniture are already deeply discounted since they aren't new and the seller will often throw something small in as a sweetener.

Is this guy going to give you $5000 off his best price?.... Neither is the seller.

Hoboken Condos 2008
Listed and Active in January 102
information deemed reliable

Curb Your Dog

While the majority of people either like pets or can tolerate them ( Michael Vick notwithstanding), some folks don't like to share an elevator with Sheddy, Snappy or Yippy. About 10% of the Hoboken condos have pet policies that either forbid or restrict pets. If you must have a pet friendly building or do not wish to live in one, please tell your realtor and lawyer to double check with the Condo Association.

And if you think pet abuse only happens in the back woods....I showed a Hoboken condo for sale today where the tenant had left his dog (with plenty of food and water) for six to 10 days. My estimate was based on the number of poop piles I could see from the doorway. How long do you think it will take to sell this unit?

Hoboken Condos 2008
Actives 383
Limited Or No Pets 44
information deemed reliable

If A Tree Falls In The Woods

If your Hoboken Condo is not listed with the Hudson County MLS, does anyone know it exists? Here are the simple facts. Of the 379 active condos listings currently in Hoboken, 42 of them are also on New Jersey MLS. Of the 44 Hoboken Condo listings on the NJ MLS, 42 of them are in the Hudson County MLS. With my math being a little rusty, it takes me a few nanoseconds to realize that two poor listings have gone into the astray.

Listing a property on the NJ MLS is really a courtesy for out of town, out of county realtors and should not be the sole choice for realtors seeking to gain maximum exposure.

Sellers: You should require your agent to provide you with a Hudson County MLS print out the day after signing the papers or suffer the abyss.

Hoboken Condos

Actives
Listed in Hudson County MLS 379

Listed in New Jersey MLS 44

information deemed reliable

These Boots Were Made For Walking

If you're Tom Brady and you live on the 4th or 5th floor, the boot doesn't bother you. That's because Tom takes the elevator. If you're Joe Brady and live in a Hoboken walk-up, the trip to your apartment is longer than a hot summer day in Arkansas.

If you're Tom Brady and you want to sell your condo in the sky, you can afford to wait. If you're Joe Brady, you will wait. Over 10 months worth of walk-up inventory. By that time Tom Brady will be looking for back to back Championships.

Joe Brady could always throw in a jet pack to sweeten the deal... Still better to be named Tom.

Hoboken Condos

Last Six Months
Fourth and Fifth Floor Walk-ups
Active 44

UC/Sold 26

information deemed reliable

Willow Park. A Hidden Treasure

Having just come from a 700 sqft studio at the Harborside Lofts for a mere $469k, I can't help but think why a person wouldn't at least consider Willow Park. It's 1115 Willow. Looks like a bunch of nondescript row houses from the outside. Walk through the lobby. Two elevators. It has a gym, a sun deck on the roof, and a freakin big pool in the back. There's a 735 sqft one bedroom there now for under $400k.

Your choice. Take a dip or get soaked.

Hoboken Condos
1115 Willow

Since 1/1/07

Active 2
Sold 9

information deemed reliable

Buyers Folly

Now the story goes that penguins will push one unlucky buddy into the water and if he doesn't get eaten, they all jump in. This is one possible analogy that could explain why buyers wait to make an offer until there are other offers on the table.

The " if it is good enough for someone else, it is good enough for me" theory can only take you so far in explaining how a property can sit for months and then have multiple offers. Just as likely, there has either been a price reduction or other more attractive properties in the same price range have gone under contract leaving the property in question at the top of the list in several buyers minds. Seasonality may play a role.

Could be the buyer really just needs a kick in the butt to get going.

Hoboken Condos 2008

Since 1/1/08

Price Changes 53
information deemed reliable

Holiday Malaise

Sellers. What are you thinking? Still stuffed from your holiday treats? If I'm a two or three bedroom seller, I'm calling my agent today. Interest rates coming down. Buyers swarming.

Look at that. Only 4 two bedroom sellers new to the market. No three bedroom sellers. OMG. (that's Oh My God for my readers over 35.)

Waiting until Valentine's Day my cause you heartache.

Hoboken Condos 2008

Since 1/1/08

New 1 Bedrooms 22

New 2 Bedrooms 4

New 3 Bedrooms 0

information deemed reliable

Laissez Les Bons Temps Rouler

Interest rates plummeting like the temperature outside. Real estate not looking so bad next to the stock market. The cost of ownership coming down. Buyers braving Buffalo type weather to come to my open houses.

If you are a buyer in the sub $400k Hoboken real estate market, times are tough. There's less than 3 months worth of inventory, including all the over priced garbage that no one wants. The waiting is over. Get on board or get stuck on Fifth and Jackson.

Fat Tuesday is still two weeks away but the good times are already rolling.

Hoboken Condos

Sub $400K 1 Bedrooms

Active 43

Under Contract 17

Sold since 2007 155

information deemed reliable

The Standard

2 Bed/2Bath. It's The Hoboken Standard. Cookie Cutters and all.

There's 4.5 months worth of inventory out there in this sweetspot.

Good news for buyers. You have choices.

Bad news for buyers. Other buyers willl like your choices too.

Good news for sellers. Price it right and They Will Come.

Bad News for sellers. Buyers wont take junk.

Your Field of Dreams can be had here in Hoboken.

Hoboken Condos

2 bed /2 bath

Active 167

Sold /Under Contract last 6 months 221

information deemed reliable

The Rabbit And The Hare

Five Biggest Mistakes Buyers Are Currently Making:

#5 Thinking Those Online Mortgage Companies Are The Way To Go. Thousands of dollars in extra fees. Talk to a broker face to face.

#4 Relating Days On Market to Seller Motivation: Some sellers don't have to move.

#3 Expectation In The Home Inspection: If you're not buying new, don't expect that new condo smell. Something is always a little off.

#2 Low Ball works. I recently read an article where a realtor suggested offering 10% off of list price. That's the fast train to no counter and an adversarial seller.

#1 Slow Afoot Wins The Race. If you like a place, lock it up. Don't delay. Someone else will scoop it out from underneath you, even if it has been sitting there three months.

In Hoboken Real Estate, the rabbits always win.

Hoboken Condos Sold
Last quarter 2006 194
Last Quarter 2007 185
information deemed reliable

Functional Obsolescence

Hoboken's equivalent to the One Bathroom Mansion: The Three Bedroom Walk-up.

The three bedroom market is far more limited than the two bedroom. Thus, buyers who insist on three bedroom usually need the third bedroom for a specific purpose. (Office, third bedroom for 2nd child, guest room because they have a kid. ) Keeping with this premise, most three bedroom buyers have children or plan to have them and are expanding their space for an expanded family.

A second floor walk-up is the cutoff. Even if there is a place to leave the stroller, try dragging, a 15 lb kid in a baby carrier and a diaper bag and your own personal belongings up two or three flights of stairs. Doesn't work for most. I know people who do it. I also know people who choose to live in Maine in the winter.

Hey Rocky: Watch me pull an elevator out of my hat.

Hoboken Condos 2008:

3 Bedroom Update
Actives 40

Under contract 12
Sold in past six months 32

information deemed reliable

Lies and Statistics

Here it is, two weeks gone in the new year. Resolutions busted. Hillary on the ropes. Hoboken Real Estate revving up. First blush at the new actives and new under contracts don't tell the story. The new actives include retreads. Units that have been withdrawn and relisted to look like new to the market. Also, those units in attorney review but not yet in the system as under contract are not included.

Here's the real deal. Multiple bids are popping up. Appointments are up. A big realtor in town had over 100 appointments on Saturday alone. Open house attendance is up.

Buyer alert: The boat is leaving the dock.

Hoboken Condos 2008:
First two weeks of January

New Actives 51
Under contract 13

information deemed reliable

Beware The Van

In order to keep your property taxes from getting so high that you actually do something about it, Hoboken taxes parking. See right now you need 50ft of sidewalk to be allowed a curb cut. So if you have a standard 25x100 lot and want to put 4 spaces in the back you can't. Instead that 60 ft worth of cars needs to be on the street. So parking is tight by design. And now the $800,000 Super Van is going to be handing out parking boots like they were Halloween Candy. What will they think of next? Parking meters that eat quarters?

Hoboken: If you can't afford a garage, be out before sundown.

Hoboken Condos 2008:

Active Without Parking 144

information deemed reliable

Tomato Garden

Before you read any further. NO. I am not making this up. There is section of town where as reported on NJ.com, tomatoes are growing out of raw sewerage. As a property marketer, I am quick to spin this story to my seller's benefit. Thus, the area by First and Marshall (backside of The Sky Club) shall now be referred to as Tomato Garden or TOGA for short.

Buyers, please keep the following in mind when looking in TOGA.

1. You won't have to walk all the way to Washington St. for the farmers market.

2. You really can't smell anything above the first floor.

3. If you live high enough up, you won't see anything either.

4. You know where the fertilizer is coming from.

5. Start worrying only when 500lb pumpkins block the light rail.

So if there is a get together at the Sky Club and some one from Zephyr Lofts attends, does one say? "There's always at least one A-Ho at every TOGA party." I know Paul D will.

Hoboken Condos 2008:

TOGA Active 15

information deemed reliable

E.F. Hoboken

Investors Delight:

The recently over exaggerated housing slump, which hasn't affected Hoboken, has created much angst among buyers and sellers. While those sounds of rejoice that you hear are coming from investors.

Think of it. Thanks to stabilizing home prices and sharply increasing rents, those Hoboken condos that were once under water are now positive cash flow. With a reasonable down payment of 20% and a market rate loan investors can now get into the thriving community considered the Gold Standard of Hudson County. Albeit, the market is still small, but it is there if you know where to look.

Sound the horns. When E.F. Hoboken speaks, investors listen.

Hoboken Investment Properties:

The Current Market

Active 12

under contract 2

information deemed reliable

McSwiggins: Lessons and Opportunities

You can still smell the burned out carcass of the building, that housed McSwiggins, all the way across Washington St. A tragedy but also a chance to take away an important lesson.

Renters: Buy Insurance. Do it today. You don't have to live on top of a bar to have a problem. The fire doesn't have to gut the building for you to have a problem. It's not the fire, its the water and smoke that get your stuff. First day in fireman school the firefighter is taught to douse the building with water until all of the furniture floats away.

Now if your neighbor two flights up has a little fire in window AC unit, the fireman will come and pour enough water on it that your neighbor's furniture floats into the hall. Rightfully so, since that's their job. But that water then makes like the mighty Mississippi to your unit. Right through the ceiling. Renter's insurance is cheap. Do it today.

Buyer Alert: Check back here for New Condos probably coming soon to the corner of First and Bloomfield.

Hoboken Condos 2008:

The Current Market
Active 376
under contract 161

information deemed reliable

Where Are The Keys?

American Patriot Patrick Henry had it right. He just didn't understand the ramifications. As a follow up to the Hoboken keys entry a while back, here's this weekend's installment.

Picking up keys at a mom and pop realtor in town, I was told...

1. We have two sets of keys but they are on the same key ring and are out with an agent who had an appointment hours before.

2. After calling said agent, the overwhelmed front desk person says that the agent gave them to another agent but there is no record of it.

Should the seller who is paying thousands of dollars in commissions be more upset by

1. Agents with willing and able buyers can't show the unit

2. There are keys to the unit floating around with no ability to trace them.

A note to Patrick Henry. If relying on mom and pop realtor to sell your condo, all roads lead to Rome.

Hoboken Condos 2007:
December numbers
sold/under contract 58
information deemed reliable

Picking A Candidate

Picking a candidate is a lot like picking a home. Here's my take from Saturday's Democratic Debate: If the democrats were houses here's how the search would shape up.

A buyer wants a two bed/two bath 1200 sqft Hoboken condos. The choices are...

Old World Charm: Hillary Clinton
A tried and true unit. The safe play. Renovated kitchen and bath. This is just like the place you grew up in. The problem is its just like the place you grew up in. The
baths are in the same place, the bedrooms are in the same place, the outlets are in the same place. You are reliving your parent's lives, just updated.

Perfect But Small: Bill Richrdson
Everything on the wish list, except, where's the other bedroom and bath? (read leadership and presidential qualities.) Why are you showing my this 800 sqft one bedroom?

New Construction: Barak Obama
The new construction feel and smell. Excitement and the Unknown. Only time will tell how the building holds up in four years.

Questionable Investment: John Edwards
The not for everyone place. Absolutely perfect for some but most shy away because of the limited market for resale. It's the old world charm building with the new architecture that doesn't blend.

My prediction: Buyers love new construction.

Hoboken Condos 2007:
4th quarter numbers
sold 182
Avg sale price $523k
Avg Dom 60
information deemed reliable

The 2007 One Family Report

So if you're The Waltons then you're gonna need a one family. Bad news John Boy. Hoboken

one families are going up not down. 1% this year over last. More people are buying them. 20% more. The market is small with an averge of 2.5 homes sold per month.

Don't like it? Move to the suburbs. I hear there's a nice house in Wayne for sale, but the owner is a tough negotiator.

Hoboken 1 Family 2007

Percent Change From 2006

Sold up 20%

Avg sale price up 1%

Avg Dom up 6%

information deemed reliable

Hoboken Real Estate: The 2007 Condo Numbers

UP. UP . UP.

Hoboken Real Estate is like oil, you can't stop it, you can get on the gravy train or get left at the station.

More people buying more condos for higher prices in less time. Haven't these people seen the news? Housing Bubble Bursting, Credit Markets Crashing.

Perhaps they saw with their own eyes. Great Community. Minutes to New York. 40% Less Than Manhattan Without The Hassle...Park Slope be damned.

Facts are 12% more did in 2007. Sellers made an additional 1% over 2006 and waited 4 fewer days to go to contract.

Go Green: Buy Hoboken Condos not Hummers.

Hoboken Condos 2007:
Percent Change From 2006

Sold up 12%
Avg sale price up 1%
Avg Dom Down 5%

information deemed reliable

Spring Has Sprung

The grass has riz. I wonder where the birdies iz?


Today marks the beginning of the spring real estate market here in Hoboken. Buyers have been waiting until the new year. Sellers have been waiting. Don't let the frigid weather fool you.


Buyer Alert. If you wait until the weather gets warmer you will miss out on some great opportunities.


Seller Alert: Buyers are gearing up. Waiting will only put your unit in a pool with others. Get your home out there when buyers are streaming, and other sellers are waiting for the weather to turn warmer.

Remember the old adage: The early snow bird gets the worm.

Hoboken Condos 2007
Sold 971
Avg sale price $523K
Avg Dom 65
information deemed reliable