The Jersey City Discount?

It used to be that buyers priced out of Hoboken or who wanted more for their money could head over to Jersey City and get a bargain. 15% or sometimes more. With the new construction by Grove Street, in Paulus Hook and along the waterfront, those days are gone. For the sales in the last six months, Jeresy City was only a 6.7% discount to Hoboken. Wow. That's not enough to make it a cheaper alternative. If you catch a motivated seller in Hoboken, you may be able to negotiate the difference to zero.

On the upside, Jersey City is an alternative for someone who wants the convenience of the amenities offered with the new construction

Hoboken Condos 2008

Avg sale price last 6 months
Hoboken $535k

Downtown JC $501k

Information deemed reliable but not guaranteed

Family Flight

There's supposition around town that the reason families with school aged children flee to the suburbs is for school systems that better suit their needs. Having discussed this topic with several of my clients that are getting ready to jump ship one thing is pretty clear. It's not the schools, it's the housing.

If you have even two kids that are getting bigger, you'll want a three bedroom. Let's look at the facts, right now there are only 7 three bedrooms under $750k that don't require a third floor walkup. Average families are priced out of Hoboken.

As for third floor walkups. I grew up in a house like this one. We lived on the third floor. People do it. But I guess when the option is a house in Montclair, people think twice. I have some friends that just moved into a house there and guess what floor the bedrooms are on...the third!

Hoboken Condos 2008
3 Bedrooms
under $750k
1st fl, 2nd fl, or elevator
Available: 7
Information deemed reliable but not guaranteed

Four Years Of Engineering Wasted

The endless problem sets. Surrounded by geeks who actually liked them. Studying while the english majors partied. AND I CAN"T EVEN FIGURE OUT HOW TO USE THE NEW PARKING METERS!

I stood in the rain for 15 minutes swiping my credit card while the little flash was going off, the red violation light was blinking. Haha. the ticket is coming and I hadn't even left the meter yet. I wonder what my credit card bill is going to be like?

The nice man with the heavy canadian accent from the meter company gave me instructions that I guess are intuitive to canadians. I still don't get it. Just wait until they turn on the extra bells and whistles thereby turning this into a no parking zone for locals. Sound good, Eh?

Hoboken Condos 2008

Under contract in April 55

Information deemed reliable but not guaranteed

How About A Real Medical Center?

Having just spent two hours and fifteen minutes to get an xray at the old St. Mary's, now Hoboken University Medical Center, I am drooling at the prospect of selling condos there in the not too distant future. No way this place survives. It's easier for me to drive to Teaneck to get an X-ray. If I have a real emergency, I'm going to Hackensack (It's like a hotel with doctors).

It's nice that Hoboken can boast that it has a hospital but Christ Hospital is about two minutes up the hill and downtown Jersey City has a big facility 5 minutes away. Wouldn't it be better to have several services people actually need like an in and out xray lab, a dermatologists office, other specialties that don't require the overhead and time inefficiencies of a hospital?

It's a political football. So when the tide turns, condos will be built with parking in the garage across the street. Until then, I'll be in Teaneck getting by arm looked at.

Hoboken Condos 2008

One Bedrooms
Active 170
Under Contract 75
Sold in 2008 70

Information deemed reliable but not guaranteed

Metrostop Update

Spoke with the developer of the Metrostop project at 800 Jackson yesterday. Here are the updates:

The project is on schedule to be completed early this summer.

Retail tenants to be named soon.

Metrostop will be offering a new "concierge" service to its residents and some of these services will also be available to the neighborhood. Not exactly sure of all the details but it was described as a service for those folks who don't want to spend their free time running errands . (One example is a service by which your car will be washed and put back in its place the same day while you are at work.) Pretty cool. Looking forward to having some of these high end amenities like they are offering through the Metrohomes' Trump building in Jersey City.

For those buyers hoping to see The Metrostop units before completion.... Faggetaboutit. Hoboken is not allowing any nonconstruction personnel in before the TCO. Maybe someone from Metrohomes can go up there with a handicam and make a virtual tour?

Hoboken Condos 2008

Metrostop
Active 53
$460k-$1.25M

Information deemed reliable but not guaranteed

One If By Land

IDX is coming. IDX is coming. Coming to Hudson county. Parts of the US has had it for years. Most of NJ has it...and here it comes to Hudson County. Buyers. good news. IDX will allow you to go to a website like mine which will have IDX and see many listings from other participating realty companies. No longer will a buyer only be able to see REMAX listings but many many more. Look for it by the end of the summer.

If your looking on a realtor site and don't see IDX functionality, there are plenty of other sites to choose from.

Open House. Ready To Sell

If you've ever walked down Washington Street on a Sunday, you might think that there are a million open houses in Hoboken. Definitely the little mom and pops with the green and yellow sign or the brown and white signs must be real go getters.

Fact is that REMAX of Hoboken consistently holds more open houses than any other office in town. There are offices with more listings but I guess the agents are too busy to service the listings or have sellers that don't want the inconvenience of having the property shown to prospective buyers.

Now, self admittedly, the odds are low that a home will find a buyer on any given open house. But consistently applying a system where the property has maximum exposure increases those chances significantly.

For Sale Buy Owners Do It All The Time. Shouldn't your agent get out of the hammock and into your home?

Hoboken Open Houses
Weekend of 4/20/08

As found in the Hoboken Reporter

REMAX Gold Coast 16
Liberty 10
Coldwell Banker 6
C21 5
Weichert 4

Information deemed reliable but not guaranteed

What Are The Odds

Having taken several undergraduate and graduate courses in statistics, I can tell you for a certainty that there's a big difference between odds and probability. Odds, as I am describing them, are the betting chances that something is going to happen. (i.e. The odds that Red Sox will win another world series this year is about 2 to 1,maybe 1 to 1 if Big Papi starts hitting.)

To put this in a Hoboken real estate perspective, the odds that a seller will have their home sold from an open house, is about 100 to 1. This is based on my empirical data over the hundreds of open houses I have held and the number of direct sales of that home from a buyer walking in to an open house.

These are coincidentally about the same odds a buyer has to win a bidding war when they don't head the professional advice of their agent.

Now on to more important odds that could have a significant impact on Hoboken real estate as a whole. Last week there was an article about a boy who found an error in NASA's odds that an asteroid would collide with the earth. Great. First we have know it all kids finding errors at The Smithsonian and now a know it all kid finding errors at NASA. BURIED!! at the end of the story was the "fact" that the know it all whipper snapper had reduced the chances of this asteroid hitting the earth and thus ending life as we know it in a horrific and unimaginable way (unless you watch PBS and have seen the computer simulations). The odds dropped from 45,000 to 1 to 450 to 1 that Hoboken and the rest of the world would be destroyed. You are ten times more likely to die by asteroid than to be struck by lightning (assuming you live that long). I hear there are great real estate opportunities on the moon.

Hoboken Condos 2008

Active 530

Under Contract 181

Information deemed reliable but not guaranteed

For The Love Of Froto

The Eye Of Sauron has come to Hoboken. (reference to Lord Of The Rings. If you are one of the 5 people in the US who escaped this mega marketing movie trilogy or were in Sweden for the past decade, The Eye Of Sauron is this evil giant eye of fire that searches for the ring of limitless power that will give the Evil Lord control over everything forever.) To my surprise, I thought that Froto had defeated the Evil Lord and his Eye Of Fire. That was until I saw it appear on Washington St, right outside the CVS.

Seems the Hoboken Parking Utility has brought The Eye to town as an "upgrade" on the old parking meters. Like the pushers on a Trenton street corner.."just try it out.", "You'll see how much better it is this way."

The new meters (giant metal boxes which significantly enhance the aesthetic beauty of Hoboken much like the seven no parking signs in 30 feet outside of my office) let you pay by credit card and give you a grace period if you go over.

Sounds too good to be true. The HPU offering you a way to receive fewer parking tickets. Does anyone else smell a rat? Let me look into my crystal ball. My predictions:

1) The eye will malfunction, punching out illegal summonses with more abandon that the current ticket jocks looking to make quota and hoping that people are too busy to fight a system that reeks with the smell of corruption.

2) After two hours, you won't be able to refill your meter like you can with the good old sometimes malfunctioning coin only meters. Move your car or the eye will snap a picture.

3) The additional revenues generated will enable the HPU buy more boot vans. No one will be safe.

The only thing we can hope for is that the Eye OF Fire pulls a "Uniblab" (Jetsons reference) goes haywire, tickets The Mayor's car and gets replaced by the kind where you put the quarter in and turn the dial.

Hoboken Condos
Washington Street (Not Including Tea Bldg)
Active 23
Under Contract 5
Sold Last 12 Months 50
Information deemed reliable but not guaranteed

Welcome To The Machine

Mortgage companies. Blah. Back to the good old days when lenders actually want some information before they give you big money.

According to a local mortgage expert, here are some recent changes that will affect buyers and sellers.

1. The 80-10-10 are gone gone gone. PMI is the New Black.

2. Condo questionnaires are the norm again. Be prepared to have them filled out. If you are not prepared, the property closing will be delayed.

3. Budget 15 additional days in the closing process for information gathering and analysis by the lender.

4. Ha Ha to you if you own if a building with a high renter to owner ratio. If I were a seller I'd know that ratio and talk to lenders and their criteria. You have to be able to offer your buyer a a way to get the mortgage. Do you hear me Velocity owners. Juilana owners.

Where have you been? its alright we know where you've been

Hoboken Condos 2008
Sold 2008
1 Br 63
2 Br 113
3 Br 13
Information deemed reliable but not guaranteed

Leopard Tries To Change It's Spots

Squint Real Hard. Doesn't Hoboken's newest rental building"The Juliana" look a lot like The Velocity. WAIT. They are both on the 600 block of Jackson. WAIT. They are the same building!! I guess the stigma of the somewhat less than successful condo offering has required the inevitable name change... Helps with the google search for new comers who won't see the blogs about The Velocity or that condos weren't selling for enough so rentals made more sense in a town where Million dollar condos are popping up like dandelions in the spring.

You can change the name, but you can't change the location. Someone once said that Location is everything. Another case proving the axiom. (You won't see that advertised on the official website.) Condos selling 3rd to 6th and Jackson: 14 Available. 9 sold in the past three years.

Eliza Doolittle pulled it off. The jury is still out on Juliana.

Hoboken Condos 2008
Jackson 3rd to 5th Streets

Available 14

Sold Last 3 Years 9

Information deemed reliable but not guaranteed

Buyers Paradise

Having recently returned from a real estate training seminar in Boston last week, one thing sticks with me upon reflection. Here it is. The trainer (nations largest) is strongly advocating investing heavily in real estate over the next three years. The course wasn't an investing course but a seminar focused on growing my real estate practice. So when the over arching plan includes significant opportunity for investing, I am motivated and excited.

On a local level, what does that mean? Well there's lots of choice in Hoboken these day. If you are looking to upgrade, now is the time. Even the three bedroom market has enough inventory to choose from. If you find yourself living in a one bedroom and could use the extra room, there are 290 options! Go get one.

The tide is out. Own as many boats as you can by the the time the tide comes back in.

Hoboken Condos 2008

Available 523

1 Bed 168
2 bed 290
3 bed 46

Information deemed reliable but not guaranteed

Real Estate Goes Retail

Merchandisers like Sam Walton would rejoice. Maybe even create end cap (those are the displays at the end of the aisle where they promote items on sale). Metrostop has put 10 units on special until May 1st. The email I received notes "Prices are not the same as in the MLS". The discounts range from 2.5% to 9%.

The sceptic in me thinks this might just be a trial balloon to see if the market for all the units should be reduced. Or they want to create a false sense of urgency. Right, like if you come in a week after the special, they won't sell the place for the sales price. This isn't Tide Detergent. The market is what the market is.

Attention Kmart Shoppers: Blue Light Special at 800 Jackson.

Hoboken Condos
Metrostop (800 Jackson)
Available 53
On Sale 10
Information deemed reliable but not guaranteed

Go West Young Man

Looking for a multifamily with a strong rent roll minutes to the Hoboken PATH? It's a stones throw from Hoboken.. err. a Stones throw to Hoboken is more like it. Just up the hill in Jersey City Heights. or The Heights. or JC Heights. or...Hoboken West!

I just showed a Three Family 50 feet from the giant elevator that takes you from The Heights down to the 9th St Light rail stop and the new Starbucks that is rumored to be going into the Metrostop. If you owner occupy the 3br on the first floor you can live there practically rent free (after your tax breaks). There are others too. Lots In fact.

100 feet is the difference between a 2Br Condo and a 3BR, 3 Family House with a yard.

Hoboken West (Jersey City Heights)

2 to 4 Families Available 230

Information deemed reliable but not guaranteed

Open Houses Are A Waste Of A Buyers Time

Unless you are shopping for an agent. Let's face it, buyers going to open houses aren't really shopping for a home, they are out to kick the tires on the market. It's like going to a used car lot after hours and looking at the stickers. You mainly want to see what you can get for your money, not because your really ready to buy.

Buyers. Please go to a lot of open houses. Meet agents, ask them about the market, about specific needs you may have. Did the agent give you good info? Did the agent give you something of value? Maybe a map or a list of other open houses? Did the agent follow-up with you within 24 hours?

When you are ready to earnestly shop for a home, you can choose from agents you've met and have confidence will provide you with quality service.

Back in the day I started shopping for my first home, I stopped in an open house in Montclair. The agent treated me like a bug. Ignoring me and shooing me out the door as fast as possible to spend time with other buyers. Do you think I will ever recommend her or her agency?

Hoboken Condos 2008

price changes

last 30 days

total 95
3br: 15
2br: 50
1br: 26

Information deemed reliable but not guaranteed

The Zillow Fallacy

Did you know there are people who have a Zillow addiction? Checking the Zestimate price of their homes daily? Not familiar with Zillow? Zillow is a site that purports to give you an accurate value of your home. I guess I should pack it in and take my knowledge of the market and go home.

Not so fast. According to Forbes Magazine (April 7, 2008), Zillow has recently revamped it's algorithm. Some metro areas fell 9%. Wow. I have lost deals over a 1 to 2% price gap between buyer and seller.

Recommendation:

If you want a true market value of your home, have a realtor come in, see your place and provide you with a comprehensive market analysis.

I can't help but wonder what these estimates mean in a vacuum. One of the first questions a realtor is going to ask is when do you need to move. Imagine being 5% over market price. You could sit until the cows come home... Haven't seen too many cows around Hoboken lately.

Hoboken Condos 2008

501 9th St Past 12 Months
Active: 1
DABO: 1
Sold: 8

Information deemed reliable but not guaranteed

5 Biggest Buyer Mistakes In The Spring Market

The Hoboken Buyer Beware. Learn from the mistakes of your competition and get the property you want. Here are the 5 biggest buyer mistakes I'm seeing right now.

5. Waiting for the price to go down. If a buyer thinks a place is significantly overpriced, but likes it. Put in an offer. When the price comes down, they will be on the top of the list to be notified.

4. Sellers will make significant concessions. It happens in the burbs, but not here. Maybe it is ego, maybe the market is too strong.

3. A property that has been on the market 60 days will not have much other interest. No. No. No. Expect other parties to come in at the last minute. A lot of people are sitting on the fence until they realize they might lose the property.

2. Bidding wars are dead. Not true. If it is a unique property that is priced to the market, it will drive up interest and offers. (Think 3 bedroom close to Path with parking.)

1. Believing the soft national market applies to Hoboken. It doesn't. Hoboken is still strong in comparison. Properties sell for an average of 98 % of ask. If a buyer low balls on purpose, they will get shut out.

See.. you can lead a horse to water and make him drink.

Hoboken Condos 2008
Quarter by Quarter Comparison
Q4 '07 and Q1 '08
Number Sold 233 vs. 160
Avg sale price $528K vs. $563k
Avg DOM 75 vs. 78
Information deemed reliable but not guaranteed

This Ain't No Fooling Around

First Quarter Numbers. Nearly two Hoboken condos a day were sold in the first quarter 2008. Not bad for winter. 53 One bedrooms sold in this time. 84 Two bedrooms sold. 13 Three bedrooms sold. More than half sold in less than 60 days on the market. 51 sold within the first month.
When thinking of the second quarter: This is a party. This is a disco.

Hoboken Condos 2008
1st Quarter 2008
Sold 162
Avg sale price $543K
Avg DOM 78
Information deemed reliable but not guaranteed