The Scariest Costume

Want to scare the Beejesus out of people today? Come as The Hoboken Tax Man.

Taxes. Taxes. Taxes. Are they going up? yes. By how much? when someone really knows, please tell me. Real numbers please: By what percent are my overall taxes going to increase?

The $64,000 question: Will if affect my home value.

On one hand. Yes. If the cost of ownership remains constant and taxes go up, the price must come down.

On the other hand. Maybe not. Lots of buyers don't really look at the tax number. They look at the big bad mortgage number. (Your mortgage person looks at the tax number.) So if you are at the top of your range, you will have to get a lower price, but if you are in the middle of your range, the buyer will probably bite the bullet.

I am sooo mad that Mike Bloomberg is running for mayor of NYC again. He would be perfect for Hoboken. Imagine if Mike moved to Hoboken. (He can afford it.) Runs for Mayor and wins. Bam the corruption is swept out. Does Mike have a brother.

Well the point is: until the fine citizens who actually pay the taxes in this town take it back from the cronies who think its their right to pay a small fraction of the property taxes of newer condo dwellers, we take it in the shorts. Isn't there some out of work hedge fund manager with too much money and too much time that wants to be mayor. Heck I would even promise to support the following on his Honor's webpage....The White Knight" is a fierce advocate for the Hoboken property taxpayer, and he works diligently to promote responsible government spending, consistently reviewing budgets and identifying ways to provide better, more efficient and more cost effective city services." Hmmm. I just plagiarized that, now where did I get that? Must've been Bloomberg's own website.

Where have you gone Mike Bloomberg? Hoboken turns its lonely eyes towards you......

Hoboken Real Estate

1 Bedroom Condos

Available 157

Median DOM 70

Days on Market Less than 30 days 34

30-60 days 37

Information deemed reliable but not guaranteed

Chasing The Market

I've had several conversations with sellers this week about chasing the market. They talk price change and I ask where to you want to be?

For example, you're a 2 bedroom seller. Well there are 300 other 2 bedroom sellers out there. You have parking, you have a terrace, you've got 1200 sqft, you've got an elevator, etc. end of the day there are always 30 -50 legitimate competitors. Meaning it's an option for the buyer to consider. (Just as Amtrak is a competitor to Continental going to Boston. )

So where do you want to be?

Let me put it another way. 301 two bedrooms and 14 went under contract this month. That's 20 months worth of two bedrooms!!! You can do your 2% or 3% price reduction this week. Then you can do another 2% or 3% next month. What if the market moves lower or more sellers who are willing to price lower come into the market. Then your additional 2% cut still leaves you too high. (as many of today's sellers are finding out.) Savvy sellers will be cutting hard now to position themselves as the true value.

Hoboken Real Estate
2 Bedroom Condos
Available 301
Medial DOM 72

Days on Market
Less than 30 days 68
30-60 days 73
Information deemed reliable but not guaranteed

Gas Wise. Time Foolish.

Sometimes I observe something that makes me scratch my head....There I am yesterday driving by the entrance to the Holland Tunnel passing gas station after gas station. Most are $2.61, $2.62 a gallon. The there's one for $2.49 a gallon. You don't have to be an accountant to figure out the better deal. But like most things in life there is a catch,... or two.

See the other more expensive stations have no wait. The cheaper station has a 10-15 minute wait. (It's a small station.) So I call my accountant buddy who is at home drinking a beer waiting for tax season. He does the math. If you get 15 gallons of gas and save 12 cents a gallon, you have saved a $1.80! Now if it takes you 10 extra minutes, then your time is worth $10.80/hr. Better than what you can make flipping burgers, but not much. And the second catch... you have to pay cash. So add an extra five minutes to the equation because you'll have to make an extra trip to the ATM.

Real Estate is like this too. How many times have buyers gone for the "cheaper" home without taking into account the total cost of ownership. Taxes, Mtce, GYM fees, parking fees, etc. So if an agent asks what price range are you looking in, tell them that you'd like your total cost of ownership to be $X on a monthly basis. It's more work for the agent, but worth it for you.

Think about it. A $100/month gym membership is worth $16,000 of mortgage. (6%,30year)

Hoboken Real Estate
28 days in October
New to Market 180
Price change 154
Information deemed reliable but not guaranteed

Top 5 Seller Mistakes

The new reality. Thirteen condos going under contract during the first 23 days of October. If you are a seller you are now in a price war with the other 523 sellers. Buyers are really discriminating. Your place better win the beauty contest too.

Top 5 Mistakes Sellers will make in this market.

1) Over pricing. You are dead.

2) Selling it vacant. You are dead. Spend the money to stage it.3) Not fixing obvious defect before selling. You are dead. No one wants to spend the time.

4) Not knowing the owner occupancy rate of your building. If it's under 50% and you haven't done the homework to find buyers financing, you are dead.

5) For sale by owner. You are dead. Did I mention the 523 condos a buyer can see with an agent who helps with negotiation, market analysis, deal management, service provider management, etc.

It's still better than stocks....

Hoboken Condos

Under contract in Oct 13

Information deemed reliable but not guaranteed

TBSing It.

So the other day I am excited. My team just made a miraculous comeback in Game 5 and had life in the ALCS. So come the weekend, there I am kids to bed, drink in one hand the remote in the other. I was so jacked up, I thought I might even splurge with my time and watch a little pregame. I turn on TBS, not Fox, not NBC, not ESPN. A big fat nothing. hmmm I thinks to myself. Top of the hour comes, still nothing on TBS except Steve Harvey. (who? I don't know, I couldn't explain the show.) Mrs. InsideHobokenRealEstate comments "looks like this channel is stuck in the 80s". This did not lighten my ever darkening mood. 8:15pm I've booted up my computer to get pitch by pitch. Then the scrawl on TBS....technical difficulties, blah,blah ,blah. I thinks maybe Mrs. was right. TBS is using 80s technology. Who is to blame????

Major League Baseball that's who. They went for the highest price without regard for how TBS was going to cheapen their brand, deliver an inferior product and just look mickey mouse. You'd expect this from the NHL. Yes there is still an NHL, just flip through a bunch of cable stations you've never heard of next spring. I am pretty sure you'll find the Stanley Cup Finals buried there.

What does this have to do with real estate? Only Everything.

Sellers: Don't TBS it. Going with a discount realtor costs you. Going with the agent that blows sunshine at you at gives in to you over pricing your listing costs you. Taking the highest dollar offer without considering other factors can cost you in this market.

Buyers: Don't TBS it. Not everything is deeply discounted. There are some real bargains but know them when you see them and don't try to get 10% off an already discounted property. You just end up with nothing hoping to win the lottery when a great home at a really good price is staring you in the face.

My season is over. I'll be watching Fox tonight.

Q3

Here are the numbers Hoboken: Q3 2007 vs. Q3 2008.

Number of condos sold down 16%

Days on Market up 29%

Average Sale Price up 2.6%

What does it all mean? Just what I've been saying. Price it right and they will come.... And pay more. Price it wrong and shrivel on the vine.

Hoboken Condos Q3 2007 vs 2008

Number Sold 256 vs 221
Median Days on Market 38 vs 49

Avg Sale Price $509k vs $522k

Information deemed reliable but not guaranteed

Big Building. Bigger Fool.

Buyers, you've all probably seen those ads in the paper or online for new construction buildings with sales offices. There's like a hundred of them in downtown Jersey City. So you call them up and schedule an appointment. WRONG. You call you realtor and schedule and appointment. You call any realtor and schedule an appointment.

Here's why:

1) You will not get any discount for going direct. No discount. No discount. No discount.

2) Half of the agents are incompetent. Use an agent who understands your needs and can help you see the benefits that are important to you.

3) You save time. Your realtor will cut through the marketing story and get the salesperson who does not know you to answer the questions most important.

4) See only units you want to see.

5) Your realtor will get you out on a schedule.

6) Your realtor does not work for the seller. He will help you negotiate in this ever changing market.

Think about it. Why would you not take a trained skilled professional, who works for you, and doesn't cost you a penny. And the best part is all you have to do is make one phone call to your realtor. You do not have to call and sit on hold and give your info and schedule and appointment. then do it again. and again. and again... One call and your realtor does it all.

Hoboken Condos 2008

Available 517
One Bedrooms 156
Two Bedrooms 287
3+ Bedrooms 54

Information deemed reliable but not guaranteed

Gimmick Marketing

Now that the Wall Street collapse has turned your 401k into a 201k, and the housing market is sure to slow in the short term, watch and you'll see gimmick marketing making a comeback. Let me state for the record, I am old school. I go to a baseball game and expect fans to be cheering and chanting, not making noise with those stupid plastic sticks that get banged together for added noise, and definitely not cowbells. What are those people in Tampa thinking? When you think Tampa, you think cow.

Here are some examples that Gimmick marketing is upon us.

1) Offers of free gas coupons for attending an open house.

2) Big and I mean really big "Motivated Seller" property signs.

3) Flood lights in front of the property.

4) Expiring offers. e.g. Get $10,000 towards closing through December.

5) Anything but a price reduction.

What sellers need are ways to combat buyer fears over the possibility of a falling market, difficulty in obtaining a mortgage, and properly positioning the property.

House Poor. Time Rich.

The term house poor used to mean all of your money tied up in equity in your house and you just scraping by to pay the mortgage. Now we wish we were all so lucky. Wouldn't it have been nice to have your money stuck in some third bedroom or large yard instead of an evaporating line on some spreadsheet.

Good news. There's still time for some of us. Upgrade now. Move closer to the PATH, cut your commute by 15 minutes each way and save 7 days a year. So you may be house poor, but what could you do with 7 extra days of time. Get more sleep, take up a hobby, spend more time with family and friends. Who says you can't buy time. It's a great investment.

Hoboken Condos 2008

Med DOM For Sept Solds 58

Information deemed reliable but not guaranteed

Your House. Now On Sale.

From a Retuers article that makes me spin my head like the girl from the Exorcist.

It seems that a Big National Realtor is taking it's marketing strategy straight from the car companies. "For Ten Days Only, It's The National Sales Event." As a graduate of The University of Michigan School of Business, I have a MBA in marketing and I just can't get my head around this one. Here's why: Macy's or Toyota will have these "clearance days". They are probably quite successful. But the difference is... are you listening..... Toyota actually sells its own product!!! Big National Realtor wants to sell more houses and thereby make more money by having the customer reduce the price....by 10%!!!

I would love to be a fly on the wall for this one... Hi Mr. & Mrs. Seller. This is your John. ...John, your real estate agent....Well good to talk to you again. Hey I was wondering, see, Big National Realtor is having this national sales event to try to get some of our listings sold. Would you mind reducing the price of your house by 10%? ....SILENCE.....Mr. & Mrs. Seller? Are you there?......Yes, I know I told you that we could get more for your home. Yes, I understand that's why you chose me and my company. Look times have changed and our corporate marketing staff has decided that 10% would be a good number....Cut my commission instead??? I am working hard to market your house. It's just overpriced now. We did that market analysis three months ago....Yes, I guess it was overpriced then too. I really want to sell your house. The fact is the market has changed and if you want to sell it, you'll have to sign the price reduction papers...Yes, I can bring over a withdrawal form instead. In fact I'll drop one in the mail to you now.

I can't make this stuff up. This leads me to believe that is marketing program is attacking one of the following

1) The Sunshine Up The Butt Theory: Agents are taking overpriced listings just to get them.

2) School Teacher Theory: Named for part time agents who are less competent in pricing a listing.

3) David Copperfield Theory. Agents take the listing and disappears. Only to reappear for price reduction.

4) Blame It On The Seller Theory. It's the customers fault. Agent has begged for price reductions to meet the changing market but the seller won't budge. The most popular theory within industry ranks. But it really does hold up. Agents should be getting away from these sellers. They waste time and resources that could be spent on clients interested in selling.

Meanwhile. I wonder if I need a coupon for this sale? Think I'm making it up? email me and I'll send you the link.

Hit Hard

Business week is running an article..."Towns That Could Be Hit Hardest by the Financial Crisis".

Hoboken is number three on the list. Well I'm panicking. Wait. Let's check out some of the other towns on the list: Darien..... Westport.... Summit. Okay so some Hobokenites are going to be feeling the pain. Maybe they lose their jobs and have to rent. That means a few more properties on the market. Sellers, its a good time to beat the rush. Buyers: It's a good time to buy, if you wait you may miss out on a real gem.

Hoboken, Summit et al. will go on. I can already hear my friends in Elizabeth packing up the moving truck thinking they are going to be priced in. Problem is, everyone wants to upgrade to a "deluxe apartment in the sky" and the line make Disneyland look the EZ Pass lane.

Hoboken Condos 2008

Sold In September 75

Information deemed reliable but not guaranteed