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Buyers, Find Hidden Bargains In NYC: Real Estate Listings Selling For Less

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The summer slowdown is slowly uncovering some interesting pricing opportunities across Manhattan. … [+] The data suggests now might be an opportune time to buy homes others paid significantly more for not too long ago.

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As the summer heat intensifies, the Manhattan real estate market is cooling down, and the languid season could present unexpected opportunities for savvy buyers. An emerging trend shows an increasing number of properties being listed at prices lower than their previous sale prices. This phenomenon offers a chance to secure homes with potentially less downside risk and more upside potential should the market’s nascent pricing recovery continue.

Pricing Opportunities

Recent Manhattan data indicates a significant upward trend in the percentage of new listings priced below their previous sale prices. This trend has accelerated in 2024, reaching 9.5% by the third quarter. Historically, this is a marked increase from just 1.7% back in Q1 2014. This data underscores a growing opportunity for buyers as the market adjusts and consolidates from its previous highs.

Percentage of Quarterly New Listings in Manhattan Priced Below Previous Sale Price (2014-2024)

UrbanDigs

Condos and Co-ops by Neighborhood
#1: Condos

The trend of condo listings below previous sale prices varies across Manhattan neighborhoods. Downtown, Midtown, the Upper East Side, the Upper West Side, and Upper Manhattan all show significant increases, with the Upper East Side peaking at 31.6% in July 2023.

Percentage of Condo Listings Below Previous Sale Price by Neighborhood (2014-2024)

UrbanDigs

#2: Co-ops

The more stable co-op market mirrors this trend, albeit at lower levels, with notable increases across all neighborhoods. Midtown and Downtown have seen substantial jumps, reaching 18.7% and 21.0% respectively by Q2 2024.

Percentage of Co-op Listings Below Previous Sale Price by Neighborhood (2014-2024)

UrbanDigs
Year of Previous Sale

Analyzing the data further, we see a pattern where the majority of listings now priced below their previous sale were originally purchased during market peaks. The period of 2014 to 2018, which saw a frenzied rally peaking in the years 2016 and 2017, represents the bulk of units, with nearly 600 homes listed for sale this year seeking to sell at a loss.

Number of Listings in 2024 Priced Below Their Previous Sale Price by Year of Previous Sale

UrbanDigs

Brooklyn Value Creation

While Manhattan has seen a notable increase in the percentage of new listings priced below their previous sale prices, Brooklyn tells a different story. The percentage in Brooklyn remains significantly lower, speaking to the incredible value creation in the borough over the last decade as prices have steadily risen in response to incessant demand. Despite market peaks and troughs, over the last decade, buyers in Brooklyn have done exceedingly well and may continue to do so even if prices remain stable, hence the level of units selling at a loss in Brooklyn remains far lower than that of Manhattan.

Percentage of New Listings in Brooklyn Priced Below Previous Sale Price (2014-2024)

UrbanDigs
Risk Padding

When markets are hot, buy-side competition is at its most intense, supply is scarce, and asking prices tend to rise quickly, reflecting a seller’s market premium over and above the fair market price that buyers have to pay if they want a deal. However, as markets slow, that premium is the first to evaporate. Slower markets, like the one we are experiencing today, offer buyers a chance to buy without having to embed a premium in their price due to intense buy-side competition, offering a kind of risk padding as there is likely to be less price volatility in the near future due to a downshift in market sentiment. This risk padding means that buyers who enter the market now could see more stable property values over time, reducing the chances of sharp price drops that were more common following the market peaks of the past.

Current Manhattan Market

A look at what’s currently on offer shows a handful of opportunities for buyers. Out of nearly 6,800 active listings, 537 are priced lower than their previous sale prices, reflecting an average loss of 12% compared to the previous sale price. In particular, homes sold in 2017 and 2018 make up the largest segments of such listings, with 81 and 45 units on the market, respectively. For those hunting for bargains, the data implies that focusing on properties bought between 2015 and 2018, particularly in areas with higher inventory, might yield the best opportunities for finding a new home at a reduced price relative to what it once traded at and could potentially trade at again.

Conclusion

In conclusion, the summer slowdown is slowly uncovering some interesting pricing opportunities across Manhattan. Whether you’re eyeing a condo or a co-op, the data suggests now might be an opportune time to buy homes others paid significantly more for not too long ago.

Moreover, today’s market slowdown may offer an additional layer of security for Manhattan buyers. With less frothiness and reduced competition, there is likely to be less price volatility in the future, providing a cushion against market fluctuations. Meanwhile, Brooklyn’s relatively low percentage of new listings priced below their previous sale prices showcases the borough’s unrelenting demand and highlights its strength.

Ultimately, current market conditions may provide a unique opportunity for some buyers to secure properties at attractive prices, with reduced risk and potential for future value appreciation.



This article was originally published by a www.forbes.com . Read the Original article here. .

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The Jennifer Lopez–Ben Affleck Real-Estate Shuffle

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Photo: MEGA/Getty/GC Images

After a canceled tour, a panned biopic, and nonstop speculation about the status of her marriage to Ben Affleck, there’s finally some good news for Jennifer Lopez: Her Madison Square Park penthouse has finally sold after languishing on the market for seven years. As the New York Post reported, the four-bedroom, 7.5-bath duplex on 21 East 26th Street closed last week for $23 million. The buyer was an anonymous LLC from West Palm Beach, Florida.

Like other things in J.Lo’s life, selling her penthouse has been a long, bumpy journey — the apartment was first listed for $27 million in 2017, three years after she bought it, and has gone on and off the market ever since. It was last listed for $25 million in 2022 and has ultimately gone for $2 million less. According to the Post, an insider said Lopez wanted to sell the home because of its lack of privacy above bustling Madison Square Park. The Whitman building is only six stories high, and for the many millions she’s asking, its “penthouse” might not have been sufficiently high enough for those with that kind of cash. It’s perhaps why the apartment — which includes multiple terraces, staff quarters, and a private elevator landing — has taken so long to sell. The Whitman is also squished between two much taller buildings and is, in fact, the shortest on the block.

Even this gorgeous living room shown off in the listing photo for J.Lo’s penthouse wasn’t enough to move the apartment quickly.
Photo: Brown Harris Stevens

The duplex, which ultimately sold for $23 million, comes with a soaking bath but perhaps not quite enough privacy, as seen in this listing photo.
Photo: Brown Harris Stevens

Meanwhile, amid rumors of their impending divorce, Affleck has purchased a $20.5 million house in Pacific Palisades, Los Angeles. By himself. It’s a five-bed, six-bath house equestrian estate by architect Cliff May. Recently, the two also officially put their marital home in Beverly Hills on the market for $68 million, $7 million more than what they bought it for in 2023, after reportedly trying but failing to sell it off-market. After this sale, Lopez will now have more cash for those solo viewings she’s been on.

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This article was originally published by a www.curbed.com . Read the Original article here. .

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Pocket Listings: Meaning, Pros and Cons, Example

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What Is a Pocket Listing?

A pocket listing is a real estate sale offer that is handled by a single broker or salesperson and not made available to multiple listing service (MLS) members or even colleagues in the same office. A pocket listing is an off-market listing or exclusive listing, meaning it is not sold to the general public.

Pocket listings can help sellers who insist on privacy and brokers with extensive connections in the community. Even if no sale is made, a pocket listing helps the seller gauge the home’s market value before eventually listing it on an MLS. However, the exclusivity of pocket listings can lead to fewer or lower offers, preventing a bidding war and maximizing the selling price.

Key Takeaways

A pocket listing is an exclusive, off-market sale of a home or property not listed on a multiple listing service (MLS) for the general public.A single real estate agent handles a pocket listing, offering privacy to the buyer and seller.A pocket listing creates exclusivity, allowing the seller to concentrate on serious buyers.Buyers have fewer competitors with pocket listings, and the seller could receive fewer offers or lower bids.A pocket listing helps the seller gauge the property’s market value before selling it via an MLS as newly listed versus an unsold property.

How a Pocket Listing Works

When a real estate agent is hired to list and sell a property, a contract is signed between the seller and the agent and the agent’s company. Usually, the property is listed in the multiple listing service (MLS), the database of properties for sale that all brokers use. This is done so that real estate agents and brokers can cooperate with other agents and brokers and share a portion of the total commission paid by the seller.

However, with a pocket listing, a property will not be listed in the MLS, and there is no agreement to work with other real estate professionals.

The pocket listing is used mainly by owners of very high-end or unusual properties who want only serious and qualified buyers to show up. The owners may be celebrities or politicians. The list of potential buyers is small, and the agent is well-connected.

At a less lofty level, the owners may choose a pocket listing to test the waters and see what price the property might bring. If no sale is made during the contract term, they can always open it up to an MLS listing.

It’s important to note that some types of pocket listings are considered ethically dubious because a single agent is representing both the buyer and the seller. For this reason, some types of pocket listings are banned by the National Association of Realtors (NAR) or restricted by state laws. The sale may be handled by investment brokers rather than real estate brokers.

Advantages and Disadvantages of a Pocket Listing

Pocket listings have pros and cons for the agent and seller.

Pros

Agent gets paid the whole commission

Privacy for both seller and buyer

Seller can test the market to create a selling price before listing on the MLS

Less time on the MLS, making it appear as a new listing versus an older, overpriced property

Cons

Only one agent is trying to sell the property

Fewer offers or low offers

Less chances of multiple offers and a bidding war

No walk-in traffic due to no lawn sign or advertising

Advantages of a Pocket Listing

A pocket listing may offer a considerable advantage to the real estate agent charged with selling the property.

Agent has exclusive listing: Since the agent has the listing exclusively, they can earn the full commission. The listing agent is under no obligation to share the commission with another broker or agent unless they choose to bring in help in finding a buyer.Test the market: A pocket listing can help determine a property’s price by testing the market at a higher price. If the offers fall short, the seller can list the home on the MLS.Less time on the market via MLS: If the seller changes from a pocket listing to one listed on the MLS, the property will appear as a new listing. This prevents the property from being viewed as being on the market for too long or an older listing at an unreasonably high price.Privacy for the buyer and seller: The private listing can help the seller avoid unnecessary foot traffic from unlikely buyers and concentrate on serious prospective buyers. On the other hand, the buyer has less competition.

Disadvantages of a Pocket Listing

Although many advantages exist, below are a few of the disadvantages of pocket listings.

Lower participation in sales efforts: Fewer people are involved in selling a property when the realtor acts as a solo agent, emphasizing more on the realtor’s effectiveness unless they believe interested parties exist or have a buyer lined up already.
Less marketing or word of mouth: By keeping the sale hush-hush with no listing or lawn sign, the word is unlikely to spread beyond the realtor’s contact list, resulting in fewer prospective buyers seeing the property.
Fewer offers or low offers: A pocket listing might lead to the seller meeting only a few interested buyers, leading to fewer or lower offers. However, this might be advantageous to the buyer.
No bidding war: Pocket listings reduce the chances of multiple offers and a bidding war over the property, leading to the opportunity cost of selling the property at a below-market price.

Example of a Pocket Listing

Sadie is interested in selling her estate, which is worth a substantial amount of money. Sadie already has a family member, her cousin Nick, who has expressed serious interest in purchasing the home.

Because Sadie already has a buyer lined up, she contacts the real estate agent she has used in the past with an offer of a pocket listing. As a result, the property does not get put on the MLS, making it an exclusive listing.

Why don’t Sadie and Nick get together and make the deal? Realtors do more than show property. They also prepare the legally required documents that must accompany a property transaction. Also, even family members need professional assistance in negotiating the details of a property sale.

Why Would I Try to Sell My House Via a Pocket Listing?

If you are a celebrity, a politician, or a wealthy individual with a massive estate, a pocket listing prevents hordes of sightseers from touring your house. Instead, you can hire a real estate agent with a solid list of contacts who can identify the buyers most interested in your property.

Why Would I Not Want to Sell My House Via a Pocket Listing?

Pocket listings are “off-market” listings, meaning there’s no lawn sign, no MLS listing, and marketing is done through private channels or word of mouth.

A pocket listing can help very high-end and unusual properties when only a handful of prospective buyers exist. It may also work for people who have already identified a likely buyer or those looking to test the market for their property. If the property fails to sell at the original asking price, the seller can move to an MLS listing at a more realistic price.

Are Pocket Listings Banned?

Pocket listings are legal throughout the U.S. However, the National Association of Realtors (NAR), the trade association, effectively banned pocket listings in 2020 by requiring that all listings be added to the multiple listing service (MLS) within one day of the contract signing.

For this reason, pocket listings may be handled by investment brokers rather than real estate agents. Pocket listings can look dubious because only one person is representing both the buyer and the seller. They may invite discriminatory practices by limiting knowledge of the listing.

The Bottom Line

Typically, a single broker or agent handles a pocket listing, offering privacy to the buyer and seller. A pocket listing creates exclusivity, preventing too many from walking through to view the home and concentrating on serious buyers.

However, since the buyer has fewer competitors, the seller might receive fewer offers or lower bids. Even if no sale is made via a pocket listing, the seller has gauged the market demand at a particular selling price. The seller can then list on an MLS, where it appears as a newly marketed home versus an older, unsold listing.



This article was originally published by a www.investopedia.com . Read the Original article here. .

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‘The Baldwin Property Is Lovely, But …’

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Alec Baldwin has been trying to sell his seven-bedroom, nine-bath house in Amagansett since 2022, a year after the fatal Rust shooting. He even made a forlorn video about it, in which he sadly extolled the features of the property and sounded like he didn’t want to sell it at all. Now that the Rust case against him has been dismissed, it might seem like any potential buyers put off by legal troubles can now move ahead without any qualms.

Realtors think Alec Baldwin’s farmhouse, featured in the video he made for the listing, is dated.
Photo: Saunders/Youtube

But, as multiple real-estate agents told Realtor.com, the house is maybe not worth its asking price of $19 million (down from an original asking price of $29 million). They noted that the location — north of the highway, and therefore far from the water — isn’t actually ideal, and that a portion of the eight-acre parcel is reserved for agricultural use, which means it’s not what developers are looking for. Telly Karoussos, a Douglas Elliman agent, pointed out that there are a lot of better locations at the current price point. “You have other large land options, oceanfront options,” he told Realtor.

And then there’s the actual design and décor of the 10,000-square-foot estate. Buyers who have nearly $20 million to spend are looking for something that’s move-in ready, not one that needs a renovation. The house that Baldwin has lived in with two different wives over three decades is a classic farmhouse with a somewhat stodgy Hamptons vibe. “The Baldwin property is lovely, but it is a very old home that has been renovated on multiple occasions,” Karoussos said. “The marketing even suggests that the buyer of this property might just want to build new.”

But perhaps one of the main drawbacks, some brokers suggest, is Baldwin himself. The charges against him might have been dismissed, but, as Jenny Lenz, managing director of Dolly Lenz Real Estate, put it, the actor’s “active participation in marketing the home is probably a detriment and clients have suggested it has an ‘ick’ factor.”

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This article was originally published by a www.curbed.com . Read the Original article here. .

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