| Author | Message | ||
     AZ Citizen Username: Azaltsman Post Number: 69 Registered: 1-2003 |
We just bought our house after a summer of bidding war hell...in Montclair and Summit. Forget about rationality - people from NYC were cashing out of securities and dumping the cash into real estate. The lowest mortgage rates in 30 years also helped. We bid on 5 houses between May 2002 and January 2003. Lost all bids. VERY frustrating to deal with (two in Upper Montclair, one in Summit, two in Millburn - we actually withdrew from one in Millburn because it was the house was way overpriced - it's still on the market). We finally found a great house here in Maplewood. Househunting - I can tell you that I know EXACTLY how you feel about the Montclair issue. Personally, I only liked the blocks between Watchung and Bellevue (and even some between Bellevue and Alexander). But those houses are now in the $600K range now. When we started looking houses were in the $400K range and were being WAY low balled..eventually selling for $500K. I can tell you this - use a different realtor for different areas. Our realor was pretty good in Millburn/Maplweood but really made a mistake on the first Montlcair bid. Had we used a Montclair realtor we would have been more informed about the market there. Either way, I am convinced that the realtors in Upper Montclair were involved in some sort of price manipulation. The market there was artificially inflated. There is no way in any economy, under any circumstance, prices should go up so high so fast. The truth is that the buyer NEVER knows what goes on after the bid is submitted. And that fact alone leaves trust in Realtors. They can tell you whatever they want after your offer is received. Your money is in their hands the moment you submit the contract. | ||
| luv2cruise Citizen Username: Luv2cruise Post Number: 42 Registered: 12-2002 |
Dear MOL police a.k.a. ajc, Whatever. Stick up for who you want but I will post what I want. That's the beauty of this board. We can say just about anything we're feelin! | ||
| ajc Citizen Username: Ajc Post Number: 1090 Registered: 9-2001 |
You’re right, there's the Beauty, and then there's the Beast of this Board... We can be anything we want, but fortunately we can't say anything we want! So, why not put on our happy faces and see if we can cruise back onto the Maplewood Real Estate Market thread?  | ||
| luv2cruise Citizen Username: Luv2cruise Post Number: 43 Registered: 12-2002 |
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| househunting Citizen Username: Househunting Post Number: 15 Registered: 2-2003 |
Hi everyone. I'm still here- haven't given up yet on Maplewood. I'll tell you one thing I was warned about both Montclair and Maplewood when I was just starting to look at the listings and wondering why the prices were so low in these two towns- someone told me that the realtors artificially price the houses too low to get people excited and start a bidding war. So, now we are taking the listing prices with a grain of salt and looking well below our limit. I agree about looking at fixer-uppers (even my realtor suggested that), but the problem is that my husband and I are not do it yourselfers (in fact, I can't even get my husband to hang a towel rack in our apartment), so anything that needs work would have to be priced low enough to afford to hire people to fix it up. And thanks to everyone who has been so nice and welcoming. To the person who said I was whining and expected a deal- no I don't expect a deal- getting a house below the asking price would be a deal. I just expect a fair chance and until I started looking for a house here I assumed the asking price was just that. Now I know better. | ||
| The New CFA Citizen Username: Cfa Post Number: 866 Registered: 5-2001  |
Househunter...I think everyone deserves a fair chance, but it doesn't always end up that way. I hope in your case, you get the house you want for the price you want to pay. Maplewood is a great town. I would expect to pay a little more, but some of the selling prices are INSANE!!!!! Welcome! | ||
| AZ Citizen Username: Azaltsman Post Number: 70 Registered: 1-2003 |
Househunting - Yeah, we just moved from Manhattan and are not handy at all. I can tell you that a fixer upper is a major commitment. It's easy for someone else to just make that blanket statement. For our first house we were willing to pay more to get a move in condition house. Our house was in more or less move in condition but certain things need work. One thing I can recommend is to try meeting the seller. This means purposely trying to see the house with the agent when you know the seller is there. Then, you can at least chat. This way you put a face on the contract. We did that and it worked for us. We loved the house and made sure the seller knew it. The price, as always, matters more but if you're close with another buyer your chances are greater of getting the house. | ||
| jeb Citizen Username: Jeb Post Number: 66 Registered: 9-2001 |
Househunting, Fair chance at what? This is a seller's market. It seems you want to live in Maplewood and enjoy its amenities but don't want to pay the price Guess what? The reason the prices are so high is because of the amenities. Furthermore, many houses are on the market because they can get a high price. But the bottom line is: no one owes you a "fair chance." | ||
| AZ Citizen Username: Azaltsman Post Number: 71 Registered: 1-2003 |
Jeb, obviously you haven't tried purchasing a house in the last two years. If you had tried then you would understand. Sellers market is one thing. Market manipulation is another. The problem is that some (I'm not making a blanket statement) Realtors are out of control and there is no way to police the system of purchasing property in NJ. Asking prices do not mean anything anymore as they are mere suggestions. I have never seen so many rules and ethics violated for anything then I have before buying a house. If people would just ask what they really want for their house then the entire system would be easier for everyone, even if the price is high balled. At least the buyer would know what the "max" is for a house. That way people wouldn't waste time and energy bidding on houses they clearly cannot afford. | ||
| lseltzer Citizen Username: Lseltzer Post Number: 1404 Registered: 5-2001 |
AZ: your logic is lousy. A realtor who drives the price up to crazy levels is doing his/her job. They work for the seller. | ||
| AZ Citizen Username: Azaltsman Post Number: 72 Registered: 1-2003 |
Lseltzer, Yes, they are doing their job. But unfortunately during the "doing of their job" the buyer derseves a certain level of ethics. Being on the buying end is a tough proposition these days. The problem is putting an offer on a house is not easy. It may seem like an easy process..just sign the contract and that's it. Even if offering above the asking price. It's what happens AFTER the contract is submitted. Buying a house is not like buying a car. You go buy a car, if it doesn't work out at one dealer you go to the next one and buy the same car. Before the offer is placed there is a burden placed on the buyer to ensure that the right decision is being made and the right price is being offered. This situation gets worse if the Realtor is acting in a dual agent capacity where the Realtor represents the buyer and the seller. Total conflict of interest. Check out this web site: http://www.mls2u.com/sellers.htm#2 This is the future. Sellers get the best of both worlds - a listing in MLS, which is the key to the kingdom, and elimiation of the seller's agent comission. The seller is still in total control. I can't see how the seller can't make the same amount of money using this service vs. using a seller's agent. I do believe Realtors play in important role in the purchase of a house but there is no system to weed out the unscrupulous ones. Jacking up the prices too high in a market creates an artificial market subject to sharper downturns. Sellers deserve their ROI as much as buyers deserve to pay a fair price for real estate. | ||
| bobk Supporter Username: Bobk Post Number: 2809 Registered: 5-2001 |
I am sure that their is some clearly unethical activity going on with real estate brokers such as telling a purchaser that there is another bid on the house when there isn't one or hiding flaws that they know about, I don't think this is widespread. Otherwise you are talking about salesmanship which isn't unethical and certainly not illegal. I can't think of a market more free than this one. You can't create an artificial market unless their are people willing to pay the price, which then makes it not an artificial market. And yeah, I know that sounds weird. | ||
| jeb Citizen Username: Jeb Post Number: 68 Registered: 9-2001 |
bobk, Last paragraph is on the mark. A house is worth what people are willing to pay. Regarding: "Sellers deserve their ROI as much as buyers deserve to pay a fair price for real estate." AZ, are you suggesting that we limit a seller's ROI so buyers can have a "fair price"? If so, who determines that price? | ||
| AZ Citizen Username: Azaltsman Post Number: 73 Registered: 1-2003 |
Jeb, I am suggesting there be full disclosure of all bids. All the bids represent the real market. There is too much leeway for Realtors to inflate pricing. Here is an example: a house goes on the market for $400K. It receives 3 offers: 400K, $405K, 420K. Obviously the $420k wins. But in a situation where no one knows how much anyone else bid what's to stop a Realtor from saying that there is a bid for $430K and starting the process all over again? Nothing. The true market represents what people are willing to pay and does not leave room for manipulation. | ||
| bobk Supporter Username: Bobk Post Number: 2813 Registered: 5-2001 |
Be careful here or the TC will extend the Rent Control Ordinance to include price controls on real estate sales. | ||
| 1-2many Citizen Username: Wbg69 Post Number: 89 Registered: 6-2002 |
AZ - if ONLY realtors would tell you $430, in your scenario! What they do is, when there are multiple bids on a house, they come back to you and say, ok, give us another bid, your "highest and best offer." what we were told every time was the bids are "substantially" over asking. in what other market do you have to bid against YOURSELF?! | ||
| jab Citizen Username: Jab Post Number: 8 Registered: 3-2003 |
How do people know how much to bid when they are bidding over the asking price? Somehow we moved to Maplewood without experiencing the notorious local bidding wars. | ||
| lseltzer Citizen Username: Lseltzer Post Number: 1405 Registered: 5-2001 |
All this sounds to me like the price you pay when you bid into a sellers' market. AZ: I suppose I have no objections to your idea of bids being public, but do you know that realtors are actually lying about bids? If not, I don't know what problem it is that you're solving. If the problem is that prices are too high, well obviously they're not because they keep going up. | ||
| jeb Citizen Username: Jeb Post Number: 69 Registered: 9-2001 |
AZ, Why does someone pay $100,000 over asking price? Ans: Because they can afford it, regardless of realtor shenanigans. The scheme you suggest is a public auction which would benefit the buyers more than the sellers. Why should buyers be provided with that advantage? | ||
| AZ Citizen Username: Azaltsman Post Number: 74 Registered: 1-2003 |
Jeb, I disagree. Why would anyone offer to pay $100K over anything? Because that person is told that is what the market is. Why would anyone, despite their financial position, offer to pay such an excessive premium? Even the rich don't do that. It's a different situation if brokers manipulate the market and force buyers into paying more. Conversely, the seller becomes a buyer after selling the property and is then subject to the same problem. It's a no-win situation except for the Realtors involved..since both buyer and seller agents have more to make by jacking up the price. The end result is housing that becomes unaffordable for first time home buyers. And I'm not talking about low income areas either. Just to be clear, I fully support the seller who wants to make as much money as possible. But when the seller becomes the buyer and is subjected to the same market manipulation tactics what has the seller really gained? In a hot market the seller makes a lot profit on the property. But when the seller becomes the buyer that profit will buy you less. Again, both Realtores win. |
