By Serjk "Serj" Markarian, Licensed Associate Real Estate Broker
Developers appear to be offering steeper discounts to buyers, which according to analysts, is why we saw the recent spike in signed contracts in the luxury segment.
According to a recent report from Redfin, home sellers throughout the US are making concessions to attract buyers. New York City reported a 16.7 percent share of home sales with concessions. While that number is relatively low compared to other metro-cities, it still offers some encouragement to buyers. Also, last month, NAR’s chief economist Lawrence Yun said he believes buyers will begin “to have better negotiating power”, as home sales are bottoming out.
With a healthy volume of inventory on the market, New York is in a much better place than other cities. However, keep in mind that international buyers are now back in the picture and New York is the number one city in the U.S. they’re eyeing. Granted, these buyers are typically looking to purchase second homes in the $5 million and up range, so their presence may not necessarily impact potential negotiations and discounts for homes in a lower price range.
Whether you’re lucky enough to secure a discount or not, it’s important to be smart when it comes to your search. Begin by doing your homework for those of you who may not have an agent. Interview more than one real estate broker and look for someone who 1) listens and offers recommendations; 2) is knowledgeable about NYC neighborhoods, condos vs. coops, etc.; and 3) will work at your pace. Don’t let the agent rush you. They work for you and on your timetable.
If you’re a first-time buyer or it has been awhile since you’ve purchased a home, my list of 20 points to consider before buying could be helpful. Recently, U.S. News also published a good summary guide to prepare first-time buyers. And finally, while this article listing potential “deal breakers” is geared toward sellers, I think buyers might benefit from it as well and note these as red flags to keep an eye out for during their home search.
