Jonathan Miller: Paying Above Ask in Manhattan – On the Rise

Jonathan Miller: Paying Above Ask in Manhattan – On the Rise Source: Jonathan Miller/Curbed

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According to a recent graph and post on Curbed, Jonathan Miller of Miller Samuel Appraisals (the firm which produces Prudential Douglas Elliman’s quarterly Manhattan Market Overview) paying over the last asking price for a Manhattan apartment is on the rise (full graph re-posted below).  Quoted from his post: “To capture the trend, I looked at the % market share of units that closed above the list price at the time of contract (red line). Within that data set, I calculated the average % premium paid above the list price (gray columns).”  His takeaways are:

  • 9.2% of Manhattan apartment sales were over ask in Jan 2011.
  • For those over ask, the sale price was 5.3% over the list price.
  • June 2009 marked the lowest point in over-ask sales at 1.7% share.
  • The high in 2008 was 17.8% of all sales being over-ask.

Since January many calls I’ve made to listing agents to set buyer appointments for their properties yielded the following responses: ” We just sent a contract out and have (a) back up offer(s)“, or, “We just received a signed contract“.  While this may sound like “broker-babble” for buyers just starting their search after watching the market slip since 2008, I’m finding in certain price points, multiple bids and contract signings are happening. 

2011 appears to be starting off strong.  Wall Street Bonuses, increased buyer confidence and relatively low mortgage rates (despite the recent uptick) are driving buyers to make offers and sign contracts.  Great apartments which are well-priced are receiving multiple offers.  Last week The Real Deal reported one Tribeca loft priced around $1.4 Million received 16 offers! 

Being aware of this trend as a buyer is important so you are not caught flat-footed when bidding on the apartment you desire.

Graph of Above Ask Market Share in Manhattan by Jonathan Miller for Curbed New York

Source: Miller Samuel/Matrix & Curbed

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