Every market is like a new dance – as the music changes, so do the moves. Every “song” in each season has its own rhythm and moves.
This market reminds me of the disco season, which was characterized by John Travolta and his now famous choreography.
Well, this market has its own moves, music and choreography. For the last few years, it has been a loud, screaming loud where everyone was on the dance floor.
But even John Travolta needed a break.
And so is the current market demand. It’s taking a breather.
And yet some folks are pricing their properties like it’s still Saturday Night Fever!
Everyone needs to take a breather and consider what the market can actually support.
There is this one property on the Jersey Shore that listed at $1.6 million on a 70×100 sq-ft lot, and property taxes at $11,600 a year. It’s four blocks from the beach.
Now, 22 days later it reduced the price by $50,000.
$50,000 – ah well, what’s $50 grand???
Well, if that is the case, why not $100 grand?
I know of a house that was priced at $1 million, and now has cut the price twice, going down to $900K – and still it’s crickets. The house is nice, but the overhead, between the taxes and the flood insurance, is going to be about $18K a year.
At some point, the money supply is going to dry up… not all the way, but this kind of price reduction points to some bad market analysis. My thinking is to price a property fairly, not based upon the “old music” and “dance steps” of 2023. It’s 2024, and the music is a bit slower and not as loud. When you price a home, it’s not a shake-down. The approach to take is “to leave some money on the table” because you never get a second chance to leave a first impression.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/