(post by BT) I was going through our listings in the last 12 months and noticed a bad trend. For most of the first 3 quarters of 2008, some sellers were priced right and some where a little over priced, but we were able to move them. But when October arrived and Lehman Brothers evaporated, then followed by more large-scale failures, suddenly whatever immunity we had left to the market’s ills in NYC suddenly wasn’t there. That is old news now… but the real killer to see clients not take notice. No matter how much I tired to educate them, few listened. Eventually, they all ended up selling for less or not selling at all.

I had some serious offers from serious buyers but those sellers wanted more, still acting like the economy didn’t matter. Losing my patience with the worst of them, while burning my energy trying to save them from their own ignorance, I started to see some listings go bad, expire and never sell.  Buyers started making offers with the expectations of further decline in prices in 2009, therefore building in some cushion by low-balling. I don’t blame them. If I were buying right now, I would be looking for a discount as well. 

It is my belief things will get worst before they get better, and those sellers who don’t get it today are in for a scary ride tomorrow.  I had a house in central Queens overpriced at $659K.  We had over 50 buyers come through — and just 3 offers!!! First one: $585K.  Second: $600,000, and third: $610K. Both I and other agent involved in the deal (the selling agent) were anxious. I swore, the last offer was it! $610,000 offer… seller counters with $650K Keep in mind, we knew the house would not even appraise for that much!

Buyer will not counter. $610K is his final offer. Seller comes down to $635,000.  OK, I said, we are close. Now my office and the other agent throw in another $5K each from our own commission (accept lesser commission) to make the deal happen, bringing the sales price down to $620,000. They wont budge! The buyer is not willing to overpay and so we lose him. I was so pissed, I wanted to scream.

The buyers found something for a lot less. The sellers let the listing expire, claiming they would not re-list and would just wait out the market. This is all right before the October madness. 3 months later I notice the house is back on the market with another agent. Today, the house is worth probably $550K! 70 grand less than the offer they rejected.  They could have sold for $620,000.

To make things worse, their ASKING PRICE is $618,000 – less than the offer they rejected. I think of them as total jackasses now. They are also paying the other agent a higher commission (watch commissions go back up, as Realtors ask to get compensated for the quadruple the work it takes to sell today vs. 2005 or 2006, when commissions went down and brokerages like Foxtons were still around). I am sure they realize themselves how stupid they were not to listen to our advice but still, makes you feel like wife left you for another.