So late last year, my hubby and I started house-hunting. We really didn't know what we were doing and got lots of advice from different people, many of which conflicted. The running theme of everyone's experiences was that buying real estate in NYC sucks.
We started hunting late last year and then stopped because the market was totally dead during the winter. Throughout the fall and winter we were hoping to buy a condo next door that had gone up for sale. The couple that owned the condo was getting a divorce and supposedly, selling the condo was part of their settlement. The condo was big enough for a family just starting out and it was sunny. In the end, I think a big reason we both really liked it was because we didn't want to leave the neighborhood we already lived in. Moving next door would mean we stay in our comfort zone and the move itself would be more convenient.
In any case, we made our first bid 10 percent below asking price. According to the selling agent, it was a terribly lowball bid and the sellers were very unhappy and wanted to throw our offer away and wait for another one. The agent claims that she talked them into making a counteroffer by explaining to them that we're negotiating and this is how it's done. So they moved their price lower by almost nothing percentage-wise, which in turn irritated us. Hubby really wanted to move quickly and buy the place. He was willing to offer them the asking price if need be. I originally was very excited, but as time passed, I became less enthusiastic about the place and after each interaction with the selling agent, the less I wanted to negotiate with them. Anyways, so our next number was much higher to show that we were willing to move. They moved almost nothing again. Seeing as they have no had any other bids, I convinced hubby to wait a month before making our next bid. If there was no competition, they either had to sell to us at the price we're offering or not sell at all. I thought it was unreasonable of them to expect that someone would just walk in and immediately buy the place at their asking price. The selling agent conveyed that despite the fact that the couple had only moved their number lower by almost nothing, percentage-wise, they were pissed because they felt like we were trying to get them to sell for "way below market value." It seemed to me that they were pissed all the time and were pissed at us a lot because they had no other offer and didn't like ours. Anyways, we made our last and final bid and our number was again much higher than the previous number. We don't hear a reply for a long time and when the selling agent finally called us back, it turns out that they decided not to sell it.
The story, as far as we can glean from the selling agent, was that the husband wanted to sell it but the wife didn't. So despite all the fighting between me and my hubby on the negotiation process, it was possible the wife put it on the market to please the husband, but never intended to follow through with a sale. The selling agent hinted at them fighting a great deal throughout the process and often mentioned how the husband would be angry at how low our number was no matter how high we moved it. This made me angry because I felt like if they wanted the asking price, they should have just said from the start, "no negotiation" or something to that effect instead of throwing a temper tantrum every time we gave a new number that wasn't their asking price. I was unhappy with the couple because I really felt like they jerked us around and that we really had no chance of getting the place.
Meanwhile, the condo upstairs also went on sale for a much higher price, which was immediately reduced a week later by a sizable amount. We considered briefly buying the upstairs one, but the charm of possibly living in the building next door has been mostly lost. The one we bid on was pulled from the market, probably because the wife was more than happy to keep the place, and the one above is still trying to sell, even at the reduced price.
So then I found a small house a little farther away from Manhattan. Yes, the commute would have been longer, but the neighborhood, I think, is nicer and the schools are better. Plus, it's a small house! It's not a condo where you have to worry about how your exercise routine might irritate the neighbors downstairs. You don't have to worry about your building-mates messing up the common areas or have stuff on their terrace overhang and block the view on your terrace. Of course, having a house also means you have to do your own snow removal and all the maintenance. Still, it would be nice to have a house.
So anyways, we went to see this house and although I rather liked it, my hubby was only okay with it. He said there was too little living room and too much dining room. Also, there was no back yard, which I didn't really like. The good thing was that it came with a much-coveted garage. Parking is a real pain in NYC. Overall, it was a pretty nice house. The agent that showed us around sounded like she thought we'd be in pretty decent standing since I mentioned we were already prequalified. She said that the owner had previously accepted an offer but it fell through when the buyer could not secure a loan. In the end, we decided not to bid on this house.
A few days later, another house came on the market. This house had everything we were looking for. Apparently, it appealed to many others as well because when we went to see it 4 days after it was listed, 3 or 4 other prospective buyers had already seen it and there were more viewings scheduled after us. There was definitely a lot of excitement around this house! After checking out the place, we fell in love with it. It had a back yard, a garage, a front porch and a furnished basement. It's a small, modest house, only 2 blocks away from the subway station and a block way from a decently sized supermarket. The schools are good and the area is quiet.
Considering all the interest in the house, we were worried about getting into a bidding war, but decided that we'll try for it and if we don't get there, there is bound to be another house in NYC for us. When hubby called the agent to make a bid, it turns out that there was already a bid on the house. Hubby made a competing bid for slightly higher, promising at least 20% down payment and mentioned we were prequalified. Apparently, the agent said that puts us in better standing because the other bid wasn't going to put as much down and did not have a prequal letter. He asked us to send him our prequal letter, but unfortunately for us, it had just expired.
So we sent in our old one and started the process of renewing it. This led us to a great deal of misery, excitement and confusion. I think I'll leave that part of the saga for my next post on hunting for a home.
No comments:
Post a Comment