A Buyer’s Mindset

Although I’m not involved with the deal, I happen to know both the buyer and seller of 2 Old Stone Bridge, reported as under contract yesterday. The seller’s convinced the buyer “stole it” – the buyer’s convinced that the market’s still got a long way to fall but he needed a house, held his nose and went ahead with the deal. I think the buyer will eventually do well with the place (I can report the selling price Monday, when it closes) but regardless, his comments illustrate what’s happening out there which is, unless a buyer really truly needs to buy, now, he won’t, and even then, he insists on paying a price that the seller feels borders on the criminal.

So if you’re a seller, I suggest that you not sell now unless you really truly have to and if you do, prepare to be unhappy with the price you get. Of course, if you, like my buyer/friend, are convinced that the market will continue to plumet, you may want to sell now to avoid the debacle. Your choice.

4 Comments

Filed under Buying/Selling Greenwich Real Estate, Cos Cob, current market conditions

4 responses to “A Buyer’s Mindset

  1. christopherfountain

    Well even Prudential’s statistics show Greenwich sales off 34% through September and that doesn’t reflect the absolute freezing of the market these past three months. I certainly hope the optimism of Pru’s chief proves well founded – I make a living in the same industry he does – but the buyers I’m talking to don’t share his sentiments.
    Where I don’t disagree with the guy is his charge that some of this was a media-induced panic. In my opinion, the media was so determined to undermine Bush that it engaged in an 8 year campaign to sow doubts about the economy and lo, it finally worked. It’s of some consolation to see that its now being hoist by its own petard.

  2. W.

    The question for the optimists is what is your benchmark for fair value? If it is bubble prices (and no one disputes that there was a bubble at this point) then I think it is clear by now that you are not being rational. Buyers understand that Fairfield County real estate should be expensive. It is a nice place to live and there is proximity to an unparalleled number of high paying jobs (even now) compared to just about any other area in the U.S. However, these same positive factors have been in place for a long time. This is why it is confusing that many sellers and agents insist that 2004-2007 prices are more relevant as a benchmark than 2000-2004. There is no law that real estate must move in a straight line up and there is no clear justification why comps from the most extreme bubble period should have any more worth that the years that preceded it.

  3. Anonymous

    The hedge fund industry will not return to its same status and profitability for a long time…what do you think that says about Fairfield County housing prices? Wait, don’t answer – that was a rhetorical question.