Manhattan, New York is the most efficient and transparent real estate market in the world. Reasons are:
1. Closed transactions are public record
In Manhattan, data is openly available on all units that closed within each building. For example, if recent transactions all closed at around $1500 per square foot, there is a good certainty that the next transaction will close around that. Not $2000 and not $1000 per square foot unless there is some extraordinary variable such as being a penthouse unit or a unit needing heavy renovation.
2. Access to entire inventory
Real estate agents representing buyers have access to the entire Manhattan inventory for sale. This means that if there are 10,000 units on the market, the agent representing the buyer can show all 10,000 units. In certain countries, brokers only show units marketed by their company. This is not the case in Manhattan and it means there is no showing bias with properties.
3. People know their property's value
Real estate is everyone's hobby. Anyone who owns real estate will know the price of their property. They follow property news closely. You won't find a grandmother who is selling for 25% less than market because she doesn't know the market. That's only in the real estate seminars and "Rich Dad Poor Dad" books
Given the above, how do you get a "deal"? You get a deal by buying the right property at the right location and the right price given your investment objectives. There is a reason why certain buildings trade at higher than market average and others at below average. Just because a building trades at 20% below Manhattan average may not mean it's a deal because the associated risks are likely higher.
Visit us at Castle Avenue Partners - Manhattan investment condo properties.
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