Video Report: In-Building Competition

Watch out Brian WIlliams! That was really excellent. Much better on the sound, love the interview and I liked the live shots with you infront of "Gotham" You spoke clear and got the point across! Excellent!

noah - fabulous! this is what it takes for real estate agents to get to the next level - creativity. christine is right, i think you have talent to be the rocketboom of real estate.

go for it!

all the best,

rudy.sellsius°

Nice report Noah.

How does/should in-building competition affect a potential buyers looking/bidding strategies?

Thanks all!

As for how in building competition affects buyers, it should increase interest. If I was a buyer and looking to buy into a building that has in-building competition, I would keep an eye on any target property's listings history and see if the seller does anything drastic with pricing to stimulate activity.

Its like it reveals the seller's cards. If they truly have to sell, and have multiple competition, they will have to lower their price aggressively to get a buyer. If they dont have to sell, price will stay on higher end.

Bidding strategy is simply enhanced by the supply bias in the building. You have more negiotiating power as a buyer and should try for an aggressive offer first, and only go up if seller's response is nothing, or not as much as you hope.

I thought this video looked great. The interview part looked as good as a newscast interview.

Nice job.

Excellent work Noah. You are taking real estate blogging to a higher level. Creative and informative. Loved it.
Your observations on building market pool illustrate an unzillowable that affects value. Having the only apartment in a desired line in a desired building will normally bring a higher price than if there were 4 or 5 others in that line on the market to compete against. Only an experienced professional will know how to price and when to adjust in such a scenario.

The video looks great! It nice to see new shows committed to quality from the start.

Unfortunately, I didn't get a clear take-away message from the segment. Specifically, I didn't get a sense of the in-building competition. It would have been informative to see similar units compared and to get recommendations on how buyers could realize discounts.

Nonetheless, good job -- I'll be watching.

Great post. Love the Video! BlogRoll???

Wow what a difference a clip on mic and a tripod can make! Great work Noah keep it up.

I think the main message that i took away from this is that savvy would-be buyers, who are scanning the listings might want to pay particular attention to the listings, both historical and going forward, in those buildings that have a glut of properties, particularly when they are similarly sized, coming onto the market in one go.

As Cindy mentioned in the clip, when multiple units come onstream in a building, it is usually a competiton to be the first to lower the unit's price, which in turn will stimulate the other units to (possibly) follow suit.

As Noah mentions, this really is going to be realised only if there are sellers who are under more pressure to sell - if other units fall in line in a short period with the first unit's reductions, you probably have a good market there for would be buyers, as it indicates the level of competition between the sellers in the building.

Likewise, if one unit is prices lower, others may not follow suit - this could be because they are being stubborn about selling price (a point Noah has made many times previously) or, i would imagine more likely, is that they want to take a "wait and see" approach and find out what the discounted unit actually goes for, how long it takes to sell etc.

To me, and i could be totally wrong, in building competition is like what we see everyday in stores selling the same product. If one store lowers the unit selling cost, others will *generally* have to follow suit and take the new low price as the base line and discounting takes place from there. Obviously when you move up into higher end dept stores, discounting of the unit selling price occurs less frequently and not at the same level that you would see in the stores that compete more on price than on quality. Why is this? Well we know the foot fall of the higher end stores will generally attract a more wealthy purchaser, with higher disposable income.

I would imagine you could apply the same profile to different buildings when looking at how in building competition will affect the prices of the units on sale there. Those prices of lower priced units to begin with may see quicker price cuts and quicker across the board cuts from other sellers compared to those in higher end buildings, simply because perhaps people there can still play a "wait and see" game and may be financially more solvent. As Cindy said - buyers can still expect multiple offers in the current market climate.

Of course the other factor savvy buyers will want to pay attention to is the number of units that are on sale as a % of the total available in a given building. The higher the total % for sale as a ratio of the total units in that building, the more likely you are to see aggressive in-fighting amongst sellers to discount and "off load" first,

This is just my observations and what i picked up from the report, i don't come from a real estate background, but just what i've picked up, so i could be totally wrong :)

Anyway well done Noah, i love these little video feeds and agree with the other posters about it being a really innovative touch to the blog. Please keep it up as and when you have time to put this stuff together.

Great job ! Did you use a script ? or just speak from the heart ?
What camera did you use. The audio and visual was really good.
~Missy

Missy -

I teamed with a freelance tv producer who is in charge of filming. She used a PAL camera, Panasonic I think, and I wrote the script that she modified based on how to peice the entire clip together.

It was our first video together and MANY more to come! Keep tuned in. Hopefully we can get some backing/partners and make this a much more consistent content stream on UrbanDigs!

Dave - you raised all the points I was hoping to get across with this video. I agree with all of them. Thanks for commenting and keep it coming!

And yes, more videos to come!

Stellar job Noah! I'm just sorry it took me so long to check it out. I have become increasingly more impressed with your blog and this report is just another solid addition to an already excellent site! Keep raising the bar my friend...the industry needs more like you!

Doug - many thanks for the kind words!! Like you, I'm trying my best! See you on at the conference!