True Gotham

For those wondering if there is still an inventory shortage in the Manhattan real estate market, I'm here to tell you...ABSOLUTELY!  Gazumping just doesn't happen all too often in falling real estate markets and I and many of my colleagues have been victims of the gazump numerous times in the past 2 weeks.  I can't speak specifically for my colleagues but my personal anecdote is this: 

After negotiating an incredible deal with "eager" sellers of an Upper West Side Classic 6, my clients and I awaited delivery of a contract.  After an unexplainable (we thought) delay in receiving the contract, I received the news from the seller's agent that another offer had come in about 5% higher than our agreed upon and accepted offer.  The agent kindly gave us the opportunity to match the offer but my clients rescinded based on the level of renovations that the apartment required.  As an agent who's business is largely representing sellers, I completely appreciate this scenario but I'm always wary of the gazumping offer actually proceeding to a fully executed contract.  The ultimate decision as to whether a seller wants to risk losing the "bird in hand" is completely up to the seller and in this case money talked.

One important point that people need to take away from these scenarios is that none of this is personal and all too often agents and/or their clients do take it that way.  I know deep down that my buyers would love to hear next week that the gazumping bidder backed out of the contract and the sellers are back to square one.  As for my buyers plans, we have the fortune of having found another property even nicer (requiring no renovation) that they would love to call home.

So the bidding begins...

Wouldn't this be evidence of a softening market? 1 or 2 years ago would your clients have backed out from this scenario or would they have entered a bidding war? To me, the willingness to back out so easily suggests that there is less pressure to buy.

I totally appreciate your perspective and point but people reach their threshold in all markets. Bidding wars are plentiful right now and there are always those who "win" and those who choose to "stick with their price." Case in point, 10 offers on a property that I was representing last week. When we proceeded to highes, best and final, 3 bidders dropped out and 7 proceeded to bid the apartment up 15% over it's asking price. Those 3 who decided not to particpate are hardly a sign of a softening market.

But my understanding (based on a post by urbandigs) was that the property on W72nd (which I assume you were talking about) was priced particularly well and the objective was to start a bidding war.

Pricing well should be the goal in any market. Of course our objective was to get the market to bear the best price for the home but that is not as successful a strategy in a softening market. You need high demand and little inventory for that to work best and that's what we have right now.