Pricing an apartment in New York City has never been easy. In today’s market conditions, it is even trickier. There are so many factors to consider, and ultimately it will always come down to what buyers are willing to pay. We are in a buyer’s market right now, and they have a lot of negotiating power.
We also have had a lot of changes in New York rental laws and regulations, most of which favor renters and buyers more than property owners and landlords. This is certainly affecting resale prices for apartments, condos and co-op units throughout Manhattan. It’s safe to say that setting a proper price is kind of a moving target right now.
Here are a few tips that can help you when it comes to pricing your apartment:
1. Only Compare Recent Sale Prices
You can never trust list prices when setting the asking price for your property. When it comes to properly pricing an apartment, what matters most is final prices from completed sales of comparable units. This shows the real value and what buyers are actually willing to pay on the open market.
2. Set Realistic Expectations
You may have to accept the fact that your apartment isn’t worth what it might have been a couple years ago. The New York real estate market will always have its ups and downs, so buying and selling successfully is always a matter of timing. Before you sell, do your research and set realistic expectations relating to an acceptable sale price and timeframe.
3. Determine an Acceptable Price Range
Any home seller should have a low-end value they are willing to accept if it’s the best offer they can get. The asking price will of course be higher than that number, but remember it is still just a starting point. Sometimes you get lucky with a bidding war and go over the asking price. Otherwise, it all comes down to negotiations with the buyer. The fact is that 81% of condos and co-ops that sold in New York in 2019 had at least one price cut before the transaction closed. The median condo discount last year was 8%, while co-ops saw a 7% average discount.
4. Set a Desirable Asking Price
Speaking of the asking price, you want to avoid setting one so high that buyers won’t even be interested at looking at the property. This is a conversation real estate agents have with home sellers throughout the country every single day. They know the final price will likely be lower than the asking price, so they think setting a higher asking price will help the final resale value. However, it doesn’t work this way. A home with too high of an asking price will turn off any potential buyers. If nobody is willing to even look at the property because it’s out of their price range, then no offers will be made. Then, you have to make bigger price cuts and that ends up making you look more desperate.
Whether the market is red hot or a little slow like it is now here in New York, setting the price of any home, apartment, condo or co-op is an important step every seller has to take. The proper price will attract more potential buyers. More interested buyers lead to more offers. More offers lead to better final resale prices and quicker sales. Pricing your property too high or too low will only work against you in the long run.
It also pays to work with an experienced real estate broker who knows the market and can help you set the right price for your unit. Never underestimate the value of having a real estate professional on your side!
Tom Postilio and Mickey Conlon are two of Manhattan’s premier real estate brokers, serving home buyers, sellers, renters, and investors throughout the city. If you are ready to sell your home, contact Tom & Mickey today and get the right price for your listing.