Pricing Right for Premium Sales
Over the last 18 months, we have talked repeatedly about using pricing as a strategy to sell homes in this market. Just yesterday, a buyer working with our team won a $4.2 million listing for $3.65 million. And the buyer got even more incentives on top of that! The kicker for the seller was that it took over 350 days to get there. Could he/she gotten more if they priced the property at $.3.95 million 349 days ago? And how did we come to this point in today's market?
To all the sellers out there in the marketplace, I’ll say it again – you have to price right! Your property shows and sells best when it is priced at fair market value. As the asking price increases above market value, you lose great prospective buyers and you lose money!
Here’s How to Determine If You’ve Overpriced Your Listing:
If your listing is on the market for 30 to 60 days, and you’re getting showings and offers but no sales, I’d say your home is overpriced by 5 percent.
If your property has been on the market for 30 to 60 days, and you’re getting showings but no offers, the property is overpriced by 5 to 10 percent.
And, if you aren’t getting any showings after 30 to 60 days on the market, guess what? You’re listing is overpriced by at least 10 percent, probably more!
We all need to wake up! This isn’t 2015, and it’s not 2016. This is a new era, and buyers are saying, “The buck stops here!” But the thing is, buyers still want to buy! The interest rates are extremely low, and they might even go lower in the future. Oversaturation is abundant in the over-$4 million sector, and to a lesser extent, throughout the pricing spectrum.
That said, if you’re a seller and you want to sell, please take heed — pricing right creates a sense of urgency with buyers. Pricing right leaves the seller in control of negotiations. Pricing right can lead to multiple showings, multiple offers and fewer days on market! It captures a higher selling price every time. Reduced days on market gives you more take-home cash, too. In fact, the longer you stay on the market, the more dollars you leave in the buyer’s pocket. Price right!
Listen, if your broker isn’t revisiting and revising in your marketing plan early and often, then you have the wrong agent representing you. Sales are happening in this market, but those are with sellers who are pricing right. Smart buyers, meanwhile, I hope you are taking advantage of an excellent opportunity to get into the New York City market with unbeatable interest rates and prices that are 10 to 30 percent less than what they were just three or four years ago!
It’s a great market, but you’ve got to be smart. Smarter than the market. Only when you act in accordance with actual market conditions will you get what you want.
Events This Month
The NYC Marathon | November 3rd
More than 40,000 marathoners hotfoot it through all five boroughs over a 26.2-mile course. Stake out a lively spot—we recommend along Fourth Avenue in Park Slope, Brooklyn; First Avenue between 60th and 96th Streets in Manhattan; or Central Park South near the finish line—to cheer on the passing throngs. More information
NY Botanical Garden Holiday Train Show | Begins November 23rd
The New York Botanical Garden Holiday Train Show returns this season! Marvel at model trains zipping through an enchanting display of more than 175 famous New York landmarks all made from natural materials. Learn more and get your tickets here.
The 92nd Annual Macy’s Thanksgiving Day Parade | November 28th
The best NYC Thanksgiving tradition (other than the food) is back! Don’t miss the iconic Macy’s Thanksgiving Day Parade. If you’re in NYC for the holiday, get ready to post up along the parade route to enjoy this spectacle! Not in NYC? You can watch the parade live on NBC Thanksgiving morning at 9:00AM.