Tips For Pricing Your Manhattan Home
The overpricing of many luxury Manhattan homes causes properties to linger on the market now for an average of a year or longer. The average time on market for a balanced market is 180 days. Proper Manhattan home pricing is more of an art than a science. Below are some of my tips to accurately pricing your home. If you’re for more information on pricing strategy, here is a handy guide from Douglas Elliman.
1. Check Nearby Property Statistics – What are the household incomes, percentage of buyers and rentals and recent sales in the neighborhood? What are the sales prices of comparable properties in your neighborhood and in your building? This will give you a good sense of an appropriate price range for your property.
2. Have your broker provide you with detailed information about the comparable that cause them to be worth more or less than your property such as views, light, ceiling height, condition and demand.
3. Price your property at fair market value. This will attract the most buyers and will most likely result in a higher sales price. Here is why this strategy works best!
- The largest number of buyers come in the first three weeks of the marketing. If your property is over -priced you will miss out.
- Historically properties that are on the market for a long time and receive price reductions end up selling for less than they would if they were priced correctly in the beginning.
- Buyers today are very perceptive due to all the information they get from consumer real estate portals. In addition, they lack a sense of urgency. If they are interested in your property, they will just track your property and wait for price reductions.
- When properties are priced correctly, they often attract multiple offers where you can end up with a higher price than with one solo buyer bidding. I have experienced this many times and highly recommend
- If you cannot resist asking a higher price than that one recommended by your broker than then you can test the market with a higher price. Monitor the showing traffic for the first two weeks carefully. If there the traffic is weak than the market has spoken. Make the price adjustment early to take advantage of your property being “new” on the market.
Does Manhattan home pricing have you stuck? Contact me for an evaluation of your home.