Ask Annie: Edition 2
BUYING IN A BUYERS MARKET VS. SELLING IN A BUYER’S MARKET
It is still a buyer’s market. Plain and simple. There is so much inventory (both new construction and resale properties) on the market that buyers have more choices than ever, and the results have included price drops and negotiations. In addition, properties are sitting for longer periods while buyers look for the best deal. It is generally acknowledged that the longer a property languishes, the more stale the listing becomes, and a price drop becomes necessary to regain traction.
But what does this mean for sellers? Are you totally out of luck? The answer is: not if you are realistic and getting truthful advice from your broker. The key is to price it properly from the start. Many sellers are still holding on to the market values of two years ago, when inventory was scarce and properties were priced high and had bidding wars. Many inexperienced brokers are afraid to tell a prospective seller the truth. The apartment must be priced for the current market. Sellers must accept that an experienced broker knows the price that will make a property sell, or they will find out the hard way.
If you are a seller, the condition of your apartment, your monthly maintenance fees, and your building’s financing rules are all factors to consider when pricing. Remember, with so much new construction across the city, buyers can now easily get brand new appliances and elaborate amenities and beautiful modern spaces at reasonable prices. How your apartment feels upon entry makes a huge impact. Neutral colors, an un-cluttered feel, good lighting, a contemporary vibe, all allow buyers to envision themselves living there.
Recognizing and listing at the right price has allowed me to have a very busy summer on behalf of my clients. For example, I recently helped a client sell a beautiful, six-room prewar apartment on Lexington Avenue in the low 90’s. The apartment was initially overpriced and still had no offers after 35 viewings. I convinced the client to lower the price to where I felt it should be, and obtained a full cash offer immediately.
If you are looking for a change – an empty nester looking to downsize, a restless long-term homeowner ready to try out another neighborhood in the city, an expanding family looking for a bigger space, a first-time buyer, or a parent looking for a starter apartment for an adult child, there are deals to be had and this is a great time to look! And if you need to sell an apartment, remember, pricing it right from the start will make all the difference.
As always, please feel free to contact me any time if you have questions about the market, the current value of your home, or if you are interested in looking at a new property. And I do love referrals…my whole business is built upon them.