In today’s real estate market, many sellers in New York are making a critical mistake: overpricing their apartments. This common error can lead to an apartment sitting on the market for an extended period without any offers. When that happens, the seller may have to lower their asking price to try to re-ignite buyer interest.
If you’re thinking about selling your apartment, here’s what you need to know. The best way to avoid making a costly mistake is to work with a trusted real estate agent to find the right price. Here’s a look at what’s at stake if you don’t.
Not Paying Attention To Current Market Conditions
Understanding current market conditions is key to accurate pricing. You don’t want to set your asking price based on what happened during the pandemic. The market has moderated significantly since then, so it’s far better to align your price with today’s reality.
Real estate agents stay updated on market trends and how they impact the pricing strategy for your apartment.
Pricing It Based on What You Want To Make (Not What It’s Worth)
Another misstep is pricing it based on what you want to make on the sale, not necessarily on its current market value. You may see other apartments in your neighborhood selling for top dollar and assume yours can do the same. But you may not be considering differences in size, condition, and features. For example, maybe that other apartment has a private terrace or has been recently renovated. As Bankrate explains:
“How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your apartment is worth, and how much you might reasonably expect to get for it in the current market.”
An agent will do a comparative market analysis (CMA) to ensure your apartment is compared with truly similar properties to get an accurate look at how it should be priced.
Pricing High to Leave Room for Negotiation
Another common, yet misguided strategy is to price your apartment high on purpose, so you have more room to negotiate down during the sale. But this can backfire. A price that seems too high often deters potential buyers from even considering the property. So rather than leaving room for negotiation, you might actually be turning buyers away. As U.S. News Real Estate explains:
“You want to sell your apartment for top dollar, but be realistic about the value of the property and how buyers will see it. If you’ve overpriced your apartment, chances are you’ll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone.”
An agent can help you set a fair price that attracts buyers and encourages more competitive offers.
Bottom Line
Overpricing your apartment can have serious consequences. A knowledgeable real estate agent brings an objective perspective, in-depth market knowledge, and a strategic approach to pricing.
Connect with me today to avoid making a pricing mistake that could cost you.
