Your Asking Price
Residential real estate truly lies at the intersection of art and science. Working with a broker on coming up with an asking price for your listing? No exception.
One must weigh competition for sale, not selling, and sold, building financials, building dynamics, monthly charges or HOAs, property taxes, macroeconomic trends, financing rates, neighborhood evolution and seasonal timing. One must also weigh buyer sentiment, interior and building trends, seller motives, life changes, co-op board philosophies, evolving tastes, sounds, smells and color palates, and even sunlight.
This is a task that is equal parts data-analysis and tapping of the 6th-sense. One must leverage a broker who fully understands how to interpret data and trends and apply it to the sale of your particular piece of residential real estate, addressing your own hopes, life changes and objectives.
Here are some quick tips to avoid a listing price mistake, leading to excessive days on the market, and potentially, a lost sale:
- Be smart about capturing strong early traffic with an intelligent, eye-catching sticker price that is ambitious while still being sensitive to competition, comps and common search criteria
- Don’t be afraid to make minor, incremental adjustments to communicate motivation and realism
- Observe seasonality and changes in market dynamics – if in a strong seller’s spring market, for example, leverage your traffic and capture the uptick
- Wisely price vs. in-building or in-neighborhood comparable sales, and be able to substantiate your mark-up with real value-adds that save the buyer time, money or renovations
- Know when to increase your asking price for a property’s “intangible” that sets it apart from competition given what’s “en vogue” for buyers
- Try not to let your purchase price influence your asking price, especially if its from a different “sales era”
- Allow price changes time to stick & be open to marketing for a while – there’s a buyer for every space!