How do I find the right asking price to sell my co-op quickly?

With more limited inventory than usual for spring, finding comps—sales data on comparable apartments—is challenging, so you (or your broker) will need to do more legwork to come up with a price that won’t leave your property lingering on the market, according to our experts.

But the market is picking up steam thanks to an increase in listings, which is helping to boost sales. According to a new report from StreetEasy, so far this year, 10,153 NYC properties have entered contract, 1.2 percent more than last year.

Competition is leading to higher prices for some listings—15.4 percent of properties sold above initial asking, slightly higher than 14.2 percent a year ago. But high mortgage rates mean most buyers using financing have little to no room to stretch their budgets, the report noted.

The StreetEasy report found properties that entered contract in May were priced 1.8 percent below similar listings in the neighborhood on average and spent a median of just 55 days on the market (this data point excludes luxury homes, defined as the top 10 percent of the market). In comparison, the median for days on market for all properties for sale is 184 days.

So what do you do if you want to sell in two months (or less) as opposed to six? Ideally, your first choice would be to look at most recent sales data for the closest comparable apartments.

“Comparable means: Same size, preferably same building, if not [then] similar location; same level of renovation; and similar carrying costs,” explained Deanna Kory, a broker at Corcoran.

Here’s one of several points where a broker can come in handy in setting a price: “An agent can help find out if there is an inside info on sales prices for properties in contract,” Kory said.

Being objective is hard

But even when armed with all this data, sellers can have a hard time being objective about setting a price.

“Sellers usually see their apartments with rose-colored glasses,” Kory said. “Most sellers do not see their own property objectively and will be swayed to list with an agent at a higher price.”

The remedy for this is to “get three agents who know your building or neighborhood to come and present their pricing opinion,” she said.

And you can do that kind of survey whether you have a bunch or just a few good comps.

Your goal for a fast sale will likely be to figure out what is market value for your property and then price it slightly below that. In most cases, you will elicit multiple offers that will usually be above the asking price, Kory said.

Crunching the numbers

NYC sellers benefit from the wealth of real estate data and analysis that’s available. Two sources recommended by Nicole Beauchamp, a broker at Sotheby’s International Realty, are UrbanDigs and Olshan Report. Your broker can help you understand the information in these reports.

Consider the data and prepare your apartment, Beauchamp said.

“Well priced and great condition is imperative. Invest the money to refresh the apartment as needed—paint, redo floors, deep clean, including windows—and if possible, stage your apartment,” she said.

If you don’t do all of this? “Your property will end up being the one that buyers watch for see price reductions or other signs that you’re a motivated seller,” she said.

Beauchamp also taps her network to help figure out comps for her seller clients.

“I will call other brokers to find out about their recent experiences, even properties that are expired or off market, to find out what were the underlying issues,” she said.

She might ask a colleague to do a walkthrough of the listing to get their feedback, especially in parts of the city where she hasn’t had many sales.

“I tell my clients that intel from my extended professional network is my best asset,” Beauchamp said.

“Everyone always thinks they have the best property,” Beauchamp said. That’s why you need to use data and do your homework to avoid bad pricing, which leads to a stale listing that’s expensive to carry for months on end.

When you have to accept a lower price

Sometimes the arithmetic doesn’t add up to the number you want.

Scott Harris, a broker at Brown Harris Stevens, says sellers need to ask themselves the following questions: What's the condition of my home? Am I willing to accept less than I was hoping for or even take a loss if that's what the market says?

Renovated properties are selling more quickly, he points out. The costs of doing work have risen substantially, and buyers are concerned about not only paying for work but the time it takes to do a makeover.

So if you have upgraded your apartment, “you'll know you're priced right if you have offers within the first week or two,” Harris said.

“We recently put an Uptown condominium into contract that had already gone through three other listing agents over 18 months. The difference was a few marketing shifts, but primarily a necessary price drop,” he said.

Some sellers must stomach a loss to sell in this market. He noted that a client who bought his condo in 2016 is facing a 25 percent loss.

Harris advises sellers to look at the big picture and ask themselves the following questions:

• Can your equity make more money today elsewhere, or should you wait for the market to recover?
• Is there a backup option, like renting out the unit between now and then?
• Are you looking to upgrade?
• Is there a good opportunity to save money on your next purchase?

“The answers to these questions will give you more confidence to take the next step, whatever it is,” Harris said.

Trouble at home? Get your NYC apartment-dweller questions answered by an expert. Send your questions to experts@brickunderground.com.

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