“Great light, needs some TLC.”
Ever wonder why an NYC apartment can be slow to sell? You’re not alone. While some might see languishing listings as stale inventory and not worth considering, they can be great for certain buyers. Let’s explore the most common problems behind a property that has a hard time selling.
1. It’s overpriced.
Maybe the owner has a certain price they’re looking to get, or they’re working with a broker who has created unrealistic expectations. It’s one thing for an owner to come out of the gate and test the market, but if the first few open houses don’t bring much attention, it’s time to switch gears and consider a price drop. If an owner is completely unmotivated, these drops will never happen, resulting in a listing that never moves.
2. It isn’t what it says it is.
“Stunning views, bring your sunglasses, enjoy luxury living in one of New York City’s most desirable addresses,” says the listing. You show up to the open house and find that the apartment is as dark as a dungeon, that it’s the antithesis of luxury, and that it’s a solid 10 blocks from one of NYC’s semi-most-desirable addresses. Imagine how you’d feel about wasting your time. That’s how everyone will feel, and the apartment will never sell.
3. It doesn’t look clean, tidy and habitable.
There’s nothing like walking into a property where you’re unsure where to take your next step, because it’s a complete mess. Perhaps the owner’s family is still living in it, or it’s occupied by tenants who don’t care. No prospective buyer will feel comfortable about buying a pigsty unless the price is so low they can look the other way.
4. The property needs a renovation but it is priced like it’s had one.
Many buyers are comfortable doing a full gut renovation. But the property they’re buying must come at enough of a discount that they feel like they are getting value by doing it. It’s a simple formula: Property cost plus renovation cost must be less than the price of a fully renovated property. Otherwise, the buyer will be looking at properties that have already had renovations or are newer. If the price doesn’t make sense, the listing will collect dust.
5. The listing photos are unattractive.
If the listing photos are blurry or nonexistent (besides a floor plan), the property will not move. The caveat here is that if it’s undervalued, you might still have people inquiring. The saying “don’t judge a book by its cover” generally doesn’t work for real estate, though. Everyone is judging a property by its photos. If they’re not decent, all you’ll be hearing at your open house is crickets.
6. A previous sale fell through.
Maybe a property went into contract, but before it could close, the sale went kaput. Perhaps the buyer wasn’t able to get a mortgage, and got out of the contract with a mortgage contingency, or the co-op board did not approve the application. Maybe the home appraised at a lower value than the sales price.
These things happen, and when they do, it means that the property will be listed in contract for several months, only to come back on the market several months later. The listing will look as though it has been on the market forever — but that doesn’t necessarily mean there’s a problem with it.
Overall
When you see a sales listing linger on the market, your first instinct may be to hesitate. But it could be a golden opportunity. If a property languishes, its seller often becomes more flexible about pricing and terms. The opportunity for a potential buyer lies in getting in at the right time and taking advantage of a seller willing to rid themselves of their property at a price below what’s listed. Always remember: Keep an open mind, work with a broker you trust, and enjoy the house hunt.
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