Overprice on Purpose as a strategy

It is without a doubt the strategy of many a seller that I'm sure works on some occasions and backfires on others. The drawback in doing this strategy is that, in asking $1.2 - you could be scaring away a lot of people who would pay $1mil from even putting in a bid.

No. If overpricing is a strategy at all, it's a strategy brokers use to get listings.

A buyer has to be incredibly stupid to think a price cut on an overpriced apartment equals a bargain.

In general, you don't sell apartments by overpricing them. You sell apartments by UNDERpricing them. Low prices attract interest and spark competitive bidding.

"You sell apartments by UNDERpricing them. Low prices attract interest and spark competitive bidding."

Couldn't agree more...just did with my place in Gramercy...priced it a bit lower than i wanted, but broker was right...lots of demand and we're going through 2 offers as we speak...

Not a fan over the overprice strategy...have a few in my building and they are rotting away....actually helped me as they saw theirs and then mine was a no brainer

have you guys read the posts on brownstoner's house of the day?

Every post is "priced way too high" or should be XXXX lower.

If I were to sell a brownstone now, I would realize that I need to over price it to sell it.

Also with brownstones it is difficult to get an exact comp. Therefore I think that the strategy of overpricing in todays market is a good one for the brownstone market. not so much for a unit in a multi unit building where comps are easy to find.

The greater the number of quality comps available, the more it pays to accurately price an apartment to begin. Educated buyers will identify it immediately and bids will come quickly. By overpricing, you may find a sucker but it's unlikely. You may also attract low ball offers that are useless, or you may get nothing. I think a very good strategy is to estimate the best case sales price (maybe slightly over comps because of a higher floor, better kitchen, etc). Listen closely to shoppers during the OH's and solicit comments. Then, at 3-4 weeks into the listing seriously assess where you are and adjust. Do NOT just nibble away at the price over months. It turns off buyers, the listing gets stale, it's kind of low-brow.

Overpricing is the kiss of death.

Whatever happened to that guy selling the $70 million apartment at the Pierre? Hasn't he been on the market now for 3 years??

overpricing is bad strategy as even if you get a higher than "market value" offer, it probably won't appraise with the lender.