Irrational Pricing

the 108th st is $1700 lower maintenance

That's true--that should account for 200-300k in price. So maybe instead of 800k less it should be asking 500k less.

I would not expect a seller or the seller's broker to check every single comparable listing within a 2 mile radius and make sure they underprice every single other listing. Maybe they think their apt is better for some reason (how about 20k less a year in monthly charges). Maybe they need a certain price for some reason, to pay off debt, to retire, or maybe they don't really need to sell. Maybe they are listing high so they can negotiate down. Or again maybe they just didn't look at every comparable listing 30+ blocks away.

I'm not saying this place is well priced, probably not.

I'm sorry, ccdevi, but what are brokers paid for if not to look at a handful of comps before suggesting a price for a listing? It's not like there are thousands of prewar classic 7's on the market right now on the upper west side, let alone on riverside drive. there are probably less than 20 prewar classic 7's on the upper west side on the market right now. yes, i would expect an agent to look at those comps, and any intelligent seller should do the same.

the truth is, a lot of brokers get listings by suggesting unrealistic prices to their prospective clients. this trend is getting worse now that they can point to comps from a time when prices were a lot higher.

I ignore all of James Perez's asking prices. They're almost all crazy.

fine so they can look at them, but finding one apt 30+ blocks away cannot dictate what you price your place at.

"Maybe they need a certain price for some reason"

THIS IS MY FAVORITE STATEMENT OF ALL TIME.

Tell you what, ccdevi, I have a ball of red yarn that cost me $1.99. But I need to retire so I need to sell it for $10,000. Would you buy it?

There is NO SUCH THING as "a certain price." Sellers DO NOT set prices except in monopoly or oligopoly situations. Here we're faced with a 3-year inventory of overpriced apartments. Please.

West81st, does he ever actually, you know, SELL an apartment? How can a broker continually misprice apartments and stay in business?

ccdevi,

excuse me, but if apartments similar to but more valuable than your apartment are on the market and aren't selling, you don't think that should "dictate what you price your place at"? what SHOULD dictate what you price your place at--wishful thinking? hope? need? hallucinatory drugs?

happyrenter: Perez has sold loads of product. Inflated asking prices aren't that big a deal. They're just a starting point for discussion. If anyone is stupid enough to pay them, it's their fault, not JP's.

obviously people don't have to pay asking prices, i just find that a very strange selling strategy.

west81, correct.

steve, you're such an idiot. Your entire post is non-responsive per usual. No I wouldn't buy it, I didn't say sellers set the price something is sold at, they set the asking price. If they need a certain price they may ask for it, never said anything about them getting it.

"but if apartments similar to but more valuable than your apartment are on the market and aren't selling, you don't think that should "dictate what you price your place at"?"

well now you are into apts plural, and you're assuming they are similar and in fact that the other is superior. The example you gave was one apt, 30+ blocks away on a lower floor with monthly maintenance about 85% higher. I have no idea whether the buildings are just as good or what other factors there nay be. But regardless, it still does not make sense for you do ridicule their asking price based on 1 listing which btw has already gone through several price reductions. As I said there are many reasons why they may have priced it at this level. Thats not to say they will get anywhere near that price, I have no idea.

"steve, you're such an idiot."

Thanks, but no thanks. My entire post is entirely reasonable. I constantly hear, "need to get." That is not a reason to set a price. Admit it, give up the concept.

Steve - I think the post from ccdevi is fine. You do realize, Steve, that some people will base their asking price on things that you don't agree with right? Some people, even against their broker's advice and common sense, will say "I need to sell this place for $3 million so let's put it at $3.095. People will like it. I like it. Heck, some people will be impressed becasue they can say they bought a $3 million apartment."

Is it stupid? Of course it is, but it doesn't mean it does not happen all the time too.

Picking apart someone's post like that is just silly. Of course, you'll do it to mine in a few minutes so have fun with that.

Could the recession be over before Manhattan prices go down and then they go up even higher??? This would be a nightmare.

"Steve, that some people will base their asking price on things that you don't agree with right?"

I don't care what people "base" their price on. The more irrational, the more absurd, the longer it will take for us to get out of this.

ccdevi didn't say that it was a rational decision - he said (and has said before), "They need to get out of it."

Fine. I made an analogous example, and you pounce upon me. Double standard.

"some people will be impressed becasue they can say they bought a $3 million apartment.""

If anybody buys an apartment SIMPLY because they can afford it for that price, put them into contact with me. I know this bridge that goes from New York to Kings County, that will make them SUPER PROUD to own!

Give it up, Julia. Your act is played.

Steve - it's a city of 8 million people, so there are a ton of idiots here. Soem of them have a lot of money, too. That's life.

Jerkstore...I'm very tired but what do you mean my act is played...

ccdevi,

the fact that 52 riverside has gone through several price cuts certainly does not strengthen your argument. yes: prices are going down. you say "30+ blocks away" as if it is some random apartment in another part of the city. it is another classic seven on the same avenue in a far superior location. you don't think it is a relevant comp? come on. this is some kind of bizarre overpricing strategy which, if west81st is correct, works pretty well. but you know full well that the 108th street apartment is nowhere near as valuable as 75th.

waverly, what's your point?

My point was that you seem to forget that not everyone looks at things the way you do. A lot of people put emotion before facts, especially when it comes to selling their own place. They do stupid things. NYC is a big city, so the number of idiots is greater than in Chappaqua. The same thing happens with buying. Soembody wants a property for some stupid reason and they overpay for it....happens all the time.

You analyze things in a vacuum, but is not how things frequently work out in real life.