Should I price it to move or follow the agent's suggestion?

do u trust your agent? if not, you should get another one!

You have a point. I guess the short answer is no, but I'm not sure.

I would only price it at 999,000 if you are willing to accept that price.

if you don't trust the agent, get a new one for sure. i do NOT think that you should price low to try to get a bidding war. in this market there just aren't that many buyers. you should price it low in order to generate interest, but then you should not expect to sell above the asking price.

i think you need to think concretely about your situation. why are you selling? do you absolutely need to sell? what is the minimum you would accept for the apartment (below which you would keep it)? these questions will help guide you to a good answer.

consider bringing in a few agents and asking them to price it. this will give you a better idea of what a realistic price might be.

Bidding war? Isn't that so 2003?

Do it your way first, don't listen to an agent. they are crazy now.

If your agent is convinced she/he/heshe can sell it for 1.25, I'm sure they would stop you out 20% lower which would be 1mm. Ask AR, I'm sure she would say/do the same thing. Remember, these agents are the heartbeat of the marketplace. They certainly know where an apt will trade within 20%, if not, maybe they are in the wrong business.

why not post the address? Since you will be selling it anyway...

Ok thanks all. I think I need to see more agents. I realized reading your answers I don't trust her.
I don't *need* to sell it in the sense we're not in trouble financially. We're just ready to sell it and move to a house in Brooklyn to have more space.

Have a look www.theburkhardtgroup.com

"Have a look www.theburkhardtgroup.com"

Man o man, give it a break. Do you pass out business cards at friends dinner parties as well.

patient09,

this is a real estate blog, not a dinner party. he should give a break to advertising his real estate services on a real estate bulletin board?

If RE volumes continue at there current levels much longer, we will have 10,000 agents responding to every post begging for a listing.

I haven't seen your place but I'd be very skeptical about a bidding war. If one were to start, I'd just move on to the next property and not participate.

That said, I think this is, indeed, a market in which you should price to sell - whatever that price is. "Recent" comps may not be relevant to what it would take to sell "today." And I'd prefer to sell sooner rather than later as inventory seems likely to build throughout this year.

By all means, talk with some other realtors as to what sort of price it would take to "transact."

Hi, raising my hand as someone who works downtown.

In general we have not been seeing many bidding wars. I currently have a West Village ground-floor studio listed at $519K. I comped it within an inch of its life, including using a $675k 2006 comp from the same building, and it is now at a price where frankly the co-op board is ready to kill me. As a result of that, offers have started -- and it will sell in the current market, but sadly, not above ask.

We are heading into spring buying season (I love the realtor who said "spring starts at halftime at the Super Bowl") and Open House traffic has been tremendous. But the only sales that we are seeing are to buyers who absolutely love a particular property. When you get one of those people to swoon, then you can work with them to close -- but they too are comping very carefully, and credit is very tight so they're struggling to get mortgages. At this point an agent's job is to find those buyers and hold their hand as everyone walks a very precarious path. But no matter what marketing you use, you are very lucky to find one of those buyers, let alone two.

As an example of current market psychological headwinds, take a quick look at the "Tribeca . .. looking for guidance and opinions" thread. My husband and I have been living in a studio for years, and we would like to take advantage of today's 5% interest rates to upgrade to a Junior 4, and everyone on the Tribeca thread thinks I am recklessly making a bonfire out of our hard-earned household assets.

If you want to talk to me more about your property, I can be reached at ali [at] dgneary [dot] com. (Please put "streeteasy" in the subject line so I can find it.) I can also chat with my boss, who has a listing on Prince and Elizabeth. Realize however that my firm is a member of the REBNY trade association, so I am quite unlikely to say anything bad about your agent.

ali r.
{downtown broker}

Thank you Ali for your thoughtful answer.
I think I will go to the "big" brokerage houses at this point (ie. Elliman, Corcoran, halstead) to get a feel for a realistic market price. The broker I have met is from a smaller place, and this thread made me realize, rightly or wrongly, that I don't trust her. Part of me can't believe how expensive things have gotten in my neighborhood, so I'm looking at it from a seller's POV.
This thread has been very helpful.

"Man o man, give it a break. Do you pass out business cards at friends dinner parties as well."

No. But I do on public real estate forums. That is what ignore is for. I am trying to do something different, potentially benefiting buyers and sellers. unfortunately I do not have the same resources as Elliman, Corcoran etc to buy banner ads on every site, so I am taking it to the streets so to speak.

I do post some of my listings on SE as well and if they didn't want me "advertising" in the forums I would not. But the positive reaction to some of my posts has been quite good, I have also met a few posters and received e mails from many others. Dude...if you don't like it; turn it off.

Maly, I'm a big fan of the lovely ali r. (front_porch). I would recommend that you talk to her, too. She is very knowledgable & ethical & someone I'd be happy to have on my team.

maly, one thing to consider (that has come up a number of times in the past) is that some brokers will inflate their estimate of how much they can get you in order to get you to list with them. I'm not sure how one avoids this problem, but maybe some of the brokers (urbandigs?) can weigh in on how to make sure you're getting a realistic assessment of the market rather than an optimistic estimate intended to get your business?

maly, keep in mind that very few brokers have any clue what apartments will trade for in this market. That's not a slam on brokers but rather an indication of how hairy this market is. That said, I don’t think you are approaching your search for a broker in the right way and I'm surprised that none of the brokers who have responded on this thread have even mentioned it. Even Ali (who I respect) seems to be focused on selling rather than educating you.

Bottom line is, don't build a relationship with a broker based upon how much they think your apartment is worth. Pick a broker based on references, track record, trust, marketing reach, etc. When you find the right broker, you can then sit down and discuss a pricing strategy based on his/her experience and your goals. Pricing is not a science and you may not get it correct the first time. What you want in a broker is someone that will listen and trust has your best interests at heart. If you have a trust issue with your current broker than by all means move on. However, disagreeing on a pricing strategy isn’t necessarily a reason to fire your broker.

maly, if you continue down the path you are on you will end up choosing a broker just because they agree with you. You will most certainly find a broker that agrees with you – how about finding a broker that can actually help you?

john doe,

there are a couple of ways. one is to tell the brokers straight out that you are not going to be giving the listing to the broker who gives the highest estimate--you are looking for a realistic price that the broker can justify using relevant data. the second is to just simply go with the lowest estimate.

This thread is great! If only you guys had been around when I bought 7 years ago! I wouldn't have made so many mistakes. JohnDoe, I think you put your finger on the issue. I feel the broker is inflating the selling price to make us happy, as if my ego might get bruised because she's not putting "top dollar" on our apartment.
JuiceMan, how would you gauge marketing reach or track record? Are there questions I should ask?

>> JuiceMan, how would you gauge marketing reach or track record? Are there questions I should ask?

The number of apartments that person has sold.
The number of apartments that person has sold in your building.
The number of apartments that person has sold since Sept.

The single most important factor in selling your apartment is correct pricing. And in this market having an "A" plus apartment-location, lay-out, finishes,good financials etc..

Reach? All apartments are listed in the REBNY RLS database and I would guess 98% are sold by a buy-side broker. Reach has very little to do with selling the majority of Manhattan apartments...thanks to the Internet. Pricing is a bit of art and data, understanding the motivation of the particular seller and current market conditions.

If you price it at 999K, you'll be getting the buyers looking for 999K. Sure you might get a bidding war if it is worth 1.25, but you aren't getting that bidding war to get people to that price. Maybe you'll get to 1050. And those looking to spend $1.25 might show up b/c of the current environment, but they also are going to be in the same group maybe getting to 1050.

I have to say $1.25 seems high for a 1-BR in this environment, private garden or no. How recent are the comps from which you're working?

Setting your ask at $1.25 would likely only succeed in warding off potential buyers who simply aren't interested at this point in going over a mil for what basically amounts to a starter apartment. You'll get far more hits on searches if you're priced under $1M.

And do not delude yourself that there will be any bidding wars. That's extremely unlikely in this climate.

maly,
In this market I would be wary of overpricing a property, yet on the same hand would actually not suggest that you put it on at what you consider a low number to get a bidding war. There are a number of factors at play here- What you need is a selling strategy that is planned out. The days of a listing "going stale" after a short period of time are gone, I would list it at a reasonable price, and then if you do need to reduce, just have a timeline for it, and be prepared. Absolutely do not list the property with an agent that you feel is telling you what you want to hear, that is not a great sign. You should meet with someone who will show you not only the recently closed numbers, but also some indicators as to where bids are coming in for similar properties (if any) and who has active market knowledge that they can share with you in a tangible way.
You also want to make sure that you are pricing in a way that the apartment will appraise assuming the buyer will be getting financing, and MAKE SURE that your agent is aware of all of the new hurdles put in place by banks when it comes to these issues. You also need a broker that will inspire trust in the buyer, and be able to finesse the deal to fruition.
I have to say that I have worked previously for a smaller company, and currently work for a larger one, and it has proved immensely helpful to have the back up technology and concrete market data that the large firms provide, but at the same time I learned the hands on boutique service approach when I was with a smaller firm, so I can appreciate both aspects
The bottom line though is that it is more about which agent you feel has the BEST grasp of the current market and the most concrete sales strategy. Ask them specifically what steps they would take to market your individual property.

Maly,

The days of bidding wars are long one. And in this market there are new true comps since there haven't been many recent sales. If your agent showed you comps of apts that closed this month that means that those contracts were signed 4-6 months ago which was a very different market than the one we're in now. That said, if you are unhappy with your broker, you should interview a few brokers from different firms- both the big ones (Elliman, Corcoran, halstead) & a boutique firm that specializes in the downtown market. See what each broker/firm's strategy & marketing plan is for your apartment & ultimately choose the broker you feel comfortable with, trust & think will get the job done. The advantages of using one of the larger firms is the strength of their website/brand recognition and the amount of $ they spend on advertising. If your apartment is listed on elliman or corcoran's website it will get a lot more exposure than if it's listed on xyzrealestate.com Also, a firm with 1,000 brokers will likely have more potential buyers for your property than a small firm, since it's reasonable to assume that a good number of those brokers are working with buyers who are searching for a property like yours. I work for Elliman and would be happy to discuss this with you further or refer you to another agent in my company. Good luck selling your place regardless of which firm you end up signing with.
sophia.anzaroot@elliman.com

>> Reach has very little to do with selling the majority of Manhattan apartments

It's not about reach. It's about having a knowledgeable broker that can close. It's a sales job.
You need to hire a demonstrated closer right now. Pricing is but one factor, albeit an important one.

Let's say for argument's sake "fair market value" is 999k. If you list it at 999k, I have a feeling most of the buyers will still come in and lowball you at 800k or 900k. However, if you list it too high, real buyers may ignore you simply because they think you're being unreasonable.

Oh what a dilemma.

Wow, a million dollar one-bedroom! Hold me back.

You missed the wave. Maly. Good thing you don't have to sell.

I'm with Brown Harris Stevens, Maly. If you would like to chat, please email me at rglazer@bhsusa.com

thx
Rachel

I feel like if someone wants to stick with the big houses, I get that -- sometimes you want to go with a boutique, and sometimes you don't.

Top broker downtown is probably Richard Orenstein of Halstead. I have also had good experiences with Frances Lacoste Riggs of Elliman, Paolo Valois-Lopes of Elliman, and Mary Vetri of Brown Harris Stevens (agent Rachel and I don't know each other.) Corcoran . .maybe Michael Johnson, I'll have to think if anyone comes to mind who's really centered on Nolita.

ali r.
{downtown broker}

Nolita, Glen Schiller at Corcoran.

Thank you guys! I really appreciate all the feedback. I feel better and more ready now.
Ali, thank you so much for the names; you are very helpful and professional in all the posts I have read, and if I change my mind about the "big" brokerage approach, I will be sure to give you a call.

Maly, I neglected one other thing in my last post! Ask the brokers that you interview for references, a phone number of one of the sellers that they have represented. This can give you a lot of color as to the integrity of the agent. Also back in response to your original question, a lot depends on the square footage of the interior and exterior space, as well as the type of building, and the monthlies, and of course the condition of the apartment.

Maly, I would trust any of the names I gave you -- as well as Glenn, good call Burkhardt -- and feel free to tell any of them that Ali Rogers of DG Neary sent you.

I do think it makes sense to interview two or three of those agents, though, because it's so much about personal style and getting a "fit."

I also understand that my style is not for everybody, but I have no desire to change it. If you told me that by going to a big firm I could double my income if I would only suffer through an hour of meetings a day, I would not do it.

But on the other hand, you as a customer are allowed to want what you want, you know? Sometimes you want to buy clothes from the designer boutique and sometimes you want to shop at Bloomie's.

Good luck with the sale!

ali r.
{downtown broker}

Elliman has its merits :) Mr. burkhardt

Soph, I agree with you that our website does have a tremendous reach, having worked at other companies, and seeing the difference, I certainly say that having a wide reach matters. In terms of the advertising budget, well, I do not think that agents have unlimited money to advertise, in fact, a newer agent, will have more of a budget to advertise than an older agent with 4000 listings, why? because they have already spent most of the allocated funds to advertise the other listings. In terms of pricing, I think that pricing has to be done closely and very dynamically, looking at our current contracts signed for similar properties, however, even those contracts are not very accurate, you really have to look at it case by case - location still matters - if you price it exactly to sell and you are expecting to get just that, where do you leave room for negotiation? specially with people coming into to the market with a formula at hand "ok 30% down, heck why not 40% down." Real estate is fun, it is game in part, play it right and do it smart, buyers out there, they are not going to go o bidding wars, not right now.

Maly, you say 'comps' are 1.25mm. What vintage comp? If it isn't 2005 or earlier, that is NOT a comp. Go back to 2005 and take another look. Now what is the 'comp'?

(and that is not to say that 2005 is the correct 'vintage'. We may be 2002 or we may be 2006. You can certainly forget anything in 2007 or 2008)

beemer no slight to Elliman :) Just doing my thing...

front porch - we actually do know each other but from our days at the New York Post! Maly, would love to "interview." the broker I work with at Brown Harris is #1 downtown.

best,
Rachel

Well then Rachel let's get coffee!

ali

for sure ali! i also live across the st from your brokerage. let's go somewhere local. email me at rglazer@bhsusa.com

best,
Rachel

While we're on the topic of good agents I'd like to say once again that Ali's book 'Diary of a Real Estate Rookie' is a great read for anyone interested in real estate. Great advice if you're a buyer, seller or renter. After reading her book I have a lot more respect for what it takes to be successful in the real estate industry, I wish there were more like it out there, if anyone has any recommendations I would love to hear them.

more books, that is, thanks!

Are you prepsred to sell it at 999K? You are setting yourself up if you price it and get an offer at ask with no other bidders -- what then -- No! I am not interested in selling this at my ask?

There are no bidding wars to be had these days..unless you list at 700k...especially 1 beds..they are the most flooding the market....what is the sq footage to ask over 1 mill?? If you don't have to sell then just put it on at 999k then wait and see what happens..if you do have to sell....good luck....if you make any profit it's good..hopefully you bought before 2004..

there's no one answer. it depends on your financial situation and your future plans and what you bought it for. there is a wrong price and that's the price that doesn't take into consideration the other factors that are at play in your life.

thanks for the shout out mrsbuffet!

ali r.
{downtown broker}