How Should I Decide the Asking Price of My NYC Apartment?
First and foremost, pricing real estate is more art than science.There is no formula; there is usually more than one correct strategy. Unlike a stock, for example, no two apartments, buildings, views, or blocks are the same. Sprinkle some buyer emotion into the mix and you can understand why having a seasoned realtor on your side is essential to success. Unlike an appraisal, which tells you the value of your apartment based on what has happened in the past, realtors value apartments for their worth today. Keep in mind that pricing is much more forgiving in a rising market than it is in a declining market. Generally, there are three common pricing strategies: 1) Price at the level of the most recent comparable sales, 2) price 5 to 7% above the comparable sales, and 3) price it under fair market value. Pricing your home right at the level of the most recent comparable sales is, under most circumstances, a great strategy. After careful consideration of the comparable closed sales in the past 3 to 6 months, we will list the apartment as its fair market value or basically where it should trade. Since the market is so efficient if we end up being priced too low, you will get multiple offers and it will sell over the asking price. This strategy allows the market to dictate the upside value of your home.