Another great article from The Apple Peeled
The pricing quandary:What’s a seller to do?
by MCINTOSH on NOVEMBER 4, 2011
There’s a bit of a dilemma that sellers face when pricing their properties.
On one hand, they’re told to price to sell and be competitive in the market place.
On another hand, when they do so, buyers balk at paying the asking price, regardless of where it’s set.
Buyers often want the sellers to be more realistic but will rarely adjust their bidding strategies accordingly.
For all you buyers: the asking price should largely be irrelevant to you. Why? Because, as we’ve written before, you should do your due diligence and get a sense of what the apartment is worth and what you’re willing to pay BEFORE you make an offer. Only thus can you gage how well priced the property is and whether the asking price is merited. The asking price is merely a starting point for conveying a seller’s thinking.
The purpose of pricing low is to generate the volume of buyers and subsequent interest that would render the property sold for the highest price in the shortest period of time. Should you therefore find yourself in a bidding war (after all, this is the strategy of savvy sellers who underprice properties), then at least you already know how high a price you would be willing to pay.
Showing posts with label Real Estate Tips. Show all posts
Showing posts with label Real Estate Tips. Show all posts
Thursday, November 17, 2011
Tuesday, March 23, 2010
What I did this weekend
This past weekend was a busy one. On Saturday, my friend S. had her cute son Baptized. So I trekked it out to Park Slope - yes, she is one of those that has recently migrated from the bright city lights of Manhattan to the brownstone lined streets of Brooklyn - getting there a few minutes late thanks to a Taxi that wasn't quite sure of the fastest route or exact destination. Once there the ceremony was lovely and not too long, then it was back to the house for a champagne toast, and eventually on to Tutta Pasta for "supper".
Now being that S. is married to an Italian, "supper" is basically code for an Italian food orgy that involves multiple courses ( eggplant, buffalo mozzarella salad, calamari, rigatoni with vodka sauce, chicken parm, tilapia, and so on and so on...) topped off by a plethora of desserts and several cappuccinos or espressos. The baptism started at noon, and I walked out of the restaurant at 6:30. Now that is a looong day of eating. Not the best when you are trying to start a new diet. However the food was very nice and it is always great to hang out with the people you don't see as often as you would like.
Side note: S. and I met when she was a buyer of mine and have been friends for about 4 years . She is a member of our infamous Book Club which I will mention more about in future posts. ( Trust me - you will want to stay tuned) Love her - as she has become one of my most loyal friends.
On Sunday, I got up early, and went to the gym for the first time in months. ( I had hip surgery in November, and was just recently cleared for working out again.) Then I hosted an open house at my listing in Williamsburg, which ended with myself, the owner, and his girlfriend , moving the living room furniture around. This was no easy feat since he has a large sectional sofa, a very big tree- ish potted plant, and a very heavy - stone inclusive - coffee table.
Why the second workout of the day? Well, now that the apartment has been on the market for a couple of weeks, the majority of the buyers that have viewed the property have been wondering where to put a dining room table? Until recently the owner was a single man, living by himself, so he did what most of us city dwellers do ( especially the bachelor's) and ate at either the kitchen island, or on that big sofa while watching TV. Now that it seems the potential buyer/buyers may not be happy with such a solution, it needed to be addressed.
The solution? - moving the furniture into a position where a table could be added to the main living area and no longer leave that question roaming around in a buyers mind. Many people are not visual - so while they will understand that to remove an object from a room would allow for a more spacious area - those who are trying to add something into the mix aren't sure where, how big, and can it really be done? Most then default to assuming that it cannot be.
The seller was not exactly thrilled by the idea and gave a million reasons why this was a silly idea. ( and I am using the word silly here - but that wasn't necessarily the exact term he used)
REAL ESTATE TIP: When you are selling your home - it is no longer about you, your comfort, or preferred furniture arrangement. The goal is to make sure the space enables a potential buyer to envision themselves in the property. Selling is a process and information is gathered over time. This info comes in the form of feedback from potential purchasers, other properties that come on the market (or sell and are now a comparable for yours) as well as uncovering any issues that may be learned about the building, neighborhood, or apartment itself. The best thing you as a buyer can do is A) work with a broker who will collect these facts and communicate them to you and B) address the issue in the best way possible-explore the options, and implement quickly. Time is a very important factor when selling a home.
So, finally, an hour later, we had moved everything around, the seller settled down a bit, and I finally got to head home for a nice evening complete with the Amazing Race - one of my favorite shows. ( I am sure that soon my reality show addiction will be revealed, and I ask, in advance ,to pretty please not hold it against me!)
Now being that S. is married to an Italian, "supper" is basically code for an Italian food orgy that involves multiple courses ( eggplant, buffalo mozzarella salad, calamari, rigatoni with vodka sauce, chicken parm, tilapia, and so on and so on...) topped off by a plethora of desserts and several cappuccinos or espressos. The baptism started at noon, and I walked out of the restaurant at 6:30. Now that is a looong day of eating. Not the best when you are trying to start a new diet. However the food was very nice and it is always great to hang out with the people you don't see as often as you would like.
Side note: S. and I met when she was a buyer of mine and have been friends for about 4 years . She is a member of our infamous Book Club which I will mention more about in future posts. ( Trust me - you will want to stay tuned) Love her - as she has become one of my most loyal friends.
On Sunday, I got up early, and went to the gym for the first time in months. ( I had hip surgery in November, and was just recently cleared for working out again.) Then I hosted an open house at my listing in Williamsburg, which ended with myself, the owner, and his girlfriend , moving the living room furniture around. This was no easy feat since he has a large sectional sofa, a very big tree- ish potted plant, and a very heavy - stone inclusive - coffee table.
Why the second workout of the day? Well, now that the apartment has been on the market for a couple of weeks, the majority of the buyers that have viewed the property have been wondering where to put a dining room table? Until recently the owner was a single man, living by himself, so he did what most of us city dwellers do ( especially the bachelor's) and ate at either the kitchen island, or on that big sofa while watching TV. Now that it seems the potential buyer/buyers may not be happy with such a solution, it needed to be addressed.
The solution? - moving the furniture into a position where a table could be added to the main living area and no longer leave that question roaming around in a buyers mind. Many people are not visual - so while they will understand that to remove an object from a room would allow for a more spacious area - those who are trying to add something into the mix aren't sure where, how big, and can it really be done? Most then default to assuming that it cannot be.
The seller was not exactly thrilled by the idea and gave a million reasons why this was a silly idea. ( and I am using the word silly here - but that wasn't necessarily the exact term he used)
REAL ESTATE TIP: When you are selling your home - it is no longer about you, your comfort, or preferred furniture arrangement. The goal is to make sure the space enables a potential buyer to envision themselves in the property. Selling is a process and information is gathered over time. This info comes in the form of feedback from potential purchasers, other properties that come on the market (or sell and are now a comparable for yours) as well as uncovering any issues that may be learned about the building, neighborhood, or apartment itself. The best thing you as a buyer can do is A) work with a broker who will collect these facts and communicate them to you and B) address the issue in the best way possible-explore the options, and implement quickly. Time is a very important factor when selling a home.
So, finally, an hour later, we had moved everything around, the seller settled down a bit, and I finally got to head home for a nice evening complete with the Amazing Race - one of my favorite shows. ( I am sure that soon my reality show addiction will be revealed, and I ask, in advance ,to pretty please not hold it against me!)
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