5 Key Factors to Consider When Selling Real Estate in New York City

I am often asked by potential clients what takes to successfully sell an apartment or office quickly and for the highest price. Over the years, I have determined that there are 5 key factors that are considered when selling real estate in New York City. They are Price, Location, Condition, Terms and Marketing Exposure.

Price

First and foremost, an accurate pricing strategy is a must. The selling price for a home can vary from year to year and while the majority of the country has been experiencing falling prices in 2007 and 2008, the Manhattan market still holds strong. Determining ‘market rate’ for a home is straight forward. Expectations of the Seller and/or the Buyer can potentially create a challenge.

When discussing pricing strategies with sellers AND buyer, the method is the same. I look at comparables for the building, first, and then neighborhood. The Active listings will represent the high range of the selling price and the sold listings will present the low range. Other factors such as Maintenance Fees and Financing Requirements in Coops and Common Charges and Tax Abatements in Condos will also factor into the selling price.

Location

With Real Estate, location is key. Location will determine if you are selling property conveniently located to services such as transportation, grocery stores, and dry cleaners or if the buyer will hear the sounds of tunnel traffic or train tracks. Different neighborhoods will command different prices, as well as specific streets and avenues will have either a positive or negative affect on the selling price.

Condition

The condition of the property, or how the property shows, will determine the amount of TIME the property will stay on the market more than it will determine the SELLING PRICE. If two properties are comparable in size, price, and location, the property that shows best will have more buyers engage sooner. Proper staging and photography is a must. First impressions can set the tone for an entire transaction.

Terms

There are a few important facts regarding the terms of the transaction that have a noticeable impact on how a home sells.

• Timing – when is the seller looking to close and have the property available for renovations or occupancy? Is the selling of the property contingent on other factors such as buying another property?
• Commission - A little know strategy that most sellers (and agents) overlook is the commission paid. Most transactions are co-brokered with 2 different brokers involved. If two properties, equal in price, size, location and condition, are on the market, brokers will direct their buyers to the property paying the higher broker fee. Additionally, when a broker is convinced to discount their fee, they will typically reduce the marketing as well. In a changing market where inventory is growing, a seller needs as much exposure as possible.
• Financing – in the early 2000’s mortgages were relatively simple to secure making it easy for buyers to purchase. The changes in the mortgage market are having significant affects on the real estate market.

Exposure

Regardless of Price, Location, Condition and Terms, maximum exposure to as many brokers and agents is a requirement. The broker that you choose to represent you should have a solid marketing plan that includes a heavy Internet focus. About 80% of all buyers first research properties on the Internet for weeks before going to a single showing. Ask potential brokers, specifically, how will your property be marketed? Don’t be afraid to outline and discuss your expectations. Remember, you should be the broker’s number one priority.