Home Selling in West Village>Question Details

Lupa, Home Seller in West Village, New York...

I listed my w. village co-op for sale. I had my first open house, and already received a full price offer. This means my broker priced too low?

Asked by Lupa, West Village, New York, NY Tue Oct 5, 2010

Its been on the market for 4 days. Its a 6th floor walkup, un-renovated, prime west village location. The building has a common garden and laundry and solid financials.

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Lupa,
Pricing a property is as much art as science. If you got a full price offer right away, your property was skillfully priced. Sixth floor walk-ups are extemely hard to sell in even the Village. Anything above a 3rd floor walk-up is a very tough sell, no matter what else it has going for it, including prime location. The goal of a great listing agent is to get your property sold in the least amount of time for the most money. The time was a bullseye - an A+. If you priced it higher and had to eventually come down to what you got, you would not be in as good a circumstance as your are. Truly, your agent did a great job.
2 votes Thank Flag Link Tue Oct 5, 2010
Although it's a six floor walk up it's in prime property which is the west village. If your broker showed you comps before signing your exclusive agreement to sell I would suggest reviewing them. If your apt is a true one bedroom and not one of these large studios with a wall up you're looking at least at $1,000 sq ft. I would suggest that you look at 82 Horatio St, 323 W 11th St, 815 Greenwich St, 352 W 12th St, they all have one bedrooms on the market and are all walk up. Best of luck, if I may be of service feel free to contact me for all your real estate needs.

Tony Lara
Licensed Real Estate Salesperson
Rutenberg Realty, NY, NY
tlara@crrnyc.com
1 vote Thank Flag Link Fri Feb 4, 2011
Hello Lupa,
There are two different strategies a broker may have used to price your unit,
A little less then the average price so you can get a bidding war going
OR price it like everyone else and hope for the best.
Just because you got your asking price, does not necessarily mean the people who are presenting the. Offer are solid, are serious or there are not any more offers coming in. Experience says, the best offers usually come in the first month your apartment is listed. Good Luck and if you feel the buyer is right and the offer is solid you should consider the advise of your broker.
Fern Hamberger
Vice President
Fhamberger@corcoran.com
0 votes Thank Flag Link Sun Jan 20, 2013
Hello Lupa it sounds to me that your property was priced right on the money you never want your property to stay listed for a long time. The longer its listed the less you will get. You would have to lower your asking price as time goes buy and then when someone does put in an offer it will most likely be a lowball offer because the buyer might know that you are desperate the longer your property is listed. Hope this helped give me a call or email me if you’re looking for a new home to purchase.
0 votes Thank Flag Link Sun Jan 20, 2013
Could it have been priced too low? Perhaps. Could it have been priced just right. Perhaps. Ask your broker to show you "comps": recently sold listings of similar size, layout, location and quality. The prices commanded for similar properties in your area will help you determine the market value of your own property. A good agent can turn around a comp report in 24-hrs or less.
0 votes Thank Flag Link Thu Feb 3, 2011
The first couple of weeks on the market are the most critical because that's when the listing is fresh and it generates the most interest. Without seeing the listing it's impossible to know for sure if it was priced correctly, but like others I believe it was. The last thing you want is to price it too high so that it sits on the market and becomes stale, so you eventually have to drop the price below market in order to generate activity.
0 votes Thank Flag Link Sat Jan 29, 2011
Lupa its tough to answer your last question, I'm sure you are aware that price is affected by so many variables beyond just neighborhood. Having said that, the current market for a 1 bedroom in the village with no frills range in the 4s and go up from there, not to say you couldn't find one for less.

Sami Saghie, MBA, BSc
Ross Realty International
917-767-7248
sami@rri-llc.com
0 votes Thank Flag Link Thu Oct 7, 2010
thank you everyone, I appreciate all the answers, and it is very helpful to hear that I am not underpricing necessarily. The problem is that I did not receive comps...I was shown several apts that were avail in my building and what THEY were going for, but not other apts in other buildings in the neighborhood.
So, ive asked for that, as well as currently selling apts....
The problem becomes then, if I sell it, will I be able to buy a comparable or better place with the money, given the difficulty these days in getting a mortgage?
can someone advise what a 6th floor unrenovated 550sf prime w.vill co op might go for?
0 votes Thank Flag Link Thu Oct 7, 2010
Sounds like you and your agent hit the ball out of the park...congratulations. In this market, to get a price you were asking in such a short time means you priced correctly and your real estate agent should be commended!

Good luck in your move and in your new home. Jim Ryan, Home Savings of America, 703 591 5626 ext 419.
0 votes Thank Flag Link Wed Oct 6, 2010
Did your Broker discuss the value of your property with you before you listed it?

Did he/she show you the comparable sales to support that value?

Did you agree to listing it for the asking price you offered it for?

If the answer to each of the three questions above is "yes," congratulate your Broker, because clearly he/she has done a great job.

If the answer is "no" to any of the three questions above, you have other issues.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Tue Oct 5, 2010
I won't reiterate what others have said, but it does not mean that it was priced too low. The Village has always been a very desirable area, and timing has a lot to do with your successful sale. The right buyer came along at the right time. There's always a chance that the buyer lost other apartments in multiple bid situations, and did not want to lose yours. Good luck with the sale.
Web Reference: http://www.bellmarc.com/sni
0 votes Thank Flag Link Tue Oct 5, 2010
No, it means your agent is a super star. The greatest excitement for a home is when it is first listed and agents who understand this an price to capture that excitement and demand gets it. You deserve credit for hiring her and following her advise in my opinion.

It is proven time and again that sellers who price correctly right out of the gate and sell quickly do better, ie, yield more, than those that price high and take longer to sell, with a price reduction or two thrown in.

It is also not unusual for a seller to wonder as you are whether a quick sale means you sold for too little, but statistics bear out that this is generally not true.

Congrats to you!
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Tue Oct 5, 2010
It means it was priced on target--if you are questioning the price ask your agent to review comps--recently sold similar properties in the immediate area--be happy it attracted a buyer this quickly and know how lucky you are--oftentimes walk ups are not an easy sale.
0 votes Thank Flag Link Tue Oct 5, 2010
Hi Lupa, serious buyers are looking everyday for new listings....means these buyers have been looking and know what they want. It was priced just right for them to not need to play games back and forth. Count your blessings for the quick deal. You can start planning your next move. Terry K
0 votes Thank Flag Link Tue Oct 5, 2010
Hello Lupa, The only way to see if your apartment was price properly is to review the comps that your broker should have based his/ her decision on. As Mr. Minnick mentioned, buyers are well aware of the market and with today’s access to so much information on closing prices etc.. they are educated enough to know a good deal when they see one. If your apartment was priced “just right” it’s a no brainer for a buyer who has done their homework.

I can understand your concern… I had the opportunity to represent a seller who had been trying to sell his apartment on his own for almost a year. Two days after we began marketing the property we received an offer a few thousand below asking. We worked hard at properly marketing the apartment and we priced it right. The seller asked for a discount on the commission because he felt that since we got an accepted offer a few days after signing the exclusive we were saving on our marketing expenses. We declined his request on the basis that we should not have to discount our services for doing a good job.

The point of the story is that if your broker did his / her due diligence, priced the apartment accordingly and marketed properly so that you would have enough traffic at your open house, then that’s a job well done and he / she should be praised.

Now they just need to make sure the pass the board.

Best of luck,

Elkin
0 votes Thank Flag Link Tue Oct 5, 2010
Lupa - consider yourself lucky. 6th floor walkups, in unrenovated condition are among the hardest apartments to sell since their pool of buyers is so small. Your price should be a significant discount to the avg in your neighborhood. It's true that well priced units can sell quickly in this market. But, and not taking anything away from your agent, I think you also got lucky!
Web Reference: http://www.realdirect.com
0 votes Thank Flag Link Tue Oct 5, 2010
Without seeing the listing, the question sounds familiar: is this an underpriced apartment merely because I got people at the open house and have gotten a full priced offer.

Historically, I have heard stories of sellers who have gotten the price or almost the price on the first showing, thought the deal was too easy, rejected the buyer, and spent another five or six months looking, regretting, and selling for about the same or less later on.

Time is money and money is money.

Work steadfastly with your broker and know that you are in a fiduciary relationship with your broker. You trust the broker, the broker works with you; ask your broker and tell the broker your thoughts. Request comps of recently sold in the area, so that the facts will settle your nerves.

Real Estate is certainly a field of high drama. It involves your home, your most prized investment. Let your broker be your partner in support during this time to get the best price.

Is there another offer that can be brought forward to compete with this price? If so, you have a win-win situation, if it is handled well.

Best wishes and truly yours,
Amy
0 votes Thank Flag Link Tue Oct 5, 2010
No, it just means that your property is well-priced for the neighborhood. Today's buyers know how much things should be priced at...all comps are available online now. The West Village is a hot area. Your agent just priced the property correctly for today's market.

But an offer means nothing in today's market unless the buyer can get a mortgage (your unit appraises properly and your co-op building is approved by the banks/FHA) and the buyer will be approved by the board. I'm sure you're working with a reputable agent who will get full financial statements, preapproval letter, etc before bringing you the offer.

Usually one offer brings more if the unit is that hot. You may get more than you're asking in a bidding war (yes, they are happening again for well-priced units in downtown areas). KEEP SHOWING until you're satisfied that the buyer is extremely well-qualified. The highest offer is not always the best offer...in this mortgage environment.
0 votes Thank Flag Link Tue Oct 5, 2010
Well priced homes usually get offers the first month. After this period, listings become stale unless again the price of the home changes. You should look at what sold in your building for the last 6 mos- to a year and for how much. And if there aren't any, the New york times gives an idea of what sold in your neighborhood and for how much. Aside from that, if you live in a co-op, I can assure you if your home is selling for too little, the board will reject your buyer since they wish to maintain the value of their homes. And last but not least, if you are really worried, you should invite a LOCAL apraisor to valuate your property. That should really help.
On the other hand, you should really qualify your buyer and make sure he is financially capable and I am sure your broker did that...you should ask your broker about your buyer's financials erc...
If you need to ask any more questions please contact me off line I work downtown...
Fern Hamberger
Citi-Habitats
fhamberger@citi-habitats.com
646-660-0060
0 votes Thank Flag Link Tue Oct 5, 2010
Your broker may have priced it properly or too low. There a are a number of factors that may influence a potential offer. It could have also been the broker priced it properly and the prospective buyer has seen enough properties to be educated and realized the property was priced right. As a seller you rarely have an insight to what motivates a potential purchaser

I agree with the previous post. The comps need to be reviewed. Please also remember that pricing an apartment is an artful science as well. If you were to ask 3 different brokers their opinion you would likely come up with 3 different prices, though they should be within a very similar range.

As you are in a co-op please review the buyers financials and make certain they are qualified and will pass the board approval process. A great offer is worthless if your buyer is going to be turned down by the board. Good luck with your sale.
0 votes Thank Flag Link Tue Oct 5, 2010
No that means your broker may have priced it just right. You should have received a broker price opinion before listing and have been shown a list of comparables that have sold in the last 6 months and what was currently for sale. From these comps the agent comes upo with what you property is worth, what you should set for an asking price and what you should probabily receive.

A listing that sits usually sits becuase it is priced to high. I see it too often where people reject the initial offers as they think their house is all of a sudden worth more, with prices declining in some areas 1% a month you should be happy you received an offer never mind full price. Hopfully you received a broker price opinion to set your mind at ease. If not, simply ask for it before taking your offer, if so be happy you sold your property.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Oct 5, 2010
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