What should our selling price be?

Asked by Ben Thompson, Bridgehampton, NY Sun Oct 7, 2007

I am the executor of my father's estate. It is on the market for $16M, but has just been formally appraised at $11.5M. It is located on a beautiful piece of land, near the ocean on the East End of Long Island. We had offers from $12-13M during the summer, rejected them, and now things have come to a standstill. I think we are asking too much for the property, but my other famiiy members want to keep it at its current price. What are your thoughs?

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Aileen-Manha…, , New York, NY
Sun Oct 7, 2007
Mr. Thompson,

You didn't mention how long this property was on the market. You need to speak to your Realtor to help you determine your answer. You need to review the comparables for the residence and determine where this residence falls. Is it priced in the higher 1/3 price range, in the middle or is it priced competitively? You need to know the average days on market for luxury real estate - for your particular market.

You also didn't mention your motivation in selling. Do you need to sell it right away or are you willing to let the property stay on the market?

Did you interview multiple Realtors prior to putting this property on the market or did you hire the first one that was referred to you? What does your marketing plan encompass? Is it being marketed well?

There are a lot of unanswered questions. It's difficult to determine - over the internet - whether if it's a simple problem of having an over-priced property. It's also an oversimplification to say, "It comes down to price, pitch and product". You also need to know more about your market and you need to determine your motivation in selling.

As a parting comment, I will state that the market for luxury real estate is smaller, the buyers are fewer, and therefore it may take some patience in selling this residence. However, bonus season on Wall Street is upon us, so more buyers may come back on the market.

I've attached a link which I hope can provide you some information. You can also do a search on the real deal and type "Hampton real estate" or whatever search term you feel is relevant.
2 votes
Atlantic Team, Agent, East Hampton, NY
Thu Feb 2, 2012
Anyone looking to sell a property should always request CMA (Comparative Marketing Analysis) from a knowledgeable and LOCAL realtor. Another option is to order a bank appraisal from a LOCAL independent appraiser. I stress the word 'local' because an appraiser from farmingdale will have very little knowledge about a home in Bridgehampton.

Please email me if you need a CMA report. We service all areas in the Hamptons.

Atlantic Group- hkang@elliman.com
1 vote
Natalia "Nat…, Agent, Southampton, NY
Fri Jan 11, 2013
Even though the question itself is 4 years old, but it is good for realtors and sellers to still read the feedback- that is the point of this Q & A section. So, I don't think there is anything wrong with answering 4-year old questions.
0 votes
Ron Thomas, Agent, Fresno, CA
Tue Aug 23, 2011
FOUR YEARS OLD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
0 votes
Carol Moyse, Agent, Bridgehampton, NY
Tue Aug 23, 2011
Pricing an estate property is always a difficult process because not only are there many voices in the co nversation, there are myriad emotions attached to it as well. It is best to speak with realtors who have experience in the specific area. Our office takes 10 or more brokers to the property and has everyone submit a price where the house should realistically sell. We then have a discussion about opinions and come to a consensus about the appropriate price. cmoyse@saunders.com
0 votes
John, Home Seller, Bridgehampton, NY
Thu Apr 22, 2010
Curious if Ben ended up selling the home and at what price? I am a homeowner in Bridgehampton as well and had an opportunity to sell back in 07' for a much higher price and am now kicking myself due to further depreciation in the Hampton market.
0 votes
Bill Eckler, Agent, Venice, FL
Thu Dec 4, 2008

In a declining market, you can expect that your selling price is going to decrease. You are amid one of the major problems.....chasing the market!!!!

This is a common mistake that sellers make that are not in touch with market activity. The effect of being caught in this situation is you never quite reach the bottom of the current market.

If the property was recently appraised(within the last 4 monnths), use the appraisal figure to generate a realistic and current price by coming in under the appraised value. Our recommentation is to consider $10.9 to $11.2.

A family meeting with a excellent real estate professional that can get the message across may be beneficial. We would be happy to make a referral to a top company in your location.

Best of luck,
The "Eckler Team"

Michael Saunders & Company
0 votes
Stephen Maha…, , Valley Stream, NY
Wed Dec 3, 2008
Unfortunately, if the appraisal came in at $11.5 then it will be very difficult for a buyer to get a mortgage approval for a price significantly higher. You should ask your Realtor for advice. If you do not have one please feel free to give me a call.
best of Luck
0 votes
Gail Gladsto…, Agent, 11743, NY
Tue Oct 23, 2007
Check recent sales comps (no older than 3 months) in the same area. That should be your guideline. If you get a willing buyer at a higher price who needs financing and the house does not appraise, the mortgage will be denied and the sale will not happen.
0 votes
ian cockburn, Agent, New Orleans, LA
Sun Oct 7, 2007
You should have taken the $13m. Does not sound like you are serious about selling. The odds are against you getting that much more, $3m more than the appraisal.
You all need to decide you either want to sell or not, and stick to one plan, because I can guarantee right now if someone did show up with $16m, someone in the family will propably say, "well, maybe we want more than $16m now!"
I have seen this happen before, and it is scary with higher end properties..the scary part is you may never sell it using that defined family thought process.
Set a sell price, and stick to it. Evaluate the risks of holding, and whether each member is willing to take that risk.
Web Reference:  http://iansellsnola.com
0 votes
Jan Wood, , Gallatin, TN
Sun Oct 7, 2007
You want to stay or do you want to sell?? Your formal appraisal is $11.5M. Then.....Why would it be listed at $16M. If you have staying power and do not need to sell the estate, then don't worry...the market always turns around and you may get a higher appraisal in the future. If you need to sell, then the price needs to be right. You may want to go back to the people who offered the $12M to see if they still want to buy.... looks like they made a good offer.
0 votes
Carrie Crowe…, Agent, Southaven, MS
Sun Oct 7, 2007
One thing to keep in mind and to relay to the others is this. If it has appraised at 11.5M chances are another appraisor will that is appraising for a mtg. lender will get a similiar number for price. I don't know about your area. In our area if it doesn't appraise, and the seller won't adjust his price the buyer can wal away. The buyers spoke when they offered 12-13M. I would consider adjusting price to what the buyers have indicated they are willing to pay. I don't know your market, so I am only advising hypothetically. Good Luck, it is always more difficult when there are multiple parties that have to agree.
0 votes
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