CV University: Is My Home Priced Too High?
In the most basic of terms, your home is only worth what someone else is ready and willing to pay for it at a given time. The real estate market is a moving target with inventory and buyer sentiment constantly changing and so does the value of your apartment.
You can tell whether a property has been priced properly in the first several weeks. If you you get only a handful of inquiries in the first three weeks you should discuss with your agent and promptly adjust the price. Inquiries and private appointments are the best indicator of the healthiness of a listing.
Your agent’s phone should be ringing often. At the very least you should have 5 to 7 buyers come through in the first week. This is what we would call the baseline for a healthy listing on average over the first 4 weeks. Of course, higher and lower price points will skew this rule of thumb but you get the idea.
If after the first two open houses you haven’t had at least 10-20 buyers, come through- it is time to speak to your agent as something might be amiss. If you have shown the apartment to anywhere from 24-40 buyers and you have not received an offer? Yup, you guessed it…you are probably at least 5% off where you should be. More likely you are closer to 10% off in the current market.
Buyers tend to balk on submitting offers on properties that are overpriced by more than 5 to 7%- instead, they just write them off as overpriced, and keep an eye on StreetEasy for a price reduction. If you are coming up at around 100 days on the market or so and you don’t have any offers, and you have already reduced the price what should you do? Reduce the price again. Your apartment is worth what someone is willing to pay for it. Time, at least in a transitioning market is not going to change this for the better.
The bottom line is that an experienced agent will be able to “read the market” and truly understand what the issue is for why your unit has not sold. Have more specific questions? Call us at 212-941-2583 or email [email protected]