Over the past two years, my average sales price was 99.7% of the last asking price, and my median days on market was 35 days. I am the foremost expert on listing homes and getting the price I want in the New York City resale market. But that’s not the product of anything other than fastidious attention to detail and working with both buyers and sellers. Here are some of my tips for pricing properties:
1. Price things at round numbers. People tend to be more comfortable with going over the asking price of a property with a rounded number, but less so with complicated numbers. I also think that when there’s a “99” at the end of a price, it’s a subconscious invitation for buyers to lowball you.
2. Don’t price per square footage. Not all square feet are the same; pricing this way presupposes that hallway square-footage and bedroom square-footage are similar, which they’re not. Price-per-foot is a way of manipulating numbers, and it’s often lied about in NYC co-ops. It’s dirty data.
"I am the foremost expert on listing homes and getting the price I want in the New York City resale market."
3. Buyers are more informed than you may think. When someone buys a home, they’re typically taking all the money they’ve saved up, plus another invaluable asset—their time—and moving both into that new home. If you don’t think that they’re an expert on what similar homes in the area are selling for, you’re wrong. If you price your property outside of the very tight field of their expectations, they will immediately recognize your weakness and either avoid you or lowball you, since they don’t feel like they’re missing out. Since buyers are so well informed, you have to entice them with your price.
Have you ever gone to a department store and seen, for example, a suit you really liked that was priced at $2,000, and then later found the same suit on sale for $375? That’s the way we like to price things: by first creating an anchor price (the $2,000) and then coming under that anchor price. There is a psychological principle behind that strategy, and I’ll discuss it more in a future video.
When it comes to questions about pricing a property, the thing that real estate professionals are the foremost experts on, please reach out and contact me. We’ll look at supporting data for anything you’re interested in buying or selling. As you can tell, I’m very passionate about this topic. I hope to hear from you soon!