July 20, 2018

If sellers don’t dictate the price, who does?

Eighteen offers on a single property ought to be all the proof anyone needs that the market is king when it comes to valuation.

Shown above, a Tribeca loft received all those offers in a mere week, one of which already has been accepted. With two bedrooms and baths, the third-floor condo was listed at $1.375 million this month with 1,305 square feet, or 1,054 per square foot.

The asking price per square foot is lower than the most recent comparable in the converted commercial building. Last summer, a larger third-floor unit sold for $2.35 million, 9.3 percent higher than its listed price and $1,077 per square foot.

Of course, price per square foot in the abstract ignores many issues such as condition, sunlight and quality of finishes. Another factor is inventory, and Tribeca supply at that price level is scarce, indeed.

Lucky and smart is the owner who has the luxury of asking for best and final offers: It is inconceivable that the sold price will be lower than the asking price.


Comments

  1. Malcolm Carter says:

    I hope all readers, especially sellers, take heed.

  2. Malcolm Carter says:

    I hope all readers, especially sellers, take heed.

  3. I agree with you, in a perfect world. The thing is that sellers, particularly in NYC, tend to overvalue their property regardless of the situation. If they overpaid for the property they feel it’s something that is passed on to the next buyer. Too many times I have seen properties, commercial or residential, sit on the market for ages only closed and lost by the new buyer due to being over-leveraged. It happens in my neighborhood A LOT.

    I think that buyers are becoming more and more critical in this environment and are not just taking things on the basis of what someone says. Having recent sales and qualifying them will make this process easier, for both parties. I still contend that if the buyer pays their representative and treats them like a real partner you will see much of this fall into place on it’s own. The current compensation model is broken and really needs to be revisited. My agent, my responsibility.

  4. I had two properties receive more than one offer this week. The catch: both recently lowered asking by $50,000.