I have an amazing exclusive at 7 W 96th Street, a 600 sq ft one bedroom for less than $417K. The apt is crying out for a buyer to give it just a little TLC. I like to say that each apartment has a story, and this apartment's history is long and a little bit sad.
In 2005, the sellers were working with a broker who put a student with parents paying cash for the apartment up for board approval. They went to contract at $520K when NYC was at the absolute height of the market. The sellers, thinking they were going to net over $460K from their sale, bought a new apartment.
The building does not allow parents buying for students, so naturally, the buyer was turned down. The sellers put the apartment back on the market, this time with the building's management company as the listing firm.
A Toes Tip: In general, I caution against using a small management company to market your apartment. Typically they have few sales agents and no one has ever heard of them so no one is visiting their website to check out their new listings. So unless a management company sales agent is very aggressive with NY Times and Craigslist ads and open houses, and keeps the listing very current in the Real Estate Board of New York's (REBNY's) database so other brokerage firms know about it, the apartment is not going to get very much exposure. The less exposure your property gets, the lower the price it is going garner.
The apartment sat on the market for months, beginning a steady price decline as the media touted the "Bubble," which scared buyers out of the market. Finally, the price landed at $425K, and remained there for several months.
After an apartment is on the market for about 8 weeks, buyers and brokers start thinking that something is wrong with it, and they stop showing it unless there are significant price drops. A full year and a half after the apartment went on the market, my manager brought me in to take on the listing because I have had success in reviving stale listings. I took on the listing at the same price as the last broker, $425K, and began my usual marketing blitz. Here is the listing today:
Asking Price: $417,000
maintenance: $784
Doorman: Yes
Size: Aprox 600 sft from floorplan
PPSF: $695
Flip Tax: None
Pre-War: Yes
**OPEN HOUSE** Sunday Feb 11th, 2:00 - 3:00PM
I had a professional photographer take photos and do a virtual tour, sent a mailing to the three closest buildings, put it on our website and in the NY Times print and online editions, advertised frequently on Craigslist, and featured the apt prominently in my e-newsletter, which goes to 2,350 friends, clients, and other contacts.
The result was quite incredible:
1st Open House: Over 30 people
2nd Open House: Aprox 20 people
3rd Open House: Aprox 20 people again
Only 3 buyers had seen the apartment in its past life on the market, which had been just 2 weeks before.
The rule of thumb in the industry is that if 30 buyers see an apt and/or 30 days go buy, and you don't receive offers near the asking price, you are overpriced. Offers came in below $400K, but the sellers, having taken a bridge loan to buy their other property, simply can't take anything that low. I requested that the sellers drop the price to $417K, which was the lowest they were willing to go. Essentially, unless they get a certain price for the apartment, they are going to be in debt.
For every open house, I wash the windows, I put out flowers, I light scented candles. The apartment is as "staged" and as "renovated" as the seller's are willing / able to do, and really, it looks quite lovely. I've communicated the number of showings, feedback from brokers and buyers, sent them comparable listings, and educated them on the current market conditions.
Buyers are VERY savvy these days and they simply will not buy an apartment for more than what they think it is worth. So at this point, I am at a loss of what else I can do and I'm open to your suggestions!
TOES says: Make sure you and your broker know what will and will not fly with your building's board. If a candidate is borderline, run the info by the management company and see if they will give you a preliminary yea or nay.
TOES says: Don't buy something new before you know that your buyer has passed the co-op board. You can always try to negotiate terms in the contract allowing you to "rent back" from the buyers for a certain period of time so that you can close on a new home.
TOES says: If you must buy something new before knowing whether your buyer has passed the co-op board, be extremely conservative with what you think you are going to net on your sale. Have a contingency plan in case your buyer doesn't pass the board and you have to sell the apt at 20% below what it is in contract for. Investigate taking out a home equity line of credit on the apt and renting it out.
TOES says: Sellers: If 30 people have seen your apartment in 30 days on the market and you are not getting offers near the asking price - your apartment is overpriced for the current market conditions.
