{"id":557,"date":"2023-03-31T23:32:43","date_gmt":"2023-04-01T04:32:43","guid":{"rendered":"https:\/\/www.urbandigs.com\/blog\/?p=557"},"modified":"2023-04-11T14:43:06","modified_gmt":"2023-04-11T19:43:06","slug":"selling-real-estate-in-manhattan-and-brooklyn-the-power-of-pricing-right","status":"publish","type":"post","link":"https:\/\/www.urbandigs.com\/blog\/selling-real-estate-in-manhattan-and-brooklyn-the-power-of-pricing-right\/","title":{"rendered":"Selling Real Estate In Manhattan And Brooklyn: The Power Of Pricing Right"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"557\" class=\"elementor elementor-557\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e9eb003 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e9eb003\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5c42cbb\" data-id=\"5c42cbb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ce6518f elementor-widget elementor-widget-text-editor\" data-id=\"ce6518f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.6.1 - 23-03-2022 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">If you\u2019re considering selling real estate in Manhattan or Brooklyn, you\u2019re probably wondering how long it will take and, more importantly, how much you\u2019ll get. The usual measures \u2014 days on market and listing discounts \u2014 attempt to answer those questions by looking at the time between the original listing date and the contract signed date and the difference between the final price and the original asking price.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The results, typically calculated as medians to cull outliers, are, at best, rough estimates, and should be used as guidelines to set outside expectations. In practice, if your asking price is right, time on market and discounts should be minimal.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-31db5a8 elementor-widget elementor-widget-heading\" data-id=\"31db5a8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.6.1 - 23-03-2022 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">The Macro View<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-72a9c77 elementor-widget elementor-widget-text-editor\" data-id=\"72a9c77\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Below are the time-on-market and listing discount histories for Manhattan and Brooklyn. They tend to move in tandem along with the market. Currently, they suggest that sellers in Manhattan can expect 87 days on the market with a 7.3% discount. In Brooklyn, the median number of days on the market is 68, with a 4.8% discount.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">But does that mean that sellers today should simply expect some basic negotiation after waiting nearly three months in Manhattan and a bit over two months in Brooklyn for a deal? Not at all. Instead, sellers who have done their homework should expect a deal within a few weeks at (or very close to) their asking price.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-23e7023 elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"23e7023\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<iframe loading=\"lazy\" width=\"829\" height=\"371\" seamless frameborder=\"0\" scrolling=\"no\" src=\"https:\/\/docs.google.com\/spreadsheets\/d\/e\/2PACX-1vQUMMh9yCetwHUFr7-mD-8GgsKR9WhFqs5MmqLm-wnH-oN5M1kF9_AyC8_DDG621HxmG0QdwtIeTLmH\/pubchart?oid=1124523&amp;format=interactive\"><\/iframe>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-196b2f3 elementor-widget elementor-widget-text-editor\" data-id=\"196b2f3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">So, why the discrepancy? Why should sellers expect better than the market?\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The main reason is that broad, market-wide statistics, such as median days on market and listing discount, obscure the real driver behind time and negotiability: price. Luckily though, as the saying goes, the more things change, the more things stay the same. The simple fact is that the closer your price is to the market, the faster it will sell and the less you\u2019ll have to negotiate.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">For example, a historical look at Manhattan and Brooklyn discounts, as measured from the original asking price, shows that units priced at the market, i.e., the ones with the smallest discount, trade faster and significantly closer to their asking prices than those farther away from the market. In fact, from late 2021 through early 2022, the median discount on units that traded in less than 30 days was negative, meaning that sellers got more than their asking price.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-01af09f elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"01af09f\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<iframe loading=\"lazy\" width=\"926\" height=\"405\" seamless frameborder=\"0\" scrolling=\"no\" src=\"https:\/\/docs.google.com\/spreadsheets\/d\/e\/2PACX-1vQUMMh9yCetwHUFr7-mD-8GgsKR9WhFqs5MmqLm-wnH-oN5M1kF9_AyC8_DDG621HxmG0QdwtIeTLmH\/pubchart?oid=664796154&amp;format=interactive\"><\/iframe>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ad2f39a elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"ad2f39a\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<iframe loading=\"lazy\" width=\"926\" height=\"405\" seamless frameborder=\"0\" scrolling=\"no\" src=\"https:\/\/docs.google.com\/spreadsheets\/d\/e\/2PACX-1vQUMMh9yCetwHUFr7-mD-8GgsKR9WhFqs5MmqLm-wnH-oN5M1kF9_AyC8_DDG621HxmG0QdwtIeTLmH\/pubchart?oid=326375932&amp;format=interactive\"><\/iframe>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e333d2f elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"e333d2f\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<iframe loading=\"lazy\" width=\"820\" height=\"371\" seamless frameborder=\"0\" scrolling=\"no\" src=\"https:\/\/docs.google.com\/spreadsheets\/d\/e\/2PACX-1vQUMMh9yCetwHUFr7-mD-8GgsKR9WhFqs5MmqLm-wnH-oN5M1kF9_AyC8_DDG621HxmG0QdwtIeTLmH\/pubchart?oid=1540805631&amp;format=interactive\"><\/iframe>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5439ac3 elementor-widget elementor-widget-text-editor\" data-id=\"5439ac3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Notice that this holds true even during market stress, such as in 2020 and late-2022. Even during those periods, homes that traded in less than 30 days saw significantly lower discounts than those that lingered on the market. Hence, even during soft, slow, or in the case of 2020, non-existent market conditions, the pricing strategy at the market continues to work.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-27097bd elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"27097bd\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<iframe loading=\"lazy\" width=\"820\" height=\"371\" seamless frameborder=\"0\" scrolling=\"no\" src=\"https:\/\/docs.google.com\/spreadsheets\/d\/e\/2PACX-1vQUMMh9yCetwHUFr7-mD-8GgsKR9WhFqs5MmqLm-wnH-oN5M1kF9_AyC8_DDG621HxmG0QdwtIeTLmH\/pubchart?oid=1540805631&amp;format=interactive\"><\/iframe>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5f2024e elementor-widget elementor-widget-heading\" data-id=\"5f2024e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Micro View<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-109c23f elementor-widget elementor-widget-text-editor\" data-id=\"109c23f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Indeed, drilling down and looking at the more granular monthly data for contracts signed in under 30 days and comparing it to the strength of the overall market, as shown by the percentage change in contracts signed versus the rolling five-year average for that month, shows more than just discounts.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The comparison to market activity shows that when the market is more active, premiums appear, as buyers compete and push prices above the asking price. Conversely, when the market is slow, i.e. when contract volume is below its recent five-year average, discounts become the norm.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">But look closely: For units that traded in less than 30 days, the median discount sellers realized only rose above 2% during the pandemic, when the market was closed for business for several months. Moreover, the fact that this is a median look means half of those quick sales saw discounts of less than 2%.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4138977 elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"4138977\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<iframe loading=\"lazy\" width=\"600\" height=\"371\" seamless frameborder=\"0\" scrolling=\"no\" src=\"https:\/\/docs.google.com\/spreadsheets\/d\/e\/2PACX-1vS7A7Z9uOBNB89inWPbIJ6U5OJy2HSJxEO9Lb-dEJhEQotQy0runmh7aGzgmBiPEp_pR-wTpnvh8ZT1\/pubchart?oid=114408469&amp;format=interactive\"><\/iframe>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-85eba75 elementor-widget elementor-widget-heading\" data-id=\"85eba75\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Bid<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f0c5bc9 elementor-widget elementor-widget-text-editor\" data-id=\"f0c5bc9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Through the process of shopping for an apartment, buyers can become experts in their local areas. After seeing multiple units, they quickly start seeing the angles, nuances, pros, and cons of each apartment simply by looking at the listing or walking through the door at an open house.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">While each buyer may be a unique individual, as a collective, they possess the wisdom of the crowd and very rarely let values slip between their fingers. In fact, as we have seen above, when a seller presents a fair opportunity, they act fast. Together, buyers make the bid, which is similar to the ocean&#8217;s surface: never smooth but rather marked by the peaks and valleys of ever-present waves. When more buyers slosh together, the bids crest, and when buyers are few and far between, troughs form, but at any given moment, there is a level at which buyers are present.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a97cc9e elementor-widget elementor-widget-heading\" data-id=\"a97cc9e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Offer<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b3e9942 elementor-widget elementor-widget-text-editor\" data-id=\"b3e9942\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">For sellers, this view is a great way to understand the opportunity cost of aspirational pricing, or the practice of pricing higher than the market in anticipation of negotiating down. In other words, the cost of pricing above the market today, in expectation of trying to meet a low bid in the middle, will likely be significantly more time on the market and a lower price.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Continuing the ocean analogy, if we consider bids a liquid surface, we can think of sellers\u2019 offers as marking sticks hovering above the water level, with asking prices ascending as you rise. When the market is active, and waves are aplenty, the offer may get a splash up high, meaning the seller is able to move their home with little to no discount. When the market is calm and glassy, anything above the water level will remain bone dry. The seller is not seeing any bids and will need to lower their price until it is just high enough above the bid to make contact.<\/span><\/p><p><span style=\"font-weight: 400;\">Of course, sellers who price below the market, i.e., submerge their offer, can expect the bid to quickly encompass their price, resulting in a premium as buyers compete for value and bring the offer back to sea level.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8c85973 elementor-widget elementor-widget-heading\" data-id=\"8c85973\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Final Thoughts<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0728350 elementor-widget elementor-widget-text-editor\" data-id=\"0728350\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Buyers looking for deals today should focus on units lingering on the market. After an extended time on the market, sellers tend to accept their predicament and may be ready to lower their sticks.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Sellers, on the other hand, should remember that time on market is a silent deal killer. The more time that passes between listing and contract signing, the more the market is saying the price is wrong. Worse, even fresh buyers tend to shun overextended listings, assuming problems in advance. Going back to the bids as liquid analogy, time serves as an evaporator, invisibly lowering the bid, and by definition, increasing the discount needed to get a deal done. As counter-intuitive as pricing at or below the market seems, sellers must remember that when it comes to selling fast and getting the best price, the market works; trust the market.\u00a0<\/span><\/p><p>\u00a0<\/p><p>Originally published on Forbes.com: https:\/\/www.forbes.com\/sites\/johnwalkup\/2023\/03\/31\/selling-real-estate-in-manhattan-and-brooklyn-the-power-of-pricing-right<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>If you\u2019re considering selling real estate in Manhattan or Brooklyn, you\u2019re probably wondering how long it will take and, more importantly, how much you\u2019ll get. The usual measures \u2014 days on market and listing discounts \u2014 attempt to answer those questions by looking at the time between the original listing date and the contract signed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":558,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-insights"],"_links":{"self":[{"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/posts\/557","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/comments?post=557"}],"version-history":[{"count":5,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/posts\/557\/revisions"}],"predecessor-version":[{"id":564,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/posts\/557\/revisions\/564"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/media\/558"}],"wp:attachment":[{"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/media?parent=557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/categories?post=557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/tags?post=557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}