Six Reasons Your NYC Apartment Isn’t Selling
You’ve listed your property for sale and its been on the market for months yet no one’s biting. What gives? Here are 6 reasons why your NYC apartment may not be selling:
Maintenance is Sky-High
Maintenance in NYC co-op and condo buildings can be exorbitant. It just so happens that your maintenance is so high that it turns prospective buyers off. For every problem, there is a solution. You can reduce the asking price to attract more buyers. If you are unwilling to lower the price or already have it listed at your lowest, you can offer to pay six months to one year of maintenance up front at closing of title. I would also research my competition – as in buildings in the area with similar amenities – to see what others are charging for maintenance. If its in the same ballpark, I’d use that as my rebuttal when a buyer expresses concern. You can also own the maintenance costs by showing off the great amenities the building has to offer. If you’re confident that you priced the property at fair market value, a buyer will eventually come along who can afford the high costs.
The Board Thinks the Home is Priced Too Low
Board members are unit owners in the building. As such, they have an interest in seeing their property appreciate in price. If a unit sells for an under fair market price, that sale will be used as a comparable when another buyer for a different unit applies for a mortgage or simply uses the comp to determine how much he should be paying. Although you might be in a rush to sell, your sale can hurt other owners down the line. If the board declined a buyer’s application to join the building, it may be that you priced the unit too low. In this case, get in touch with management or a board member to ascertain if price is an issue.
You can also apply pressure to the board by looking at recent appraisals and recently sold apartments to see if they are actually trying to preserve values or are possibly using discriminatory tactics against your potential buyer.
Your Apartment is Overpriced
It’s common practice for potential buyers to skim online sources to see how similar apartments have faired on the open market. If your asking price is 10% higher than similar homes on the market, there should be a good reason for it (i.e. new renovation). If it’s similar in size and condition to other listed properties, consider reevaluating the price.
If your furniture is in immaculate (or good) condition, you can try to offer it as part of the sale. Many New Yorkers don’t have the time or patience to order furniture and would prefer a turn key apartment. Offering to leave your air conditioner, dining room table, or bed may be enough for a a certain buyer to go forward with the sale.
Nobody likes waking up to the sound of a jack hammer. Consider installing soundproof windows or take your apartment off the market until construction is complete. You can also approach the construction crew and ask for their estimated date of completion. If it’s closer than expected, convey this information during showing so prospective buyers are aware the noise is temporary.
The Co-op has an Underlying Mortgage Due or a Land Lease is Approaching Expiration
Potential buyers are nervous about everything. Any possible issue with the co-op’s mortgage or land lease is enough to scare them off. You can calm their fears by either lowering the price or taking your apartment off the market until the financials are settled. Getting something in writing from the board to ease the fears of your prospective buyer may prove helpful.
The Unit is Boring or There Are Similar Homes on the Market
It may be that your apartment is simply not as appealing as the other apartments in your building that are on the market. You can spruce it up a bit by doing a light renovation. Invest in new coat of paint, and maybe polish up the floors. If your plan is to sell the unit “as is” and the place requires a gut renovation, make sure that your asking price takes that into consideration.
If you are a seller and want a free sales comparison report for your property so you can better price your home, fill out our form and an agent will reach out to you with some helpful suggestions.
Contact our firm at any time with questions at (646) 945-3727 or email us at Kamilla@PaperStreetRealEstate.com.