If you’re regular readers of our newsletter, you know that we rarely toot our own horn. We pride ourselves in being objective, even keeled and, frankly, rather self-effacing in terms of our achievements.
Well, toot, toot, tooty toot! We’re taking just this one opportunity to toot our own horns. And no, what we’re doing isn’t rocket science but boy is it worth it when our work pays off for our clients. So we’d like to share from our successes the best pricing strategy we’ve found to be working right now.
We’ve had phenomenal results in the last couple of months, especially in the $2-$5 million price range by pricing just under the market. That’s right: you read correctly. By pricing just below the market value of the apartment, we’ve achieved greater results than by pricing at or above. All of those properties whose sellers got on board went into contract over asking within one week, the most dramatic difference being a $1.9 million asking price and its $2.4 million contract signed price.
We’ve said it before and we’ll say it again: we believe there’s no way to underprice in an up market. You may be hearing different things from “building specialists” looking to woo prospective clients with high listing prices, but the proof is in the pudding as far as we’re concerned.
In fact, this strategy works very well in most price ranges. It works particularly well in a competitive market or large buildings with similar units. It’s when we get over the $10 million mark that this strategy starts breaking down. Why is this the case? Because other variables come into play such as having a great terrace facing Central Park or having an unusually large footprint. The higher the price point, the more potentially unique the features, the more customized the pricing strategy needs to be.