Tips for Selling Property in NYC

Summary: – Preparing your home for sale involves decluttering, repairs, and staging to appeal to buyers – Setting the right price requires understanding market trends, comparable properties, and your home’s unique features – Effective marketing includes professional photos, online listings, and open houses – Working with experienced real estate agents can streamline the process and maximize your sale price – Closing the deal involves negotiating offers, navigating inspections, and handling paperwork – Maximizing your sale requires a strategic approach and attention to detail throughout the process

Introduction: Preparing Your Home for Sale

When selling property in NYC, first impressions are crucial. To attract buyers and maximize your sale price, it’s essential to prepare your home by:

1. Decluttering and depersonalizing to create a neutral, inviting space

Take a look at your home through a buyer’s lens. How we live and how we expect to view a home for sale are very different. Go ahead and take a photo of your living room or kitchen and compare it to what you see online. Most attractive online photos will show sleek, clutter free homes with neutral colors. If you are serious about selling and moving, you are going to be packing and throwing out items you don’t use.

Go ahead and start now to make the process of selling and moving that much easier. If you haven’t used it in the past year, you probably don’t need it. If you can’t bear to part with it, put it in storage and re-evaluate in your new home. It is also time to put away all of your personal photos. It is human nature; we all love people watching. When it comes time to sell your home you want people looking at the property and not your photos of family and friends. And of course, don’t forget the closets.

I recently sold an apartment at full asking in record time and part of the secret sauce was the closets. They were the envy and dream of everyone. The owner confirmed that she had removed everything which wasn’t essential and moved it all to their country house long before photos and showing began. In lieu of a second home, tap some of the many storage companies in NYC, many of whom will pick up and deliver your belongings.

2. Making necessary repairs and updates to address any issues or dated features

Once you have decluttered it is time to put the finishing touches on your home to make it jump ahead of the competition. Regardless of market conditions, most homes which are “show-ready” sell at a higher price than their competition.

As you packed up your belongings you may have noticed some minor repairs along the way. Simply moving a sofa can reveal a need to repaint! Some of the trickiest issues in a home include leads and broken windows. Any sign of a leak even if it is a decade old will give a buyer pause. Go ahead and repaint that stain in the ceiling. If you actually do have a leak, make it a priority to cure it immediately. Broken window panes are also an issue. Depending on the building it may be their responsibility but if it is yours, get it taken care of immediately.

Many large brokerage agencies, including the Corcoran Group, will advance the cash for touch ups with no need to pay it back until your closing by partnering with a third-party specialist. Some very light construction (even painting) might not be in your budget, yet it will make a difference in how quickly you sell your home and at what price. Corcoran’s strategic partnership with RealVitalize will not only guide you through the tune up process, they will also pay the costs up front. You owe nothing back until you close on your home.

3. Staging your home to highlight its best features and appeal to a wide range of buyers

Depending on the list price of your home you can either use virtual staging or actual staging. There are also a wide variety of options in between those two extremes. I have worked with sellers to have empty apartments virtually staged or simply added in key pieces to a sparsely furnished home.

Outdoor space in particular is very well suited to virtual staging. Above all the goal is for the potential buyer to understand how the space best functions. Can you actually fit a king size bed in the primary bedroom? Where does the dining table go in the open dining and living space? These are the potential questions staging answers before the buyer comes to see the property in person. For luxury properties, paying for a professional stager may be in your best interest. Someone with a track record for staging a home to sell can be a worthy investment if your total carrying costs per month are high and you can get to the closing table faster.

Work with your real estate professional to determine which is best for your property and be certain to use someone with local expertise.

I recently witnessed a stunning condominium staged by a successful designer from Connecticut. In a crowded busy city, we like coming home to a serene space with each piece of furniture serving a purpose and frequently capable of multi-purposes.

While a large house can take plenty of furniture, a cramped living room or busy patterns in a city apartment, no matter how beautiful, will turn off your potential buyers as they suffer from visual overload.

4. Enhancing curb appeal to create a positive first impression

Curb appeal is very important because you only have one chance to make a good impression. In a NYC condo or co-op building you probably do not control how the facade or lobby of your building looks but what about the elevator landing? In many buildings if there are only a few apartments sharing the elevator landing you may have more control over that area than in a larger building. Does it need painting or new wallpaper? Make sure it looks its best and if like many New Yorkers, you don’t wear shoes in your apartment, be certain to take them all inside rather than letting them pile up outside your door.

The magic of curb appeal continues when stepping in the front door. Be certain to take a look at what a buyer might see the minute they walk in the door. Is it appealing? Does something need changing? Updating? Refreshing? What seems like a minor detail on a daily basis makes a statement when it comes time to sell.

Setting the Right Price

Pricing your property correctly is key to a successful sale. To determine the right price:

1. Research current market trends and recent sales of comparable properties.

There are countless websites which will spit out the supposed price of your home based on an algorithm. It is very entertaining when the number is higher than you estimated and depressing when it is less. But is it realistic? All of these sites want to connect you to a local agent for a fee. After all, residential real estate is hyper local. Have fun with the algorithm but then do your own research to see who sells the most homes in your zip code. The agent who paid to be on a website isn’t necessarily the best choice. An experienced local NYC Real estate agent with a record of success in your neighborhood will know what buyers are looking for today and help you create a marketing plan for the widest possible exposure.

Proper pricing is one of the main factors which will determine the level of demand for your property. Correct pricing will sell your home faster. What goes into a pricing formula is part comps from past closings, current comps and experience. This is where you want to collaborate with your experienced real estate professional. Understanding what the prevailing trends are at any given time is quite nuanced and requires someone in the market on a daily basis. Not only are the trends important but insights into the comps.

Why one building on the same block typically yields a higher price per square foot than the one across the street can be difficult to understand unless an agent with in-depth knowledge of your particular market can explain it to you.

2. Consider your home’s unique features, location, and condition.

Tell your story. Standing out in a crowded market not only requires beautiful photos, but a compelling story. A good agent will help craft that story and tell it through their social media channels, share it with their extensive network and connect one on one with buyers during open houses and appointments. If your home has an interesting angle, the media may wish to cover it and an active agent can get you the press your home deserves. Connecting your story to the neighborhood and upcoming events, creates excitement and sells a lifestyle as well as your home.

3. Work with a real estate agent to develop a pricing strategy based on market analysis.

Overpricing a property will result in a longer time on the market, which has been proven to result in a lower sale price. Buyers assume that properties which linger on the market are flawed and therefore more negotiable. Are you concerned about underpricing and leaving money on the table? Don’t be!

Well marketed, underpriced properties typically result in a bidding war, which can lead to a higher than anticipated sale price, if handled by a skilled professional with keen negotiating skills. A knowledgeable agent will help you set the right pricing strategy for your property, taking into consideration the current market conditions, and creating a detailed comparison to similar properties on the market.

Sometimes sellers receive an offer within the first few days of putting their property on the market. This is understandably disconcerting. While it is tempting to wait and see if you can get a better offer, it is never advisable. Take it as evidence that you did an excellent job preparing your property for sale, combined with a little bit of good timing.

A prepared buyer, who has been looking for a few months and knows exactly what they want, could come along just when you list your home. Negotiate in good faith and you will achieve the very best outcome.

4. Be prepared to adjust your price, if necessary, based on buyer feedback and market response.

It is never wise to get attached to your first list price and calculate your gains on that number until you actually have an offer. If you must adjust your price in a declining market, you will have a sense that you have lost money if you are overly attached at the beginning to your potential sale proceeds. The loss was only on paper if you don’t have a solid offer. It is always best to adjust pricing in the beginning if you have not had any inquiries or appointments despite extensive marketing. The faster you adjust your expectations to the current market, the faster you will find your buyer.

Marketing Your Property

Effective marketing is essential to attract potential buyers. Key strategies include:

1. Hiring a professional photographer to showcase your home’s best features

Professional photos and eye-catching videos are simply the beginning of marketing your property. Yet if those photos are not compelling your online performance will suffer. All buyers begin their search online. Having photos which highlight what is special about your property will draw them in. A talented photographer will find a way to capture the essence of what is special.

2. Listing your property on popular online platforms and the MLS

You should expect your NYC real estate agent to list your property on multiple platforms including their own robust website. New York City does not have a Multiple Listing System (MLS) which always surprises buyers from other parts of the county. In its place there is the Residential Listing Service (RLS) which is controlled by REBNY. This allows member firms to share their listings with each other. If your listing is with a well-connected agent, your property is likely to be advertised around the globe on more than fifty different websites.

3. Hosting open houses and private showings to give buyers a firsthand look

Open houses became less well attended after the pandemic but they are still important. You will typically be capturing buyers at the beginning of their search as they are out trying to see as many properties as possible in one day to begin understanding their potential future homes. Yet if you have a highly desirable property, presented well and priced well you could sell it at the first open house.

4. Leveraging your real estate agent’s network and marketing resources.

In a competitive crowded market finding a buyer takes more than a website ad. Top NYC agents will have built their own online audience as a means of finding your buyer. While I was dismissive of TikTok at first, I did sell an Upper East Side condo from a thirty second video.

My YouTube channel has resulted in two deals where the buyers were looking for an agent they could trust to give them good real estate investment advice. After pre-interviewing me by watching my videos, they picked up the phone and called me. Both buyers closed and are quite happy. Your listing agent may not have a list of specific names of buyers who are qualified for your specific property at the time you are ready to list but if they have an online presence and following, they have already created the proper audience to find your buyer.

Working with Real Estate Agents

Partnering with an experienced real estate agent can streamline the selling process and help you achieve your goals. When choosing an agent, consider:

1. Their knowledge of the local market and track record of successful sales

Local knowledge is critical for a successful real estate transaction. A successful developer or investor always knows this. There are certain insights which simply cannot be gleaned from data alone. For example, while there are plenty of people who cannot imagine why a buyer would want a gas stove over an electric one, now that they have proven to be more toxic, plenty of NYC buyers still prefer gas. Even the higher end induction stoves are greeted with skepticism. How we live and how we perceive certain finishes is always evolving.

The local expert will be able to tell you what is trending and why. For example, they might know which banks are offering incentives to buyers in your area.

2. Their marketing plan and resources for promoting your property

Marketing a property successfully is always an evolving art. Last year I wrote up what I thought was a definitive list of the “sixty things we do to sell your home” and yet since that time I have found even more avenues for promotion. For example, I write a weekly article on LinkedIn. If I have a new listing, I may decide to write about why that neighborhood is interesting to live in or highlight a feature of the apartment. One article I wrote about was the difference between living on a high floor vs. a low floor. Anytime I can engage online with potential buyers, I am marketing a listing.

3. Their communication style and availability to answer your questions

When choosing an agent trust and communication are critical to your success as a seller. Choose the top NYC agent who resonates with you. Have they answered your questions in a manner which suggests that they not only understand the market in detail but care enough about you to explain how the trends are impacting your sale. What about frequency and means of communication? Does their communication style suggest that you will have an easy rapport?

Building trust in your professional relationship is necessary when it comes to negotiating a deal.

4. Their negotiation skills and ability to advocate for your interests

A successful negotiation record is critical. Negotiations are one of the most important skills an agent possesses after marketing skills. You must be confident that your agent is able to defend the value of your property and get the buyer to the closing table. In NYC this also requires qualifying the buyer’s financial health in order to get them approved by the board in a co-op.

Closing the Deal

Once you receive an offer, the final steps to closing the deal include:

1. Negotiating the terms of the sale, including price, contingencies, and closing date

Every deal has slightly different terms which must be ironed out along with the price. Financing contingencies are relatively common whereas appraisal contingencies are not. Inspection contingencies, while common in the rest of the country, are almost non-existent unless you are purchasing a townhouse and such sales represent less than 2% of the deals done in any given year.

Anything attached to the wall is included in the sale of a NYC apartment. But do the expensive light fixtures and the flat screen TV convey with the sale? All of this needs to be discussed. Finally, the closing date can be tricky as they are not set in NYC sales. Your contract will read “on or about” a certain date and that can be pushed out by thirty days by either party. Having a clear understanding of the closing time frame must be discussed in detail as part of the negotiation.

2. Navigating inspections and appraisals to ensure a smooth transaction

More and more people are opting to have an inspection so they understand the condition of the property they are purchasing even though they are not able to change the terms of the deal as a result of the inspection. They may choose to walk away before the contract is signed but once it is signed, the buyer is locked into the deal regardless of what the inspection report says.

Appraisals are a simpler matter unless you are in a market where prices are rising quickly. The NYC real estate market tends to move more slowly than elsewhere because of the board approval process. Additionally, there is always a good balance of inventory given the sheer size of the market. As a result, we do not tend to see prices spiking quickly which could result in an appraisal coming in below the agreed upon sale price. We have very strong markets but not the type of crazy, speculative escalations seen in other national markets. And of course, approximately 50% of the deals done at any given time are all cash where the appraisal does not come into play.

3. Reviewing and signing closing documents with the guidance of your real estate agent and attorney

In NYC only your real estate attorney will prepare the purchase contract and settlement statement. If you are purchasing in NYC for the first time and especially if you are a veteran of purchasing elsewhere in the country this may be confusing to you. Once the attorney sends out the purchase contract they take care of the majority of the documents until the closing time.

4. Transferring ownership and receiving payment for your property

The closing is when you will finally get your payment and transfer ownership to the new buyer. The transfer of real property will require a title search which your attorney will oversell. If you are selling a co-op, you will need a copy of your original stock certificate and proprietary lease. If either are missing your managing agent can help you secure a new original for a fee. This can take time so be prepared well in advance.

Conclusion: Maximizing Your Sale

Selling property in NYC requires a strategic approach and attention to detail. By preparing your home, setting the right price, marketing effectively, and working with experienced professionals, you can maximize your sale price and achieve a successful transaction.

FAQs:

1. How long does it typically take to sell a property in NYC? That depends on the average days on the market. The supply, demand and prevailing market trends always dictate how long it takes to sell. Of course, if you overprice your property, it will take even longer.

2. What are the most important factors in pricing my NYC property? You must understand the direction the market is moving in when you price. Is it going up or going down and at what pace? Be strategic, not greedy and you will have a successful sale.

3. How can I make my property stand out in a competitive market? Polish, perfect and price are the key elements. Polish up your space with a deep clean, purge and a fresh coat of paint. Perfect the space so it is ready for great photos by looking through the lens of your own camera before the photographer arrives. Pricing for even a highly desirable apartment is critical so make sure your price will attract the widest pool of buyers possible.

4. What should I look for when choosing a real estate agent to sell my NYC property? A track record of success is paramount. After that ask yourself if this person is knowledgeable about your local market and has good marketing reach.

5. What are the closing costs for sellers in NYC, and how can I prepare for them? Closing costs depend on the property you are selling. Co-ops have different costs than a condo or townhouse because they are not real property. Any agent can give you a list of costs in advance to help you plan long before you sign a listing agreement and put your property on the market.