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06/21/2009 10:52 AM

List Price Key In Real Estate Slowdown

By: Jill Urban

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When selling real estate, setting the right price is critical. If you get it wrong, you could lose out on potential buyers. NY1's Jill Urban filed the following report.

Selling real estate is a tricky game, and making sure the price is right is the hardest challenge. But in this unstable market, how can you determine the proper value for your home so you get it right?

Cynthia Keskinkaya of PDE says it's very important to find a broker who really understands the current market.

"An average broker can sell in any market, but you need a great broker to sell in a changing or a down market. So the first thing you want to do is find out what they have sold in the last six months, what properties have been sold. What's in contract? You want to make sure they are in tune with the market," said Keskinkaya.

Keskinkaya suggests calling in a few brokers and have them suggest a price. Then make them show you the data and defend why they think that's the best way to go.

Keskinkaya says there is really no formula to figuring out a price these days. Since the market has been so slow in 2009, there is little data about what's sold. A good broker should be able to find out what's in contract now and that can help determine where you should be.

First, you obviously need to assess your space, neighborhood, amenities, position in a building on the block, view, things like that. But the key to determining price is to understand your competition.

"What's available on the market right now? If you were a buyer and you were looking for an apartment, what else would you see in this price range. And you want to position your apartment to stand out on the top of the list," said Keskinkaya.

Real Estate appraiser Jonathan Miller agrees. She recommends asking a broker how long the competition has been on the market while keeping other factors in mind.

"Some of the key amenities that could put your apartment at a disadvantage is if your maintenance is higher than typical maintenances of apartments in the neighborhood, if you have a reputation for a difficult board, issues if you have a ground lease, if there's litigation in the building," said Miller.

Is the building in good financial standing? Are there are a lot of investor owned apartments? How hard is it of finance? These are things that could deter buyers and may need to be reflected in price.

Miller also says to not overprice it in anticipation of a low offer.

"If you are truly at market, not 10 percent higher, if you are at market and you get someone making a 30 percent or lowball offer, there are other buyers that will recognize you are at market and you can ignore that offer," said Miller.

By following these simple tips, you can lessen the chance of selling yourself short in any market.