We’ve been a bit numbers-focused lately. Who wouldn’t, when every buyer and seller is? However, this demonstrates that it’s not just numbers, but digging into them to find the opportunities in the market.

The A Line

789 West End is a wonderful cooperative building on the corner of 99th Street and West End Avenue. The lobby is renovated, the facade has been restored, and the resident manager is in a good mood—most of the time. The last “A Line” sale was unit 12A, a renovated 6-room, over 1750-square-foot apartment with a massive kitchen. Did it look like this, though?

It sure didn’t! Our contractor told us it was, “The worst apartment condition I have ever seen.” High praise from people who see everything. So how would we help this unit sell for its highest price? Not an easy task.

The Timeline

First, we painted, and then we virtually staged the unit. And then we launched our marketing. Spring is supposed to be the best season, right?

Not always. We hit the market, asking $1,650,000 in May 2023, just as mortgage rates were climbing drastically. To say that this swift change impacted the real estate market is the understatement of the decade.

Often agents will tell you that “it’s all about price.” Even I have probably said this. In this case, little inventory was moving, at any price. It was about fear.

On top of that, no one wanted to do the work this property needed. It seems like too large a project to take on. You could hear their thinking: Surely, a more renovated apartment would come to market? Surely mortgage rates will drop?

Yet we approached the issue as it if price was the culprit. And what happened?

• July we reduced to $1,495,000. A big drop. No takers.
• October we reduced to $1,450,000. Still nothing.

Then we staged the unit with actual furniture. Would that be the difference? What do you think? Looks nice, right?

It looks amazing. But it still didn’t do the trick! Finally, in November we reduced to $1,395,000.

Was it the new price that got us traffic? No. It was new purchasing power. It was a sudden downshift in mortgage rates that woke up the market for a few months and gave people home.

We suddenly had lots of showings and multiple offers. But even that wasn’t making things easier.

Which Deal Looked Best?

Deal 1:

After months of no takers, we had an all cash deal at $1,200,000 the sellers were willing to accept. We knew the buyer was real. We know the coop’s board would allow it. And so we proceeded. Until we got a much better offer a day away from the buyer signing a contract. He knew he was getting a deal that was too good to be true. He didn’t even try to argue with me. He just kept looking for the next bargain.

Deal 2:

This was a buyer who was financing, but the offer was $100,000 higher. It all looked great, except that the buyers just couldn’t decide whether or not they really wanted to do the work. One day they were in, the next day they were out. Schizophrenia at its finest. They pulled the plug after about six weeks. Everyone was upset.

Deal 3:

They say “the third time is the charm” for a reason. Why do things happen in threes? Is it part of the simulation in which we live? How will we ever find out…This was another all-cash buyer who ultimately paid the same $1,300,000 price, but was only marginally nuts. They closed last week.

The Through-Line

No matter where we were priced, and no matter where mortgage rates are, no matter where prices are, the through-line in this market is that people did not want to do renovation. I see this as an opportunity. But most people just saw it as a headache.

The Bottom Line

Painting helps. Staging helps. Pricing might help. But mortgage rates and time help more than anything. Congrats to our sellers for having the patience to wait for the right buyer. And congrats to the buyers for having a vision of what this property could be! -Scott & The HRT