The Top 7 Reasons Why An Apartment Hasn't Sold

by Richard Grunebaum & Mark Neuwirth, Bellmarc Realty

The most frequent status in our listing database today is not “Not Available” or “In Contract” but, unfortunately, “Off The Market.” OTM apartments those whose owners who have decided not to sell for a variety of reasons. Why haven't these apartments sold? Bear in mind these are only the top 7 missteps, others lurk.

1) The asking price was incorrect. The majority of the time this means that the seller's price was too high. Usually buyers were intimidated from looking and bidding on the property. Most buyers don't believe sellers will negotiate to close a perceived huge gap between the ask price and what they believe is the correct market value. The article “The Top 6 Reasons To Price It Right” in our December 2009 issue outlines more of these issues.

2) The apartment was poorly photographed. The next time you're looking at listings on the web notice how many of the pictures are dark, blurry or unappealing. Only the savviest buyers will take the time to look beyond bad photos and visit an apartment.

3) The ad copy was inaccurate or unappealing. We recently saw an ad for a 500-square-foot studio that claimed the apartment was 800-square-feet. Buyers today understand the difference and move on. And ad copy that references a superior view needs to be paired with compelling photos of that view.

4) Buyers are impressionable people and react to a neat and clean space differently than to a cluttered or untidy apartment. Preparation or “staging” is an invaluable tool that impacts how an apartment looks in photos, but more important, how it shows in person.

5) The time of year. Real estate in New York City is a seasonal business. We know that larger apartments generally have less buyer traffic in the summer than the rest of the year. Buildings located further from subways can experience significantly less attention during the winter months until the spring weather makes the walk to them easier.

6) Lack of access. Some apartments are much harder to show than others. The reasons can include busy owner schedules, renters subletting during the sale or a listing agent who is too busy to show.

7) As we've mentioned before, getting a mortgage is significantly more difficult today than in recent years. Problems include appraisals below the contract price and tough bank guidelines for both buildings and borrowers, each of which are subject to almost weekly change.
Selling an apartment in New York City has always presented a unique set of challenges for owners. This has never been more true than it is today.