How to Sell Your NYC Apartment After a Crisis

In ordinary times, the majority of New Yorkers list their apartments for sale during the busy spring selling season. Unfortunately, the times we are living in right now are anything but ordinary in the wake of the coronavirus crisis.

As the spring selling season of 2020 was interrupted by the COVID-19 triggered stay-at-home orders, NYC apartment owners that were previously thinking about selling this spring are sitting at home wondering what to do with their apartment when New York City re-opens.

To help sellers navigate the current environment, below we’ve answered the key questions on how to sell your NYC apartment after a crisis.

Should you list now or wait to sell your NYC apartment?

The most common question right now among potential sellers in NYC is whether to list now or wait til there is more clarity post COVID-19. While no one has a crystal ball, there are positive arguments in favor of both strategies. 

On one hand, some brokers advocate to list now due to the current supply and demand dynamics. Given there has been little to no new inventory hitting the market in the five boroughs over the past 6-8 weeks, sellers that do list garner greater attention from buyers and face less competition than normal from other sellers.

On the other hand, many brokers recommend to wait for more clarity before listing. With an anemic level of sales activity in recent weeks, there is a lack of new price information to rely on for guidance. While you may be comfortable with risk taking, you may not want to be flying blind if you prefer a data-driven approach to selling. 

Both strategies have their merits, but where the rubber meets the road for sellers is whether you need to sell or want to sell. Ultimately, if you need to sell, you may not have the luxury or wherewithal to wait it out.  

How can you net more money from your NYC apartment sale?

When deciding between real estate brokerages, don’t just choose the first broker you meet with when selling an apartment in NYC. It's always a good idea to interview several brokers and it’s a great idea to negotiate the listing commission when selling your apartment.

Today, there are financially-savvy alternatives to traditional brokerages that help sellers save significantly compared to the average 5 or 6 percent commissions in NYC. 

For example, New York owners that sell with tech-enabled brokerage Prevu pay a fair listing agent commission of only 2 percent plus a buyer's agent commission for a potential savings of up to 2 percent with the brokerage’s Smart Seller Program. 

On a $1,500,000 apartment in NYC, you could net up to $30,000 more from your sale when you sell with Prevu.

Do all NYC brokers provide virtual tours?

One of the silver linings of COVID-19 for NYC real estate is the broader adoption of virtual tour technology. These immersive tours are finally having their moment!

However, not all NYC brokers provide virtual tours. Before deciding on a listing broker, ask to see examples of their firm’s virtual tours. To maximize the marketing of your property, you want to make sure your broker provides them and is using only the highest quality virtual tour technology - not just their iPhone.

Virtual walkthrough experiences generated with state of the art technologies like Matterport give a realistic sense of an apartment. Also, they are a great resource for your listing agent to share during professional video calls with buyers and their agents to personally discuss the tour and highlight the best features of your apartment.

Afterall, there are multiple benefits of proper virtual tours:

• They provide richer marketing content for your property without the need for high-risk physical traffic to the space.
• They save you time by only having to organize and prepare your apartment once for the virtual tour capture, rather than for every open house and showing (Less strain on you and your cleaning person).
• They reduce the number of in-person first showings with less serious buyers that would have previously wasted your time.

Example of a virtual tour with Prevu

Will NYC buyers be vetted thoroughly before in-person visits?

In the pre-coronavirus days, listing agents focused on maximizing the traffic of buyers to a seller’s listing - including open houses and showings - so the eventual buyer could fall in love by experiencing the space in person.

Today, to ensure the safety of sellers and their families, listing agents are vetting buyers more aggressively earlier in the sales process before buyers can even set foot in the house. 

What does this mean? Listing agents are asking buyers to prove their financial qualifications before the first in-person showings. This used to be handled during the offer process, but now it will be common for buyers to share their mortgage pre-approval, REBNY financial statement, or proof of funds in advance in order to confirm a showing. 

While this may seem like a point of friction, it will be a safer way to market your property and ensure only serious buyers visit your home.

What are your building’s rules for visitors and showings?

During the current crisis, condo and co-op buildings throughout New York City have instituted strict rules temporarily regulating and/or prohibiting guests and visitors. 

While these measures are aimed at promoting the safety and well being of owners and residents, they could hamper an apartment sale if the visitor bans are not lifted when NYC initially re-opens. 

Before getting ready to list your property for sale, make sure you and your listing agent are aware of all temporary rules in your building related to COVID-19. 

Will you get a great price or discount bids?

If you read the news, there are conflicting opinions out there whether the NYC real estate market will see a rapid rebound or calamitous decline as a result of COVID-19. No matter what your view is though, the uncertainty in the market is sure to draw out deal seekers who are hoping to negotiate a steep discount.

Don’t be alarmed or offended by a low bid. Just because a buyer submits a low-ball offer for your apartment, doesn’t mean you have to sell at that price. Buyers and their agents will likely share stories of the 2008 financial crisis and a potential bleak outlook for NYC real estate  in order to scare you into accepting a low offer. Remember, these are negotiation tactics that are meant to rattle you.

Rely on your listing agent to help you remain objective and negotiate all offers fully to achieve the best price and timing for your sale goals.

What buyer qualifications is your co-op board looking for?

If you are selling a co-op apartment in NYC, it might be helpful to take the temperature of friends you have on the board to understand what buyer qualifications they are looking for in the current climate. 

NYC co-op boards are known for being sticklers. As a former co-op buyer yourself, you likely remember the intense process you went through to buy your place. 

Amid the economic uncertainty surrounding the coronavirus crisis, it is very likely that co-op boards will be extra stringent in their review of applicants to ensure stability for the co-op corporation. 

Asking questions at the beginning of your sale process will save you the headache and delays of a board turndown later. 

Will your sale take longer than normal?

Even if you achieve an accepted offer quickly after listing your apartment for sale, you should expect your transaction to take longer than average to close amid a crisis. 

There are multiple steps involved in a real estate deal from offer through closing. With the disruption of stay-at-home orders as well as various state and local regulations restricting certain activities, delays are quite common. 

Contract negotiations and legal due diligence have added steps to protect sellers and buyers. Appraisers have less access to view apartments and mortgage underwriters have higher standards to comply with. Plus, many closings have been delayed as buildings are not allowing moves in or out. 

As a seller, many of these delays are out of your control, so the best advice once you’ve signed a contract is to be patient until you close. 

Thinking about selling your NYC apartment? Learn how you can save thousands in commission with Prevu’s Smart Seller Program.