Page 32 - NY Cooperator Expo April 2019

32 THE COOPERATOR —APRIL 2019 COOPERATOR.COM P erhaps the most critical element in a successful marketing cam- paign for a co-op or condo unit is the price. Well, how is that price de- termined? What factors are considered? Whose expertise is needed to arrive at the optimum number? Is conjuring up that offering price an art or a science? Science Versus Art “I think it’s more of a science than an art,” says Joanna Mayfield Marks, a bro- ker with the New York-based firm Hal- stead. “That doesn’t discount the artful part, though. Condition is the artful part. That’s why we do staging, which can make a huge difference, especially in certain neighborhoods. When location is prime, the artful part of pricing really comes into play. But when the apartment is in a high-volume location and there’s a lot of inventory, sellers are taking a sci- entific approach and looking for value.” Jonathan Miller, President and CEO of Miller Samuel Inc., a New York City real estate appraisal and consulting firm, believes pricing and valuation are a com- bination of both science and art. “I de- spise each definition on its own,” he says, “because it’s not strictly either. There’s a lot of gray area. And the gray area is how someone with experience navigates what’s subjective. That’s what separates someone who is good at valuation from someone who is not.” Ryan Hardy, a broker with Gold Coast Realty in Chicago, believes “it’s a little bit of both. But I lean toward pricing be- ing an art. There’s data that goes into it as far as recent sales in the building are concerned, but the actual final pricing is determined by things like staging and condition. Some units show really well, others don’t. The science is in using the data, but any premium you get over that is an art.” ‘Location, Location, Location’—Not Anymore The age-old axiom in real estate was ‘location, location, location.’ Accord- ing to Marks, that’s no longer a singular truth. “It’s price, condition and location. You can’t change the location variable, so we take that off the table. Condition can be changed. We work with that. In the end everything sells. In the end, it’s price.” In Chicago, Hardy explains “location is always the biggest factor,” although other considerations such as condition, and in particular views, come into play. “It almost doesn’t matter how nice or what amenities the unit has.” He says there is a clear correlation between dis- tance from downtown and prices. The longer the commute, the lower the price. The Difference Between What the Market Will Bear Pricing Co-op, Condo and HOA Units BY A J SIDRANSKY TRENDS MINT-X® RODENT REPELLENT TRASH BAGS The Only Industrial-Strength Rodent Repellent Bag VISIT US AT BOOTH 108 www.mint-x.com info@mint-x.com ü A safe, humane solution to foraging rodents and raccoons in your trash ü Strong and durable ü Neutralizes odor with a pleasant mint scent ü Improves overall pest management at your building ü Available in various sizes and strengths Distributed by: 20-48 119 Street th College Point, NY 11356 www.JAD.com 1-800-JAD-2247 250 Park Avenue South New York, New York 10003 212-557-3600 www.TudorRealty.com To learn more about our property management services, please contact Andrew S. Lazarus, Senior Vice President 212-813-3054 or ALazarus@TudorRealty.com Since 1990, Tudor Realty Services Corp. has been providing hands- on, proactive property management services to cooperative and condominium buildings throughout New York City. Life was simpler in 1990. New rules and regulations as well as changing technology have certainly made managing your building more challenging. Let us tell you how our extensive experience, team approach, strong financial reporting, and advanced use of technology will help you meet the challenge. 37966_Cooperator_5x6.25.indd 1 12/8/17 11:24 AM ISTOCKPHOTO.COM See us at Booth 108