How-much-does-overcustomization-cost-our-deal-of-the-month | The Harris Residential Team

So How’s the Market?

There’s a lot that I can say about market trends, and this listing that just closed is indicative of a real estate market returning to health. This property at 200 Riverside Boulevard, a 26th-floor unit which was asking $2.25mm and sold for that level. It went into contract in 12 days from when we went to market. But that’s not the most interesting thing about this sale.

*from listed to sold in 12 days. not quite a record, but close!*

What makes this our Deal of Month is when we compare it to unit 34C, the exact same apartment 8 floors higher. It started its listing journey asking $2.45mm in August 2022, and went into contract while its listing price was $1,875,000. It’s in contract now.

My questions: why did it need to reduce its price $375,000 below our listing? And how can you avoid any mistakes that made this sell for so much less?

Marketing Makes a Difference

I can’t overemphasize the power of virtual staging. It gets people in the door, and inspires people to what can be done with a space. However, if your apartment is empty, and if it hasn’t been renovated in a while, is it possible that some other things need to be done. Here are two original images of the 34th floor unit, and two virtually staged photos:

*the living room as it is in unit 34C at 200 Riverside Boulevard*

*the primary bedroom (also unfurnished)*

It’s clear that virtual staging works. But is it possible that a little paint job, where a seller might spend around $10-15,000, might help a buyer when they walk in the door, to have a much better impression.

For what it’s worth, our listing had the exact same floors. I’d also add that both apartments have 2.5 baths, and 34C was marketing the unit as only a 2-bath apartment. Did they accidentally lose prospective buyers that way, too?

Customization Makes a Difference, too. Not always for the better.

I’d draw your attention now to the kitchen and the primary bath. I’ll let the photos speak first.

*kitchen in red, is dancing with me, cheek to cheek*

*Have we been transported from the Upper West Side to France?*

I won’t begrudge anyone customizing their space. But I would point out that the red kitchen, with the orangy granite top and stainless steel appliances, resides right next to the much-more-traditional space. Do they clash? I’ll let you answer. And the bath, even more ornate than the rest of the spaces, is a very specific look that not every buyer will be excited about, to put it mildly.

At the same time, these updates were, no doubt, expensive. So I have to ask you: did this seller expect that their expensive renovations would end up costing them money on the sale? I’m sure the answer is no.

By the way, it’s not that our listing was in brand new condition, but it was nicely furnished (the buyer purchased some of the furnishings!) and a little more neutral.

The Takeaway

Be careful that your customization is not so custom that it might turn off prospective buyers. Or at least be ready for there to be a cost for your customization, beyond the cost of the customization. In this case it is at least $375,000 over and above the renovation cost…not chump change. In fact, we didn’t even factor in the extra 8 floors. I think that this should have sold for over $2.3mm, had it been presented with a little more forethought.

All the same, congratulations to our seller for a successful sale. And congrats to my team for making quick work of this listing, too! -Scott & The HRT