When trying to negotiate the best price for a Manhattan property, there are some items that you can control/interpret yourself and some that you will need an experienced broker to assist you.
For starters, you want to have the below info
1- days on market
2- previous offers
3- current market conditions
4- owner’s motivation
5- nearby construction that will affect light and views
Armed with this information, you at least have a starting point but you will need your broker to interpret the following:
1- recent sales and how they compare with the Manhattan property you are considering
2- adjustments for view, light, condition,
3- how the market conditions affect this particular unit
With your basic information plus your broker’s input, you can make your offer. To negotiate the best possible take the below approach.
1- Start with a reasonable offer. If you start too low, likely the seller will not counter. In some cases, when the DOM is high like 300 days or more, you may be able to make an offer than is lower.
2- Have your broker explain to the other side how you calculated the offer price that you gave.
3- Be willing to either walk away or wait if the counter offer is not to your liking. If you wait long enough a price reduction 1-2 months later may be even lower than the counter offer that you received.
Usually, when a listing is fresh, the seller is less likely to discount the price but as time goes on and reality sets in, they may be more willing to negotiate.
The Author- Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.