The luxury real estate market in the Hamptons has always been a universe of its own, where stunning oceanfront properties and picturesque village houses command top dollar. Yet, with a season of changing economic times, changing consumer needs, and record-breaking sales, the question is: Are there sellers asking prices that ignore reality?
As demand continues to be robust at the important price points, brokers are working in an environment where aspirational pricing confronts savvy buyers. Will ultra-high-net-worth buyers still pay top dollar, or has the market shifted to a point where sellers must relent? In this roundtable discussion, top Hamptons real estate pros share their take on the latest pricing trends, the impact of rising interest rates, and why precise pricing strategies can make or break a sale in this competitive market.
Mark Greenwald, Saunders & Associates
In today’s digital age, there are fewer “secrets” in real estate and far easier to show an owner comparable properties and create a reasonable price expectation. Sellers, I find, are savvy and want the best return on their investment while still realizing the benefits of pricing strategically. That being said, every property does have its own unique features and, of course, every home has intrinsic value to a seller, which may not translate directly to a higher price in the market. This is where, I think, a seasoned broker can have direct conversations with sellers and come to a successful pricing strategy that is successful for all.
Heather Buchanan, Sotheby’s International Realty
Sellers can easily have a blind spot when it comes to their property, because, of course, we all love our homes. Pricing and value opinions should be backed up by facts, and experienced agents will help with that education even beyond comparable sales. They can evaluate everything from the Certificate of Occupancy (you may think you have five bedrooms, but only three are legal) to a survey (room for a pool, lot coverage, and over-clearing greatly affect value). I also use my connections to local builders and architects to assess a potential range for renovation costs. A knowledgeable agent is key to all the local regulations that affect property value. I am probably the only person who watches Town and Village board meetings on Channel 22 instead of streaming Netflix!
Susan Harrison, Compass
It is no secret that pricing is key in the current market. Agents must come prepared with comparables and use current market data. However, using only comps can be tricky because the pandemic skewed the numbers to such an unrealistic extent. The price conversation with sellers has to be direct and focused on their goals. Also, understanding the “why” behind seller motivation for price is so important. We, as agents, need to deal with empathy for our clients to be able to advise them on the best strategy to achieve their goals. Showing actual comps is important, but showing languishing listings with high DOM can be even more useful to showcase what you want to avoid. At the end of the day, it’s all about trusting you as their agent, that you are informed enough to advise them properly.
Ann Gegelys, Sotheby’s International Realty
When working with sellers who may have unrealistic price expectations, I find that a balanced approach of education and empathy works best. Initially, it’s critical to confirm and acknowledge the seller’s goals and concerns with selling their property. This can help to determine their pricing expectations, yet also acknowledges the seller’s feelings about selling their property; selling can be highly emotional.
Once I have a better sense of motivation, that’s where education comes in. By sharing targeted market data and comparable sales, I can provide sellers with a realistic picture of our market trends and a reasonable price range for their home. I also like to provide examples of past home sales that were successful and unsuccessful, with their pricing strategies. Doing so highlights the risks of overpricing, such as longer market time, fewer offers, and price reductions, and the benefits of pricing to the market, shorter market time, and possible multiple offers. Walking clients through this information helps align their expectations with the market.
Ultimately, the decision on pricing sits with a seller. If they are set on a higher listing price than suggested, I recommend trying it for a brief period, such as two weeks. We then reassess based on the market’s response and adjust accordingly, if needed. Our goal is to guide our sellers toward a successful sale with minimal time on the market and achieve the best possible price.
Steve Dorn, Brown Harris Stevens
I have worked in real estate for over 30 years, and pricing is one of the most important and difficult decisions you have to make as a seller. Among other factors, pricing your property should reflect the location and condition of your home, current market conditions, and comparable recent sales. As your selling agent, I will provide you with a comparative competitive market analysis that offers an opinion of value.
