This post will show how unrealistically high asking list prices can doom high-rise listings from the get-go.
The number one goal of listing agents while selling Las Vegas high-rise condos should be getting all willing and financially able buyers to see the listing. And that requires the correct asking list price on the listing. An unrealistically high list price repels the buyers, so the listing sits on the market for months, thus ruining any chance of selling the condo for the highest possible price, which is long past.
This article will show you an oversimplified real-time example of how asking list price can doom a high-rise listing from the get-go. We chose listings in lower price ranges that clearly show which condos are overpriced. However, this is not going to be readily apparent in high-priced listings with custom upgrades. But the results are the same.
On the Allure condo page, we discussed why high-rise condo pricing has been stable since 2019. So by March 2021, condo prices have not moved much. However, we will see significant price gains from now on and wouldn’t be the least surprised at 10%-15% price appreciation by the end of 2021.
This chart shows how much 1233 square foot high-rise units at Allure have sold from 2019.
The units under contract designated by the (UCS or UCNS) status show current market activity. To make a point, we have picked units ending at 05, which pretty much guarantees that the views will be the same, except some are from higher floors.
Correctly priced listings versus unrealistically high priced high-rise listings
Please click on the link below to see the listings
Units 3705, 3405, 3205, and 2005 are pretty much the same and have wood-like laminate flooring. Units 2005 and 1105 have carpet in living areas which is $10,000-$15,000 cheaper than the previous units. Unit 1005 has lovely tile flooring, which is $10,000 higher than units with laminate.
Unit 2005 sold in June 2019 for $310,000, and unit 3705 sold for $335,000 in December 2019. Given that 3705 is on a higher floor, the difference in the price makes perfect sense. Unit 1005 is currently under contract for the asking list price of 310,000. This condominium went under contract in 14 days.
Unit #3205, which we have gotten for an out-of-town client, will sell for $310,000. This condo was on the market for 23 days. Again, both sales are in line with what we have been discussing.
Now check out unit 2305, which has carpet in living areas with an asking price of $399,000. As of this writing, this high-rise condominium has been languishing on the market for 432 days and counting. Unit 3405, with an asking list price of $409,000, has been on the market for more than five months without any offers.
Both units are exceedingly overpriced. One reason could be that the listing agents think that since condominiums had appreciated 12.9% last year, high-rise condos have done the same. Even then, they should have listed these at $350,000.
These listings are pre-destined to fail, expire or become withdrawn, and incorrect pricing is the only reason.
We have always been baffled by these overpriced listings.
Doesn’t the seller make the Realtor prove his/her initial asking list price?
Why does the seller keep a Realtor who has miserably failed to sell his listing for a year?
And as the Realtors, they should know that no Realtor would even consider showing their listing in his/her right mind.
If we can’t sell it, we will NOT list it, and that is why we have lost a few listings to the competition, which eventually failed to sell the listing.
If you want to sell your Las Vegas high-rise condo please contact us at 702-478-7800