✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.
Selling a house in New York has become a bit more challenging in recent times. As of March 2024, real estate prices in New York City have seen a decline of 3.1% compared to last year, with a median selling price of $790K.
Despite the dip in prices and sales, there are still houses for sale in New York. Homeowners looking to sell can take advantage of the current market. However, work with an experienced real estate agent who can navigate the changing market conditions.
As New York state home sales continue to fluctuate, it’s essential to stay up-to-date on the latest trends and make informed decisions when buying or selling property.
📉 New York Housing Market Update
- Median Home Sale Price Drop YoY: The median home sale price dropped to $364,366, down by 2.3% YoY, the biggest decline in more than a decade.
- Fewer Buyers are Applying for Mortgages: Mortgage purchase applications were down by 31% YoY. Due to expensive financing, fewer buyers are applying for mortgages.
- iBuyers are No More a Viable Option: Several iBuyers have either shut down or are suffering massive losses. As per our research, most iBuyers are not offering more than 70% of a property’s Fair Market Value.
- Bottom Line: In 2023, more sellers in the Empire State are opting to sell their homes by owner. By listing on the MLS with the best FSBO sites in New York, your New York home gets maximum exposure, and you save thousands of dollars in commissions.
We have broken down the important steps in selling a house in New York, so you can attract more buyers and sell for the best price.
Step 1: Determine How You Want to Sell Your House in New York
How you choose to sell will determine all other aspects of selling your New York home. These include the cost of selling a house in New York, marketing strategy, the level of preparation you need, etc.
Home sellers in the Empire State are no longer required to work with only 3% commission realtors to list and sell their houses. You have options now – MLS listing services, discount brokers, FSBO sites, etc. – who work at lower rates. Weigh the pros and cons of each option before you choose one.
- Sell With a Discount Broker: A New York discount real estate broker offers all the services similar to a traditional broker at discounted rates. Discount brokers in New York charge a 1.5%-2% commission or a $3,000-$5,000 flat rate. They will help you with everything, from listing to closing, and offer decent savings.
- Sell Your Property For Sale By Owner: You can sell your home without a Realtor, independently. You will save the entire 3% listing commission but won’t get MLS access. You can list your New York real estate For Sale By Owner websites. The best FSBO sites leverage technology to get you listed and connect you with potential buyers directly.
- Sell With a Traditional Realtor: We do not recommend working with a traditional Realtor. They charge a 5%-6% commission and control most aspects of the transaction. However, if you need guidance at every step, work with New York Realtors in your area who have expertise in the New York housing market.
- Offer Your Home to a Cash Buyer: You can selling a house as is in NY to a cash buyer. New York cash home buyers offer 30% to 50% of the Fair Market Value and offer flexible closing timelines.
✍️ Pro Tip: Offer your home to an iBuyer if your house is in good condition. iBuyers offer up to 70% of the Fair Market Value and make instant cash offers.
Step 2: Set a Realistic Listing Price
The listing or the asking price is the most important factor for a successful home sale. Typically, the New York real estate broker will run comps and help you arrive at an asking price. However, in an FSBO sale, you can use online tools like Zestimate to determine the asking price for your New York home.
Do not overprice your home. If you do, your home will spend more days on the market, and buyers may make negative assumptions about it.
On the other hand, underpricing can be a good strategy. Remember, the listing price is not equal to the sale price. The purpose of the listing price is to attract buyers for your home.
You can set the asking price at the lowest price acceptable to you. You might get multiple offers which may lead to a bidding war among buyers. Bidding wars can help you sell at a price higher than what you had in mind. Refer to this informative guide on how to price your home for sale for more such strategies.
Step 3: Market Your Home
A good marketing strategy will help you attract more potential buyers. You can work with a broker to market your home or do it yourself. Here are a few marketing tips that can increase your home sale value substantially:
- Stage Your Home: You can sell your home for up to $40,000 more by staging it. You can DIY it or work with local New York home staging companies. They will rearrange the interiors of your house to make it look spacious and presentable.
- Hire a Real Estate Photographer: With professional real estate photography, you could sell your home in New York 32% faster. Professionally clicked pictures will make your property listing pop. It will also help you to market your home to 90% of buyers who search for properties online. Check out the top real estate photographers in New York.
- List on MLS: With an MLS listing, you can sell faster and for up to 17% more. Your property listing will also get syndicated to 100+ real estate websites. But, only licensed New York real estate agents have access to the MLS. They charge a 3% commission which can burn a hole in your pocket. You can list your house on MLS in New York with New York Flat Fee MLS companies. Houzeo will get you listed for $379, and that too within 48 hours.
- List on Free FSBO Websites: Several FSBO sites allow you to list your home on their website for free. Your New York property can attract buyer traffic that visits a particular FSBO website. Some examples of free FSBO listing websites in New York include Craigslist, Zillow, ForSaleByOwner.com, etc. However, you may attract unverified buyers or scammers as well.
- Post a Yard Sign: You can attract unrepresented buyers and save the buyer agent commission. Ensure you get a yard sign with your phone number so that the buyers can contact you directly.
- Host Open Houses: In a hot market like Jacksonville or Miami, an open house can be a great way of showing your property to home buyers. Also, you can attract unrepresented buyers.
Step 4: Show Your Home to Potential Buyers
Showings are essential when selling a property in New York or anywhere. The more the number of buyers touring your home, the greater the chances of you getting an offer. But this doesn’t mean showings should be inconvenient for you. You can use an online showings management tool like Houzeo Showings.
Houzeo Showings allows you to schedule slots for buyers to tour your New York house. Home buyers can also request and reschedule or cancel showings.
Step 5: Negotiate Offers
Interested buyers will send written offers to your agent or directly to you, in case of an FSBO sale. In a seller’s market, buyers might make offers above the list price. But, experts predict 2023 to be a buyer’s market. So, be open to negotiations.
As a seller, you can accept, reject, or counter an offer. A counteroffer is a way of negotiating an offer for better terms or prices. It should be in written format and must have a set timeframe for the buyers to respond. In the counteroffer, you can offer seller concessions, repair credits, etc., in exchange for selling at the list price.
In case of multiple offers, weigh all of them across various merits and do not accept the highest bid right away. You may want to consider the following before accepting an offer amongst multiple offers:
- Mode of payment (cash vs financing)
- Home buyer’s mortgage approval status (pre-approval vs pre-qualified)
- Buyer’s willingness to cover the closing costs in New York or some part of it
- Buyer’s willingness to bypass some contingencies like a home appraisal, home inspection in New York, etc.
- Closing timeline
In a traditional home sale, a New York state real estate professional will negotiate for you. However, as an FSBO seller in New York, you are on your own. In such a situation, you can use digital offer management tools like Houzeo Offers. With Houzeo Offers, you can counter an offer, call for the highest and the best offer, and more.
Step 6: Close the Sale
After the seller accepts an offer, the MLS listing status is changed to “house under contract“. You and the buyer have to complete a lot of tasks from contract to closing. Here are the key milestones in the New York real estate closing process:
Allow the Buyer to Complete the Due Diligence
After you accept an offer, your New York property goes off the market, and the buyer can perform the necessary due diligence. The buyer inspects their to-be-home to proceed with the purchase.
Post due diligence, the buyer works on securing a mortgage, known as the underwriting period. During this period, the lender verifies the buyer’s finances and inspects and appraises the property. An amount equivalent to the property’s appraised value is sanctioned to the buyer.
Pay the Closing Costs
As a seller, you will pay 5%-6% in New York real estate commissions, equally split between your and the buyer’s agent. Additional seller closing costs New York state that you may have to incur include:
- The escrow or the title fee
- Taxes on selling a house in New York state such as the NY transfer tax, capital gains tax, etc.
- Outstanding HOA dues
- Real estate attorney fees
- Seller credits (if you have offered any).
» NY Closing Cost for Sellers Calculator: Estimate the exact cost to sell a house in New York.
Sign the Escrow and Title Documents
This is the final step in the process of selling a house in NY. Here, you sign the escrow and title documents needed to sell a house in New York. Additionally, you sign the deed and closing disclosure. Ensure you bring two valid ID proofs at the signing.
After the close of the escrow, the new homeowner’s details are registered in the public records. You receive a wire transfer or a check for the final home sale price, and the sale is complete.
Selling Real Estate in New York State Final Word
The real estate market in the Empire State is experiencing a slight dip in prices and sales, but that doesn’t mean homeowners can’t still find opportunities to sell their houses. Those looking to move should consider timing carefully and work with a knowledgeable real estate agent to navigate the changing market conditions.
Typically, the best time to sell a house in New York is in the spring or fall, when real estate activity tends to be the busiest. However, with the market constantly evolving, it’s vital to stay up-to-date on the latest trends and take a strategic approach to pricing, marketing, and negotiation.
By staying informed and being proactive, sellers can increase their chances of success in the current real estate market. And with the help of a skilled agent, they can confidently navigate the process of selling a house in New York and achieve their goals.
Get on the MLS with a Flat Fee Realtor or a Flat Fee MLS company like Houzeo. With Houzeo, your home will be listed for $379 within 48 hours. Read Houzeo reviews to know what home sellers across New York say about Houzeo.
FAQs
1. Do I need to disclose any defects or issues with my house when selling in New York?
Yes, New York law requires sellers to disclose any known material defects or issues with the property. Failure to do so could result in legal consequences and the potential for the buyer to rescind the purchase contract. It is recommended to consult with a real estate attorney to ensure compliance with the state's disclosure laws.
2. Who pays closing costs New York?
In New York, the buyer typically pays for most of the closing costs, including loan origination fees, appraisal fees, and title insurance fees. However, the seller may also be responsible for certain closing costs, such as the real estate agent's commission.
3. Is a home inspection required when selling a house in New York?
No, a home inspection is not required by law when selling a house in New York. However, it is recommended to have a home inspection to identify any potential issues or repairs that may affect the sale of the property.
4. How do I sell a house by owner in New York?
To sell a house by owner in New York, you will need to market the property, set the price, and handle negotiations and paperwork. It is recommended to consult with a real estate attorney to ensure compliance with state laws and regulations, including the New York Seller Disclosure Form.
