Pricing To Sell Real Estate In Manhattan? What Sellers Can Learn From Appraisers

In Manhattan’s fast-moving real estate market, pricing a property to sell is a mix of art and science. While sellers and brokers often lean on gut instinct informed by recent comparable sales, appraisers operate with a structured methodology to determine fair market value for their clients. This approach ensures that a price is defensible because it is backed by data. As buyers gravitate to well-informed prices, if you’re pricing to sell, pay attention to how appraisers do it.

The Role Of An Appraiser

An appraiser’s job is to provide an independent, unbiased property valuation based on market data, not what a seller hopes to get or what a buyer wants to pay. Appraisers must justify their conclusions using comparable sales, market trends, and strict industry standards. Goodman emphasized that appraisers work within a framework set by Fannie Mae, Freddie Mac, and lending institutions, which dictates what can (recent, similarly sized, and located sales) and cannot (pending sales, emotional attributes) be included in an appraisal.

On a recent episode of UrbanDigs’ podcast “Talking Manhattan,” Andrew Goodman, a seasoned New York City appraiser with nearly 30 years in the business, discussed valuation tactics that professionals could apply so that sellers can be confident with a fair market listing range and avoid common pricing pitfalls.

Make No Assumptions

Sellers should not assume that a high list price will automatically be validated by an appraisal. If the buyer requires a mortgage and the appraisal comes in lower than the deal price, the bank may require the buyer to come up with the difference in cash. This could torpedo the deal as the buyer may want to renegotiate the purchase price instead of having to pay, or, depending on the contract, they could simply walk away. Hence, the importance of Goodman’s point that sellers should not assume that a high list price will result in a similar appraisal value.

Bracketing

One of the core valuation concepts Goodman highlighted is bracketing. Appraisers use bracketing to compare properties by ensuring that at least some comparable sales that share key features with the subject property have prices above and below the target unit. For example, if you’re selling a two-bedroom unit with a terrace, your appraisal should include at least one comparable property with a terrace at a value below your target unit and one with a terrace at a value above your unit.

The logic is simple enough: If you only compare your property to ones at a higher or lower price, your end value will follow. Instead, appraisers work to “bracket” the subject property with units sharing similar features at higher and lower for a more comprehensive valuation. For sellers, this means going beyond the basic price-per-square-foot analysis and considering how features like outdoor space, floor height, and building amenities push prices up and down when evaluating comparable sales.

The Danger Of Overpricing

One of the most critical takeaways from Goodman’s discussion was the risk of overpricing. As tempting as it is to think one can price high and negotiate down to not leave money on the table, buyers today, especially in Manhattan, are highly informed. As a result, overpriced listings linger on the market, becoming stale and requiring several price cuts to finally find a buyer.

Our proprietary research at UrbanDigs shows that listings that start too high and then require multiple price cuts tend to sell for less than if they had been priced correctly from the outset​. In other words, wishful thinking can cost sellers real money.

Market Timing

Goodman also noted that market conditions and seasonal patterns can determine listing success. For example, Manhattan’s slower summer market sees less competition among buyers, which creates an environment for negotiation​. Knowing this, sellers on the market during slower times should not be surprised to see listings priced based on peak-season comps sitting idle in July and August. The longer days on the market could simply reflect seasonality and not necessarily an overpriced listing.

Renovation Premiums: Not All Upgrades Are Equal

In Manhattan, renovated apartments typically sell for a premium over their unrenovated counterparts. At its peak in 2022, amid post-pandemic supply chain worries, that premium blew out and rose over 30% as buyers fiercely competed for turnkey space. With inflation and the market slowing through 2023 and 2024, the premium has settled back down to 19%, which is still well above the 10-year average of 14%​.

Before you splurge on ultra-high-end appliances and bespoke cabinet pulls, it’s worth remembering that not every dollar spent on renovations translates into a dollar increase in value. According to Goodman, the return on renovation depends on the job’s quality, the type of building, and buyer demand at any given time.

The Power of Views

It is no secret that floor level and the view quality can significantly impact pricing. However, quantifying that value can be tricky. In some buildings, a two-floor difference could mean looking at Central Park instead of a central AC. Appraisers generally apply a per-floor premium that varies by building and neighborhood. For instance, a typical Manhattan high-rise apartment may gain $10,000 to $25,000 or more in value per floor. However, this diminishes at higher elevations as the high quality of view does not change much for each additional floor.

Goodman stresses that not all views are created equal. In the example above, a view of Central Park rather than mechanicals could add as much as 30% to a unit’s value, whereas a slight river glimpse from an angle may add only 5 to 10%. Sellers should price accordingly by comparing their homes against units with similar exposures. Once again, bracketing!

The Bottom Line: Pricing For Success

The best pricing strategies are a blend of appraisal methodology informed by real-time market data. Appraisal techniques like bracketing, inside market analysis, and seasonality trends can help sellers avoid pricing based on hope and instead price for success. Ultimately, the goal is to price within 5% to 10% of the market to attract enough buyers to get a deal signed in less than 30 days at a price that appraises properly and leads to a closing.