The power of strategic pricing with The Gene Team
In the fast-paced world of NYC property rentals, pricing strategy isn't just a detail for us rental agents to manage—it's a game-changer. Just imagine that you’ve got a fabulous condo in Murray Hill, complete with oversized windows, stainless steel appliances, and a king-sized bedroom. Now, what if we told you that listing it for LESS could actually get you MORE? Sounds counterintuitive, right? Welcome to the art of strategic underpricing.
In this case study, we reveal how listing a Murray Hill condo at $3,500 led to it being snapped up for $3,850 in just five days. With The Gene Team, we’re not just focused on getting tenants—we’re on a mission to maximize returns while making the market work for you. So, let’s dive into the surprising power of strategic pricing—and why sometimes, playing easy to get means getting exactly what you want.
In this case study, we reveal how listing a Murray Hill condo at $3,500 led to it being snapped up for $3,850 in just five days. With The Gene Team, we’re not just focused on getting tenants—we’re on a mission to maximize returns while making the market work for you. So, let’s dive into the surprising power of strategic pricing—and why sometimes, playing easy to get means getting exactly what you want.
The property
Let's start with the star of our show—a beautiful condo in the heart of Murray Hill. This spacious, sun-filled one-bedroom apartment boasts oversized windows, brand new hardwood flooring, ample closet space (including a walk-in closet for those of us with shopping habits), and a king-sized bedroom. The bathroom is nothing short of luxurious, featuring a deep soaking tub, vanity, and porcelain tiles. The kitchen comesequipped with stainless steel appliances, Caesarstone countertops, and a trend-led ceramic ash-gray floor. To top it off, both the living room and bedroom feature Friedrich remote-controlled air conditioners.
Located just two blocks from Trader Joe’s and a quick five-minute stroll to the East River ferry station, this condo is strategically placed in a highly desirable area. Did we mention the rooftop access with breathtaking city views? Perfect for those special events like the Fourth of July fireworks.
Located just two blocks from Trader Joe’s and a quick five-minute stroll to the East River ferry station, this condo is strategically placed in a highly desirable area. Did we mention the rooftop access with breathtaking city views? Perfect for those special events like the Fourth of July fireworks.
The pricing strategy
Now you know about all the pros—it’s time to talk numbers and strategy. We listed this gem at $3,500—a figure that may raise an eyebrow in a market where the median rent in Murray Hill was $4,395 as of May 2023, according to StreetEasy. So, why the lower price? It’s all about creating buzz and driving demand.
In a city that never sleeps, competition is fierce. By listing the condo below the median rent, we aimed to attract a flood of interest, leading to multiple offers and, ultimately, a higher rental price. This strategy isn’t just a shot in the dark—it’s backed by market dynamics.
According to a Bloomberg article from October 2023, NYC's real estate market has seen rising expenses outpace inflation, making savvy pricing strategies more important than ever.
In a city that never sleeps, competition is fierce. By listing the condo below the median rent, we aimed to attract a flood of interest, leading to multiple offers and, ultimately, a higher rental price. This strategy isn’t just a shot in the dark—it’s backed by market dynamics.
According to a Bloomberg article from October 2023, NYC's real estate market has seen rising expenses outpace inflation, making savvy pricing strategies more important than ever.
The market conditions and data
In New York City, the real estate market can be a wild ride, with trends that can make or break your rental strategy. The housing supply has struggled to keep pace with population and economic growth, leading to the biggest annual jump in asking rent prices of any market in the country in 2023 according to StreetEasy. Perhaps because of this trend, there’s also a notable rise in tenants negotiating lower rental costs, as reported by Brick Underground.
But here’s where it gets interesting—by setting a lower asking price, we flipped the script. Within just five days of listing the Murray Hill condo on January 29, 2024, we had a tenant ready to pay $3,850—a clear $350 above our initial price. This rapid turnaround speaks to the effectiveness of underpricing and highlights the value of strategic positioning in a crowded market.
According to data from Property Shark, there are a number of studios listed around the $4,000 mark, which have been available for more than 75 days. These overpriced studios will be on the market for some time, with possibilities of numerous offers below list price.
This further supports our strategy of underpricing to attract a higher number of interested tenants and create a competitive bidding environment.
According to data from Property Shark, there are a number of studios listed around the $4,000 mark, which have been available for more than 75 days. These overpriced studios will be on the market for some time, with possibilities of numerous offers below list price.
This further supports our strategy of underpricing to attract a higher number of interested tenants and create a competitive bidding environment.
The outcome and analysis
To recap: The property was listed at $3,500 and rented out for $3,850, all in under a week. So how did this all pan out? This swift success was no accident. It was the result of careful planning, understanding market conditions, and leveraging the power of a well-timed listing. By tapping into the demand and creating a sense of urgency, we managed to secure a higher rental yield.
This case study effectively illustrates that underpricing, when done strategically, can attract more interest and lead to better financial outcomes. It's all about knowing your market and playing your cards right.
From setting the right price to crafting a compelling listing, our team is dedicated to ensuring that every property achieves its maximum potential. A report from Forbes in September 2018 emphasized that strategic pricing and professional guidance are critical in achieving optimal rental outcomes in such a competitive market—and that is perhaps more true in 2024.
This case study effectively illustrates that underpricing, when done strategically, can attract more interest and lead to better financial outcomes. It's all about knowing your market and playing your cards right.
From setting the right price to crafting a compelling listing, our team is dedicated to ensuring that every property achieves its maximum potential. A report from Forbes in September 2018 emphasized that strategic pricing and professional guidance are critical in achieving optimal rental outcomes in such a competitive market—and that is perhaps more true in 2024.
The lesson: Don’t underestimate strategic underpricing in NYC property
What can other property owners learn from this case study? Simple—don’t underestimate the power of strategic underpricing. By listing your property at a competitive rate, you can generate buzz, attract more prospective tenants, and ultimately achieve a higher rental yield.
None of this would have been possible without the expertise of a knowledgeable rental agent. The Gene Team’s deep understanding of the NYC property market and strategic approach were key to maximizing the rental yield. We don’t just list properties—we position them to win.
None of this would have been possible without the expertise of a knowledgeable rental agent. The Gene Team’s deep understanding of the NYC property market and strategic approach were key to maximizing the rental yield. We don’t just list properties—we position them to win.
