Big numbers get attention. They are sometimes also completely bogus
Consider so-called headline pricing, also known as aspirational pricing.
The terms, when applied to the worst iterations of this trend, are euphemisms for lying to get attention. An inflated sales price is slapped on a property to drum up publicity and get the industry gossiping about whether the seller actually believes a buyer will pay it.
Then, once the property has attracted a lot of attention and prospective buyers, the seller gets serious about pricing.
The practice, however, can skew the luxury market and can make a property look bad. The same reporters who noticed that something was priced outrageously tend to notice when it subsequently lists or sells at a fraction of the price.
My colleague Sheridan Wall recently dug deeper into headline pricing and how industry professionals view it. This is one of my favorite types of stories, those that shine a light on a ubiquitous practice in the industry that people just accept as a norm.
Such was the case with this story from a few years ago, which explored the practice of residential agents re-listing apartments under a new number so that it appears new to the market.
It is a truism in many industries that when something strikes you as weird but elicits a response like “Oh, yeah, that is not a big deal, and it happens all the time,” then it is probably worth digging into.
What we’re thinking about: What do you make of Freddie Mac’s investigation into Meridian Capital Group? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Travel + Leisure (for some reason) ranked the best places to live in New Jersey. Jersey City topped the list.
Elsewhere in New York…
— A judge has temporarily blocked NYC from issuing new licenses to for-hire vehicles, in light of a rule change that lifts the cap on licenses for all-electric vehicles, Gothamist reports. The temporary restraining order was issued in response to a lawsuit challenging the rule change, which was filed by the New York Taxi Workers Alliance.
— Everybody is talking about Eric Adams at the Somos conference in Puerto Rico, even though the mayor stayed home. The federal investigation into the mayor’s campaign fundraising has inspired talk among elected officials about who may challenge the mayor in 2025, Politico reports.
— Gov. Kathy Hochul has named sex therapist Ruth Westheimer the state’s first ambassador to loneliness, CBS News reports. “Dr. Ruth Westheimer has offered her services to help older adults and all New Yorkers cope with the loneliness epidemic and I will be appointing her to serve as the nation’s first state-level honorary Ambassador to Loneliness,” the governor said in a statement.
Closing Time
Residential: The priciest residential closing Thursday was $7.3 million for a condo at 500 West 18th Street in West Chelsea.
Commercial: The most expensive commercial closing of the day was $40 million for a 25 percent stake in 175 Fifth Avenue, the Flatiron Building. The Real Deal last month reported the Brodsky Organization was making an investment.
New to the Market: The priciest residence to hit the market Thursday was a townhouse at 25 Riverside Drive on the Upper West Side asking $55 million. Douglas Elliman has the listing.Breaking Ground: The largest new building filing of the day was for a 33,000-square-foot, seven-story residential building at 1119 Boston Road, the Bronx. Fred Geremia, Architects & Planners filed the permit application. — Jay Young