PRICING YOUR HOME: You can overcome any deficiency!
March 12, 2016 | Richard Sites
We all know the saying about real estate: location, location, location. Well, that is only half the story. The real story is price. Here are my thoughts:
Location is the one variable that determines value. But what happens when that location is not desirable? Or what happens when there is some other deficiency?
Pricing is the one thing that controls and overcomes any deficiency.
I recently posted about getting motivated rather than talking to the neighbors. Let me expand on that a little.
Neighborhood chatter or gossip leads to frustration since the information is seldom correct and is often speculative.
On the other hand, buyer feedback is the clearest indicator of your market position. Why?
Because unlike you the seller, buyers are looking at all the competitive properties in a certain price range. So they know what the proper price is or should be on your house. Or at least they know the range in which the price should be.
So if you are getting showings and no offers, buyers are telling you there is some issue or deficiency that needs to be corrected in order to sell the house at the current price. I sold a home for $1 million my first month in the business by simply correcting some glaring issues ignored by previous agents.
But what neither you or your agent know of any issues that need correcting? Then the issue is simply price.
Proper pricing will correct any deficiency. The fact that you have Berber carpet in the guest room or those nice shelves in the garage doesn’t make any difference. Lower the price, period.
What if you don’t want to lower the price? Well, one thing you could do is change agents but if your agent has thoroughly prepared the house for the market and used professional photography, price is the issue. Don’t change agents.
I could show you one case where a seller tried for 3 years to get a higher price by changing agents over and over. He called me and although I knew that his price was in the mid-$800’s, I suggested the house was worth more like mid-$700’s. Well, he blew up at me on the phone and continued with his high price.
In summary, his “special” house was on the market for 3 years. The original listing price was $899,000. It sold for $530,000 minus carrying costs for all that time. I’m sure that if the house had been listed at $750,000 from the start it would have sold and he would have taken home several hundred thousand more.
Long story short: Price can overcome any issue and hope is not an effective selling strategy.
If you would like to have a no hassle conversation about getting your house sold quickly and smoothly, please contact me directly at 561-762-4073.
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