Your house cannot sell for a penny more than the best offer obtainable from the best buyer available in the current market:
Recent sales of similar properties have historical value, but the "Best Buyer" we are looking for is to be found in the present market place, not in the past record books. Our job is to find that Buyer and obtain his or her highest possible offer. No house has ever sold for more than the best offer obtainable from the best Buyer available in the current market.
The only way to determine the true value of a house is to position it competitively, market it consistently and then consider your offers:
Appraisals and expert opinions can be helpful in establishing a listing price for your home, but its ultimate selling price will be determined by the prospective buyers who view your home. They will compare your home with other offerings in their price range and make judgments. It is critical that your home be competitive in price and appeal with the other options that these prospective buyers will be considering.
A home that is priced realistically and marketed effectively will always sell:
There is an old saying that the three most important words in real estate are "location, location, location". Like a lot of old sayings, it is simply untrue. No matter how poor the location might be, there is a price at which it will sell, and that price will be determined by testing the market.
The three most important words in real estate, therefore, are price, terms and marketing. Unless the price and terms are competitive, the chances of a home selling are slim to none; and even realistic pricing should be supported by thorough marketing and aggressive challenging of the competition that can be best performed by only skilled professionals.
An appropriate listing price will immediately and consistently attract attention and generate activity:
When a property is first exposed to the market, both buyers and brokers make instant evaluations of the offering and, if it compares favorably with what they have already seen, it will not only attract their attention, but stimulate them to inquire for details and arrange for appointments to preview.
Your listing price must be realistic enough to immediately attract this attention from buyers and brokers. If it does not do so, while competitive properties are generating activity, you have a clear indication that the listing price is not meeting the acid test of the marketplace, regardless of economic conditions or other external considerations.
Testing a bigger and better market with greater skills yields a better price:
It is goes without saying that the larger the market you can reach and the higher quality that market has, the better price you will realize. It stands to reason, for example, that sellers working alone can expose their home only to the small segment of the market that can be reached by a single sign and limited advertising. It is also important to note that, in spite of the multiple signs and substantial sums spent on advertising, these two sources typically account for only 20 percent of the actual buyers attracted to a typical real estate office. The other 80 percent of the market is represented by the efforts of cooperating brokers and the marketing activities of real estate brokers and sales associates.
It is also well-established that the buyers most ready, willing and able to act usually seek out real estate professionals.
Bottom Line #1:
When realistic pricing is combined with effective marketing, there is a buyer for everything and given these conditions, any home can be sold in any market.
Bottom Line #2:
Homes that languish unsold on the market for months and even years are ignoring these "facts of real estate life", often causing unnecessary inconvenience and financial damage to their owners and agents.
