The worn out phrase, “location, location, location” needs to be reevaluated, based on the current market trends in real estate. When counseling a prospective seller, I always use the mantra “location, condition, and pricing.” Let’s examine this phrase as it applies to working toward selling a property.
While it is certainly true that location plays an important part in the desirability of a property, of equal importance are pricing and condition. In fact, common experience holds that pricing and condition are the only aspects of a property that the seller has any control over since, obviously, no property can be relocated.
The condition of a property can greatly enhance its appeal to a potential buyer - so much, in fact, that falling back on the “first impressions” theory is always safe. By taking the time to make a property as appealing as possible, you increase the potential of selling in a reasonable time for the maximum return. Even undeveloped property shows better if it has been somewhat cleared of brush, and all debris has been removed. An optimum goal for maximum showing potential is to make such a positive first impression that the buyer will not need to look further.
Pricing is another key component in marketing and selling property. It is important to understand that a good Broker’s goal is to help you sell your property, and as an active participant in the real estate business, a Broker’s understanding of the market and the need for accurate pricing cannot be over stated.
As every Broker’s business is built on a good listing inventory, any Broker or agent can and often will accept the “seller’s price,” in the interest of taking the listing before a competitor does. The truth is that a mispriced listing will often sit on the market for an inordinately long time with little to no traffic and no offers. This leaves both the seller and the Broker feeling frustrated, and puts the Broker in the position of constantly having to bring up the pricing issue with the seller. Commonly in real estate, a mispriced listing will fall off the market and the frustrated seller will re-list with another company, believing the failure to sell was the fault of the first listing company. When the new company suggests a new price and the seller agrees, lo and behold, the property sells! Why not simply price it accurately to begin with?
The problem with a “test the market” strategy is that no one likes a low grade! By pricing your property accurately from the start, you place the buyer and their agent in the position of having to prove your price wrong, rather than you and your Broker having to defend your price. A word of caution: even though you may feel your property is worth more than a Broker’s market analysis shows, you do yourself a disservice by listing with a Broker who will take the listing at your price. In fact, you may also be causing irreversible damage financially, since the longer a property sits on the market, the more “shop-worn” it becomes.
So, “location, location, location” needs to step aside for “location, condition, and pricing.” With this in mind, you will get your property sold in the least amount of time, for the maximum profit, with limited inconvenience to you.