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Real
Estate Facts
Your
house cannot sell for a penny more than the best offer obtainable from
the best buyer available in the current market.
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Recent
sales of similar properties have historical value, for 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 in history has ever sold for more than the offer obtained
from the best offer obtainable from the best buyer in the current
market.
The
only way to determine the true value of a house is to thoroughly test
the market and aggressively challenge the competition.
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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 whom we are able to contact. Buyers
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.
Testing
a bigger market and a better market with greater skill yields a better
price.
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It is
axiomatic that the larger the market you can reach and the the
higher the quality of that market, the better the 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 of money spent on advertising, these two
sources typically account for only about 20% 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.
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It is
also well established that the buyers most ready, willing and able
to act are almost invariably availing themselves of the services of
real estate professionals.
Finally,
the best buyer, unless he or she is being handled by a skilled
professional, can often come and go without making a commitment.
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An
appropriate listing price will, immediately and consistently,
attract attention and generate activity.
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The
process of testing the market need not be a lengthy process
regardless of marketing conditions.
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As
previously stated, buyers do comparison shopping and act
accordingly.
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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 appointments to inspect.
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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 attracting attention and generating
activity, you have a clear indication that the listing price is not
meeting the acid test of the market place, regardless of economic
conditions or other external considerations.
A
home that is priced realistically and marketed effectively will always
sell!
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There's
an old saying that the three most important words in real estate are
"location, location and location."
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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.
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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 the thorough testing of the market
and aggressive challenging of the competition that can best be
performed only by skilled 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.
The market is
not always kind, but it is never wrong -- and those who believe
otherwise pay a heavy price for ignoring these "facts of real
estate life."
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