Price Flexibility
Once a price is set, it is then the Real Estate agent’s responsibility to explain to the Seller the need for price flexibility. By this I mean the price must remain flexible to take advantage of opportunity or set back. For example, another house comes for sale and is priced more, but is not as good. Time to consider a possible price increase. Or your house was the only one for sale in the neighborhood. Along comes another house, just as good, but priced lower. Time to think about a price reduction. Price flexibility is important.
Another responsibility for the Agent is to be honest with the Seller and let them know what they could do to improve the value of their house. This is very important for the Seller to know.
There is nothing more important than price. It is key to a successful Real Estate transaction. Advertising, sales and persistence are essential, but the importance of price must never be taken for granted.
The above mentioned is also true for condominiums, like the ones we the sell at the Ocean Edge Resort in Brewster.
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Real Estate prices
Many people come to me and say that this price is inflated, or this place is so nice it should be worth more. Real Estate prices are governed by “what else is on the market,” “what was on the market” and “what was for sale, but did not sell.” It is all about past, present and the “what if” factor.
Sale price has nothing to do with appraised value. Believe me, I wish it did because it would make my job a lot easier. Price can only be determined by analyzing all comparison properties possible. All like properties must be analyzed.
Once enough Comps have been acquired, then one must whittle down to see what the best price fit is. If you shoot too low, the property will sell too quickly and the Seller will loose money. If you price too high, then the property will be the trailblazer in town and boost property values, but not sell. This is no good for the Seller.
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