The Price is Wrong Bob! Often Real Estate is Priced Wrong
Selling Your Home?
Nothing Matters More Than Price
An interesting Real Estate conversation developed on Twitter today about the importance of pricing homes for sale properly.
The issue was raised by Marc Davison of 1000 Watt Consulting who is a marketer who works with Real Estate brokerages and media companies through out North America helping them focus on the consumer experience and expectations.
Keep in mind Marc Davison is not a Realtor rather a marketer so his firm stance on price being more important than marketing has serious weight and is pretty transparent in my opinion.
A great response was provided by Ira Serkes a Berkley, California Realtor inspired this video and text.
You know what? I think he is 100% right and I've gotten on my soapbox in the past about the amount of inventory on the market that is overpriced.
Who owns the responsibility of the all the over priced inventory?
Realtors.
In the odd example they have simply made a mistake and over valued a property.
In the vast majority of cases they have made a choice to list the property no matter what, including taking it at a price they know it won't sell for the sake of having another listing.
This has no benefit to the consumer (buyers or sellers) as it simply crowds the market place with unsaleable inventory.
The other conclusion drawn amongst those engaged in the Twitter conversation was marketing of the property is at best the third most important aspect, not first like most Realtors want believe.
Price is number one and at least 75% of the reason Real Estate sells.
If it is not priced right people will not come to view it, or if they do it will simply make other properties priced right look better.
Accessibility is number 2 and I'll say 15% of the equation. If people can't can get inside the home for sale they won't buy it.
Marketing is 10%. If people don't know it is for sale then they most certainly wont buy it. You could market the home so well that it is impossible to find someone who doesn't know the home is for sale but that doesn't change the reality that no one will buy it when over priced.
Now before too many Realtors get their knickers in a knot (likely way too late) there is broad range in the quality of how Realtors market homes for sale.
You should still look for the Realtor who you think has the absolute best marketing plan, but know that if it isn't priced right and no one can get in the rest is moot.