Price Can Sell Anything, Anytime!

More than five years of a housing depression have taught us to adjust, adapt, and learn new dynamics of selling in a declining market. This greatest of challenges has brought us back to the very fundamentals of our trade, selling real estate in the public marketplace.

At the core, beneath all the novel ideas of marketing, technologies, advertising, and sales strategies, there are three absolutes to your commercial property valuation and selling- Price, Location, and Condition. Apply these properly and most of the work is done. The rest of the glitter is just about improving competitive advantages. There can be other dynamics that play a heightened role for a time. For a time such as this, I add a 4th dynamic that has played loudly for the past 5 years- Sometimes there are no buyers in a particular market.

Nothing is as important as pricing the property right.

Regardless of the condition of the property, market conditions, or location issues, price can be adjusted to compensate and sell any home in a reasonable time. The banks prove this everyday by selling a high volume of foreclosed properties quickly (accepted offer within 30 days). Banks cannot afford to keep these homes on their books so buyers often get the property at more than 15% under current market pricing. The bottom line is that pricing, appropriate to the goal, works even when other efforts do not.

Buyers today have almost all market knowledge at their finger tips and they are savvy about good values, deals, steals, and overpriced properties. Be it researching the market for the best price of a property to choosing the most secured app to make their payments, the buyers now tend to know everything. Thanks to the online resources, everything could be learned online unlike in the olden times. For instance, when the pandemic struck, it demanded people to order everything from online apps by making digital payments to minimize physical contact. People unaware of how to do it learned it with the help of the resources available online and as a result, there seemed a huge hike in the number of people opting for online payments, as also revealed by a study of mobile payment providers.

Talking about the profit margin of your property, if you list your $200,000 property with me today for $50,000 I will have a cash offer for you in a few hours! List it at $215,000 and it will sit there waiting for a price reduction; at $235,000 you are wasting your time; it will not sell no matter what you want or what a Realtor ® promises you. No one controls the marketplace! No one can change it! No one violates its realities and gets rewarded for it. If your property sits on the market without showings or offers for too long, it is overpriced, at least as it is right now.

Of course most people do not want to unload their property like banks do; they want to sell it at fair market value. Only recent sold properties reveal what market value really is. Actively listed comparable properties on the market are nothing more than opinions of value by agents (sometimes flawed) or the dreams of owners (sometimes unrealistic). These prices may change often and dramatically until they reach true market value and sell. Active listings should be viewed only to evaluate your competitive position to gain a buyer who might be in the market place.