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It's The Price That Sells a Home

Written by on Monday, 20 January 2014 6:37 am
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Close More Deals - Qualify homebuyer leads fast and free

You've heard the old saying - "Location, location, location."

The real truth is "Location, condition, and price." And price trumps every other factor.

Location affects the value of a home, but it's price that sells a home.

Oceanfront, mountainside, or penthouse, the most desirable location in the world won't sell at the wrong price.

Every property has a potential buyer, but like rock, paper, scissors, it's sometimes hard to know which factor is going to win the showdown.

A good location will sell at a fair price. A bad location will sell at a fair price, too. It just won't be as a high as it would be for a good location.

A home in good condition will sell for a fair price. A home in poor condition will also sell at a fair price. Again, it won't be as high as a comparable home in better condition.

But neither location or condition will sell any house. Only one thing does that - price.

So if you're a seller waiting for that "special buyer" who will appreciate your faded pink and black bathroom tile, your vintage orange shag carpet and is willing to help you put your kids through college because of your real estate prowess, you're going to have a long wait.

So if your home is represented by an agent, and it's been on the market for a long time, chances are it's your own fault.

Maybe you didn't listen to your agent when he said you're pricing your home above the market. Maybe you got mad at the first few folks who looked at your home and didn't make offers.

When the showings stopped completely, maybe you accused your agent of not doing a good enough job.

You put the blame on everyone except where it belongs - on you. It's not about you, what you want, or how much you need for your retirement.

It's about the price.

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  About the author, Blanche Evans

51 comments

  • Comment Link Jim Turano Monday, 30 June 2014 6:51 am posted by Jim Turano

    Hi Blanche.Update July 1st.,2014 ........
    The Real Deal-Real Estate today by 35 year experienced Broker. Specifically, Middle Village,NY 11379 Queens,NY.
    Very Informative hands on Report .....copy and paste
    http://glendaleregister.com/bookmark/25367203/blog+entry-The%20Real%20Deal-Real%20Estate%20Today-%20July%201-%202014#.U7FDLDoohWM.facebook

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  • Comment Link JIM TURANO Thursday, 20 February 2014 9:02 am posted by JIM TURANO

    Update:FEB.20,2014-VERY HOT MARKET HERE IN MIDDLE VILLAGE, & SURROUNDING AREAS. Supply & demand is big.
    With 35 years of experience, & over 3,000 written appraisals, it is the Brokers/agents skills & experience to take charge of that listing. Those who let Homeowners' dictate to you, just to get a listing, is wasting their time and as a direct result, all they can say is look how many listings I have.
    That does not put money into your pockets.
    Simple: As a professional, it is your duty to explain throughly, market conditions, selling prices of similar homes, closing costs incurred, and length of time to sell. Setting the Price with a selling range must be accurate.
    As a Broker, I can say in the past I had agents who took almost 100 binders per year, but they only sold about 7-8 homes?
    I had agents who got 20-35 exclusive listings in a year, and maybe an average of 8,9, or 10 sold.
    If you do your job correctly from beginning to end, the results will always be positive for all involved.
    If a Homeowner dictates they want $100 grand more than the norm, then you really must walk away, and tell them point blank you are asking for the impossible, I can not help you.
    Imagine there are still signs on houses in our community from last June,July and August for sale??????. WHY?
    EXPERIENCE MAKES A WORLD OF DIFFERENCE.

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  • Comment Link Lez King Wednesday, 19 February 2014 9:18 pm posted by Lez King

    I hear you jim, remember you don't Know what you don't know.

    I agree you do not need many agents to sell a home..mainly because they are all full of their own desire to get paid quickly!
    You dohowver ned an effective method to let as many potential buyers know about the property being for sale..
    The only thing that REALLY matters is is the vendor happy to accept the offer...Job done!!
    "haere ra"
    (good bye)
    from New Zealand

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  • Comment Link Valerie Wednesday, 19 February 2014 5:13 pm posted by Valerie

    Uncool--I clicked the link to post on Facebook and here's what I get:
    http://realtytimes.com/consumeradvice/sellersadvice1/item/27235-20140120-its-the-price-stupid

    Really? "Its the price stupid?" I know you'll screen this, but someone needs a reprimand for this!

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  • Comment Link JIM TURANO Saturday, 01 February 2014 7:49 am posted by JIM TURANO

    Thank you for your comments & suggestions one and all.
    I think after 35 years in this Business, operating in a small town and very close to a half dozen other areas, with Tremendous competition since 1979, I believe by now I know what I am doing.
    You have Franchises with 20-45 agents, and causing a stampede viewing the new listing, and in addition they place it on MLS which adds another 100-200 agents capable of showing and selling the home. *This I find amusing, because this is not New Zealand, Utah, Las Vegas, or Virginia where the owner needs all the help of an army to sell one house.
    IN A DESIRED AREA LIKE MIDDLE VILLAGE,NY, IT ONLY TAKES ONE VERY EXPERIENCED REAL ESTATE BROKER, CAPABLE OF SHOWING, MARKETING AND ATTAINING THE BEST OFFER FOR THE HOMEOWNER.
    Like I always said, it takes one person to drive a car.
    There is no need for large groups of agents and or adding the listing to MLS at all. To me, if a Franchise has 20-30 agents, and they place the listing on MLS, it shows me that they feel incapable of having their own sales force showing & selling the new listing.
    With over 9,000 appraisals to date, and having educated buyers around, setting the right price, like the article states above, is the very key to selling quickly.
    Again in my area you still see signs for sale by other realtors hanging on the front lawns since last July 2013.
    This is not Professional business, and an injustice to Homeowners in a very HOT market today.

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  • Comment Link Lez King (New Zealand) Friday, 31 January 2014 1:38 pm posted by Lez King (New Zealand)

    If the Vendor was happy to accept the price offered with this no marketing option of selling fine.
    But would they have received another $20k if they had a couple of weeks exposure?

    Very possibly..maybe even from one of the neighbours friends/ relatives (who they did not even want to know they were selling!)
    Your home is also one of if not you major investment..so why not maximise the OPPORTUNITY to get the best value on your investment.
    Real Estate agents (NZ) or Realtors are NOT secret sellers - their expertise is in marketing and negotiation-or it should be eh?

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  • Comment Link vincent batyr Friday, 31 January 2014 6:02 am posted by vincent batyr

    Perfect Example...news Real Estate...Middle Village, Maspeth, Glendale, Ridgewood, and many areas..........

    Common Sense..Think about this....Homeowners'..Thinking of Selling?

    Recently, owners of a home, in Middle Village,NY interviewed a well known Community Broker, Jim Turano, of Diverse Real Estate.

    With decades of experience, many thousands of appraisals, Jim walked the couple through the process of listing their home.

    He showed comparable homes that recently sold similar to theirs.

    He explained their current Market Value.

    He explained setting the right asking price.

    He explained a Marketing campaign and a length of time it should take to obtain a qualified buyer.

    He explained all the closing costs incurred by a seller.(City tax,State Transfer tax, attorney fees, and Real Estate Commission expenses.)

    Lastly, appointments at owners' convenience.

    Date Listed January 15, 2014

    Showings in 48 hours: 7 showings.

    Three offers and one accepted offer with a 40% down payment.

    As of yesterday, Jan.30,2014, the contract was fully executed by buyers & sellers.

    NO SIGNS AND NO MLS

    JUST PRIVATE APPOINTMENTS AND SOLD BEFORE THE NEIGHBORS EVEN KNEW ABOUT IT.

    THAT IS AN EXAMPLE, THAT IS FANTASTIC.

    IT TOOK ONE 35 YEAR BROKER, HIS SKILLS, KNOWHOW, AND THE JOB WAS DONE. ***BRAVO***

    source: Mr. & Mrs. Joseph Beltran

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  • Comment Link JIM TURANO Wednesday, 29 January 2014 8:20 am posted by JIM TURANO

    Realty Times Article hits the nail on the Head. Worth mentioning again. In a Hot area, buyers are educated, and it is the Brokers duty to set a price that is market value. With 35 years of experience, You must use your experience, your skills, and ability to professionally dictate to sellers.
    JIM TURANO/BROKER*DIVERSE REAL ESTATE*
    MIDDLE VILLAGE,NY

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  • Comment Link agentcampus Tuesday, 28 January 2014 5:31 am posted by agentcampus

    I could say that price do play and important role in terms of selling houses or any property - but it's only a quarter of the three overall factors. Even though at property is sold at the right price, people will put more weight on the location and sometimes the overall condition.

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  • Comment Link Lez king New Zealand Friday, 24 January 2014 3:59 pm posted by Lez king New Zealand

    Dishonest agents overprice their appraisals to get exclusive listings-Poor agents try to pull the vendor price down instead of sell the value of a property.
    We all know low price any property it will sell at below market rates- fast!
    The best way is to be absolutely upfront with your vendor-list with no fixed price-but a price indication- tell the vendor to secretly put his friends thru the open homes- then report what the agent at the open is saying- get the agent to get a feel of selling price from the buyers that visit- then set your price and watch it sell !

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  • Comment Link Mike C. Friday, 24 January 2014 11:51 am posted by Mike C.

    This argument rings hollow when an impatient agent wants to drop the price solely to speed up a transaction. If the price is $300k, and they are urging the seller to reduce to $270k, the agent is only out $1,500 (on 5% commission) while the seller is out $30k.

    As a seller, if I have to wait 2 weeks to NOT lose $30k, you better believe I'm going to wait. Anybody here making $15k/week? No? Then you'd wait, too.

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  • Comment Link J Larry Gaither Friday, 24 January 2014 8:25 am posted by J Larry Gaither

    Price is not everything, it is the only thing. The sad thing is that sellers follow the market down and lose awful amounts of money when they could take the hit early, sell the house, and move on.

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  • Comment Link Jim Turano Friday, 24 January 2014 6:30 am posted by Jim Turano

    Blanche Evans-Bravo! I have been writing about this for years.
    As a Broker in Middle Village,NY11379 for 35 years, I do hope agents and Brokers realize that it is their duty to list a home at current market Value.
    There are too many agents and Brokers who YES the homeowner just to attain an an exclusive listing.
    This is why so many listings are for sale since last summer of 2013.
    Jim Turano/Broker*Diverse Real Estate*

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  • Comment Link Bea Patterson Friday, 24 January 2014 5:32 am posted by Bea Patterson

    Six years ago I met with an agent to list my house. She kept asking me what do you want to list for. I kept telling her it didn't matter what I wanted, it was all about what it would sell for. I fired her and found another realtor who would be truthful.

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  • Comment Link Arthur Bowen Thursday, 23 January 2014 9:27 pm posted by Arthur Bowen

    After 44 years of selling 30-60 homes a year it is price! I can sell any house on the market anywhere "today"-----for a dollar! Let the bidding begin. So if it is location price makes the difference. If it is condition price makes the difference. Look at all the foreclosures which were trashed and sold: for the right price.

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  • Comment Link Brooks Bowman Thursday, 23 January 2014 8:55 pm posted by Brooks Bowman

    Great article! You cut to the chase in a great way! I was amazed at reading some of the comments by the naysayers because I expected all to agree with you as I and many others have. I just love your style of writing and you obviously have a ton of experience under your belt to be able to cut through all the needless blather others would rather you have put down in this article. Bravo!

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  • Comment Link Sue Thursday, 23 January 2014 8:15 pm posted by Sue

    Price is what a buyer is willing to pay and what a seller is willing to sell for. There has to be a meeting of the minds on a transaction

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  • Comment Link Anthony Valentino Thursday, 23 January 2014 7:58 pm posted by Anthony Valentino

    Price is only one factor in selling anything. If you have a good product and know how to do your job, then price is only a small factor in selling a home. If price was the only factor there would be no such thing as real estate sales. Anyone can march a person into countless properties and wait for there buyer to make a decision. A real sales person will guide there buyer to the correct property, know the comps, anticipate the objections and be prepared to address them. The real question is what is the most a person is willing to pay for the property not what's the lowest price!

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  • Comment Link YD Thursday, 23 January 2014 6:28 pm posted by YD

    Everybody say...Location,Location,Location but My experiences Location n Price like Twin Solution. Thank's Blance n Have a great day / YD - Indonesia

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  • Comment Link Don Kanare Thursday, 23 January 2014 3:40 pm posted by Don Kanare

    Blanche, you are really over simplifying and you are dead wrong.

    Price is only one part of the equation. If a property has a bad floor plan or a steep driveway the price is irrelevant as the house will be highly undesirable and hard to sell at any price. Some homes languish on the market for 5 to 10 years at Lake Tahoe because of some very undesirable attribute. Price is only part of the equation, other factors can be deal killers.

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  • Comment Link Bob Thursday, 23 January 2014 2:56 pm posted by Bob

    price sells houses and agents charge too much commission. All the talk about the agent selling your house is bunk. Price sells, not agents.

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  • Comment Link Bill Anderson Thursday, 23 January 2014 2:27 pm posted by Bill Anderson

    ...A very cool...awesome...article..."spot on" as some say...I say "right on". Bill Anderson/Baird & Warner

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  • Comment Link Ram Narayan Thursday, 23 January 2014 1:26 pm posted by Ram Narayan

    Its very true but location some how matters,This happens due to segment of people ,the level of thinking matters...

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  • Comment Link Mark Costello Thursday, 23 January 2014 11:46 am posted by Mark Costello

    I agree with the author "every property has a potential buyer and it's all about the price." I have found two homes in a community built the same year, floor plan and elevation priced about the same of which one is a much better deal to the other because of upgrades, condition, location and lot.

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  • Comment Link Arnold Richie Thursday, 23 January 2014 11:27 am posted by Arnold Richie

    In any market, an appraisal will have to be done for financing purposes. When the property does not appraise for the contract price - which is happening in many instances - the Seller must decide to lower the price or let the Buyer go. And that is IF the Buyer still wants to negotiate. Isn't it better to know up front what the property will appraise for?

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  • Comment Link Mike Coverdale Thursday, 23 January 2014 10:35 am posted by Mike Coverdale

    Having an appraisal done in advance in our small market rarely makes sense. Our lack of true comps leads typically to a pessimistic number that often misses the features about a property that a buyer would appreciate.

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  • Comment Link Nicholas Di Rienzo Thursday, 23 January 2014 9:26 am posted by Nicholas Di Rienzo

    Especially now when inventory is low, if a property doesn't sell in a desirable area then absolutely price is the factor.

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  • Comment Link Mary Frances LaGanke Thursday, 23 January 2014 7:42 am posted by Mary Frances LaGanke

    This could be ripped from the pages of my listing presentation!

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  • Comment Link Henry Wednesday, 22 January 2014 1:08 pm posted by Henry

    Again all great comments. Tking on a property that is over priced has often to do with sellers that "are forced" to sell due to financial problems. The might have bought 5 to 8 years ago when the house priceses were very high and the markets was booooming. Now the world is in a financial down and people have to sell. Thats why we take them on. The negotiations come in later when offers are on table and the seller needs to think about taking a loss, getting rid of the property rather than loose it on a auction .

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  • Comment Link Libby Wednesday, 22 January 2014 12:13 pm posted by Libby

    If 5 buyers have been to your home with no offers...its time to reduce in my market. I dont wait for weeks or months and I update every Monday with new actives, under contract, and sales.

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