We have all listened to sales trainers speaking at great length on the importance of price, condition and marketing to get properties sold. Each one seems to have a magic formula for success via marketing. Marketing has become their sole answer to the question of why a home sells or does not sell, but marketing and condition are really controlled by price. Price is king in real estate.

Price is the only factor that can make up deficiencies in the other two. Price can overcome obstacles and create a sale even if the condition of the property and your marketing approach are less than perfect. When a property is not selling, the answer is not to throw more marketing dollars at it. The answer is to get the price down to -- or below -- fair market value.

In my career I sold quite a few homes that were in poor condition or in a poor location. Some were on a busy street, in a rough area of town, or badly in need of repair. They all eventually sold. Some would have sold more quickly and efficiently -- and for more dollars -- if the seller had fixed them up. In most cases, though, the sellers were unwilling or unable to do so. But priced at a level where it was a good value, the home sold. Price was the factor that controlled the sale. People will buy homes on busy streets if they are better values than those on quieter streets. Price is the key to the sale. Don't be misled into thinking otherwise.

I was always clear with clients that 85% of the marketing happens right at the moment when we set the price. It doesn't matter what you do to market the home if the price is too high. You can put the home in MLS, do color flyers, run newspaper ads every week, list in Talking Hous and Homes & Land, and hold open until the cows come home; if the home is overpriced, it will not sell. And if you priced it really well, the other agents will know it and will show it. They will be thrilled to show a well-priced home compared to the rest of the homes in the MLS. You will always get lots of activity on your listings if they are priced well.

Develop a reputation in your board for well-priced listings. Don't be fooled by the myth of condition and marketing. These two factors are not in the driver's seat. They are merely passengers on the road to a sale. Price is the driver. Tell the seller the truth. Sellers have heard from too many agents, for far too long, about the value of marketing. They have heard from each of us about the latest gimmick to "beat the market" through a revolutionary marketing technique. Let's be honest with them: Price is King!

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Published: July 19, 1999

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Dirk Zeller is a sought out speaker, celebrated author and CEO of Real Estate Champions. His company trains more than 350,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. The Real Estate community has embraced and praised his six best-selling books; Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, The Champion Real Estate Team, Telephone Sales for Dummies®, Successful Time Management for Dummies®, and over 300 articles in print. To learn more regarding this article, please visit www.realestatechampions.com.