The Biggest Lie in Real Estate – “Location, Location, Location!”
For years, real estate professionals have been telling everybody “Location, Location, Location” as the reason all real estate will or will not sell. In order to sell your house, they’ll explain that it all comes right down to location. Practically nothing could be further from the truth. There are actually three variables which decide whether or not a property sells or not: price, condition, and location.
Of the three, location will be the least important since it can’t be governed by anybody. Unless you have a large crane to move the home, you must recognize location as a fact and move on to the two variables you can manage.
Price is the most important element of selling any home. Sellers always question, “What can my house sell for?” The answer is simple. A home will sell for about what homes of similar square footage, style, amenities, and in similar sub-divisions have sold for lately.
Your current price should be based on the reality of comparable home sales, not on what you would “like to receive” or think you “have to get” for your home. Purchasers really don’t care what you desire for your house, they only value what your home is worth to them according to the reality of record.
Condition is the final area that affects your house sale. If a house is in exceptional condition, it should sell for approximately full market place value. In case your home is in less-than-perfect condition, it won’t bring just as much money. Potential buyers may convey their impression of one’s properties condition by way of their offering amount.
In other words, price is by far the most important aspect of selling. Consult any agent you meet what the number one reason may be for a house not selling and, if they are genuine, they’ll tell you, “Over-pricing because of the seller!” Agents all know that the right price will cause any home to sell, no matter what location or condition. In case your house has not sold a result of location, change the purchase price and it will probably sell. If your house hasn’t sold due to condition, either correct what’s wrong, or alter the purchase price until it does sell.
One final thing that will affect the sale of your home is marketing. We will cover that in our next article.