We continue our discussion about the seven reasons a property sells. Right now, we’re going to discuss marketing and exposure. Thank you so much for tuning into The Real Estate Today podcast.
I’m Bob Nelson, real estate investor and broker with Pacwest Real Estate Investments; I’m Marcia Edwards, residential broker with Windermere Real Estate.
Marcia Edwards: We’ve been talking about the influences of a sale, what will help you be successful and what might be your greatest hurdles. We’ve talked about location, we’ve talked about the timing of the sale, and the terms and financing. There’s also the condition of the property at the time of the sale, pricing and positioning, and the competition, marketing and exposure, and expertise, who you hire. Let’s talk a little bit about that pricing and positioning part of the success model.
Bob Nelson: It’s interesting because there’s several strategies and I’ve seen them both used successfully. You can over price something to allow enough room for a little bit of negotiation because if you state this is the price take it or leave it, unless you’ve got something that’s so unique that people race after it that’s going to be a little bit of an issue. The buyer has to think that they are bargaining in a position where they’re taking an opportunity to stack a little bit of an advantage on their side of the table. They got to feel good about the transaction.
Marcia Edwards: In residential real estate, I’m finding you can’t put much of a margin and play it a little high.
Bob Nelson: I agree.
Marcia Edwards: Or you may be chasing the market in a sense. This market may be pretty tight in the numbers right now, it may not continue to go up, or appreciate at this time at the rate it has been, so you’ll be floating above where the buyers are. The buyers may get more and more conservative with the interest rate shifts and things, so I’m concerned about that. You’ll want to position yourself among the competition, it’s relevant how quickly things are signed, and what else is available at this time.
Bob Nelson: I would agree with that. The other strategy is under price the property and expect three, four, five offers, but it depends on, of course, the situation. As the bidding war starts each buyer up bids the next person, and even though you’ve started at a fairly “low price” you may end at a price that’s higher than even what would the list price have been.
Marcia Edwards: I think that’s a great strategy in this market. When you’ve got not enough supply and a very huge demand it creates an auction atmosphere, it makes a lot of sense.
Bob Nelson: It’s really interesting, you have to be careful with that as a broker to be somewhat gentle in the negotiation process, or you offend everybody and they simply walk away.
Marcia Edwards: Right, to be successful you want to look at the pricing and positioning, and timing, and location. More on the success influences next program. I’m Marcia Edwards, Windermere Real Estate.
Bob Nelson: I’m Bob Nelson real estate investment broker with Pacwest Real Estate Investments.
Join Bob Nelson and Marcia Edwards Eugene, Oregon, real estate experts daily at 5:30 on KPNW for the “Real Estate Today ” radio show.