Real Estate Market Conditions - When Price Doesn't Overcome All Objections
I remember an occasion early on in my real estate career when I was getting ready to meet with sellers who's home hadn't sold. It was after the office closed but there was another agent besides myself still working. The sellers had come in and we were talking about why they hadn't had an offer. There had been plenty of showings, but no offers, not even a bad offer.
We talked about the location of their home. It was on a cul-de-sac up on the a hill facing a very, very busy highway. The state was building a barrier wall between the house and the highway. It was going to be within fifty feet of the front door! It would block the view but block the sound.
We also discussed condition. Their home was a 100-year old farm house. It has lots of character but didn't have lots of space - only about 1,400 square feet on two levels. It had some nice features, but, it wasn't you suburban center stair case brick front colonial.
And we reviewed price. At the time the real estate market was taking off in Anne Arundel County. Prices were beginning to skyrocket and inventory was being snapped up in days if not hours at asking price and sometimes with escalation clauses.
Yet, their home had not yet had an offer despite nearly 100 showings!
My objective for meeting with the sellers was to convince them that they needed to reduce price by $25,000 or about 5% of their asking price. As we talked the other agent breezed by and said:
Price overcomes all objections!
After a bit more discussion and review of the feedback from showings and open houses, the sellers agreed to reduce price. And, like magic, it did the trick. Just a few days after the dramatic price repositioning, the sellers had a full-price offer that they were willing to accept. Thirty or so days later, the house sold.
The Old Sweet Spot - Price, Location and Condition
Not long ago the sweet spot was at the intersection of price, location and condition. It was pretty easy to find. A competitive market analysis could help sellers select the best price. Location was location. And condition ... in a rapidly rising market with diminishing inventory it really didn't matter what condition the property was in.
The New Sweet Spot - Market Conditions, Price, Location and Condition 
The new sweet spot just got smaller and more difficult to find. It's now at the epicenter of price, location, condition and market conditions. Now, price, location and condition all matter. The property must be in "move in condition", located in the trendiest neighborhoods, priced below any competition and positioned for current economic conditions.
There's a log jam of inventory that remains unsold, all are well priced homes, in "good" locations, and in "move in" condition. Until economic conditions improve it remains to be seen if these well positioned homes will sell.
Sometimes price, location and condition cannot overcome market conditions!
Sellers can continue to reduce price and address issues of conditions but they cannot change the location. So while real estate agents have influence over sellers, their asking price, and the condition of the property, neither buyers, sellers or their agents have any influence whatsoever over overriding market (aka "economic") conditions.
So why do some houses sell and others don't? They really are located in the sweet spot. Buyers know where it is right away. Sellers are often clueless. Real estate agents are the guides to finding it. Its not difficult to find the sweet spot, with the right agent to help you fine tune price and condition, sellers can make a hole in one.
For a free, no obligation online market evaluation and interactive report that is specific to your home in Annapolis, Maryland visit www.MarylandMarketConditions.com.
Homes for Sale in the Sweet Spot
2 Bedrooms, 1 Full Bath, 1 Half Bath, Townhome, Fox Run, Grasonville, MD, $179,000
2 Bedrooms, 2 Full Baths, Townhome, Kent Cove, Stevensville, MD, $199,900
2 Bedrooms, 1 Full Bath, 1 Half Bath, Townhome, Capetowne, Arnold, MD, $199,900
4 Bedrooms, 3 Full Baths, Single Family Home, Olde Glen Burnie, Glen Burnie, MD, $229,900
2 Bedrooms, 2 Fulll Baths, Condominium, Windgate, Annapolis, MD, $250,000
4 Bedrooms, 2 Full Baths, Single Family Home, Riviera Beach, Pasadena, MD, $265,000
3 Bedrooms, 1 Full Bath, 1 Half Bath, Condominium, Crofton Towne/Park, Crofton, MD, $265,000
3 Bedrooms, 2 Full Baths, Single Family Home, Revell Downs, Annapolis, MD, $275,000
3 Bedrooms, 2 Full Baths, Single Family Home, Herald Harbor, Crownsville, MD, $329,000
3 Bedrooms, 2 Full Baths, Single Family Home, Georgetown Grove, Annapolis, MD, $349,900
6 Bedrooms, 5 Full Baths, Multi-family Home, Linthicum Heights, Linthicum Heights, MD, $355,000
4 Bedrooms, 2 Full Baths, 1 Half Bath, Single Family Home, Overlook, Queenstown, MD, $374,900
4 Bedrooms, 2 Full Baths, 1 Half Bath, Single Family Home, Williamstowne, Millersville, MD, $390,000
4 Bedrooms, 2 Full Baths, 1 Half Bath, Single Family Home, Eastwoods, Glen Burnie, MD, $395,000
3 Bedrooms, 3 Full Baths, 1 Half Bath, Townhome, Tidewater Colony, Annapolis, MD, $425,000
4 Bedrooms, 2 Full Baths, 1 Half Bath, Single Family Home, Chapman Farms, Crofton, MD, $499,900
4 Bedrooms, 2 Full Baths, 1 Half Bath, Waterfront Single Family Home, Rest Haven, Deal, MD, $999,000
4 Bedrooms, 5 Full Baths, Watefront Single Family Home, High Point, Pasadena, MD, $1,950,000
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