Real Estate's Own "Rule of Thumb"s
Judith Abbott Rules of Thumb are great ways to think about real estate.
If you're trying to sell your home and haven't been successful, Judith's Rule #1 is a must read. Price, condition, and location are what sells a house - since you can't control location, you'd better do something about condition or price to get it to sell.
If you're not having showings, then you're not going to get offers. Increase your showings by decreasing your price - a simple fix that many homeowners are reluctant to make. That's why they're homeowners and not sellers. Be a seller!
There are some "Rule of Thumb"s that I use in my real estate practice. A Presumption, or Rule of Thumb, is a standard or belief that is true often enough that it is reasonably safe to begin there. If we had to get out of bed every Monday morning of the world and make every decision we ever made all over again, we would never get anywhere. Presumptions save time and energy.
The following are my own "Rule of Thumb"s for Listings. Obviously, your milage may vary!
1. If a house is priced right, in great condition and in a good location, it will sell quickly, no matter what else is going on in the market. If your house sells to the first or second person who sees it, congratulations! You sucessfully nailed the market. It does NOT mean that your house was under priced. It means that you and your agent, as a team, totally nailed it.
2. If a house isn't being shown, it is over-priced. Period. The Market is speaking. Listen.
3. If a house is being shown but no offers are being made, the house is priced right for the neighborhood but the price is too high for the condition of the property.
4. 2nd showings are a good sign because it means that a buyer has picked up on the subtle signs that this property could be "home" for them. No 2nd showings frequently means that the house needs to be "warmed up", depersonalized, and generally staged to make it more likely that a buyer can visualize living there.
5. Expect to have an offer after 10 showings.
6. Expect to get the house sold within 30 showings or 3 offers, whichever comes first.
7. The first offer is frequently the best offer.
I look forward to hearing what other agents have found to be reasonable "Rule of Thumb"s in their business!
** photo courtesy of Flickr Creative Commons http://www.flickr.com/photos/rieorie/
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