Even babies in this country know the three L's of real estate; location, location, location. There is news for the Princeton real estate 
buyers and sellers: I am seeing the old adage being replaced with the new phenomenon.
The three P's are the new three L's. This post can probably be the shortest yet, as this pretty much sums it up. My data is anecdotal (unlike the rest of this blog), so I would understand if my graduate school professors may not want to continue reading.
In the 3d week of March, buyers and sellers need to think about their strategy going forward. I publish this post without big analytical data support, because time is of the essence and I wanted to share what I see in the greater Princeton real estate market.
This is what I observed this week. The house priced in the $500,000 had seven (7) offers and had the price bid up by approximately $150,000. Another example is a bit less dramatic, but similar.
The third example is a property that was on the market two years ago, was listed now for 5% less then then, and had an offer within a week. Another one - under contract in less then a week, was priced at $100,000 less and in better condition, then the house one block down the street.
There are sellers who think that their properties are undervalued, even if they had no offers in six months. For such a property the price is ZERO, using the definition of the market price being the "highest price the buyer is willing to pay without duress". This is a pill hard to swallow for many, especially when they get advised by the "experts".
Who should take notice of these events?
- Sellers who need to get the idea of the market price and not price their homes "a bit more then last year" .
- Agents who support these ideas, for reasons I don't want to contemplate.
- Buyers who need to understand the idea that in the week market houses still go for over asking price.
So, it's the 3 P's. Before some people get upset, location and condition are still very important in this market, provided the price is right. For those who think it's nothing new - I agree.
Photo by John Holm/foto3116
One of the goals of the Princeton Real Estate Blog is to make a lot of the information, previously not available to home buyers and sellers, accessible at their own time and convenience. Here are some articles that could be of interest.
15 Reasons you should not buy a home now ...5 reasons you should
What Did That House Sell For? January 2008
Who Else Wants Clarity About Real Estate Prices
Is Princeton Real Estate Local or Global?
Secrets To Buying A House In This Market
Secrets To Home Selling In A Bad Market
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