Location, Location, Location...Not So Much Anymore....Price, Price, Price!

By
Real Estate Agent with RE/MAX Trinity Brecksville Ohio

Location, Location, Location...Not So Much Anymore....Price, Price, Price!


For those of us who have been in the business for a while, we remember the phrase location, location, location, which of course implied that nothing was more important than location when it came to purchasing a home.  In reality, when I priced a home it was really location, condition, and price that I considered. But if there was some less than attractive wallpaper, I didn't consider it that much of a problem. The same was true if the carpets were a little worn, or the deck needed staining, or maybe the landscaping was not quite right. The second home my husband and I bought in 1990 had an original furnace and A/C, an old hot water tank, a roof we found out after inspections was leaking, wallpaper I did not like and a dated kitchen and dated bathrooms. BUT, we loved the yard, the huge family room addition with a fireplace, the finished basement (with red and black shag carpeting) and the neighborhood.

But now that the tables have turned, and supply is greater than demand, the truth is much closer to price, price, price or at best, somewhere in between.

I can't stress how important the right price is in today's market....that, and patience. It is not unusual to see market times of 6 months to one year in the Cleveland market, and even longer for condos. Buyers are not settling for outdated decor and old mechanicals, UNLESS the price is right..

Does that mean that as a seller you should not prepare your home for the market? Not at all. In fact, it's more important than ever to present your home in the best light possible. Buyers are closely scrutinizing the homes they are considering, with more stars given to those homes with improvements. I realize that many sellers do not have the financial means to make major improvements to their home. But even a home that is dated can be made neat and clean.

For those sellers who do have the means to make some improvements, start with the defects! So often I see a home with a remodeled kitchen or bath but the basement leaks, or the basement is finished but the roof leaks. Take care of defects first.

After the defects are corrected, other improvements to consider are:

stripping wallpaper and if there is no paper, perhaps a fresh coat of paint
carpets cleaned or replaced
spruce up the landscaping/deck
update the light fixtures
if your home is vacant, consider hiring a home stager

And don't forget a good dose of patience....you're gonna need it.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Linda K. Mayer 07/25/2011 09:46 AM
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Rainmaker
1,048,784
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Today the only concern in my mind is price. There are some things that can't be changed but price is not one of them. Your price can always reflect on any deficiencies.

Jul 25, 2011 12:56 AM #1
Rainmaker
553,708
Barb Szabo, CRS
RE/MAX Trinity Brecksville Ohio - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

True Bill, but a 10K price reduction can go a long way if improvements are needed and if the seller has the cash.

Jul 25, 2011 01:09 AM #2
Ambassador
1,207,209
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I couldn't agree more Barb.  PRICE!  We just sold a home in less than 24 hours because the seller was motivated and wanted it gone now.  We have a few listings that are incredible homes, but the sellers aren't motivated so they priced it higher and they have been sitting.  Price is king.  

Jul 25, 2011 01:14 AM #3
Rainmaker
553,708
Barb Szabo, CRS
RE/MAX Trinity Brecksville Ohio - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

Wow Jared, that's fast. I have not had any go that quickly but I do have motivated sellers that understand that price is king.

Jul 25, 2011 02:07 AM #4
Rainmaker
564,223
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Barb,

As the saying goes, "price cures all ills." It takes wisdom for buyers to recognize when "the property REALLY is priced right." lol

Best,

Steve

Jul 25, 2011 09:55 AM #5
Rainer
135,313
Michele Myers
Prudential Homesale Services Group - Harrisburg, PA
Harrisburg/Hershey Realtor

It is amazing how the right price makes the location right.  Thanks for sharing.

Jul 25, 2011 02:14 PM #7
Rainmaker
553,708
Barb Szabo, CRS
RE/MAX Trinity Brecksville Ohio - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

Hi Steve, well said:0

Hi David, yes, location is very important but now it's more about the supply of inventory.

Hi Michele, I like that!! I think you should make that your next blog.

Jul 25, 2011 02:56 PM #8
Ambassador
3,676,945
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Barb, yeah, the price is really important, but it's also the price for the location.  Oh, and what about timing?  That's sort of a biggie.

Jul 26, 2011 02:33 PM #9
Rainmaker
96,693
David Artigliere
Reading, Pottstown, Norristown, Philadelphia - Collegeville, PA
ARTI Home Inspections, ASHI Certified Home Inspect

Barb, you certainly have a point here.  Sellers can sell in any market, but the price has to be right!

Jul 26, 2011 03:43 PM #10
Ambassador
3,676,945
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Hey, Barb!  I included this post in Last Week's Favorites.

 

Jul 31, 2011 02:57 AM #11
Ambassador
524,134
Cindy Marchant
Keller Williams Indy NE 317-290-7775 www.marchantteam.com - Carmel, IN
"Cindy in Indy" , Realtor, Fishers Real Estate

Hi Barb...sadly this is so true.  I have sold most of my homes this year at less than what the seller paid...ugh.

Jul 31, 2011 04:30 AM #12
Rainmaker
571,718
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Barb,  Very well said.  Your premise is especially true if the buyer is not going to personally live in the property.

Jul 31, 2011 08:22 AM #13
Rainmaker
553,708
Barb Szabo, CRS
RE/MAX Trinity Brecksville Ohio - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

Cindy, I know, I just had one take about an $80K loss!

Bill,an excellent point.

Jul 31, 2011 02:08 PM #14
Rainmaker
412,151
Rodney Mason
Angel Oak Home Loans - Atlanta, GA
AL, FL, GA, SC, & TN

Most of today's buyers are definitely looking for that "deal". 

Jul 31, 2011 03:20 PM #15
Rainer
233,428
Mike Yeo
3:16 team REALTY - Frisco, TX

Where we are at, price and what they can get also play a factor. Some houses have upgrade kitchen and the others don't, they will be having a tougher times to sell.

Jul 31, 2011 04:11 PM #16
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Rainmaker
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Barb Szabo, CRS

E-pro Realtor, Cleveland Ohio Homes
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