Judi Barrett's post on real estate is local...is so true! She provides good information why forgetting that real estate is local can cause numerous problems. Comments disabled, please go to Judi's post and leave your comments. Thanks and Happy New Year!
Real Estate IS Local ~ Forgetting That Can Cause Numerous Problems
PRICING - When you want to know what a property is worth, do you compare it to properties 3000 miles away.. Absolutely not. The closer comps are located to your subject property and the closer they are in condition, age, amenities, etc.. the more accurate your estimate of worth will be for that property.
Often when I post a local property for sale in my blog.. I get comments along the line of "What a great price.. you could not buy that nice a home and acreage here for that low of a price." Sometimes that throws a seller off.. they see those comments and think I've underpriced their property. But if my client's property were priced based upon comps in a distant location, the price will probably be wrong.. By some wild chance it might be right if that market is similar to ours but it's probably going to be wrong.. Either my client's property wll be underpiced and they will not get the price they should have OR it'll be overpiced and sit on the market.. stagnant!
EXPECTATIONS - Are properties selling locally.. is the economy doing well? Are buying lining up.. are there multiple offers? What is the Absorption Rate at the current rate of sales? If homes are selling like hotcakes in South Florida, that doesn't mean didly for the market in Southeast Oklahoma. LOCAL.. keep the expections right for your seller, your buyer, and for YOU.
FRICTION - Forgetting that Real Estate Markets are local and writing blog posts as though your market and the way things are done in your area is the ONLY way and an absolute for the rest of us will get you a ton of comments but lose you some friends, associates, and some referrals, not to mention possibly some other posts slamming your post. NOT A GOOD IDEA.
ALMOST EVERYTHING that has to do with real estate IS LOCAL. The one exception to that may be FINANCING.. Financing, more than any other part of the real estate transaction depends upon forces outside the local area often since the money to buy a home often comes from an institution that is national or global... But those things are taken into account at the local level when a real estate agent prepares their client for the possible scenarios within a transaction... bringing even that aspect back to the local level.
Real Estate IS Local and forgetting that CAN cause Numerous Problems.. Think Local, Local, Local..
Looking for a home for sale in Idabel, Oklahoma? Let me Google that for you.
Judi Barrett, B.S. Edu.,
Broker, Integrity Real Estate Services, Office Address: RR 5 BOX 126, IDABEL, OK 74745 580-212-5946
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