True or False: Every property will sell if it’s priced right.

By
Real Estate Broker/Owner with Richard Weisser Realty

True or False: Every property will sell if it’s priced right by Richard WeisserWe have all heard the old adage time and time again: Every property will sell if it’s priced right.

And while that is fundamentally true in most cases, like any other held-fast tenet there are exceptions to the rule.

Some properties are truly unsellable. This can happen under a variety of circumstances but the most common one is that the expense of holding on to a property far outweighs any practical usefulness.

As an example, many years back we offered an unbuildable lot as “absolute” at an auction. In Georgia, that means that the auctioneer MUST accept the highest bid regardless of price.

And while the lot was unbuildable, any of the three neighbors with adjoining properties could have expanded their own lot for a dollar!

But there were no bids. Nobody wanted the additional property tax burden enough to acquire the lot. If you can’t get a dollar for a lot I would tend to say that it is unsellable.

Then there are the properties with “tear-downs” on them. The cost of demolition, removal and clean-up can far exceed the value of the property.

And some properties are both useless and undesirable because they become dumping grounds for trash and debris requiring the owner to constantly maintain the property or face citations.

There are many other reasons that a property will not sell regardless of price.

 

Of course, there are just as many reasons as to why it will not sell if it is priced too high!

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unsellable properties
properties that cant be sold

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Rainer
335,394
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine
Great story on a house that cannot sell. There are some locations where this can happen, especially in rural, urban areas. A dollar in some places means more than in others.
Nov 15, 2013 06:12 AM #16
Rainmaker
1,540,327
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

There are many things in this world you can not give away! I guess that includes real estate!

Nov 15, 2013 07:26 AM #17
Rainmaker
791,221
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
I guess there are things that will not sell at a given price in the given time, but they may sell today, or next month....
Nov 15, 2013 07:28 AM #18
Rainmaker
1,180,988
David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City
After 33 years in the business, this is a truism. A sale will occur if the price is right.
Nov 15, 2013 09:05 AM #19
Rainmaker
945,390
Ann Hayden 636-399-7544
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Chesterfield, MO
SelectAnn.com

Richard,

Some properties are not desirable...

Ann Hayden in Wildwood, MO

Nov 15, 2013 11:30 AM #20
Rainmaker
1,317,757
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

So true.  The certainly are properties to say thanks for considering me, but NO WAY! 

Nov 15, 2013 12:01 PM #21
Rainmaker
453,292
Kelly Young
The Platinum Group Realtors - Colorado Springs, CO
Colorado Springs Real Estate ~ 719-226-0126

Richard, you raise a very good point about carrying costs (ie taxes, HOA dues, etc) making owning a property more prohibiitve than attractive.  It is unfortunate that sometimes it is simply because there is too much "better inventory" out there.

Nov 15, 2013 12:12 PM #22
Rainer
50,010
Jared Garfield
Rich Life Real Estate Team - Buford, GA
Invest With The Best For The Highest Returns!

Richard, 

All very good points!  Some properties are not worth holding due to taxes, tear downs or economic obsolescence.  Very good blog!

Nov 15, 2013 12:55 PM #23
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MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Hmm if the property sold for $1 and property tax is based on the sale price, it hardly seems that taxes could have been an issue...however toxic waste, asbestos in the construction, etc. can make it undesirable at any price.

Nov 15, 2013 01:02 PM #24
Rainmaker
596,922
Nancy Laswick
United Real Estate - Phoenix, AZ
Your REALTOR® For The Valley Of The Sun

Richard, I remember one property that was so toxic from the Meth Lab that was operated there for several years that the city leveled the house and the property has remained vacant.

Nov 15, 2013 03:13 PM #25
Rainmaker
1,372,399
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Of course I was of the belief that everything will sell if it's priced low enough - but unbuildable lots, lots that will cost a fortune to clean up because of dumping, and lots the are taxed higher than they're worth are all unsellable. Great provocative post!

Nov 15, 2013 09:12 PM #26
Rainmaker
3,825,961
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Rich. I guess I never thought about this as much as you have. Under the conditions you describe, you are right. Enjoy the day.

Nov 15, 2013 10:44 PM #27
Rainmaker
504,894
Teral McDowell
Referral Patners LLC - Murphy, TX

Excellent points Richard; in my early days I had a seller with a broken down mobile that wanted to sell just the lot but that didn't seem like a good deal to me and boy, was I right. Like you said, the lot was trashed too.

Nov 16, 2013 04:27 AM #28
Rainer
405,708
Brad MacKenzie
Brad MacKenzie - Duxbury, MA
Turning Houses into Homes on the South Shore

Yes, zero is as low as the value can go before there is no price at which it will sell.

Nov 16, 2013 06:17 AM #29
Rainmaker
495,504
Brian Dunshie
Russ Lyon | Sotheby's International Realty - Paradise Valley, AZ
Realtor - Arizona Biltmore,Arcadia,Paradise Valley

TRUE - in many cases it's called "land value" - We see it all the time in Paradise Valley 

Nov 16, 2013 09:53 AM #30
Rainer
103,157
Rosie Moore
Serving Sugar Land, Richmond, Rosenberg, Missouri City - Sugar Land, TX
I love your catchy headline. I agree with you. There are so many other factors that impact the salability of a home besides pricing it right.
Nov 16, 2013 09:59 AM #31
Rainmaker
2,486,708
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

I had a land lock lot for sale one time and it still sits there 10 years later. 

Nov 16, 2013 10:39 AM #32
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I still think that all lots Could be sell-able if not for unnecessary government interference, ie unreasonable taxes, unreasonable building restrictions, etc.

Unfortunately this is not likely to change since this is a way for them to take more land from their citizens without having to actually pay for it, the same way so many of our public lands were acquired.

Nov 17, 2013 08:48 AM #33
Rainer
144,497
Gordon Wood
Canyon Ridge Realty LLC - Scottsdale, AZ
480.226.2842

Rich 

Property throughout history has always been sold or transferred to a ready able and willing and able buyer all based on the perceived value for all parties involved.

Nov 17, 2013 09:30 AM #34
Rainer
405,708
Brad MacKenzie
Brad MacKenzie - Duxbury, MA
Turning Houses into Homes on the South Shore

Side note and an example of your point: if Congress doesn't get flood insurance right, there will be many people walking away from valuable homes that have been rendered valueless by flood insurance premiums.

Nov 18, 2013 01:24 AM #35
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