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How a home is like a quart of milk

By
Real Estate Agent with Maximum One Greater Atlanta Realtors

Many sellers have the perception that more marketing from the agent will compensate completely for the wrong price.  Others think the opposite: low price will always compensate for lack of marketing.  The truth is that both need to work together to make the sale.  The home has to be priced correctly AND marketed correctly.  Selling a home is not much different than selling anything else.  The 4 P's of marketing apply (Product, Price, Place, Promotion).  The product is the house itself and the way it is staged, the place is the location of the property, promotion is the marketing.  All of these work together to make a sale.  For example, if your local supermarket takes out a full page ad in the newspaper to advertise a quart of milk for $50.00, nobody will buy it because it's overpriced and all the advertising in the world won't compensate for being so overpriced. On the other side of the coin, they can lower their price to 10 cents a quart for milk and with no advertising, nobody will know about it and they will miss the opportunity to maximize their sales volume by effectively telling the public about this great product at a great price.

If you want to know if your home will sell in this market, pretend you are a buyer looking in that area and price range and see if you can honestly say that your home presents the best value for potential buyers.  Then, make sure you do everything possible to tell the public that yours is the best value.

Vicky Chrisner
Fieldstone Real Estate - Leesburg, VA

Good post.  I encourage agents to really examine traffic patterns and feedback before ASSUMING it's price.  While a lower price (properly promoted) CAN overcome anything (i.e. the concept of the "Everything's A Dollar" Store - people will buy anything if it's cheap enough), sometimes that's not really the issue.

I had a listing once that was on the market for 6 months.  Lots of traffic.  At first it was overpriced. After 3 months we reduced the price.  It still didn't sell - it was a cute house... but I was listening to the feedback carefully.  I finally convinced this extremely difficult seller (MY MOTHER) to allow me to stage the house to overcome the objections we'd been hearing.  The next person who saw it - the next day - bought it on the spot.  (It was a PRODUCT ISSUE that could be overcome with proper staging.)

I had another listing - new construction, high end.  Lots of lookers, I had about 10 groups that kept coming back, over and over again...like sharks circling their prey, but no offers.  I told the builder to finish the basement.  When it was close enough to completion to be photographed, I added basement photos in the MLS, and changed the comments to say "Come Back - Take Just One More Look - Now with a fully finished basement!"  I had SEVEN offers within the next week.  It sold for full price, on a non-contingent offer and settled in 2 weeks.  Again, a product issue that could be overcome.

These are the most dramatic examples, but there are others, too.  An agent must know how to analyze this information so as not to suggest a price reduction instead of addressing other things that might keep more cash in the seller's pocket.

Jun 29, 2008 03:02 AM
Vicky Chrisner
Fieldstone Real Estate - Leesburg, VA

PS  LOVE the example of the $50 gallon of milk - is it OK if i steal that line?  I think everyone will get that, even sellers in denial.

Jun 29, 2008 03:02 AM
Michael Sahlman
www.HomesForVIPs.com - Keller Williams Realty - Miami Beach, FL
e-PRO - Miami Beach Florida Luxury Homes

Funny I just used the same analogy a few minutes ago in a comment....must have heard it in KW training somehwere...lol

Jul 05, 2008 09:34 AM