Location, Location, Location - Nope, Try Again.

A few days ago Realty Times published an article that challenges the traditional  'ism" that location is the most important factor in real estate.  If you remember the Guns and Butter graph from Samualson's Econonics textbook, then think of this:  When PRICE meets EXPOSURE on the graph the house will sell!  But what about location??  Well, location  - along with condition, current market, uniqueness and other factors are COMPONENTS of price.  An overpriced home in a great location will not sell but if just a little over priced it should attract market offers.  If the price is too high the home will be ignored no matter where it is.  Once a fair PRICE is determined we have to address EXPOSURE.  Now get this - entering the property in the local MLS(s) is the ONLY exposure needed!  What you say!  How about print and internet ads?

Well, additional ads will not determine IF a home will sell (Price and Exposure will, remember) but they can help determine WHO will sell it.  A broker will spend additional ad dollars to 1.) "double-end" the deal (of course if it's sold in-house the broker makes the same but the listing agent splits with the selling agent).  They also advertise to 2.) keep the seller happy, 3.) attract new listings and 4.) to recruit.  And brokers love when agents advertise their own listings because the brokers information must be in the ads per regulation.  So as agents come and go the brokers brand continues to win.  Think of putting an item on E-bay.  It is exposed to a vast audience which determines if it has value.  If it does, it sells.  If not the item becomes like an expired listing.  However in real estate we want to sell our own listings so that's where the additional advertising come in.

With the Help-U-Sell system we advertise as a duty to the seller because the seller pays less.  Help-U-Sell is CONSUMER oriented.

In my next post I'll discuss a pricing strategy called a modified "Dutch Auction".

If you are buying or selling in Forked River, Lanoka Harbor (Lacey Township), Bayville, Manahawkin ofr anywhere is Ocean County give me a call.  609-242-0506