What Causes a Home to Sell?

Real estate agents agree that three things cause a home to sell: Location, Condition and Price. The only real variable is price. There is nothing a listing agent can do to cause a home to sell for more than someone who is willing to pay for it, no matter how convinced the seller is that the property’s worth is more than the market value.

Price forces sales! The trick is to find out where to set the price to find the market. It is what the economists call “finding the point of marginal utility”. It cannot be located with precision because it fluctuates constantly. We can only seek to find out what buyers have been willing to pay for similar properties in the current market.

Redecorating a house, holding open houses, and putting more ads in the paper are activities that rarely produce a buyer for a home that has had a long, unproductive exposure to the market. Location, condition, and price are what cause a property to sell–nothing more. The price must reflect both the positive and negative aspects of the location and the condition. Perhaps you can amend the terms, to make the property easier to buy, but mostly, the price is the deciding factor.

If the market response is weak to a new listing, it is probably priced too high. If after three weeks it is still weak, we need to take a step down toward the market. We keep stepping down until we find a buyer. That is why we may need a longer time to sell, starting at a higher price.

My job is to sell your home, not merely to list it. We need to work together to price it correctly from the beginning, and together we can make it happen!