Remember when I asked, “What are the three most important things in real estate?” and said that location wasn’t one of them? Blasphemy, I know, but location is really only one part of one of the three most important things.
Location, of course, is the one thing about a property that can’t be changed. Because, if ya could, it’d be a different property now, wouldn’t it?
This point was driven home last week when I had a chance to sit down with a seller whose property was on the market, but not generating any interest. Not a single showing in almost three months on market, even in this crazy real estate market. Clearly something was wrong.
When “something is wrong” in selling real estate, usually your easiest solution is to fix the price. That, of course, means that the current price is wrong — and usually too high, or at least too high for the neighborhood.
Now, this particular home is a lovely home. It truly is. I even said out loud that I’d love to live in it, and I meant it. I loved the floor plan, the details, and the ease of with which the home can switch between formal and informal. I loved everything about it — except the location.
Clearly, I’m not the only one.
For this home, the market is talking to us. At three months without a showing, this real estate market is screaming.
So what’s wrong? In a word, its location is wrong.
You see, when the property was put on the market, it was listed at a price that comparably sized properties were selling for. Unfortunately, all those comparably sized properties are not comparably sited. The justification for this listing price was that “this house is much bigger than anything else in the neighborhood; you have to look at homes for sale in other neighborhoods to find comparables.”
And there it is: as much as we want to, we can’t change the location of real estate. This property is not in those other neighborhoods. It’s in the neighborhood it’s in, on the lot it’s on. That lot and that neighborhood just don’t warrant those kinds of prices.
That’s a harsh reality, but it’s not my reality; it’s the market’s reality. In real estate, we need to listen to the market. It’ll tell us to pay attention to where we are. We can’t change our location, so we have to change our price.
Of course, if you need any assistance with any of this, I’m just a click or a call away. Don’t hesitate to reach out. I’m here to help, if you just let me know what you need from me.
With warmest regards,
Randall Brennan, REALTOR
Certified Negotiation Expert
Certified Investor Agent Specialist
Certified Distressed Property Expert
Certified Military Housing Specialist
So what’s next? Take your pick.