Symptoms that a property is overpriced

January 10, 2016

I have often over the past decade espoused what I call “cause and affect” factors in the sale and marketing of property. In other words, selling a property, while of course it is personal and unique, basically it is predictable.

The same things needs to be done, in a relatively similar sequence and certain barometers or indicators help us read or determine the effectiveness of various marketing and sales methods.Much like a good chef knows that the use of various ingredients in a certain order, in certain proportions create a particular outcome and a good builder knows the same, so does a good real estate agent.

A good physician can through understanding various symptoms, a thorough understanding of possible available options and through a process of elimination, can diagnose probable causes a

In order to look at what the symptoms of an overpriced listing, let’s first look at what a well priced listing behaves like. nd therefore possible courses of action.

What are the symptoms for that?

1) Lots of enquiry
2) Lots of inspections
3) Second inspections
4) Lots of drive bys

5) Lots on internet inspections
6) Early offers
7) Multiple offers
8) A Rapid result (In the first 30-45 days)

By definition therefore, the opposite is true.

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What are the symptoms of an overpriced listing? (And I believe it makes no difference which time of the year, and what the economy is doing. Every property is sellable if priced correctly).

1) Limited or no enquiry
2) Few inspections
3) No second inspections
4) Some drive bys
5) Some/ maybe even lots of internet inspections
6) Low offers/ no offers
7) No result in first 90 days

After 90 days, unless written offers in the range of 3-5% of the asking price have occurred, it is probably that the property requires a significant price adjustment.

There is a saying that buyers always find well priced properties.