THE RULE ON WHICH THE ENTIRE REAL ESTATE MARKET IS ONE: EXCELL …
Years and years of work have led me to a conclusion, namely that the real estate market is always right.
Now you will say: “You have discovered hot water” and maybe you are one of those people who do not believe in the assessment of the property agent too low and think they can sell their property to higher figures. Did I get it?
Or you may have reacted with curiosity, but in any case I invite you to continue reading the article.
3 POINTS FOR WHICH MARKET HAS ALWAYS REASON.
There are three points that I have collected and deepened trying to give a commercial explanation on why, in my opinion, the real estate market is always right and they are these:
The special powers of seller and buyer.
No matter what you think, what the customer wants is important.
Your property does not sell it just for two reasons: because nobody wants it or for the price.
An economist could dismiss the speech by telling you that the right price of an asset is the value you earn by crossing supply and demand, blah blah blah and all the rest are small talk, but this is not a blog about the economy and I am “only” a Real estate agent.
Everything I write always comes from my experience and is the result of my thinking; let’s say I want to let you know another point of view. In this regard, I report the incipit of a speech by Robin Williams in the movie The Fugant moment (today I am in the mood for quotes :-)):
And just when you think you know something, that you have to look at it from another perspective, even if it may seem silly or absurd, you will have to try.
SPECIAL SALES OF SELLER AND BUYER.
One of the most famous quotes I heard from my father is as follows:
The only power that the seller has is to decide not to sell his property.
In fact, the seller has the power to refuse any economic proposal, but to decide to sell he always needs someone to monetize the value of his goods or that he is willing to pay for it.
And so … I have seen Customers reject monstrous figures for their property and then after two or three years resell it to 20-25% less or see refusing more proposals at the same price because they were considered too low, when the price was reasonable and they were found even more than 1 customer willing to buy it.
Now you want to know what the buyer’s power is, right? I’ll settle you right away … 🙂
The buyer has magical power, that is, he has the ability to turn bricks into money. Sorry if it’s a little …
The buyer is able to solve your problem and here I open a parenthesis; by problem I do not mean forced sale because there is water at the throat, I by problem I mean your need to sell a property, to exchange your property in the market. Whether you need money or not, selling a property moves part of your attention units, in that direction, creating a “problem”. Parentheses closed.
The buyer must be treated with care, should be cuddled and reassured about the purchase and certainly this activity can not make the seller as it would be too obvious the conflict of interest. For each of us, moreover, your property is better than that of the neighbor. So here comes the figure of Real Estate Agent, as a neutral part … but that’s another story.
IT DOES NOT MATTER THAT YOU THINK YOU, COUNT WHAT YOU WANT THE CUSTOMER.
“Is Cavenago di Brianza or Cinisello Balsamo better?”
For those who do not know, Cavenago and Cinisello are two localities in the Milan hinterland or better Cinisello Balsamo borders with Milan, while Cavenago di Brianza is about 20 km away. These two locations share the exit on the A4 motorway.
When I was a beginner, I asked myself this question and I answered Cavenago di Brianza and I still believe it. The reason is very simple: Cinisello Balsamo is a city of over 75,000 rather busy people unlike Cavenago di Brianza and therefore to reach Milan you put more or less the same time. In addition, the costs for a purchase in Cinisello are higher and transport times are longer.
When the customers called me and asked me if I had certain properties in Cinisello Balsamo, I proposed Cavenago di Brianza sure of my convictions; the phone call almost always ended with my attempts to convince the customer of what was best for him. Red pen error: never come into conflict with the customer.
I had to change my way of looking at things because if I continued with my convictions I would have sold property only to those who wanted Cavenago di Brianza.
We must therefore listen to the real estate market, find out what is necessary and desired by the customer, look for it and deliver it to him because the real estate market is always right.
YOUR PROPERTY DOES NOT SELL IT ONLY FOR TWO REASONS: BECAUSE IT DOES NOT WANT IT TO NOBODY OR FOR THE PRICE.
Some time ago I sold a shed of about 250 square meters with a nice private yard. I made the evaluation, commercialized, made numerous appointments and after about 3-4 months sold with a discount of about 4%. All right I would say 😉
After a couple of months, he calls me the neighbor who also wanted to sell his shed; his property was in the same complex, located two portions later and had more or less the same dimensions, but still same era and finishes.
As any good real estate agent teaches, the market valuation is almost perfect if it is based on data of real estate traded in the same area and in the same historical period. The real estate value € / sqm marketed was therefore the same.
Also here I started with various appointments, bringing first the customers who had seen the shed of the neighbor I had sold. Moral, it took me about 1 year to sell it at a 25% discount. Everyone liked it, but nobody took it. The only offer that has arrived, the owner has decided to accept it and I think he did well.
I could cite other examples, but I think the concept that I want to convey is clear enough: each property has its price regardless of any economic period in which we find ourselves, so it is up to us to find out what is the right value in a given market period. real estate.
If you have tried all the possible marketing methods and in spite of everything, no offers are offered, you have to lower the amount requested, there is nothing else to do.
Separate discussion, instead, for unsellable properties; we assume we have to sell a building land where the costs of reclamation are higher or equal to the commercial value of the asset … what do you think is worth? Write it in the comments 😉
CONCLUSION.
In the economy it is not contemplated that the seller decides not to sell at the market price, that the buyer wants to buy at all costs in one location rather than another or that a property is worth zero despite having a cost for the its construction. This is why this argument can not be summarized in an economic formula: the real estate market is not only this.
The real estate market is made of buildings that, although they may be made of stone, bricks, wood, etc … bring with them an emotional value that is impossible to quantify, as emotions do not have an exchangeable value. Emotions are ours and not transferable, so it is advisable to accompany us in a sale or purchase is a person who has the skills and knowledge to be objective, but at the same time also has the empathy to understand us.
The most suitable professional is definitely the real estate agent, but not any one, as I think that before the professional aspect there is the human aspect and therefore my advice is to find the right person that inspires you trust.
As always, I’m available to reply to your comments or if you need, you can find me here.
YOUR PROPERTY DOES NOT SELL IT ONLY FOR TWO REASONS: BECAUSE IT DOES NOT WANT IT TO NOBODY OR FOR THE PRICE.
Some time ago I sold a shed of about 250 square meters with a nice private yard. I made the evaluation, commercialized, made numerous appointments and after about 3-4 months sold with a discount of about 4%. All right I would say 😉
After a couple of months, he calls me the neighbor who also wanted to sell his shed; his property was in the same complex, located two portions later and had more or less the same dimensions, but still same era and finishes.
As any good real estate agent teaches, the market valuation is almost perfect if it is based on data of real estate traded in the same area and in the same historical period. The real estate value € / sqm marketed was therefore the same.
Also here I started with various appointments, bringing first the customers who had seen the shed of the neighbor I had sold. Moral, it took me about 1 year to sell it at a 25% discount. Everyone liked it, but nobody took it. The only offer that has arrived, the owner has decided to accept it and I think he did well.
I could cite other examples, but I think the concept that I want to convey is clear enough: each property has its price regardless of any economic period in which we find ourselves, so it is up to us to find out what is the right value in a given market period. real estate.
If you have tried all the possible marketing methods and in spite of everything, no offers are offered, you have to lower the amount requested, there is nothing else to do.
Separate discussion, instead, for unsellable properties; we assume we have to sell a building land where the costs of reclamation are higher or equal to the commercial value of the asset … what do you think is worth? Write it in the comments 😉
CONCLUSION.
In the economy it is not contemplated that the seller decides not to sell at the market price, that the buyer wants to buy at all costs in one location rather than another or that a property is worth zero despite having a cost for the its construction. This is why this argument can not be summarized in an economic formula: the real estate market is not only this.
The real estate market is made of buildings that, although they may be made of stone, bricks, wood, etc … bring with them an emotional value that is impossible to quantify, as emotions do not have an exchangeable value. Emotions are ours and not transferable, so it is advisable to accompany us in a sale or purchase is a person who has the skills and knowledge to be objective, but at the same time also has the empathy to understand us.
The most suitable professional is definitely the real estate agent, but not any one, as I think that before the professional aspect there is the human aspect and therefore my advice is to find the right person that inspires you trust.
As always, I’m available to reply to your comments or if you need, you can find me here.