Price - The Undisputed King

In real estate, price is the undisputed king of the transaction. No other single factor can so overwhelmingly make or break a sale.

A properly priced home can have a whole lot wrong with it and still sell. Conversely, an Over-Priced Turkey (or "OPT" as they're known in the trade), is almost impossible to sell, no matter how you market it, who your agent is, or what the condition.

Price in Action

Let's take a look at some examples of how price can be used to adjust for other variables:

• Adjusting for Lack of Exposure / Lack of Agent.
  According to the National Association of Realtors®, "The median FSBO (for-sale-by-owner) selling price in 2003 was 20 percent less than the median agent-assisted transaction price. Although the agent-assisted price is skewed a little high because it includes a greater mix of more expensive properties, the data demonstrates that sellers make more money by using a professional."
   
• Interested in a "fixer-upper?"
  Price is so often used to adjust for a home's condition that there's a word for doing so. Fixer-upper buyers don't want a fixer-upper for the sheer masochism of doing repairs -- they want a fixer-upper because they can buy it at a lower price. And of course, if they can get it at a price that's lower by a significant margin above the cost of doing the repairs, so much the better!

  ---

  See also: Why Agents List Homes and Listing Agent Tricks.