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REO Real Estate Sales  - Marketing vs. Price

Most real estate agents will always tell a client that price is the determinate factor for selling a property.  This is not true!  Real estate marketing is the most important factor, with price being secondary.

Allow us to explain: Using Price Alone

Let's say you have a house for sale that is fairly priced for the market at $400,000.  And the seller was willing to accept an offer of $1 for the house for a time period of one hour, but the house could not be advertised or marketed it in any way.  In fact the only way it could be sold for that price was if a buyer happened to knock on the sellers front door and offered them $1 for the house, during the specified one hour time frame. 

The other option:  Using Marketing Alone

The house is listed for $1 million dollars, but every single person in the world knows about it.  It is plastered on every car, bus bench, billboard and road sign in the world.  People washing laundry in the rivers in Asia are talking about this house.  With that type of exposure, there just may be some exorbitantly weatlhy and eccentric individual who, despite knowing the fair value of $400,000, wants to own the most expensive house in that neighborhood, or perhaps they want to own the most advertised house in the world, whatever....

The point is that without any marketing, price is irrelevant, because no one will ever know that the property is for sale.  On the other hand, if a property is overpriced, it may be the one in a billion chance that it sells!

Time is of the essence:

How quickly a property sells is heavily influenced by marketing according to a National Bureau of Economic Research working paper comparing an FSBO site and an MLS in the Madison, WI market.  It should be noted that Madison is the top location in the country for FSBO, so a measurable difference in time to sale is especially relevant in this study.

Obviously, both of the above scenarios are ridiculous.  But the point is that marketing is more important than price.    Our job as professional, educated, and talented real estate agents, is to market the house better than the seller can, better than our competition can, and attract a price that is more toward the high end of the reasonably possible range of prices that the house will sell for in the quickest time possible

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