I sold this house, in a very rough SD hood, in 4 days, for $5,000 over asking in multiple offers: PRICE!

It's simple, not over-simplified. People that think it's more are basically 99% wrong.  Price is 99% of the reason properties sell or sit, and unless you're willing to change the 1% of the other reasons-it's price. You can't change the location, view, natural hazards, outside nuisances,  neighborhood or geography. All you can change is property-condition or price, and even perfect houses in bad locations still need the right...PRICE!

Most homeowners are in denial, they want to make up these complicated excuses. It's simple, not over-simplified. Price is just another way of saying value, and buyers need to see value. 😉 

That's a serious over simplification.

It boils down to this philosophy:

If I reduce the price to $1... we will, of course have a line around the block of hundreds of people, maybe thousands of people willing to buy it... agreed?

At $100... still the same... maybe even $1,000... no change in the line.  Maybe even $10,000 only a slight reduction in the line.   Change the price to $100,000... now we've reduce the line a good amount.

How about $200,000?... now the line is significantly shorter.  $300,000?  Shorter, still.  The key is we want the price to be at a point where there are only 1 or 2 people in the line.  Finding that point, is not that easy.

So price is important, but "nothing else"?  I can't agree with that.

Hi Leanne Smith 

   No.  Price is not always the issue.

   Marketing.  Who is our target market?  What are we offering?

  Example:   A large parcel on the waterfront.  A lake, a stream, the beach.  But the Realtor pushes the house.  Yes, I know that many MLS requires front exterior photo of the house.  But I see a property that has 32 photos of the house, then at the end of the photo presentation, there are two pictures of the waterfront.   And same for the description...  "beautiful house, roomy rooms, etc. etc ." but hardly a word about the body of water that the property is sitting on. 

    The example I am using; the value is in THE LAND.  The lot is worth way more than the house, a moneyed Buyer could or would tear the house down, and build a brand new home on that spectacular waterfront property.  But a Buyer (or their Buyer's Broker) looking for a waterfront parcel to build on might never see this property, because it is categorized under "residential".  The LA should have emphasized the location!

Pricing can't be discounted on the importance scale but it usually combines with other factors.  

Price is often important and can make up for certain issues, say condition or view, but I suspect there are some things that are deal killers no matter what the price...say a home that backs up to a 10-lane freeway.

I don’t agree totally but price does solve many other problems. I don’t think you can sell a meth house despite the price. But that is an exaggeration of the worst kind.

There are other factors, presentation, preparation, condition, marketing and more.

Of course if you want a quick sale without doing a decent job of preparing the home for sale and properly marketing it, then price it low so that someone else can buy it and do those things.

Price maybe the most important factor, not the only or nothing more or less. I can think of many properties over my career where price was not the issue.

On some level I do agree... at the "right" price most everything will sell regardless of location, condition. However, that being said, I do believe that it isn't always just about price... staging and marketing a home have a lot to do with attracting interest, as well.

I won't repeat what others have said so well but will add my support of the focus on value as enhanced by property preparation/condition, marketing, & price.  Great topic! 

Everything sells for some price...whether it be high or low...satisfactory or not.

The chances of an over-priced property selling are not good.

So...what is an over-priced property? Is it a good property with a price that is too high? Is it a poor property with a price that is too high? Is it an average property with a price that is too high? Yes, Yes, and Yes.

Alan May used the exact word I was going to respond with, oversimplification.

Technically, it's true.  Reality requires a lot more nuance.

Even "free" properties have carrying costs to include taxes, repairs, maintenance and upkeep. Vacant land even has carrying costs. Price is not the only consideration to market value. 

No I don't agree with 'ONLY' reason.  There could be many other reasons - location, condition etc.

Yes.  If it's priced low enough it will sell despite any other issues.  Unless of course it's a toxic waste site and you can't give it away.

4 things needed to move a property:  1) Price 2) Condition 3) Location 4) Exposure.  All are "curable" except for location.  

My experiences give me writer's cramp and acid reflux! LOL

'There is no defect price can't cure' was what I was raised on.

Fact Check: Somewhat but not entirely true! And circumstantial AF!

INTANGIBLES have value . . . views, utility of the land, value added, SO many things that add or detract from VALUE.

Lots more, lots less . . . and the examples are endless . . .

EXAMPLE . . . riverfront half acre, 500k consistent with recent sales. But the 'very friendly' neighbor shows up waving a piece of paper to anyone who looks close. An easement. FOR THE ENTIRE PROPERTY. Every square foot. The signer of the deed is deceased, the offspring contests it but it has not gone through legal channels yet. 
Current market value: Zero. 

All the price reductions in the world won't change that right now. Only a court decision! This property cannot sell at this time. ETA to sell . . . unknown.

We sold a waterfront lot in another area for full price, languished 2 years with another agent (who had the wrong address on it! LOLZ). Our buyer was unique. His mom owned the house next door. No negotiating price. Just get it before someone else does. 

It had value at asking but only for one buyer. 

TIME also matters . . . property on market for a number of years, kept getting ridiculous low offers with every price adjustment. Like we go low, they go lower. I advised the seller take it off market for 6 months, then all new marketing and start over with a 20% increase . . . which we got. 

'ONLY' is limited thinking and I was 86d from the box long ago. 

Many factors determine a sale besides price. I'm going to disagree with that statement. People want a variety of things at that price - it either meets them or it doesn't.

Property condition, aesthetic appeal, current mortgage rates and location can influence person's opinion. So you can blame in on price but sometimes even price won't overcome perception.

Everything sells eventually for the "right" price. The "right" price can be emotional (next door to Grandma), functional (has 6 bedrooms), logistical (5 minutes from work or in the right school district), practical (a one level home for someone with mobility issues), and on and on.... At the end of the day, price can be adjusted until you hit the pain point of the right buyer. Whether the price is "right" or the appraiser agrees with you is a different story.

I've always heard every property sells at the right price. However, there are many factors that determine what the right price is. Location, condition, and market just to name a few. Sometimes we know a property is going to take time to sell. It just needs the right person. I suppose if you want it to sell faster, lowering the price will make a big difference.

Price is only one aspect. There's location, condition and a myriad of other things to take into consideration too

Leanne, the price will sell any home, but many factors come into play when a home doesn't sell.

     Way late to this blog comment party. Anything, any property, if priced realistically and marketed full throttle, far reaching for exposure will sell. But it is more than the three "locations" muttered. It is timing in a person's life. You want to buy the new 3 bedroom, 8 bathroom home but... (fill in blank on why you can not today).

     Greater exposures, a larger reach to a bigger pool of buyers improves the DOM Leanne Smith . Pricing AND marketing. Then you move on to specific features on the gotta have, don't want unique personal list from a buyer... long and strong Internet because you work remotely.

     The off grid, vertical straight up location would stop some, others embrace it. Plow a long road yourself to get to your new home on a private access is what provides the seclusion needed for some in the real estate audience. Has to have a drop dead gorgeous jaw dropping view, must be on waterfront, better be within 5 miles of school, hospital, vet, Wally World, dialysis, a methadone or parole location, something. 

     But at the end of the day, if a listing worth $150K is priced with 6 more zeros added on for a little extra wiggle room. That $150,000,000,000 hot offer new listing will rot on the MLS conveyor belt like luggage circling the carousel long after Flight 16Niner touches down.

     The come and go as 17 agents take a turn planting a front lawn sign, seasons change and still on the market happening. For the property with 10 foot pole marks and one hefty price tag straggling it.

At a glance, that statement holds. Let's explore it.  If a property is underpriced, it garners interest. If overpriced, it sits in its own little world. Price has to be respected. Now, if it is located next to a hazard, a take-away or in a state of unattractiveness, these things cannot be ignored. Consider also that it has to do with who is looking too. A flipper, investor or a shrew wants a steal, then deal. A buyer looking to settle down is looking for a home that fits personal criteria like schools, shopping, freeway access etc. This reminds me of something I saw the other day. It was a good looking 4-wheel drive type truck for sale with a sign on its window stating what it is. The first thing that caught my attention deliberately was the price. The second thing? How many miles does this have? Sure enough, the price, which was attractive was connected to the major take-away i.e. mileage followed by how old the car was indicating it can be a repair child. Same dynamics apply to Real Estate too. Thank you for this decent question

Well, I just watched a long list of abandoned celebrity homes and ''unsellable '' homes. Some of those houses went really low and still unwanted. 

I would say the main factor: location+ price+ sometimes...stigma. 

Hello Leanne Smith - I do not agree that price is the only reason a home does not sell.  

I do believe that the price can cure reasons why a home does not sell.  

We have a lot of complicated property types here- and it's not always price that solves the issue. While there are exceptions to every situation- the exceptions are the norm here. 

SRO's - Single Room Occupancy. These are townhouses that have been chopped up to create more of a boarding house situation. Each room (bedroom) can become a rent controlled or rent stabilized situation. If the tenant was harassed to leave the building the city might penalize the owner and potential future owners for up to 8 years by not allowing any changes to the building other than basic maintenance. This would also include conversion to a more traditional building setup where the rest of the tenants vacated (even if on good terms). These are typically all cash deals and deeply discounted to the market- and even then, buyers don't want the headache of these buildings.

Then I have the condo with a hotel in the commercial space of the building- separate spaces and the condo is acting no different than a typical condo with 1 year minimum leases and separate access for condo residents, but yet classified as a condotel which is difficult to finance and those that will finance in the building rates are about 100 basis points higher. Also, the tax abatement is due to roll off in the next few years raising the property taxes from $42/month on a 1 bed to $850/month without the abatement. These apartments have been deeply discounted to the market- and still have a hard time selling. The building is beautiful and the apartments are in a great location.

Or what about the land lease buildings that haven't resolved the lease renewal issue with less than 30 years remaining on the lease (bankers won't lend here) and prices are about 25% of market value for a similar space in a more traditional co-op. The co-op board is picky for buyer approval on top of all of that- so a lot of would be buyers are either scared away or get rejected. 

These are just a small sample of my market.

Perhaps the real exception is our whole market vs the rest of the nation rather than individual properties. 

I agree, the right price will get anything sold.  Even a Toxic Dump will sell is the price is right.  That price might be paying someone to take it.

Yes!

Price for the LOCATION

Price for the CONDITION

and Price for what a BUYER is WILLING to Pay!

Leanne Smith  It could also be commission or lack of availability to show  - I have also found some agents put the property in the wrong subdivision. The condition may also be a factor that may be untidy and smell. There could be many many reasons why- NO it is not just PRICING 

Alan really nailed this one.  I mean yes, price is key, but there are neighborhoods you couldn't PAY me to own property, so there is that.

There may be many reasons... price helps to "level the field" when everything else works. 

All properties will sell if they are priced accordingly.  If there is no activity at all, the price needs to come down. In a free market, the right price will always be met between buyer and seller.

Price, condition and location are major factors.

There is always A PRICE that everything will sell, but  it's not as simple as ONLY price. Alan covered it really well.

Price is the number one thing I believe.  Location is important to some people also, but price over rules everything.

No, price FIXES all.

Alan May leaves a very picture.  Price just starts the process (competition) or ends it immediately.