Mike’s Real Estate Show

A client asked me if we could list his property above the current competition. I pulled out my “Declining Market Valuation” graph to show him why trying this could cost him dearly in lost equity. To explain this to you I first need you to draw something!

Get out some 8×11 paper. Now get a bold marking pen and in the middle of the page draw a horizontal line from the left to the right side of the page. Now draw a  vertical line in the shape of an arrow, with the arrow end pointing up,”above” starting at the horizontal line. Now draw three more arrows starting at the horizontal line but all going down “below” the line. Make each arrow bigger than the next. The horizontal line is where all the competition is now listed. My client wanted to list at the arrow “above” this line or “above” the current market. I wanted him to list at the first arrow “under” the line. Why? !The why is that “everyone” else is sitting on the market and they have not sold. He needs to sell as his loan is getting too much for him. But listing above the line would not do him any good at all. He needs to “set” the new price. Listing below everyone else, at the first arrow, will get him noticed and sold quickly. But if he tries at the high arrow what happens is someone sells or lists at a price at the first arrow down. He reluctantly moves to the original “horizontal” or market price line. But now the market is below that! So he hangs around then reluctantly lowers “chasing” the market but never “setting” the new price. Where he could have sold at the first arrow “down” he now finds himself below that having lost valuable equity in the process! So the moral of this story is NEVER chase the market. Set the new price and buyers will flock to your house! Hear me next week and if you wish to chat about YOUR real estate needs—707-322-8503 or Toll Free in the nation: 800-959-7244.