Marc’s Monday Minute: Frozen Assets
Let’s be honest with ourselves for a second, shall we? If an item was in Target, or Williams Sonoma or 7-Eleven or at your local car dealership, and it was priced at or below what you think is a reasonable price for it, would you buy it? Let’s say it was 25% off? What about 50% off? Or buy one get one free… Would you buy it?
These are fairly simple analogies, but the point remains that if something, ANYTHING, is priced right, it WILL sell. Period.
We can delude ourselves into thinking that the price is right as it stands, but if a home has been on the market 60 – 90 days or longer, then it is NOT priced right. I often here agents say that they, or their seller, doesn’t want to “GIVE the home away.” To me, that’s a cop out. They are not giving it away, they are selling it. Maybe for less than they hoped, but it is actually selling, not giving.
Of course there can be exceptions to what I stated above, but for the most part, my point is spot on.
Now, what are YOU going to do about it? Are you going to carry ancient inventory ad infinitum? Why should you? Instead, I recommend you do the following: 1) Review the recent comparables; 2) Create a thorough, accurate, realistic CMA; 3) Review both and discuss both with your manager; and 4) Meet with your seller(s) to determine your new, reduced price. Ultimately, you’re helping THEM by pricing their house according to today’s market so that it actually sells. That IS their plan, right? To sell the house. Then you should help them do just that.
Let’s do it together. Show me your numbers. I’ll run some as well. And we’ll determine how we can work together to help unlock these “frozen assets.”