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Price is king in today's market

Main / Boise Lots and Land The Dirt on Treasure Valley

The National Association of Realtors is running a poll right now across the country - take a look at the results...

I just ran across a poll that I wanted to share that is being conducted online by the National Association of Realtors. The question is: "What is the most important factor, in TODAY'S market, to determine a quick sale?

As of right now, the results are:

21% Location

67% Price

8% Condition

1% Amenities

2% Staging

For all of us in this business, that's a huge piece of information. Our buyers are obviously looking at price. Just thought I'd pass it along.

Kit Fitzgerald

www.redbarnrealestate.com

Posted by Kit Fitzgerald at 5/1/2008 4:19 PM

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Comments (2)

Re:Price is king in today's market

Kit,

Price might be the most important factor in today's market to determine a QUICK SALE, and it is always a major consideration in the final decision to purchase. And as Builders and Realtors, it is important to remember that regardless of the market, the Buyer dictates price. Even in an rising market, if the price of our homes is more than the Buyer can afford, they won't purchase them. Builders need to be "Customer-Driven" and not "Product-Driven.

But I also believe that generally speaking, Buyers primary motivation is improving or enhancing their lifestyle. It is NOT Price. Price is the lowest common denominator. The decision to buy degenerates to PRICE only in the absence of a quality decision process. It is imperative that Builders and Realtors provide that quality decision process. As building professionals, we need to do the market research necessary to know the competition, to know our target market, to do a REALISTIC assessment of our homes - features and benefits, location, etc. If our homes are competitively priced, we need to educate the buyers on why our homes are a better value. And if our homes are priced higher than the competition, we need to educate the buyers on why our homes are worth more.

These are the things taught in NAHB's Institute of Residential Marketing courses.

One last suggestion. Researchers at UCLA in a study published in the journal Psychological Science found that receiving a fair offer activates the same brain circuitry as when people eat chocolate, win money or see a pretty face. So when the discussion finally turns to price, break out the chocolate. :-)

Chuck Miller GMB CGB MIRM CMP MCSP CSP
President / Builder Chuck Miller Construction Inc.
(208) 229-2553
www.chuckmillerconstruction.com

Posted by Chuck Miller on 5/2/2008 10:00 AM

Re:Price is king in today's market

Chuck,I completely agree with you. And I do believe that the decision to buy is a matter of lifestyle choice. I just think it's good for all of us to be aware of the general consensus out there so that we make sure that we are demonstrating value, building according to our market demands and keeping focused on our message as Builders and Realtors. My job as a Realtor has always been to educate, demonstrate value and make finding a home a "chocolate like" experience. I hope that everyone is doing their research, keeping their eyes on the ball, and making sure we're always in-tune with what our customers (the market) are thinking.

Posted by Kit Fitzgerald on 5/2/2008 10:09 AM

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