Joe has decided to sell his property. He convinces himself that he knows its value and what it will sell for. He calls his realtor and tells him the price he wants.
The only problem is his price is 50% higher than what other similar properties have sold for recently. What does the realtor do? He knows that if he takes the listing at the seller’s price it will not sell. He also knows if the property does not sell, he will be blamed for not using the right marketing, for not advertising enough or for a dozen other reasons. The realtor also knows the reason the property did not sell is because the owner set the price above what the market was willing to pay.
The realtor takes the listing after discussing with Joe the real market value of his property; however, Joe knows best. He has talked with a friend who has told him what it is worth. The listing does not sell and Joe hires another realtor and another realtor, while reducing the price until the price gets down to the market value and sells. This scene is repeated hundreds of times over in our own market every year.
What Joe does not realize is the real estate market is forever changing. It is a moving target and only with the latest market data and comparable sales can you determine the value of your property.
A buyer’s market can change to a seller’s market quickly and vice versa, altering the value or salability of your property. I have learned by experience that neither the seller or the realtor can set the final sale price. Only a buyer can determine what a property is worth to him and thereby set the final price.
On the Local Scene
The former GAINES EQUIPMENT PROPERTY 608-612 Nth 7th Street, West Monroe has sold for $110,000. The 1790 sf building sold for $61.45 psf
A MINI-WAREHOUSE DEVELOPMENT on Hwy. 165 N with 106 units and 11,568 sf has sold for $285,500. The price was $2,693 p/unit or $24.68 psf. There was a total of 4.26 acres included with the sale
Bill Roark is a Commercial Associate Broker at Tri State Properties and may be contacted by email to email@example.com.