Fruit Store Lessons About Real Estate

EXPENSIVE BANANAS DON'T SELL

It's amazing where you find life's little lessons. I caught on to one while at a local food store where I was, just the week before, noticing the high price of fruit and vegetables. The numbers were high and of course I didn't buy any that week, figuring that I can do without for a little while or just buy frozen vegetables and hold the line on fresh fruit (I was still able to make a smoothie with frozen fruit).

So, I travel back next week and lo and behold, I notice the price of bannanas, which were $1.19 per pound to $.99 per pound. Of course they had ripened a bit over the week to a bright yellow color from the green / yellow color the week before. Thinking to myself, it's not a bad price, but still a little high, (although I did consider buying) I passed. Maybe at 89 cents a pound I'll pick some up.

Well, when I go back, what do I see? $.49 per pound. Needless to say, I was able to buy at less than half the price from two weeks ago all because the bananas started to show a few dark spots and nobody was buying before.

So, guess who got a great deal on bananas?? ME! Because;

• I waited for the right price to buy
• The price was high, nobody bought
• Price adjusted, still no one bought
• Fruit started to turn, priced forced to low point in order to avoid losing the product
• Everything SOLD OUT!

     

Real Estate - Banana's? Here's the lesson. I can't say how many times I go on a listing appointment and bring with me data that's used to get a handle on the market value of a home and the owner decides to go above the recommended list price to "test the waters" looking for a price based on emotion rather than solid data and experience. 

The listing, like the high priced banana's, sits on the market with no showings for a month or more (in most cases more). So after 3 to 6 months on the market with no real interest, The owner decides to lower the price a little closer to the recommended list price from 6 months ago (although he should get a new market analysis). Guess what? It gets a few looks, but no offers, another 3 to 6 months have passed and still not sale. The house listing is going stale, the owner is disappointed and the only offers coming in are low ball offers from investors looking to steal the property, thinking that the owners have become desperate.

Had the owner priced the property right, it might have sold within the first 30 to 60 days. Seasoned real estate investors look for hard data when buying or selling a property and price (or offer) accordingly. No emotion, just the facts. Investors know that time on the market lowers their bottom line and stops them from moving on to the next deal (or in the case of a homeowner, settling into  their next home).

Summing it up.... 

High Priced Bananas don't sell, and neither will an Over Priced Home!

• Get good data
• Price it right
• Sell your home 
• Move on. 

Simple!

* Feel free to comment below or send an email to dominick.leone@gmail.com