By Harriet Murray ● Cochran Real Estate ● October 2014
Summary of a pricing strategy in today’s market:
This letter was sent to a seller who needed to evaluate the position of his property in the Vallarta market at this period in time.
Of those who have looked at the condo so far, almost half thought the condo needed remodeling. Approximately 25k% was not ready to buy yet. Most of the comments indicate the buyers were in the 350k-price range and lower. The couple looking at this unit did not buy it as the wife thought it needed too much work. Their purchase ended up being a new one in the same range on the beach in the NV-Flamingos area north.
If someone looking at this unit can afford more, the age of yours and the idea of remodeling can affect a buyer´s decision. The condo location from town can hurt, also
We have a lot of supply right now and your unit is competing with other locations as well as what is for sale in your neighborhood. I recommend we drop below 350k to be in the smaller supply list of condos for sale in your location. This price also takes into account your location demand.
Sincerely, Your Realtor
It is hard to tell people that their home is not desirable by many and we will have a dickens of a time selling it. For a real state professional, a listing is an expense and taking a high risk of finding a buyer for an undesirable property will depend primarily on price.
Long ago I learned that my tastes would be too restrictive to enable me to sell. I had to learn the distinction of evaluating whether a property had fundamental problems to overcome and realize that one man´s junk is another man´s gold.
But I still had to assess the risk of it costing me more than I should spend to market a property, which had little chance of selling, regardless of different tastes people have. Price seems to become finally the only motivator.
Rule I have learned: If even a low price does not increase very much the chance of selling, don´t take the listing.
This article is based upon legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer or seller of Mexican real estate conduct his own due diligence and review.