Value is different than price

My real estate coach taught me the best lesson I have ever had in value the other day.  He told me to take my self out of my Hilton Head real estate business and imagine myself working in a pizza parlor.  He told me that I would be selling pizzas for him.  My job was to promote and market the pizzas for sale.  He told me my advertising budget was unlimited.  My compensation was based entirely on performance.

Can you sell $100 pizza?

My coach/owner told me that the only condition for unlimited marketing was that I had to sell the pizzas for $100 each.  I always loved a good challenge and $100 dollar pizzas sounded do-able so I started thinking about full page ads, super bowl commercials, big fat coupons and all the other creative marketing I could do with an unlimited budget.  Reality hit when I remembered driving by the $10 Pizza Hut guy on the side of the road with a placard. 

My real estate coach had made his point.

Too many times a seller will set a price based on what they think a property (or a pizza) is worth.  The problem is that the price must be interpreted as value in order for a sale to take place.  No one will buy a $100 pizza or an over priced home no matter how much is spent on marketing.

Are you ready for some dough!

There are still some property owners that are trying to sell $100 pizzas in this market.  Knowing how to determine value is not as much a science as it is an art.  My goal is to help the Hilton Head property owner set a correct value for their Hilton Head property and get them sold. 

If you would like an honest value interpretation of your Hilton Head property, simply give me a call or send an email to robbie@robbiebunting.com.  Thank you.

Comments

comments