15 Jul 2013
Words Tim Admin

Myths and Realities

MYTH 1 A number of managers believe their complexes are worth more than it is because they compare it to what they see other complexes are “listed at.” But the truth is that these other listings are not “selling for” these prices at all. What they are doing is comparing their businesses value to others listing prices. over fifty percent of management rights on the market today are overpriced and unlikely to sell at the advertised price and these “asking prices” certainly do not reflect value nor what turn out to be settled sales. REALITY The best way to price your business, to achieve that goal is work with your preferred broker to determine the range of values for which the rights is likely to sell for (taking into account the marketing efforts of your agent, of course), and then price your rights in that range, Pricing your rights what you paid for it years ago simply won't work as markets evolve all the time MYTH 2 Let's put a high price on it and negotiate down REALITY Pricing your rights too high eliminate many potential buyers - Hers why: Most buyers, when searching for a business have a ceiling price on what they are considering, based on their financial capacity. Let’s say that it’s $800,,000 to $820,000 so they simply don't look any higher. Why can’t you just list your rights at a very high price and then reduce it later if there is no interest? Because the artificially high price will have already created a negative emotional impact on prospective buyers and be seen as a stale listing, and that will be associated with the business even after the price is reduced. I've witnessed this phenomenon first hand many times. In addition, the seller will likely be burdened with the label “unreasonable” and prospective buyers will simply move on to greener pastures--and there’s lots of pastureland out there. MYTH 3 Let's give the listing to Johnnie on the spot who turned up on a call yesterday. He told me had had plenty of buyers waiting. REALITY "For years, brokers have lured sellers by claiming to have lots of buyers. But when the sellers sign-up with the agents, the buyers vanish. MYTH 4 Minor repairs on the managers residence can wait until later. There are more important things to be done, buyers won't notice it. REALITY Minor repairs make your residence more marketable, allowing you to maximize your return (or minimize loss) on the sale. Believe me buyers do notice. MYTH 5 When you receive an offer, you should make the buyer wait. This gives you a better negotiating position. REALITY You should reply immediately to an offer! When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your rights Moods can change, and you don't want to lose the sale because you have stalled in replying. We call it in the industry""buyer's remorse" MYTH 6 “Discount” brokers can do an adequate job selling real estate. REALITY Promotional costs such as photographs; brochures; newspaper, magazine, external internet fees; printing; direct mail; personally distributed newsletters; professional support staff; Web-site maintenance and fees; and more are paid for by a full-service, full-fee agent. Discount brokers simply list your property on a website and hope. MYTH 7 You should select the broker who says they can get you the highest price. REALITY This is the oldest trick in them book: Tell the seller what they want to hear, act excited, and compliment the business to get the listing. Then you never see the broker again . Don’t buy into that. Insist on a well-researched market analysis. Select your broker based on credentials and track record, and then use market data to decide on price..