5 Factors To Evaluate Listing For Salability

The basics are back in real estate sales and marketing. Listings are starting to crowd the market. Sales are down. Agents are even starting to question whether they should take listings. My first boss in real estate used to say "they're no good for souvenirs." He was right.

Every potential listing should be evaluated using the following 5 factors:

Price
Location
Condition
Motivation
Promotion

Price- Every property will sell at the right price. If the price is right it is almost always worth taking the listing. Having trouble getting the price right make sure you use the absorption rate for the area. Slightly over-priced is OK when their is good motivation, condition and location. Once in awhile it makes sense to take one if you can get some good promotional value from it. If the location is bad and the condition is bad and the seller is not going to do anything about the condition-move on to the next one.

Location- A great location will overcome a lot of obstacles and may help you get noticed. Over-priced and poor motivation are signs to be cautious. Bad condition in a good location can be a great opportunity.

Condition- A home in great condition is what the majority of buyers want whether they say so or not. A little paint and staging can go a long way to making a mediocre property into a very saleable one in any market. A seller willing to take your suggestions and act on them will usually turn into a sale.

Motivation- This is probably the most crucial factor in the market today. An unmotivated seller will suck your energy and resources. A motivated seller will do what it takes to make the sale happen. An unmotivated seller might be OK if you can gain some promotional value from having the listing.

Promotion- Usually you don't find promotion grouped with the other factors. I find that there can be some value in having listings that don't have the right variables to produce the sale. If you are low on inventory, if you are breaking into an area, if the home has some feature that will attract more buyers than the normal house; all might be reasons to take a listing for promotional value. You must be very careful when using this factor, not to mislead the seller.

The five factors in evaluating listings seem fairly obvious but often we just rush in and let instincts take over. If you ask questions covering these factors when you first come into contact with a seller, you will be in a much better position to know whether you want to take a listing and if it is going to sell. The object of your real estate marketing is not to end up with souvenirs.