The three aspects are LOCATION, CONDITION AND PRICE.
1) If the home they want has a great location and is in great condition, they are likely going to have to pay top dollar, a higher price.
2) If the home has a great location but is only in fair shape, the price will be lower (better for them).
3) If the home is in great condition but is in a sketchy location, the price will be lower.
The same logic applies to sellers. Price always compensates for issues elsewhere. You just have to find that sweet spot, the price where the home becomes irresistible.
If you have a fantastic location and perfect condition, only then can you demand top dollar.
If you have a fantastic location but haven’t been maintaining the property, you’re going to have to charge less. You have to charge a price that’s low enough to make the buyers forget about the condition because they can’t beat the price for that location. I always tell sellers—you always pay to maintain the home. You either pay to upkeep it as you go along or you pay when you sell by receiving a lower sales price.
If you have a so-so location but unbelievable condition, you’ll have to charge less as well—price the home so that the buyers can’t walk away because they’re getting too much for their money to ignore the deal.
Many homes remain unsold because the sellers believe that buyers will accept just one choice: location, condition or price. The problem is that too many homes on the market have realistic sellers who will offer buyers two out of the three choices and in the buyer’s mind, to paraphrase Meatloaf, two out of three ain’t bad. Those are the homes that will sell. Make sure your home is among them!