One question we often get at www.sellmyhouse.com is ‘how is real estate really sold’, which is code for ‘Are Realtors the real reason a house sells?’. If they are being honest with you, the answer just might surprise you. The truth really lies in four areas, which we call the 4 factors of real estate. They include price, location, condition, and exposure. As a seller you have control over a few of these factors. I’ll explain each below:

Price. Price, simply put, is the most important factor in the equation. If you over price your home, especially in the current buyer’s market, you are committing the first cardinal sin of real estate. A home that is overpriced has little chance of selling, let alone just getting people to see it. Buyer’s agents don't want to waste time showing properties that are priced 'out of the game' knowing there is likely no chance the seller would accept a realistic offer. And lets face it, in this market there are plenty of houses to choose from that are priced to sell. Let me give you some examples. If a seller is significantly overpriced, say more than 10% over market value, very few showings will occur. If they are overpriced by less 10% buyers may view the property and a few lowball offers may be presented. If you fall into that 5% range you should get the showings and a few offers. If it is priced at market value from the beginning it is likely that your home will get a contract within the first 30 days. To get a comparative market analysis by a local profession start here.

Location, location, location. Ever hear that phrase before? Well everyone knows how important location is in real estate. Neighborhoods, busy streets, and parks all play a big part in the value of a home. Sellers have to remember that while this is a crucial factor that a buyer will consider, you have no control over the location of your house. This is completely up to the buyer but your price should reflect your location.

Condition. I find that this is the one element of the equation that is the most subjective. For example, I have a listing right now that if the sellers would invest in carpet and paint they would get an offer. They have had dozens of showings but NOT ONE OFFER. Why? Because the price does not justify the current condition of the property. They have a choice, drop the price by at least $5000 or do the work in order to justify the current asking price. If a buyer has to do work they are going to want equity. So in this case, if there is $5000 of renovation work expect an offer that reflects at least $10,000 in the purchase price. There are simply too many houses on the market today that a buyer can chose from.

Exposure. This is very simple. YOU MUST ADVERTISE YOUR HOUSE ON THE INTERNET! Over 80% of buyers start their search for their next house on the internet. That says it all. It does not matter whether you are selling for sale by owner or listed on the MLS with a Realtor. Internet marketing is the most important factor in reaching potential buyers. Now, once they have found your house see the other 3 factors above. I utilize www.sellmyhouse.com Powersite to create the internet exposure my clients need. Advertising your house on several major real estate websites like Yahoo, Google, Trulia, and Craigslist can offer exposure to literally millions of potential buyers.

Now, to answer the initial question. I’ll answer that with my own question I guess. Why do you think that that there are so many expired MLS listings if Realtors where the main reason a house sells? Think about that. There are a lot of great companies out there, but, every company has their share of expired listings. Do you know that more than 90% of expired that go to another Realtor eventually sell for less than what they were asking for with the first Realtor?  You got it! You should hire a Realtor that meets your needs which include industry knowledge, commission structure, and compatibility.   But the truth is, a Realtor can’t make somebody buy a house. That comes down to price, location, and condition. Your Realtor should be looked at to provide the advice you need to navigate the sale and help you make marketing decisions to create exposure to your house. Now you know how real estate is sold.

This article was submitted by Frank Sigourney, the Managing Broker for www.JKRRealty.com and an affiliate of www.sellmyhouse.com, a great place to start looking for the right realtor.