I have seen differing opinions on this and just wanted to see what everyone’s different strategies are. Some say that they will list the property at full market value and are willing to be patient in order to maximize profit. I have seen others say that they will sell their properties at 50-80% of market value in order to get their investment back quicker in order to purchase more properties.
If you’re not getting a lot of traffic on a property, do you drop the price over x amount of days or do you keep it the same?
@gaent hello, it’s all a game of numbers. I’d say, if you bought it at 10% (do they still exist?!?), you can sell at 75%, if you bought at 50 % (very hot market), sell at retail value or few points under it. The lower is the percent you sell it, the faster you sell, the sooner you can move to your next deals and get profit from those too.
Out of topic but just as something to think on, a seasoned investor (David Van) said once that too many times investors got stuck on “percents”, losing the real core of the business which is: PROFIT. He actually determines his offers and sales prices not focusing too much on percents but answering to the question:“what is the minimum chunk of money that I want to get from my deals?”. Once he assesses with some accuracy the retail value, percents fall in place accordingly…