The 4 Ps of Selling A Home

What is the best way to sell a home?

This was the question of Jane to me, sent via e-mail. Jane is a real estate agent, and she is asking for my advice or tips on the effective ways to sell a house.

Generally, there are four basic reasons why any house for sale will sell or not sell. These are what we call in marketing as the 4 Ps, which we also apply in real estate selling, as follows:

1. Price. The price of the house is the first reason it will sell or will not sell, other factors remaining the same. These factors are quality of the product (the house for sale), location (the place where the house is situated), and promotion.

In economics, the higher the price, the lower is the demand for the house. Conversely, the lower the price, the higher is the demand – meaning, more people are willing to buy the house, other factors remaining the same.

2. Product. The house for sale is the product. You can add value to the product by improving the condition of the house through upkeep and maintenance, as well as renovation to make it new.

3. Place. The place is the location of the house. Location is a major factor that buyers always consider, depending on their needs and preferences.

A house in a quiet and good neighborhood is always preferred by many buyers compared to the one situated near a noisy surroundings.  In addition, a house near the schools, shopping malls and markets, hospitals and recreation centers, can command a higher price than a home in an inconvenient location.

4. Promotion. This is where a real estate agent is needed, to link the seller and the buyer, and to consummate the transaction.

With these tips, I hope Jane and the other real estate agents like you can focus your selling activities.