On Proper Pricing
Saw this piece and one comment jumped out at us:
Manhattan real estate second-quarter reports - Jul. 6, 2006
Prudential Douglas Elliman CEO, Dottie Herman, reports the Manhattan market is brimming with confident buyers - and sellers too are doing well, if they only listen to reason.
“The only things lagging,” Herman says, “are properties that are not priced right. Some people got spoiled; things sold no matter what. Now it’s a lot more balanced, but anything priced properly sells.”
In order for there to be a transaction, the buyer and seller have to agree on a price. That price, unless there is some kind of behind-the-scenes activity, can generally be considered the “proper price.”
So last year when prices were being bid up, higher prices might have been proper. Next year, “priced properly” could very well mean “priced far less than they were one year ago.”
Saying “anything priced properly sells” is an empty tautology.
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