You indicate that you have no prior experience. In my experience, there is no property that is too remote or peculiar for an agent to reject outright. Ordinarily, brokerage fees adjust to reflect the extra cost of servicing unusual listings. Of course, the price of the property itself will reflect any oddities that adversely affect buyers. There are, however, properties with values at or near zero. These properties will not be sold. Instead, they will be abandoned. There are also properties that are worth much, much less than they cost. Corporate headquarters, vanity housing, and so on. Agents will accept these listings in the hope that they can talk the sellers down later.

Thanks for your valuable answer Mr. Colwell.

I understand that brokerage fees will be higher for unusual listings and the price will reflect the "difficulty" for the agency to sell the listing to a buyer.

However, from your experience, does it happen that a seller sees its property rejected by the agency because seen as a non-profitable and too difficult to sell?

If yes, does it happen often? I imagine that after a certain time threshold, a listing might be more a cost for the agency than a potential gain, thus, it gets abandoned. Is it the case?

Thx for your expertise Sir.

My best regards,

Nic

Rational REA would be wary when the vendor's expected price appear very unrealistic and also when there is big question mark on vendor's title/interest on the property.

Thx Mr.Ashaolu for your answer.

Hi, your question is really interesting. After consulting with my friend who is also a property agent, a conclusion was drawn which states that, at least in Malaysia, there is no such standard criteria or checklist that helps REA to decide whether a property is sellable or not. Selling a property requires marketing strategy and marketing strategy is a common sense.

My friend believes that there are always ways to sell a property. The most important thing is how the REA presents a property and to what target customers. However, there are certain rule-of thumb that a REA needs to take into consideration in order to ensure a property is saleable, such as cleaning up, redecorating, tidying up the outdoor surrounding, fixing any cracking, pest damage, unsafe wiring, broken windows, or anything else that may put buyers off etc.

At last, regardless of the quirks, condition, and location of a property, there is always a right buyer out there for every property.

Thx mr. Foo, very interesting points.

I think I got it now.

So now I have another question..

As virtually everything is sellable, is there a point where a given unsold property is no longer a good deal for the REA as it is more costly to keep it and manage, therefore the rational REA just drop it?

I know that it depends on the cost structure of the Real Estate Agency and the ability of the property to fluctuate the price, but I am imagining that at a certain point, the seller is not willing to lower the price anymore and the REA does not want to keep the property as unsold and too costly for them.

What do you think?

Thx guys for this discussion, it really helps!!

NIC

Firstly, the main obstacle to selling a property is an unrealistic vendor or partnership where one party is pro and the other hesitant. Both types of negotiations are fraught with frustration and the buyer often cools off. So make sure the vendor is willing to sell and realistically qualified to the market expectation. Thereafter, some specials that are difficult to sell (but they all do eventually) are properties next to cemetaries, garbage tips, schools and main road locations.

Again sales success is a function of price, or there would be a lot of empty houses still on the market.

Hi, this is really an interesting discussion.It has happened to me this kind of situation in REA-s in Albania. There are agencies that does not accept properties which have problems with documentations as long as in Albania this problem still exist. Another example is the information they have for the developer of a building. If the developer has not a good rate in the market the properties they own are not so markable. So depending on the market research REA make and the requirements of the clients they create a target of the properties which are considered easy to be sold by them. In my opinion every property have a value but it depends on how you offer it at the clients and which are the expected profits you want to get.

Thank you a lot for your interesting points Dorjana.

This is what I was looking for: examples of "classification" based on some sort of criteria that REA adopt.

Sorry to ask you back another question Dorjana, but I do not actually understand the "rate in the market" thing.

Does it mean that if a developer is not "famous" or prestigious in Albania, its properties worth less and are less marketable?

So is the Architect who gives the prestigious to a property (to increase marketability) or another party in the property development pipeline?

Thx for your answer Dorjana.

My best Regards

Nicolas

Nicolas Pucino wrote

'Sorry to ask you back another question Dorjana, but I do not actually understand the "rate in the market" thing.

Does it mean that if a developer is not "famous" or prestigious in Albania, its properties worth less and are less marketable?'

I believe Dorjana meant the goodwill of popular developers constitutes a marketing point in the hands of REA. This could relate to design, standard of construction and perhaps, confidence of reliable title over properties from such reknowned developers.

Thx Thomas for your quick reply!

As I mentioned at the beginning, I am not an expert at all in this field.

I now got the point.

Thanks again,

My Best Regards

Nicolas

Hi again. Sorry for my late reply. Thomas explained very well. This is what I meant with the term ' rate in the market'. it

Please feel free to ask any other question you might have.

Cheers

Dorjana

Family houses are very difficult to sell

Also, in countries where the law permits burial of corpses within the house, such houses are scary to sell

Properties in core rural area except for agricultural purposes

I would recommend to look into Hedonic concept of price decomposition

It would indicate which properties (estate characteristics) have impact on the price level, or in reverse inference, which do not influence price level

look for Authors Brachinger; or Tripplet; or Dziechciarz;; or Anna Król (Krol)