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1. A sales associate has no control over the market, only the marketing plan.
2. Never select a sales associate based on price.
3. Pricing in rising and falling markets:

• Overpricing in a rising market may be OK;
• Overpricing in a falling market is disastrous.

Market trend is as important as pricing. Make sure your sales associate understands market trends.

4. Four indicators used to represent your property:

1. Cost — What was paid plus capital improvements
2. Price — What the seller wants
3. Value — What the buyer is willing to pay
4. Market — Value What a willing buyer and seller agree upon

5. Regression and Progression:

1. Regression — the phenomenon of an expensive house being decreased in value because of the less desirable homes around it.
2. Progression — the phenomenon of a home selling for more than its worth because of having more expensive property or a more desirable area around it.

6. Substitution:
• The value of an amenity as based upon what it will produce not what it will cost.

7. Reasons for overpricing:

1. Over-improvement — a seller cannot select, add to their lifestyle, enjoy it and expect the buyer to pay the original cost.
2. Need — the need for money does not increase the value.
3. Buying in a higher priced area.
4. Original purchase price high.
5. Lack factual comparables.
6. Room for bargaining.

8. Reasons a Property Does Not Sell:

1. Over priced
2. Under exposed