Make sure, after watching the video, to scroll to the end for a critically important addition - super quick, but super important!

 0:00 Hi, this is George Fotion, Call Realty Best Palos Verdes Homes, and if you've wondered why you see lots of price reductions on listings, this could be the reason why agents often get pricing wrong when they make a recommendation to their seller for the price to list their home.

0:29 It's all about SUPPLY & DEMAND. Real estate is no different than any other commodity. Gold, silver, live cattle, futures, oil, bushels of wheat.

0:39 It doesn't matter. The price of any commodity is solely and only regulated by the forces of supply and demand. It's that simple.

0:49 So, let's imagine we were looking at competitive sales for a home in Palos Verdes Estates, and let's say that this competitive sale that we were studying that is similar to the property that we were trying to price, went into escrow here, back in around July of 2024.

1:07 We see that demand, the green line, is a little bit higher than supply. The market was very brisk, very favorable to sellers.

1:18 And if we use that competitive sale without knowledge of the changing trends. As a broker, we're going to tend to misguide our seller.

1:30 Hopefully not intentionally, but even unintentionally, the damage is done. The property will go on the market overpriced. Why? Because since that time, supplies increased while demand decreased.

1:47 Supplies increased while demand decreased. So we have to discount that sale to match current patterns. I don't see any broker out there doing that.

2:00 They're doing this kind of research, in-depth analysis for their sellers. It's one reason my clients come to me, and I would encourage you to consider my services when it comes time for you to sell your home.

2:14 Good news or bad news, I live by this simple adage. If there's good news, let's know fast. If there's bad news, let's know faster.

2:21 But I promise you, you will get the truth from me. It may not be what you want to hear, but it'll be the truth.

2:28 Thanks for watching and looking forward to hearing from you. Bye for now.

But what if the market direction is opposite that which I describe in the video? Will you lose money ignoring economic laws of Supply & Demand? YUP. In that direction, you will be grossly underpricing your home, leaving money on the table for the Buyer, which actually belongs to YOU! Either way, ignore this economic principle at your own peril. Economic laws don’t care about individuals, they just need to be “obeyed”.