What do buyers want in a real estate portfolio? Or more clearlystated, what factors are they willing to pay for? There are buyersfor nearly anything and everything, but the question is what willthey pay to account for the risk? Let's explore the question fromvarious perspectives.

The Mix. When stepping back and looking at an overall portfolio,an interesting trend is the desire for homogeneity. But this trendhas not always been evident. It is easy to recall the days when aseller marketed a strong portfolio and threw in a few poorlyperforming properties for good measure. It seemed as though buyersalmost expected a few bad properties buried in a givenportfolio.

Those days may be gone. Now, buyers are pricing the portfoliosbased on the lowest common denominator. A few poorly-performingassets can bring down the overall portfolio pricing. On theflipside, a decent portfolio with a few outstanding properties maynot maximize the value of those strong assets. So what do you do?In some cases, it may be best to slice up the portfolio, remove theoutliers and be left with a homogeneous portfolio that might beeasier to sell and will maximize the price.

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