Wednesday, August 19, 2020 / by Vanessa Saunders
By Vanessa Saunders, MBA, MIMC , Broker Owner, Global Property Systems Real Estate.
Many people who are putting their home on the market for the first time in a long time still cling to some old ways of doing things that will get in the way of selling their home. A lot of things have changed since many sellers last listed their house. The internet has changed how buyers look for a property. The information age has made open houses nearly obsolete. (And Covid-19 has made them nearly impossible!) Buyers' expectations have grown exponentially because they can visit hundreds of homes online and easily find out exactly how much they can get for their money. Here are a few of the old saws we still see today that are no longer true.
Price it high and see what happens.
I can answer that right now. Price it high and NOTHING happens. These days, buyers search for homes based on what they can afford or borrow. That means that if your home is similar to those in say, the $350,000 range and you price it at $425,000, your house will only be seen by $425,000 buyers, who will NOT be fooled. You’ll have effectively eliminated the very buyers your home would be an ideal fit for. So your home will sit on the market without viewings or offers and with the feedback that it’s overpriced.
Open houses bring qualified buyers.
No, they mostly bring nosy neighbors and people out for a Sunday drive. Buyers may have gone to open houses prior to Covid-19, and may still brave one-at-a-time viewings and social distancing, but the fact is, agents running open houses are hoping to pick up unrepresented buyers they can sell a home to, and not necessarily yours.
There’s no need to make improvements.
Sellers reason that the buyer will change whatever they want to anyway. Homeowners often become so accustomed to living in their houses that they have become blind to the faded drapes, worn cabinets and old appliances. They miss the opportunity to make a great first impression and really get buyers excited about their property.
A home that looks worn and a bit shabby suggests to buyers that there may be other, more significant things left unattended. Houses that look unloved whisper “Money pit.”[caption id="attachment_27522" align="alignright" width="463"] Houses that look unloved whisper “Money pit.”[/caption]
Sellers expect to make back what they paid for improvements.
That swimming pool cost a pretty penny, and sellers often expect to see that in the selling price. Unfortunately, a pool may only add a third to a half of its price. And not all improvements are on a buyer’s “Must Have” list. No matter how many brand name appliances your custom kitchen has, it won’t appeal to buyers who don’t cook.
Some sellers are put off at a request by buyers for repairs after inspection. If the sellers balk at the repair request, the deal can fall through. Then when the house goes back on the market, it will have the stigma that the inspection “must have turned up something.”
More marketing will overcome an overpriced house.
Every home needs marketing that will bring the most possible buyers, but no amount of marketing will bring buyers to overpay for a property. The number of views from various websites does not mean that every person who’s clicked on the listing is a ready, willing and able buyer. People from all over the world view listings for many reasons.Some may be looking for their dream house. Others may be neighbors who “always wanted to see inside that place.” Not every click represents a serious buyer.
What people believe about selling a house comes from prior experience, advice from friends and neighbors, even what we see on TV. Programs like “Property Brothers,” “Million Dollar Listing” or “House Hunters” tend to over-simplify what is definitely not a simple process. Sellers need to listen to their agents, who know the real reality of real estate.
To find out more about selling your home, or for more information, CONTACT US.