Yesterday’s blog post offered a unique perspective on pricing a home “ahead of the curve.” Today we address the importance of maintaining a healthy mindset for those homeowners who choose not to heed the advice from yesterday. Support from the listing agent is key to accomplishing this. It is the listing agent that needs to provide the clarity and inspiration that guides the client to the closing table. Remember, working for the seller doesn’t necessarily mean telling the seller what they want to hear.
Bedside Manner
“Couch” them anyway you’d like. Below are some useful suggestions for your home seller client:
1.) Reflection: Sellers of a home that is not selling but was purchased years ago should consider factors other than simply what they think it’s worth. Determining how much equity they’ve created can be helpful in that regard.
2.) Motivation: If you have to move; cut your price below the competition at least by your carrying costs (include mortgage payments, taxes, insurance, etc.).
3.) Numbers: Ten potential buyers through your home and no offers suggests a 5% reduction in price. If you’re getting showings but no offers, buyers think you’re overpriced. No showings suggest that the agents think you’re overpriced also. Once that occurs the adjustment needs to be at least 10%.
4.) Market Time: How long has the home been on the market? Buyers worry when they see a long market time and think that something is wrong with a house that doesn’t sell. “Why hasn’t anyone bought it yet?” is one of the first thoughts that enters their mind. This in turns conjures up concerns about “incurables,” the price or both.
5.) The Competition: Is the inventory in your town or price point high? Then you need to break away from the pack and stand out. (See yesterday’s blog post.) A sharp price cut is the best way in which to do that.
6.) See for yourself. Visit the public open houses of your competition. Remember to note the advantages of the other homes compared to your home too. Make a mental list of the pluses and minuses and adjust your price to be competitive with all of them.
7.) New Construction: Buyers pay a premium for new construction – up to 15% or 20% more. Your home should be priced lower than comparable newly constructed homes or buyers will generally purchase them instead.
8.) Timing: Consider if the timing is really right for you. This shouldn’t be determined by the season but by other factors in your life. The best home selling experiences usually occur when you are emotionally prepared and your home is physically prepared.
Remember to see things from the buyers’ perspective. Don’t allow yourself to become offended by offers that fail to meet your expectations. A small counter offer is better than no counter offer at all.
Based on market conditions, ask yourself what you would pay for your house today given the recent sales in your area. Be as objective as you can. If you fail to do many of the above, you may just be the only buyer for your home anyway.
What other advice to you have for frustrated home sellers?
Please let us know in the comment section below.
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