22 February 2008
Listing Tip #1
Posted by Ryan Coffey under: Uncategorized; selling .
Spring is around the corner, and judging by the nice weather these past couple of days it’s already peering around that corner. Soon, people will start to get the feeling that it’s time to make that dream of a new home happen. For some, it means buying for the first time, and if this is you, have a look at some of my other posts categorized under the ‘buyers’ category. For others, this means putting your existing home on the market, and getting something else that suits changes in your life that you have either made or are hoping to make. If you are the latter, keep reading.
I’ve decided to periodically put up a tip to help people list their homes more effectively. That’s right, more free advice but this time it’s more “how” than “what”. Some, particularly other Realtors might say “But Ryan, won’t this reduce people’s need for your services?” or in other words “Why buy the cow when you can get the milk for free?”. We live in a time where you can look up nearly anything on the web, but the application of that knowledge requires someone who knows what they’re doing, so I’m not real concerned about trying to keep these things to myself.
Buying or selling real estate is a team effort between client and Realtor, and these tips are for the parts which are generally up to the client as there are some aspects of these transactions that a good Realtor cannot or should not try to control.
Ok, so on to the tip:
My first tip, is the most important of all. I see people making this mistake all the time and it’s something that although is understandable, is disappointing to see every time. That mistake is, overpricing your home.
Everyone wants to get the best price they can for their home. Who wouldn’t? But many people have a way of letting their desires take over their mind, despite their attempts to remain rational and emotionally detached. The result is that people often convince themselves that their home is worth more than it really is.
Here is the crux of the matter: The value of your home is not affected by what you or your Realtor thinks it’s worth. The market is what sets the price. The realtor is in charge of the marketing plan and is your coach on the overall process. Your Realtor should tell you what your place is likely to sell for. Your Realtor will know what your competition is like, and trust me, there’s lots of competing properties which buyers will also be viewing in addition to yours. They want the most for their money, so why would they look at a handful of similar properties and then buy the most expensive of the bunch?
Often, sellers who are insisting that their home is worth more justify their high prices by pointing out all the things they like about it that the houses nearby don’t have. Remember, you bought your home because it suited your tastes, needs, and budget when you bought it. You may have altered the home in certain ways to make it suit you but just because certain aspects are appealing to you, don’t assume that everyone will feel the same way. My personal example applies here. If I ever build my dream home, I’ve already decided that I’ll have to live in it until I die because it would be so strange to most people that I’d have a hell of a time selling it.
Unfortunately, some Realtors (who I won’t name) will take advantage of this kind of seller by telling them that everything they are trying to convince themselves about the property is true. And worse, that said Realtor might tell the seller that they can sell it at a higher price than other Realtors. Despite what so many Realtors will tell you about themselves, there is no such thing as a super Realtor. Few people realize that it’s better for a Realtor to have a listing that doesn’t sell, than no listing at all. After all, that sign on the lawn and name in the MLS system increases their exposure and attracts business for them either way. Choose the Realtor for the Realtor, not their price.
If you can’t part with your property at the price your realtor suggests, you may still choose to list it anyway. It’s up to you after all and who knows, you may get lucky. Don’t forget though, that while you’re waiting to see if your place will sell, you have to keep your place spic and span, clutter free and be ready to get out of the house for and hour or two at a time whenever someone wants to view it. If your place is overpriced, then you’re going to be living this way for a while. But like I say, your place, your choice.
Here are some of the effects you can have with pricing:
Dangers of overpricing:
-It will take longer to sell
-You will have fewer showings
-You will receive lower offers
-Your property will help sell other properties
-The higher the price above realistic market value, the fewer buyers willing to consider your property.
Benefits of proper pricing:
-Faster sale
-Less Inconvenience with keeping the home picture perfect all the time.
-Exposure to more prospective buyers who can afford the home.
-Increased salesperson response (Realtors who see your home will be much more likely to show it to their clients if they think they may be interested in buying it. We don’t get paid for the houses we show, just the houses we sell.)
-Attracts higher offers as buyers are less likely to offer low out of fear of losing a good home.
There are a lot of ways people convince themselves of a higher price for their property, but in my opinion, if you have a good Realtor that you are willing work with, all will become clear. Of course, I hope that Realtor will be me, but one must restrain oneself a little in the asking, eh?
Ryan
One Comment so far...
If The Price is Right | Move To Nanaimo Says:
6 July 2009 at 9:46 pm.
[...] realize that this is a topic that has been covered before here and here but it’s such a common issue that causes stress without results for both clients and [...]