Oct. 5, 2007 - THINK LIKE A BUYER
Why Can't a Homeseller Think Like a Buyer??
Many homebuyers can be very secretive and difficult to get info from. The most intelligent ones on the other
hand, are full of questions and want to know absolutely everything about any home that interests them and will study them like
Napoleon planning a battle. In the final analysis when it comes to "decision time" they will make a chart comparing all
physical details of each of the 3 or 4 homes that they are considering. This also includes time on market, sellers original
purchase price, comparable sales vs current list price, price reductions, town assessment, potential upside, neighborhoods and
their value, which home offers more for the money, plus anything else they can think of. Each of the 3 or 4 homes will have
varying values and they base their offers and negotiation range on those values.
Homesellers on the other hand often base everything on a price that they want for their home. This price can
be based on what a neighbor sold his home for last year, the prices they see in the paper, a price they need to buy another
house, a price to cover all the upgrades they made in their home. Is this realistic? It is to the homeseller, but scientific
it is not.
That's why it's important for a homeseller to think like a buyer. To pretend he or she is a homebuyer, look
at the direct competition, make a chart and objectively analyze their home. Study the comparable sales and see how they
compare to your home in price, value, size, etc. It may be difficult to be objective about your own home as you may err on the
high side, but after the comparisons sink in for a while, you may see the light and be better able to make the best decision
about your home - to keep, to remodel, to sell at a realistic price.
IN REALITY, this exercise is what realtors provide homesellers, most of whom unfortunately, prefer to list at
their price, then take 6 to 12 months to learn to think like a buyer - DAVID
Copyright © 2007 By David F. Kelley, Falmouth,
MA. All Rights Reserved.
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