The Price Is Right

Posted at 5:20 AM, Sep. 17, 2008

Sellers are definitely feeling the bite when it comes to selling their home.  I have had to tell many, if you don't need to sell, don't.  You will not outsmart the market.  Your property is not exempt from the effects of the downturn.  This has been extremely difficult to those needing or choosing to sell and have own less than 5 years.  Fact:  if you bought at the height of the market you WILL lose money if you sell now. 

Too often though, I hear the pleads of their special circumstances.  My rate is adjusting, I have been relocated, we need more space, etc.  The reasons are common.  I don't think I have taken a listing yet this year from a seller who DIDN'T have a special need.  Face it, we are Realtors, not magicians.  We are not going to create a market of buyers just for those sellers in need.  I would not be surprised if there are numerous professionals out there turning down listings if they know up front they'll be a waste of their time and resources.  The time is now to get serious.  Sellers, we as professionals have been shouting from the roof tops things you must do even to get in the game.  At the risk of repeating, here they are again:

PRICE COMPETITIVELY!  This is KING!  Have a Realtor look at the last 3-6 months and look at what is currently under contract, even before what has sold.  That will tell you what today's buyers are willing to make offers on.  If you have solds, use them as bookends if you will.  Know that in a depreciating market, your property may be worth a certain percentage less than the last sold. 

Also, know your competition.  In Chicago, the fatal mistake I hear is, " Well, that property is not like mine so it can't count!".  Truth is, if a buyer is looking at yours, he or she will look at others in a similiar price point.  Smaller, bigger, more amenities, less.  Don't underestimate your competition.  Plus, realize cross neighborhoods.  If they are looking in one, they may realistically be looking in another nearby.  There might be a larger pool of properties you are up against than you realize.

GET IN TIP TOP CONDITION!  There is no excuse for poor presentation.  If you property is in disrepair, price it accordingly.  But note, buyers will STILL offer less if the property has been on the market more than 30 days.  Buyers are not interested in the fixer-uppers unless the price is a steal.  Minor things such as a squeaky door, clutter and outdated paint and carpet can cost you market time which translates into dollars; lots of them.

DON'T OVERLOOK CURB APPEAL!  Your home could be a dream on the inside, but if the outside leaves much to be desired, change it.  Ask others for suggestions or perspectives on what you can do to make a buyer say, "I would like to check that out."  It takes a lot less to WOW than you may think.

DON'T USE A REALTOR WHO WON'T DO YOU JUSTICE!  I will say this till I am blue in the face; pictures, pictures, pictures.  REAL pictures.  Not of the door frame, the window or the oh so famous sky line.  Leave the details for when the buyer tours your home.  But facts are buyers will most likely not consider a home or will have lower expectations of those without pictures to look at.  I don't even consider homes without them.  You will lose a huge audience if you fail to post pictures of the interior.  Buyers want to grasp a feel of the home before they will bother to see it.

Next, ditch the fluffy lingo.  Beautiful, Amazing, Spectacular.  Guess what?  Buyers aren't buying it.  Have your professional talk about tangible pluses.  Ask yourself this, "What makes living here so great?"  You are going to appeal to a lifestyle before anything else.  Lots of space, close to transportation, shopping, first floor bedroom, office space, etc, all the things that actually make a buyer's want list.  State the facts and court them with the pictures.  If you can, give yourself the advantage by addressing any negatives in advance, i.e. parking, noise, etc.

When sellers are ready to take the reins back, buyers will move forward.  The power to change the atmosphere is in your hands.  Interest rates are dropping and buyers will buy when they can perceive the value.