“Whenever you’re new to
anything—a new job, a new exercise routine, a new school, a new town—you’re apt
to say some pretty ridiculous things, whether it’s down playing how difficult
something may be or being unaware of the reasoning behind certain situations.”
- Tara-Nicholle Nelson Trulia
For Susan the art of
buying and selling homes is second nature. But for first-time sellers, the
process of getting their home sold can be a bit of a mystery. Though well-intention-ed,
sometimes sellers say some crazy and out-of-touch, and—yes—even ridiculous
things in haze of seller’s worry.
1. “But I spent X years or $XX on that!”
One of the biggest perks
of home ownership is the ability to customize the home to the personal needs
and wants of the owner and their family. Though fantastic to you, that beautifully
landscaped koi pond may look like a ton of work to a buyer. You kid’s hand painted mural might have cost a
pretty penny but to the DINKs (dual income, no kids) that are buying your home,
the unicorn theme just won’t due for his home office…and that means that they
may not be willing to pay for it.
“Remember
that some home improvements can increase the value of the home, many should be
looked at as features that enhanced their quality of life while the owner lived
in the home. But, when it comes time to sell, it comes time to let it go. The enjoyment of those special features was your return on investment. If an eventual buyer also happens to
love them, fantastic! But sellers can’t approach the home selling process
expecting every buyer to share your value system and pay through the nose for
them.” - Tara-Nicholle Nelson Trulia
2. “We just need to find a buyer who understands my
tastes.”
There are certainly
occasions, with rare properties, where there is truly a narrow niche of buyers
that will have to find, understand and appreciate a property. Susan once listed
a converted church that was decked out on the lower level as a high end private
apartment. The upper level was a shop
space and the building had an addition that was set up as offices to be rented
out. In addition that property was in a very small town. This property really
needed to wait for the right buyer.
There was just no way that Suzie-and-Joe-first-time-home-buyer were
going to choose this live/work space over a cute traditional home.
But
this saying is ridiculous when it is uttered by the owner of a home with
potentially wide appeal as a reason for not staging or preparing their home for
sale, or in the effort to avoid neutralizing highly personal design and decor choices.
3. “I want to price it high, so I have room to come
down.”
Everyone likes to feel
like they got a win. Son no one lists their home at exactly what they need to
pay off the loan/break even/ or feel ok with the sale, BUT over pricing the
home to the extent that it is on the market with nicer homes at the same price
is just a waste of time. If other sellers are pricing appropriately and your
home is priced too high over what the market will bear, many buyers won’t even
bother trying to negotiate down, and some won’t even look at it. Buyer’s search
in price ranges on the internet and if your home is bumped out of their range
it might no longer be the most expensive house in their search but rather the
lease expensive in someone else’s. That higher price buyer however will be comparing
your home with higher quality/priced homes.
Pricing your home too
high can also lead to a longer time on the market.
4. “That offer is an insult— I won’t even dignify it
with a response.”
“For
sellers, a home represents a massive investment of money, time, hopes and
dreams. It probably also represents personal tastes, style and some precious
memories.” - Tara-Nicholle Nelson Trulia
As a seller or a buyer
you need to remember that no one is trying to insult anyone. This is just business. The buyer is trying to get as low of a price
as possible and the seller is trying to get the most for a home. The times we make the most mistakes is when
we are angry or emotionally involved. Keep a cool head and counter, even if you
don’t come down much at all from the list price it will let you know if the
buyer is serious or just trying to get a steal. Even if they are trying to just
get a steal; they are not evil. They are just not your buyer.
5. “I need $X to get the home I want and take my
Australia trip—let’s list the place for that.”
“There are lots of
respectable strategies for setting a list price, but all of them have their
basis in one thing: data. Pricing can be the toughest conversation of all to
have with sellers. But remember: The market sets the home’s price. The ultimate
value is based on what a qualified buyer is willing to pay for it—not what the
seller “needs” to move.” - Tara-Nicholle Nelson Trulia
If the market cannot get
you what you need to move (minus the vacation expense) then it may not be time
to sell.
