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In the market we are currently experiencing, we need any advantage we can find!  I read an article awhile back that I thought I would share with everyone!  I found it extremely interesting and though provoking because we all use some of the wording talked about in the article!  Enjoy!

Heather McKinnon / The Seattle Times

Words matter. Wars have started over them. Civilizations have collapsed
because of them. And it appears the speed with which a house sells
might be determined by them.

As listings grow old on the vine in this flush-with-inventory market
and frustrated sellers reach for the slightest edge, the findings of
several academics might offer guidance.

For example, a Canadian professor, as part of a broader study on
real-estate sales patterns, found that homes where the seller was "motivated" took
15 percent longer to sell, while houses listed as "handyman specials" flew
off the market in half the average time. "It surprised even me," said
researcher Paul Anglin, who teaches real-estate and housing trends at the
University of Guelph in Ontario, Canada. The study dissected the wording of more than
20,000 Canadian home listings from 1997 to 2000.

What surprised him most was how the buying public put style over
substance. Words that denoted "curb appeal" or general attractiveness helped a
property sell faster than those that spoke of "value" and "price."

Homes described as "beautiful" moved 15 percent faster and for 5
percent more in price than the benchmark. "Good-value" homes sold for 5 percent
less than average.

Another finding in Anglin's study was that the plea of "must see!" was
received about as enthusiastically as a dinner-time telemarketing call.

Using "must see" had a statistically insignificant effect on the number
of days homes took to sell.

Listings where "landscaping" was heralded sold 20 percent faster, and
homes in "move-in condition" took 12 percent less time to sell than the
benchmark, although the study showed that "move-in condition" had an insignificant
effect on the sales price.

Owners use listing language to convey how serious they are about
selling. Some words work better than others, Anglin's study found. Listings in
which the seller said he or she was "moving" sold for 1 percent less compared
with 8 percent less when the seller was "motivated."

Real-estate listings, not unlike personal ads, are crafted to minimize
blemishes and maximize perceived selling points. So if "enjoys
moonlight walks on the beach and cooking together" means "I'm unemployed and am
looking for someone who won't always expect to eat out," then "needs
TLC" might mean "this house will have you on a first-name basis with the
clerks at the local hardware store."

Anglin's study isn't alone in its attempt to determine what language
moves the market.

Last year, the effect of listing language was covered in a National
Bureau of Economic Research study that looked at whether real-estate agents
selling their own homes hold out for a higher price. (They do; the study found
they take longer to sell but fetch a higher price.)

Descriptions of houses that indicated an obvious problem -- such as
"foreclosure," "as-is" and "handyman special" -- drew substantially
lower sale prices.

Words that suggested desirable attributes -- "granite," "maple,"
"gourmet" -- translated into a higher sale price, the study found.

One problem discovered was that "superficially positive" words that, in
effect, damn with faint praise -- such as "clean" or "quiet" -- had
zero or even a negative correlation with prices.

Those findings echo those made in a 2000 paper, "Real Estate Agent
Remarks: Help or Hype?", researched by University of Texas finance and
real-estate professor Ronald Rutherford.

Rutherford found, among other things, that buyers read between the
lines. If you can't find anything better to say than "new paint," perhaps it's
best to say nothing at all.

Positive and factually verifiable comments such as "golf" or "lake"
drew increased sales prices. Other presumably positive comments regarding
new paint or new carpet brought lower ones.

"What you say needs to be extravagant, or the signal that is received
by buyers is that it's not worth talking about," Rutherford said.

But what do sellers know? "New paint" appeared on 15 percent of the
listings and was the most commonly listed comment.

Rutherford said sellers would be best-served by a listing with "just
the facts, ma'am."

"In today's market, if it's a good deal, you need to convey it with
factually verifiable language," Rutherford said.

An example: "Needs repairs."

Of the information from his study, conducted between 1994 and 1997 of
almost 60,000 closed residential transactions in Tarrant County, Texas, what
surprised him most?

That homes with "motivated" sellers stayed on the market 15 percent
longer than average and sold for 4 percent less.

His theory: "They overpriced the house to start with and eventually had
to lower it. That explains the length of time on the market and the lower
sales price."

Does he have any advice for today's sellers?

"Yes," he said. "Avoid the word 'motivated.' "

 


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