Every Seller Needs To Know, What Sells a house?

By
Real Estate Agent with Brokers Guild Cherry Creek Ltd IA100052670

Every Seller Needs To Know, What Sells a house?

There are four variables that sell a house.

laser1.  Price

 

2.  Terms

 

3.  Condition

 

4.  Location

 

 

All four of the variables go together to create the "perfect sale."  Each aspect must be taken into consideration if you want a property to sell.

1.  Price fixes everything!  Don't let anyone tell you different.  When the buyer perceives there is a value because of the price, they will buy the home.

The other three variables always can effect the price.

There are circumstances where a buyer has lost the ability to qualify for a traditional loan because of a foreclosure or bankruptcy and the buyer needs owner financing.  With Owner carry Terms that particular buyer may be willing to pay more because they have ownership with possibly a small down payment. 

Conversely, if the Condition is bad the price will have to be reduced to reflect a value in the home where a buyer will have to come in and do repairs or cosmetic updates.

Location is the toughest variable in the sale to compensate for.  Most people have heard about in Real Estate the terms Location, Location, Location. If the location is bad.. ONLY price will sell the property possibly combined with terms so exciting that a buyer will not be able to pass up the deal. 

2.  Terms.  If the Terms are attractive, sometimes a seller can get more money for the home.  For example: a home with a value of $325,000 listed with owner carry terms of $25,000 down and no bank qualifying might be able to sell at $350,000 because of the terms. 

Under any owner carry situation, it is important the seller speak with their accountant and attorney before accepting any contract and agreement to finance.   The seller should be completely aware of the liability and consequences in owner financing. This is just an example how price can increase with the right terms.

3.  Condition is a key factor in selling a home.  When the property is in top condition, looking like a show home the seller may get top market value for the property. In times where homes are selling at a slow pace, in order to procure a sale, the home should be the BEST property at the Lowest price to get to the closing table.

Taking a seller on a preview tour of the homes in the area similar to their property can save months of discouragement with a home not selling.  When a seller can see the competition and accepts the fact their home needs to be the Best house at the lowest price to sell, the home will sell and the seller will see what they are up against in comparison.

Carpet or paint allowance does NOT work in selling a home.  If the home needs carpet, put it in.  If the home needs painting, get it painted.  Many times this can cost a seller $5,000 to $8,000 to do those upgrades.  Investing, yes, investing is the correct term, for getting the house sold. The money invested will come back in the form or a quick sale at full market value.

A picture is worth a thousand words so think about how the property looks and even take some pictures to see what a buyer is looking at.  Sellers should look at the pictures like they were a buyer and ask, "would I buy this house in this condition for this price?"  Are the kitchen counters cluttered?  Are the closets a mess?  What does the front door look like and the yard when people drive up to the house? 

A seller has 8 seconds for a buyer looking at a home to decide if they really like the house and if it will go on the A list.  The buyer starts the decision making process when driving up to the home while looking at the surrounding properties and the entrance to the home. 

There are many agents are trained in "staging" a home and there are "staging services" which help a seller to understand what needs to be done to create a "marketable product." Listen to these people if you want to get the house sold.

The seller needs to separate from the house and see it as an investment or product that needs to be sold. The seller needs to take all the emotions out of the happy memories in the home if they are serious about selling.

4.  Location is the only variable which cannot be changed.  A bad location, is a bad location so only price and terms are going to help this situation. 

It does not matter that the same model home across the street sold for thousands more, because it was ACROSS THE STREET and did not back to the highway.  A seller needs to get a reality check on location and think about when they purchased.  If the seller got a good deal when they bought because it had a bad location then they have to give the new buyer the same good deal to sell. 

Sellers should take all the emotion out of the business of selling a home and treat the transaction as an investment decision

If the goal is to get the home sold then listen to the professionals and let them do their job. 

As Donald Trump would say, "It's only business." 

 

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Re-Blogged 35 times:

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Rainmaker
1,108,234
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Carra--Great post!  Congrats on earning a GOLD Star!!!!  Good information, too! 

Oct 15, 2009 12:04 PM #145
Rainer
27,755
Linda Alexander Sacramento
Sacramento, CA

October 15, 2009

Hi Carra,

Thank you for the advice regarding preparing my house for an appraisal.  I agree, the analogy of detailing a car for sale is a good one.  "Make it shine."

I will have to get busy now because the house has a LOT of stuff per square foot.

Linda

Oct 15, 2009 12:29 PM #146
Rainer
20,973
Lydia Pollard
RE/MAX Realty Specialists Inc. Brokerage - Mississauga, ON

Hi Carra,

Price fixes everything! 
How true.

Great post...thank you for sharing.

Oct 17, 2009 02:56 AM #148
Rainmaker
313,897
Carra Riley
Brokers Guild Cherry Creek Ltd - Westminster, CO

Mary,


Glad to see you back!

Your friend in the Cosmic Cow Pie.

Oct 19, 2009 01:35 PM #149
Rainmaker
313,897
Carra Riley
Brokers Guild Cherry Creek Ltd - Westminster, CO

Linda,

Thanks for the call and reading the post!  I am happy to help.. you might also want to check out some staging professionals.. they can really help you too!

Your friend in the Cosmic Cow Pie.

 

Oct 19, 2009 01:37 PM #150
Rainmaker
313,897
Carra Riley
Brokers Guild Cherry Creek Ltd - Westminster, CO

Lydia,

You got it!  some factors can be adjusted but when they can't price works!

Your friend in the Cosmic Cow Pie.

Oct 19, 2009 01:38 PM #151
Rainmaker
273,173
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

Very good advice Carra. I really like replacing the carpet and painting instead of an allowance. I like stagers. I wish all my clients would use them.

Oct 19, 2009 03:24 PM #152
Rainmaker
313,897
Carra Riley
Brokers Guild Cherry Creek Ltd - Westminster, CO

Tigard,

It might be helpful to take this information and either share it with a seller or create something similar of your own.. then maybe they would listen about replacing the carpet and paint... it makes a difference between a sale and no sale.

Your friend in the Cosmic Cow Pie.

Oct 19, 2009 04:14 PM #153
Rainer
437,789
Terry Chenier
Homelife Glenayre Realty - Mission, BC

Carra,

Price overcomes everything. It can be the crappiest house on the block, but if priced right, it will sell.

Oct 19, 2009 05:34 PM #154
Rainmaker
120,785
Bob Krus
Keller Williams Foothills Realty - Evergreen, CO
What About Bob? For All Your Real Estate Needs!

Teri,

I love the 'Sweats to an interview' analogy! That's definitely going into my little black script book!

Oct 22, 2009 07:21 AM #155
Rainmaker
313,897
Carra Riley
Brokers Guild Cherry Creek Ltd - Westminster, CO

Terry,

So true! Price fixes EVERYTHING.

 

Oct 23, 2009 09:36 AM #156
Rainmaker
313,897
Carra Riley
Brokers Guild Cherry Creek Ltd - Westminster, CO

Bob,

Teri is right and that is a wonderful analogy!

Oct 23, 2009 09:37 AM #157
Rainer
437,789
Terry Chenier
Homelife Glenayre Realty - Mission, BC

Carra,

Price is the key here. Whatever the condition or location, if priced properly it will sell.

Oct 24, 2009 05:19 PM #158
Rainer
16,140
Jeannene Edwards
Home Staging by Interiors Defined, Inc. - Orlando, FL

Great post Carra, and thanks for talking about the value to agents of including a staging consultation as part of their listing services.  I work with several top agents who have adopted this practice for ALL of their listings and it is a service that has been a winning relationship for all of us . . . agent, seller and stager.

Nov 02, 2009 02:15 PM #159
Rainmaker
313,897
Carra Riley
Brokers Guild Cherry Creek Ltd - Westminster, CO

Terry, You are right.. Price fixes everything!

Jeannene,  Stagers are VERY important in the total picture of a seller trying to market a home.  The value of your profession is well worth it to obtain the BEST home condition on the market. 

Nov 07, 2009 05:32 PM #160
Rainer
62,674
Sonja Adams
Samson Proprties - Purcellville, VA

This is great...and I'd like t reblog it...thank you!

Jan 28, 2010 01:11 AM #161
Rainer
62,674
Sonja Adams
Samson Proprties - Purcellville, VA

This is great...and I'd like t reblog it...thank you!

Jan 28, 2010 01:11 AM #162
Rainmaker
528,949
Associate Broker Falmouth MA Cape Cod Heath Coker
http://www.CapeGroup.com & http://www.REindex.com - Falmouth, MA
Heath Coker Robert Paul Properties Falmouth MA

I think you should add

5. the real estate professional. Most people don't buy the house they first ask about or visit. They buy one that a real estate professional knows may meet their criteria. I even did two deals last year with homes that were not in MLS - I knew the buyers wishes and taste, I found them property that met those, but that wasn't on the market. The sellers wanted to sell and the buyers like the properties.

Real estate properties do so much more than show houses.

Jan 28, 2010 01:29 AM #163
Rainer
263,671
Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

There is so much great information in your post Carra, and it's all correct.

Jul 03, 2010 01:56 AM #164
Rainmaker
175,652
Maya Thomas LLC, Broker
Key West, Key Haven, Geiger, Sugarloaf, Cudjoe, Summerland - Key West, FL
Key West FL Historic Old Town Estates, Bungalows

Excellent post!  Well written and well thought out. 

Aug 12, 2010 11:46 PM #165
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