In this market --- and this one IS DIFFERENT than the recent past --- we all have to have that frank conversation with our sellers (and ourselves) about what it takes to market and SELL real estate. Some sellers are not really interested in selling their property.
What? Why bother with the process, you ask. Sellers are interested in the game of real estate but they really are not interested in what it takes to sell their property. You, as an agent, have to determine whether or not this is the case with your seller. How motivated are they?
Unless they take your advice and experience to heart, they may not be interested in selling their home at all. I have compilied my top ten list of ways that sellers are telling you via their actions...that they are really not interested in selling their home....
Top 10 Ways --- NOT to Sell Your Home
1. Don't put a LOCKBOX on your home
Your home must be convenient to preview, market and sell to buyers. Buyers need to get into a home when it is convenient for them...not when it is convenient for you. That is not to say you cannot set the hours and times that are available to show your home BUT you have to communicate that to the agents and buyers so they know what your hours are...You would not run a successful retail store if your hours varied each week.... Customers, in this case buyers, will just move onto to the home that is available to be seen. There is a lot of inventory for them to choose from. Having too many restrictions on the showings of your home severly limits the agents ability to market and sell thehome. If your home is not on a lockbox, your home is really not open for sale.
2. Don't put a SIGN on the Lawn
Listing agents rely on signs on the lawn of the home for sale for a variety of reasons...but...most important is the ability for them to put their name & contact information right out front of the home. This helps the listing agent capture their own buyer. Who better to bring the buyer in to sell the home? Yes, your own listing agent. This valuable tool supports the agent's quest to bring their own buyer in. No sign. No buyer. It is as simple as that.
3. Limit Showing Days and Times
Similar to the lockbox situation, this is when the seller puts a number of restrictions on showings times. For example; no showings evenings during the week; no showings when the children are napping; no showings on alternating Saturdays or Sundays. Too many limitations on showing availability severly limits the agents ability to market the home at the right time --- when it is convenient to the buyer.
4. Require the Listing Agent to be at all Showings
Now this is important. In some cases, it is necessary to have the listing agent at all showings; children at home, pets in the house, valuables, guns or ammunition, privacy issues, etc. However, if this is the case, the agent should know when and how they can show the home each week. For example, all showings are Thursday - Sunday between the hours of 10 am - 6 PM. This way, the agent can set up a schedule --- in advance--- and show the property at will during those time periods. If the agent does not have a clear schedule it is more than difficult to be available at a moments notice to show the home AND unless you are paying the a full commission to do so, it puts limits on their ability to generate income.
5. Require 24 Hour Notice to Show
Now, I can go either way on this one. I understand the need for 24 hour notice. However, to be hard and fast about the 24 hour rule is penny-wise and pound foolish. If someone has a buyer in from another state and needs to get in asap --- it is best to try and break the rule and show the home. Again, selling your home in a BUYERS MARKET is about making it convenient for the qualified buyer to see the home. If showing times and hours are set in advance, it helps the 24 HR notice situation because the seller is prepared to show the home during those pre-set showing times.
6. Put Contingencies on the Home Sale
The kiss of death, it seems, is to have the seller ( yes, seller ) put contingencies to selling the home in the listing. For example, "home sale is contingent upon the seller finding a home." This throws up a red flag to the buyer's agent and buyer that the seller is not interested in selling the home too quickly. Or, that the seller may not be motivated enough for the buyer to get their heart set on the purchase. When buying a home, the buyer wants to fall in love and buy it. Not wait for the seller to decide what they want to do...There are too many other homes on the market that are available to buy now and many motivated sellers willing to sell them a home.
7. Don't Price your Home according to the Comps
Real Estate agents and brokers spend an extensive amount of time (and money) in the market previewing what is available for sale. And, they pay to have access to up-to-the minute sales data and market reports. This DATA is key to pricing your home for sale. Agents are not just giving it there best guess. They look at the numbers of homes that have SOLD. Not the asking price for homes --- what the homes actually sold for. You see...numbers don't lie. The banks see it that way, too. They don't rely on gut instinct, emotions or what the seller want the home to sell for (sellers usually want at least 15 % over the comps or suggested asking price)....Bank Appraisers rely on the actual numbers and that is how they decide whether or not they are going to lend money to purchase the home. Not because of paint, fabulous decoration, or nice curb appeal. They lend money to buyers based on market comps. So, you...the seller should base the sale price of your home on the comps.
8. Don't Listen to the Market
This is a good one, too. The seller prices their home, above the market comps then they let it languish on the market for weeks. No one has made an offer. Yet, they refuse to adjust the price. The market and the buyers are going to determine the market value --- not wishful thinking. If you do not have an offer in 30 days, reduce the price.
9. Listen to Your Friend, Neighbor or Brother-in-Law
Unfortunately, everyone considers themselves an expert in real estate. Many lay people feel confident to give advise freely to all about buying and selling a home. It is relatively easy for them to do just that. They walk or drive by a neighborhood home, call their friend who is looking for a home and tell them it's perfect for them. Unfortunately, the reality is that the property usually does not fit their friends price range or other important criteria.
Or, they readily give their opinion about what they think the homes listing price or offer on the home should be. No analysis. No Data. No research. Just a frank opinion about what they think the home is worth. Unless your friend, relative or brother-in-law is a FULL time real estate agent --- their opinion is just that --- an opinion. After all, you would not want them giving you advice on your tax returns --- if they were not full time accountants. Or, representing you in a court of law, unless they are a licensed attorney.
10. Don't TRUST your Agent
Your agent is part of your team. You must take time to research and pick a qualified full time real estate agent. Once you are comfortable with them as a member of your team --- you must let them do their job. They are state licensed professionals in the real estate business. They are there to give you advise and counsel based on their training and experience.
You may have sold a home (or two or three) over many years....but Real Estate agents are in the business of buying and selling many homes all year 'round. They study the market. They know the inventory. They understand mortgages and financing. Good listing agents know how to market your home to SELL. After all , that is the point, right? Selling your home quickly, efficiently and for the most money that the market will allow. Good buyers agents know what homes are worth the price and match them to your likes and to your ability to pay for it comfortably. Wishing is a wonderful thing but it does not buy or sell homes.
While you may never encounter all of the above situations --- in one transaction --- the list does serve as a guide for you to see if the person you are working with.... is realistic and that they are in the market to sell. ;)
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