Special offer

And The Award For Agent Who Gets It Goes To...

By
Home Stager with Sharon Tara Transformations

trophyI just read my favorite ActiveRain comment of the day...probably of the week, and maybe the year.

I would like to present my Award for

 "Agent Who Gets It"

 to Bob "RealMan" Timm for his comment:

 

"I'd like to find the original Realtor who came up with the whole "allowance" thing and slap some sense into him/her. This may make some AR's cringe but I'm at the point where if I tell a client they need to replace flooring and they respond with "allowance" I'm walking away."

 

Bob, you made me smile and you give me hope!

 

Bob's comment (#29) is on a post written by Debbie Gartner who asks the question

 "should she refinish her floors to sell her home?" 

Debbie was looking for advice regarding a seller and whether or not refinishing floors is necessary to get a house sold. 

Debbie's post was featured and she received lots of great comments, but Bob's really stood out for me.

 

Allowances for maintenance issues may have worked in the past, but it's a different story today.

  In most cases, you will sell faster and make more money if you take care of maintenance issues prior to listing.

 

My professional opinion on the subject, as stated in my comment to Debbie:

"Sounds to me like the seller wants it both ways...she wants to sell yesterday, but doesn't want the inconvenience and expense of properly preparing it for sale.

Not doing the floors is equal to hanging a sign on the front door stating the house has not been properly maintained over the years. 

Bad floors is a red flag, raising questions as to electrical maintenace, plumbing, and everything else.  She should ask herself why a buyer would want to deal with the inconvenience when she doesn't want to deal with it. 

Buyers want move in ready, they don't want the headache of waiting for the floors to be refinished before they can move in, and they don't want the possible headache associated with dealing with a contractor."

 

Comments(32)

Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

John:  Thank you for such enthusiastic support!  Cheers to you too!

Ginger:  Some listings (sellers) just are not worth it, and I'm sure there are many agents out there that wish they had walked away from them. 

Dec 29, 2010 11:29 AM
Maureen Bray Portland OR Home Stager ~ Room Solutions Staging
Room Solutions Staging, Portland OR - Portland, OR
"Staging Consultations that Sell Portland Homes"

Good post, Sharon!  I love your new "award" and think that Bob really deserves it!  Sellers who don't do what's needed to make their home stand out today, will see it takes longer to sell.  Move-in ready sells every time over "fixer upper."

Dec 29, 2010 11:33 AM
Kathy Nielsen
http://atlantahomestaging.net - Marietta, GA
Atlanta Georgia Home Stager

Awesome post, Sharon. Bob does indeed deserve the award.

Kathy

P.S. Love your new photo.

Dec 29, 2010 11:45 AM
Pat Haddad, ABR, CRS, ePRO, GRI
Keller Williams Indianapolis Metro NE - Carmel, IN
Carmel, Fishers, Westfield IN Real Estate Expert

Sharon--I have never ever listed a property with an allowance.  Lenders used to allow and now that they no longer do, it just makes no sense to offer one.  Also, first impressions are everything.  As others have said, unless the seller simply does not have the money, they should be installing that new carpet before coming on the market so that they can put their best foot forward!!

Dec 29, 2010 12:25 PM
Lydie Ouellet Dickinson
Realty Executives Tri County, Bellingham MA - Bellingham, MA
Realtor

I was thinking like Steve when I read "Allowance"... lol. My 10 years old gets one, to take out the trash and recycling! Too funny and red flag indeed on the more important stuff!

Dec 29, 2010 01:42 PM
Cathy Lee
CL Design Services Home Staging - Danville, CA
ASP, IAHSP, RESA Danville, CA

Allowances are a negative mind set before the buyer even steps into the home-why would any seller want to do that?? Great post and I love award!!! I love your photo too Sharon!!!

Dec 29, 2010 03:22 PM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Sharon

A home is either ready for sale or its not; there is no gray area.

Good luck and success.

Lou Ludwig

Dec 29, 2010 03:32 PM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

Keep in mind that for a lot of sellers, there simply isn't cash available to spend on the house before the sale... especially with so many distressed sales. 

Dec 29, 2010 03:54 PM
Shar Sitter
Rooms With Style - Minneapolis, MN
Home Staging and Redesign Minneapolis/ St. Paul, M

Love it and love Bob! His quote is hysterical. I go into houses all the time where the agent has recommended an allowance (usually flooring or painting) and I have to go through all the reasons NOT to do that!

Dec 29, 2010 05:15 PM
Michelle Finnamore
Toronto GTA, Alliston, Newmarket - Vaughan, ON
Preparing your property for sale

HI Sharon, As stated above, I know there are some sellers that do not have budget to do anything, however, there are a large majority of sellers who have not sold in 20 years, even the last 7 -10 years that do not realize how much the market has changed.

With the advent of HGTV and the plethora of staging shows, flipping shows etc., buyers want what they want or they just go around the block and buy the house that is ready to move in. The only reason they will buy the house with the allowance is to be able to give a low ball price to reflect the work to be done. Then the seller takes it personally that their home is not getting viewings or offers and blames the sales person for not doing their job.

When there is no budget I always suggest having their family and friends help. They may have left over paint, furniture to lend, artwork, area rugs or lamps that are up to date and would help market the home. It really comes down to motivation I think.

Dec 30, 2010 01:16 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Maureen:  Thanks...I couldn't resist when I saw his comment.  I know you understand!

Kathy:  Thank you!

Pat:  You have a wonderful "inner stager" within that I am so impressed with!

Lydie:  Great minds...LOL!

Cathy:  Exactly!  We know that, but most sellers have very little experience selling a house and may not have sold one in many years...they just don't know that things have changed. 

Lou:  You have such a way with words...it's either ready for sale or it's not...I love it!

Shar:  I see it quite often here too.  I've had sellers choose "allowance" over improvement many times and I've not seen one of them sell in any hurry.  It's sad to see the price reductions when you know they could have had better results.

Lane:  Understood, but that doesn't change the fact that their house will not make the best impression it can and most likely will sell for less money.  The reason why is very sad, but it doesn't change the outcome.

 

Dec 30, 2010 03:18 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Michelle:  I totally agree.  It's an education and motivation issue.  In the case of the seller in this situation who was not sure about refinishing the floors...I believe the money wasn't the issue.  Sounds like she is going to do the work, I hope so.

Dec 30, 2010 03:21 AM
Janice Ankrett
Burlington, ON
Staging Professional

Sharon, great post! Why would any seller want to advertise a flaw in their bargain LOL. Fix it first! Don't give the buyer that bargaining chip!

Dec 30, 2010 03:21 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Janice:  A point well made, thanks!

Dec 30, 2010 04:13 AM
Janice Ankrett
Burlington, ON
Staging Professional

Thanks Sharon. We had similar thoughts it seems and posted ;).

Dec 30, 2010 06:28 AM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

Allowances seem to work well out here if something needs serious redoing because it allows for the buyer to choose what to install.

Dec 30, 2010 02:31 PM
Lori Donegan
Ready 2 Stage - Cleveland, TN

Seems everyone wants the easy way out!  If you want your best price then you're gonna have to give your best effort!  Take care of all issues and make that house shine.  Thanks for your post Sharon.

Dec 30, 2010 03:19 PM
Patsy Overton
Patsy Overton Interiors, Atlanta, Georgia - Duluth, GA

Hi Sharon.  Love your new "awards" series!  While I'm totally with you on the allowance thing, I do understand that in these tough economic times, not everyone has "up front" money to get everything done.  Happy New Year!

Dec 31, 2010 02:51 AM
Julia Maher
Nestings: Connecticut Home Staging and Model Homes - Fairfield, CT
Connecticut Home Stager

FABU photo, Tara!  Smart REA, too!  Happy New Year!  Julie

Dec 31, 2010 07:46 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Jim:  We have found here that buyers don't want to make those decisions and will choose move-in ready over making the decision and waiting for the improvements to be made.

Lori:  I couldn't agree with you more!

Valerie:  As a last resort, sure.  It's not a choice I would make if selling my house.

Patsy:  It's not a series yet, LOL!  I don't think I want to be in the position of naming award recipients...not in this arena...too many brilliant minds gathering here for me to choose. 

Julie:  Thanks!  Happppppy New Year to you toooo!

Dec 31, 2010 11:35 AM