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How To Sell YOUR House In Today's Market

By Carole Cohen

Real Estate Agent with Howard Hanna Cleveland City Office

December 13, 2006 06:11 PM

Line Drawing Woman Painting Wall Homes are selling, even in Cleveland, don't let anyone else tell you otherwise. What is helping them sell, over the many others buyers have to choose from? I believe it's Price. Broker Bryant from Florida agrees with me. So does Jeff Dowler from California. I also believe it's Condition. I also believe it's Amenities. You want to sell your home? Let's focus on it's condition and how little you may have to spend to make it appeal to a buyer over and above all the others out there.

A professional Realtor® (like mysel!) can help you - but this is what I suggest as a first step: walk your house from room to room, look at your yard, your garage, your basement. Use a critical eye. Pretend this is not your home, but a house for sale. Here are a few things you might notice that can be corrected inexpensively:

1. Wash your windows, inside and out. Yes, even in cold weather. OK, you can't do it when the water would freeze to the glass, but get someone lined up to wash them for you on a day when the temps are above freezing. A cloudy window may make a buyer think your windows are in need of repair because they are so dirty. Sparkly windows increase your chances to sell.

2. Clean and Uncluttered, that is how your house should be when someone walks through it. This is not expensive. Store things in one room of your home, or in a basement room; Start packing things up and put things in the garage, in a POD, or if you really have a lot of things and it's making your rooms look smaller than they are, rent a storage space for a few months. As for cleaning? We need that critical eye of yours again! Do you always have the door to your extra bedroom open because you use it as an office? Has it been years since the door has been closed? Does that maybe also mean the dust bunnies behind the door have multiplied better than real bunnies? In each room, clean things that you don't normally clean. Moldings on doors, baseboards, window sills, closet floors, under beds, inside kitchen cabinets. Wash the curtains; keep your counter tops clean.

**The key is this; if a potential buyer walks through your house and the windows are dirty, the rooms unkempt, they may subconsciously think you have not cared for the home well enough and worry about repairs they might need to make that are unseen to them now.

Amenities. Should you remodel something? Can you recoup the costs? Can it help you sell your home? The National Association of Realtors (NAR) discusses this issue on their website. According to NAR and other experts, a bathroom remodel can give you a very high return. You might want to consider remodeling an average sized bathroom by replacing the flooring, installing a new sink, freshening up the paint with modern colors. Another thing you can add for under 5k in most any house, is a deck or air conditioning. Or a fence. Are your funds limited? How about adding that disposal you always wanted but never got around to in your kitchen. Get an on line subscription to Angie's List and get an idea what repairs or upgrades might cost you. Find something you can do within your budget. The NAR site also offers you How To Remodel Your Home on A Budget.

I checked homes sales for the past 8 weeks in my Cleveland Market areas, and I found the ones that sold while others sat on the market, had A/C, or a fenced in yard, or both - and at least a one car garage. If you have the funds available to add on one of these items, it might be just the thing that tips the scales in your favor and get your home sold while others sit on the market. At the very least, you can perform some easy steps like washing windows and replacing cracked outlet covers, getting rid of those growing dust bunnies behind the doors, little things that just might help sell your home.

Peace Out- 3C

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Heather Saul

Weichert Realtors Hoey Group - Wildwood, NJ

Great blog-

I just posted a blog about how I walked away from a listing because the seller did not see the importance of cleaning up the property while it was on the market. I might drop off a copy of your post for him to read!! Thanks

Dec 15, 2006 04:38 AM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Thank you Heather, and here is a link to your post on this same thread!

Dec 15, 2006 04:47 AM

S. Leanne Paynter ☼ Broward County, FL

United Realty Group, Inc. - Davie, FL

Davie, Plantation, Cooper City & Weston Specialist

Very good advice, Carole. It's amazing how something as simple as washing the windows can make a difference in how a home shows. Also, uncluttering is a must! Buyers like to see how much room they'll have for their things, not how little room you have for yours. Rent a storage space if you have to... the benefit (in a higher selling price or your home selling quicker) will most likely outweigh the cost.

Dec 19, 2006 03:48 AM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Buyers like to see how much room they'll have for their things, not how little room you have for yours.

Leanne, that is a great sentence and I may have to use it on clients! I agree completely and your wording is better than mine!

Dec 19, 2006 09:11 AM

S. Leanne Paynter ☼ Broward County, FL

United Realty Group, Inc. - Davie, FL

Davie, Plantation, Cooper City & Weston Specialist

I'm glad you liked it, Carole... and I hope that it will get the point across to your clients if you decide to use it. Sometimes they just need to look at things from a different point of view.

Dec 19, 2006 09:42 AM

Anonymous

Nancy J

Hello realtor bloggers. I read a lot on the realtor websites, hoping to get ideas, as I'm a future seller (Spring 2007). I'm seeing a consistent theme here. PRICE sells houses. I intend to list my home at a price slightly below market analysis comps; but to see professionals consistently emphasizing price to sell a home makes me wonder if all your marketing expertise is worthwhile. Here's what my husband and I have been doing and will do over 8 months to prepare our home to list for sale in mid-April. Gave kitchen a facelift including granite counter, lighting, electric, sink, faucet, hardware and stainless appliances. Declutter, clean, shine, repair, paint, decorate every room. Replace living room carpet (only carpeted room). Strip and wax all wood and linoleum floors. Paint walls and floor in basement. Remove overgrown trees and shrubs. Cover cracked concrete patio with decking. Paint exterior trim. Install new windows. Spruce up neglected landscaping. We have been bargain hunters. My estimate for improvements is $10-$11K. We have already spent over $8K. Granted, much of this is deferred maintenance accumulated over the years when we put our attentions elsewhere. We knew we could not try to sell the house without investing money and effort, and we decided to make it really shine, to promote a quick sale. I live in the midwest. My neighborhood is in a good but not great area of my city. The house is a size and floor plan that will appeal to a large segment of the buyer market. It also has a few bonus features that should help appeal. I think an easily sellable price is no less than 3% below whatever the comps are in April. A professional realtor should be able to quickly sell a house that's as easy to show as mine will be for that price. I want a 60 day marketing plan. If no contract is pending in 60 days, the listing expires and we live in our now very pleasant house until we are ready to deal with showings again. Now please give me your reasons if you think I need to price it lower to sell it. What should I expect from my listing agent?

Dec 21, 2006 01:12 PM

#30

Anonymous

Nancy J

Oh. one more thing. We are also offering a $1000 gift card to the buyer's agent for an accepted offer within 60 days.

Note that this is a gift card directly to the agent, not a commission bonus that will have to be shared with the brokerage house. I expect this to bring lots of showings.

Dec 21, 2006 01:30 PM

#31

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Nancy hi, I am glad you stopped here to post a comment. It sounds like you are fairly savvy and also willing to do the things that will help your home sell, and I am glad you seem to have done it in such a way as to not break the bank (your bank I mean!) I don't know where you live, but I will give you my opinion using my Cleveland market, ok?

A little background: most areas within Cleveland proper still have over 200 homes for sale now. Two things about that. If the numbers stay in the same range we can absorp SOME of the homes currently on the market by April. The other thing about the 200 figure: there will be homes that are in the shape your home is in, competing with yours (I'm pretending you are in Cleveland).

I just sold a home that was actually only about 1% off the top market price in that area of Cleveland. Not 3%, 1%. What sold it? It's on a cul de sac street, even though we are in the City, we have some of those. It's in tip top shape, like yours, and the work that was done was tasteful and good quality without being too expensive (no granite in kitchen, but very nicely redone counters) There is a deck; my client really wanted a deck and didn't realize that until we saw this house; now, that is one of those 'hidden' items no one can account for.

When I sell a home, and when you sell yours, you and your Realtor® will be a team. I'm serious. In your case, you are doing everything required, it sounds like, to fulfill your end of the teamwork. Your Realtor® knows that there are still other homes for people to see. He/she will call other agents they have worked with, agents who have shown other homes similar to or in the same neighborhood as yours, because maybe they still have a client or have a new one. Your Realtor® will target areas around your home but not in the same neighborhood (at least if they are smart) and get to people in areas where others seem to be 'coming from' and moving 'to' your neighborhood.

There are a lot of things that we do behind the scene. In a ccompetitive market we can't just put a sign in the yard and put it on the computer, and hope someone sees it. I can tell you, my client and I saw at least five other homes in similar condition to the one we finally chose. 60 days may be a long time in the area in which you live. I know that here, in Cleveland, if a home is on the market 90 days and sells, everyone is ecstatic.

I can also say that the home we bought (my client and I lol) is not in a 'sexy' or 'hip' area, but a long standing neighborhood of modest homes with some cool improvements coming to the neighborhood in the form of new schools, etc. But it was the house that sold it. And not once, so far, have I mentioned price, yes? Because three of the other homes we considered were $15k or so less than the one we bought.

I do agree with everything people said here (and I said it too): price is important. If you price yourself out of the market you can't expect it to sell. All the homes that are selling here are averaging at least within 3% of Ask Price. But not all homes are selling!

I hope I at least touched on the issues you raised. My last comment is, a really good Realtor® in your area can definitely make all the difference.

Any more questions, please ask! And everyone else, come on and add your comments if you have some.

Thanks again, Nancy!

Dec 21, 2006 01:37 PM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Nancy, in my area that kind of bonus is offered; I don't know where you live to know how sucessful that is in your market? I've also seen homes with bonuses come and go - again, lots of competition so the home condition and price are more important than a bonus, in my opinion.

Dec 21, 2006 01:42 PM

Bonnie Erickson

Tangletown Realty - Saint Paul, MN

Nancy, I'm an agent in the Twin Cities area of Minnesota. We sold our New Hope, MN, home in 2004. It took us a year to get it ready for sale. Your list of upgrades sounds like the right ones. I'm surprised you can get granite countertop for less than $10,000, but that is a selling point in today's market (although you may get only a percentage of the cost in return). My husband and I did your list of things in preparing our home except the granite. We made multiple trips to the thrift store and the dump with excess "stuff" accumulated over the years. Our hard work paid off with offers in the first 2 weeks (it was a faster market, however). Pricing your home in today's market at 3% below the current comps (I wouldn't go older than 3-6 months so you capture today's prices) for your neighborhood sounds like a good plan.

Part of the reason you're reading the emphasis on price in our blogs is that the market has shifted this last year. Pricing has become a key factor in today's market. Houses are still selling although it's taking longer to sell. Buyers start by looking for the best deal (and by implication the agents representing them do a search based on that criteria) which means best quality and quantity for lowest price. The homes meeting that criteria sell first and then the ones after that. If your house sparkles and it's 3% lower than the others in the neighborhood, you should get offers . . . even in today's market. I wish you well in choosing a good agent and in preparing your home.

Dec 21, 2006 02:05 PM

S. Leanne Paynter ☼ Broward County, FL

United Realty Group, Inc. - Davie, FL

Davie, Plantation, Cooper City & Weston Specialist

Nancy, if I may chime in here...

While pricing (especially initial pricing) is very important in a buyer's market -- and even more so in a 'strong' buyer's market... it is not the only thing that will help sell a house quickly.

You and your husband have been smart to make your list and invest your time and money on improving the home before putting it on the market. That alone is more than 95+ percent of home sellers do, regardless of market conditions.

Other things that are important include making your house as easy to show as possible. By that I mean, don't make it "by appt. only" or insist that the listing agent be present whenever the home is to be shown. One of the factors some agents use to decide which homes to show their buyer is how easy the home is to show. The more obstacles you/your agent puts in their way, the less showings you're likely to have, though you may never know that. Use a lockox if it is within your comfort level (preferably an electronic one for security purposes). Do not be home while your house is being shown... take a walk around the block if you have to. Most buyers and agents prefer to not have sellers hovering over them and listening to everything they say. If they have a question, believe me, they'll ask you or your agent.

Make sure your home is in showing condition at all times. Make sure you pick an agent who will include the maximum number of photos allowed on the MLS, have the photos taken about mid-day for the best lighting, and be sure the agent creates a virtual tour. Realtor.com is one of the first places buyers look. Be sure that your agent has an account with Realtor.com that will allow the maximum number of photos (6). The agent should create and place several copies of a full-color home feature flyer somewhere obvious in your house (foyer table or dining room table, for example) so that the buyer can take it with them. It helps them remember your house. If possible and you think it may help because you have a desireable floorplan/room layout, have the agent create a floorplan to include with the flyer.

I agree with Carole - the home condition, price & terms acceptable are more important than a bonus. However, the commission should be competitive with what other similar homes are offering.

There is much more that agents do "behind the scenes" than you might imagine. Selling the home is only half the work... they assist in getting it to closing or they don't get paid.

Dec 21, 2006 02:11 PM

Maureen Francis

Coldwell Banker Weir Manuel - Bloomfield Hills, MI

Coldwell Banker Weir Manuel

Nany J,

Carole is right on, and I have a few thoughts of my own to add.

You spoke of price and condition. The third major factor is marketing. Here is a blog I wrote this fall with some questions you can ask when you are deciding who will market your home. You could also ask Carole to refer you to someone in your market so she can do some of the screening for you.

In some places the broker will expect a split of anything given to the agent. You can't get around that, because it could be a violation of licensing law. Don't worry about it though. It is the agent's problem not yours.

I live in Michigan, and we just sold a house in 6 days which is HUGE in this market. What did we do?

Home in excellent shape. Sellers filled a POD before we started showings.
Priced below market value
Higher than "normal" commission to buyers agent
Stunning interior photos and color brochure
unique web page for the house
broker open the week it went up
Virtual tour

And a bunch more. It sold quickly, so we did not do other things we would have done over time.

My point is, chose the agent you work with based on their marketing efforts and not the price they tell you.

You also need to know the current market stats and prices right before you put it on the market. 60 days would be very fast in my market too. I would not accept a 60 day listing. My minimum listing period right now is 6 months.

I think its also important to take a close look at your motivations for selling. If you are happy with how everything is now and would be happy staying there if it doesn't sell, then I would consider if this is the best time to have it on the market at all. In my market, I ask sellers who are testing the waters to sit put.

Anyway, those are some of my thought. It's great to have your questions Nancy. We are all pleased to have consumers using this site. That is what it is here for. Sorry for the long post...

Dec 21, 2006 02:13 PM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Hi Nancy J., Welcome to ActiveRain. It really sounds to me like you have a handle on doing the right things to get your house sold. Pricing and cleanliness are very important. To be honest those are really the hardest things for a Realtor to get a seller to understand so you are way ahead of the competition already. when I price a home my goal is to have my listing be in the top 5 properties on an MLS search for similar properties arranged by price. This way I know Realtors are going to find it on their searches and will bring buyers through the door. 3% below recent sales may achieve this. I would make sure your Realtor shows you a complete list of properties on the market that are similar and then see what price you need to be at to make the top 5.

Make sure your Realtor is experienced in your area and that they are selling properties not just placing them on the market. Have them show you a print out of their recent sales.

The key to getting your property sold is getting buyers through the door. Nothing else matters initially. With all the work you have done on your house the property will sell itself if you are getting traffic. Pricing gets them through the door. Condition and cleanliness will sell it.

A 60 or 90 day listing agreement is a good idea. I wouldn't, not hire a Realtor, if they are requesting a 90 day agreement. In most areas a top Realtor may not be willing to do less than that. I don't know what area you are in but spring of 2007 should be a pretty good time to sell. Interview at least 3 Realtors. Make sure they can justify their suggested list price with solid data. They should all be in the same ball park, price wise, since they are using the same stats. And finally hire the one you are comfortable with.

Good luck!!!

Dec 21, 2006 02:26 PM

Bonnie Erickson

Tangletown Realty - Saint Paul, MN

Somehow I missed the 60 days to sell in Nancy's comment. Like Maureen F., in today's market I would not accept a 60 day listing. There is tremendous time and expense put forth in marketing the home in the first month that probably would not be recouped in a 60 day listing. I'm also taking listings for 6 months based on the average market time in my market unless the seller is willing to take a deep discount in price. I have suggested to several sellers who are testing the market, that they wait until they are serious. As agents we are being exposed to many buyers who are "testing the water" and the same for sellers. This lack of commitment to buying or selling adds to the instability of the current market. If one doesn't need to sell, wait for the market to settle down and for buyers to get over their skittishness!

Dec 21, 2006 02:27 PM

Elaine Reese, REALTOR® in central Ohio

Real Living HER, Powell Ohio - Powell, OH

Carole asked me to jump in here for a Columbus, Oh perspective. Like Maureen and Bonnie, I would not take a 60 day listing for the marketing reasons Bonnie cited. We use 6-month contracts. In the Board's weekly reports, the average for the entire metro area is close to 120 days. In some areas it's much higher than that. Again, depending on the area, we have anywhere from 12-18 months of inventory.

The area I work in has lots of competition from builders with their special deals and financing. I work with my sellers to make sure their home is in perfect, absolutely perfect, condition. It has to compare well with new build models. As an example just this past weekend, I have a listing that is wonderful, priced in low $200's. Original owner, single lady, great floor plan, large wooded lot. We got a second showing and were so excited. But the buyers opted for a new build spec, priced at $250K with a $30K discount plus $8K in upgrades thrown in, plus, the financing. It's hard to compete with that!

Agent bonuses don't work well here. The home either meets the buyer's needs/wants or it doesn't. Then the agent is put in the awkward position of having to disclose it to the buyer. If a bonus is given, many agents just turn it over to the buyer. Depending on the price of the home, if it's likely to appeal to a first-time buyer, I recommend offering to contribute to closing costs rather than incentivize the agent.

Nancy, I think the reason you're hearing agents mention price so much is because we are experiencing sellers who are still in the mindset of 2004 and 2005 prices. Those prices aren't achievable in the current market, but it's hard for sellers to accept that. It's not that we're just trying to low-ball prices for an easy sale. We're just trying to be realistic for our sellers, as experience has taught us that a home priced "at market" will sell faster and ultimately for more money than one that starts over market and therefore, sits.

Welcome to Active Rain ... good to have you here.

Dec 21, 2006 04:14 PM

Anonymous

Nancy J

You guys are awesome. Thank you all so much for your comments. Some of what you told me I already know. Some information is new. Since some of you are midwesterners I will tell you that I live between Milwaukee and Chicago. I did my own research on web, toured local open houses on a couple of weekends and have had one realtor evaluate my home and give a market analysis. If my house was on the market today it would comp at between $200K and $210K. I don't know how much that will change by spring. I was not planning to LIST at 3% below comp. I was planning to accept an offer not less than 3% below low end of comp. If it was on market today I would consider list at $198K, that's 1% below low end of comps. A 3% discount off comp would be $194. My home is a 1500 sq ft 3BR 2 bath ranch with main floor family room open to the kitchen, attached 2 car garage. Nice touches like cathedral living room, custom wood & marble floor in family room, marble floor foyer, built-ins. Very popular style and larger than many of the nearby 2 BR 1 bath ranches with detached or 1 car garages. It also has a large fully fenced yard. No fireplace though, or finished basement. The size and price puts my home as an option for 1st timers, those moving up from a smaller house, and those downsizing from a 2 story.

I am not testing the market. It's condo time. My husband's health is poor. The 60 day marketing plan is because he cannot handle a sustained period of showings. He is at home every day. We discovered with the kitchen update that having people in the house all the time was too disruptive to his need for quiet and rest. It's hard to live with a house up for sale. I am not going to put him through 6 months of it. After 60 days, he would need a break. And, yes of course he would leave for a showing. But how many months is it fair to expect him to delay or interrupt his rest time for showings? Because there is someone home most the time, a phone call would be required before a showing. I don't think an hour notice is too much to ask. The lockbox would only be used when no one is home, still with a phone call. We have cell phones.

Now to some of your tips ....

Thanks for the tip about taking photos in mid day for lighting. Good tip.
Also, putting a floor plan drawing in flyer. Would not have thought of that. It would also show all the closet space this house has. Thanks
Unique web page for my listing? Not familiar with that. Will investigate.
Competition from builders for new construction. Yes this is a problem. New local subdivisions are built like garbage and some are priced too close to my home. That's scary competition. Even though my builder has a reputation for quality, a potential buyer comparing this with new construction would not know that this house is extra sound insulated.
About condition. I have viewed about 10 local open houses, and sellers in this area just don't get it about showing a house at its best. Some don't even paint. Some don't clear out their clutter. Few update and no one stages. Unless that changes by spring. the work we're doing will make us stand out from the competition.
I'm surprised at the lack of enthusiasm for the buyer's broker incentive. I may reevaluate.
I have read that offering incentive for closing costs in today's market is a great tool, and will discuss with Realtors when I interview them.

The one realtor who toured my home has an impressive brokerage house. Their own TV channel, web site that allows 9 photos, PIN number to listen to a recorded phone message about the listing and option to ring through to cell phone of agent if more info desired. A few other things. I need to ask this agent more questions about herself however. I realized after she left that most of what I was hearing was about the brokerage, not her. When I looked up her listings the number was small. But she may work with buyers a lot.

One more question. Because this house has a few things a buyer should be told about but the agent won't know (like the sound insulation) a friend suggested that I put index cards or such in various places in the house to point them out. Is this too weird?

Once again. Thank you all so much. Nancy J

Dec 22, 2006 01:04 PM

#40

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Hi Nancy, I know we were all very glad to have you here, and to answer your questions.

As to the new question: People here sometimes put up signs. "Check out the new window treatments' or, 'check out the Aprilaire' on the furnace. These are usually met with a few snickers when I take buyers through. Maybe in your area buyers are not as amused? lol

If you have a good Realtor®, you can give them all that info and they can use it for marketing purposes on the internet and with presentation booklets in the home. I am sorry to hear about your Hubby's health, that definitely would be a hardship. And NO an hours notice is not asking too much! Even a few hours notice in your case, might make it easier on both your Husband and on you.

Dec 22, 2006 01:17 PM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Nancy I thought of something else; one of the things a Realtor® can do for you is coordinate showings when possible, so they all occur within a few hours. You have special circumstances so it really would be helpful to have someone screening the showings for you. They don't even have to tell Buyer Agents why they are doing it. A good Realtor® will definitely take some of this stress from your shoulders

Dec 22, 2006 01:28 PM

Anonymous

Nancy J

Thanks for your encouragement Carole. BTW, I see that I typed 2BR instead of 3BR as the norm for neighboring homes. I did not mean to imply that I live in a neighborhood of 2BR homes. Is there such a place?

I'll ask my listing agent, when I select one, how to best to market some features that aren't noticeable until someone lives here.

I don't think it will be necessary to group showings, but will tell hubby it's an option if it becomes a problem.

It sounds like the biggest thing I have to get right is selecting a Realtor. I think I have a lot more research to do. When the time comes, I may come back and pick your brains some more.

Thank you and Happy Holidays.

Dec 22, 2006 02:11 PM

#43

Angus in Naperville IL

RE/MAX of Naperville - Naperville, IL

Hello Nancy

My name is Angus Woodbury, a Realtor in Naperville IL. When we list a home we do multiple paged color brochures, one of the things that I like to include is a Seller's thoughts page... that can be as simple as a list of improvements or upgrades... or in some case a narrative of why you've liked living there. This is another good place to let people know about things they might miss. At the same time it humanizes you and can help to add to the warm and fuzzy feeling that can help lead to a smooth transaction.

That sounds like a lot of house for the money and aside from the short marketing time, it should be the kind of listings that we (agents) get excited about. Timing will be important.

Dec 22, 2006 03:10 PM