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Charlotte Home Seller FAQ: My Neighbor Just Listed His House...Is This Good or Bad for Me?

By
Real Estate Agent with Savvy + Company (704) 491-3310 228209

OH NO!  My Neighbor Just Listed His House TOO!  Is this a good thing or a bad thing?

Charlotte Home Seller Q&AMost sellers will agree that it can be tough enough selling one home or even two in a neighborhood or a condo complex but, what if you, as a seller, are faced with multiple homes for sale in the same neighborhood, complex or even on the same street? 

My advice to sellers is to look at this as a positive thing.  Yes, I know, I typically maintain a positive outlook but, there really is a silver lining in this cloud.  With multiple homes on the market in your community, this means that your neighborhood or condo complex is getting MAXIMUM marketing exposure.

Approach this in a more positive
and effective manner:

  1. If nothing else, this is a great opportunity to check out your competition--you will have a better idea of how your home ranks with buyers as far as condition and pricing.  If buyers are in your community looking at homes, they obviously are agreeable to living in your neighborhood.  So, condition and price are the two main points that remain in which you will need to ‘excel’ against your competition. 
  2. No matter the results of individual open houses in your area, hold a 'neighborhood' open.  Buyers are searching more 'hyper-locally' (basically, they've narrowed their search down to a neighborhood or two), so holding a neighborhood open is like going to the candy store for those buyers!  Buyers LOVE neighborhood open houses and being able to see the variety, quality and even perhaps, meet some of the neighbors to see that, indeed, this IS the neighborhood or complex for them. 
  3. Your neighbors now have a vested interest in getting their home sold too so, your street has probably never looked so well manicured!  This beats having to ask the neighbor to mow his lawn or clean up the toys in the backyard!
  4. Write a letter to the buyer--include in it what you love about your home, the school assignment and the neighborhood--you can even be specific and mention that your next door neighbors are the best you've ever had; explain your reason for moving unless, of course, it is a negative personal reason.  Make this about lifestyle too--buyers are interested in lifestyle; perhaps that's why they selected YOUR neighborhood!
  5. Save neighborhood newsletters and directories to share with your potential buyer.  In your directory, highlight the neighbors that are near and dear to you and leave it on the counter for potential buyers to see.  Most of my buyers want to be in friendly neighborhoods and for many, this is top priority for them! 
  6. Encourage those coming through you home to take a look at the other homes--if the neighbor's home sells, it is a POSITIVE for the neighborhoodRemember, if yours is in the best condition and priced well, they'll quickly see that too.


    Don't look at this as a competition, look at it as support in getting your home sold!

Comments(28)

Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Debe -- a great perspective.   Synergy can be a very good thing.   

May 30, 2012 09:11 PM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

A little healthy competition never hurt anyone.  It makes athletes perform better and it can make the home selling process more effective.

May 30, 2012 09:45 PM
Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552

I'm not sure the odds are really changed much.  If there are two homes for sale, presumably there will be two agents mounting two marketing campaigns.  Each will draw prospects to see both homes.  That's where the one with the better price or condition will have an advantage.

May 30, 2012 10:15 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Debe, there is a negative side to this when too many homes in a neighborhood are for sale. However, your points highlight the positive side by giving more exposure to the property.

May 30, 2012 10:23 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign
Debe-all excellent points especially if the seller makes sure their home stands out in the competition.
May 30, 2012 10:54 PM
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

Debe, as usual an excellent post in the FAQ series. Buyers AND sellers in your market profit from your wisdom and experience. And too, this is good information in any market!

May 30, 2012 10:55 PM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Debbie this makes so much sense and should defintely be viewed as a positive instead of negative and probably will receive far more showings than being the lone listing.

May 30, 2012 11:17 PM
Justin Dibbs
Fairway Independent Mortgage - Ashburn, VA
Mortgage Advisor

It is funny how buyers become paranoid when they see multiple For Sale signs in the same neighborhood, lol.

May 30, 2012 11:39 PM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa
More signs create more exposure...and the race is on to be the best on the block. A little friendly competition and motivation is good for everyone and it IS a reality check!
May 30, 2012 11:41 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Don't forget the dynamic in marketing where the four corners of an intersection each have a shoe store...Statistics prove that each one gets a piece of the shoe trade because the consumer knows that within these 4 corners, their shoes await...relate this to the fine post of yours...thank you

May 31, 2012 12:24 AM
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

Yes, there is more exposure and more importantly there is a negotiating edge available for the one willing to grab it and move on.

May 31, 2012 12:50 AM
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

The motivated seller will priced to sell in competitive situations. This also drive in additional buyer traffic to see the homes in the neighborhood.

May 31, 2012 01:01 AM
Adam Brett
The Adam and Eric Group - Fullerton, CA
The Adam and Eric Group, Fullerton's Finest

I love your posts Debe, always have valuable answers to questions that we see being asked all the time. Thanks for posting!

May 31, 2012 03:44 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

It's a good thing, IMHO.  More buyer traffic, for starters.  And if the other property or properites are NOT in that great of shape in comparison, it sure does justify a higher price.  If two houses on the same street are for sale and one is priced less but doesn't have it all, but the other house is priced higher, but does have it all, some buyers will look at the has it all house and buy it.  They don't want to do what it takes to get it all!

May 31, 2012 03:56 AM
Nancy Conner
Olympia, WA
Olympia/Thurston County WA

Great topic!  I think the extra exposure to the neighborhood is an overall plus - unless the first house just doesn't stack up well in condition and price.  But if that is the case, the new listing can be that perfect reality check needed.

May 31, 2012 05:04 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Debe, I tell my sellers it is good news and bad news. Hopefully it will bring more activity to the neighborhoo and second it gives us an opportunity to one up the neighbor on pricing or concessions. However if the neighbor house looks better than ours we may have to wait until it sells to get our buyer.

May 31, 2012 06:31 AM
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON
Competition can sometimes be good and bad at the same time. Motivated sellers should priced to sell.
May 31, 2012 12:41 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Thanks for your wonderful comments, everyone!  I am so sorry to be SO delayed in getting back to you but, it's been wonderfully busy here in Charlotte!  (For which, I am NOT complaining!)  

To the point that each seller determines whether or not it's a 'good thing' - YES, you're absolutely correct--if you're price right, in great condition and motivated, you have nothing to worry about.  Conversely, if you're priced too high, you will sit by and watch your neighbor's homes selling faster than yours if they are.  I've seen some unmotivated sellers watch several 'shifts' of home sales in their community but, are just waiting on that buyer willing to pay more than market value--which will NEVER happen no matter how many homes come and go in that particular market place.

Jason - How do you think I got my Pollyanna nickname?!!  

To the point of multiple for sale signs in one community - that is the norm here!  One of the communities which I serve here had 7 homes on the market at the beginning of the season--now, there's only one.  That one is over-priced and will sit there until they correct the price.  It's been standing alone as the sole home on the market in this particular community for over 30 days now.  A price correction is all it needs to SELL--along with excellent marketing, of course!

May 31, 2012 03:19 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Debe - You are an optimist, and I love the way you look at this.  I also really like the idea of having the sellers write a letter to the buyer.

May 31, 2012 03:19 PM
The Brewer Team - Benchmark Realty
Benchmark Realty - Franklin, TN

If it's a sellers market it will mean more buyers will probably see both houses, if it's a buyers market, it means pricing competition. I think it helps both houses because each will have more traffic.

Jun 01, 2012 12:06 AM