In this scenario, let’s assume that your home was listed last October. Thus, it has been on the market for about five months. (This scenario is based on a nice home that is currently on the market. It is NOT my listing but the scenario represents a common problem.)
It was built in 1992. It is about 3,000 square feet, 5 bedroom, 3 baths. It has an attached three car garage. It is located on a beautiful hillside lot in a nice residential Colorado Springs neighborhood. The home is vacant.
It was originally listed for $349,000 in October. In November, the price was dropped to $330,000. To put the price in context, during the course of the listing, the median sales price for Colorado Springs has been about $240,000. Just in the last 7 days in Colorado Springs, 251 houses have sold (closed) and 230 homes went under contract. This house was not one of them.
You are a motivated seller. What should you do?
- Nothing. Just wait for the right buyer to come along.
- Lower the price to compensate for the kitchen.
- Offer a credit at closing so that buyer can choose their own appliances.
- Increase the listing price and state that you plan to replace the appliances.
- Make sure that there is not some other reason that the home hasn’t sold.
No matter which answer you select, you should always make sure there is not some other reason the home hasn't sold.
In this case, the seller decided to raise the price $12,000. The appliances will be replaced by mid-April and they are offering a $7,000 credit towards new counter-tops at closing.
Selling a home is not a science. There is no magic formula that will work every time. However, I would have probably offered the seller different advise.
This home isn't considered a luxury home. Yet the "cheaper" kitchen appliances and counter-tops are not as common in this price range.
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This is a home that could have benefited from professional staging. As the saying goes, "Staging costs less than the first price reduction."
There is nothing wrong with white, light colored kitchens. However, they don't look all that great empty. Vacant homes do not feel warm and inviting. It is not too late to stage this home.
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The seller could have changed out the appliances BEFORE putting the home on the market. If the buyer feels compelled to make the changes, it will cost the seller's more than the cost of the appliances. (This holds true for carpet and paint also)
- Speaking of paint. Maybe the seller should simply paint the kitchen walls? Based on this picture, the gray counter-tops are a cool color. Yet the walls, are a warm yellowish color. The cabinets are warm also. Shoot...I think I'd consider painting the walls and the cabinets white. However, replacing the counter-tops to a warm, dark color would also work in lieu of painting everything.
- The home should have been priced taking into account the kitchen's features. I don't know about other people, but raising the price of the home after it has been listed just doesn't set too well with me. (The exception would be new construction.) Remember, it is better to be one of the lower priced homes in a great neighborhood rather than the most expensive home on the block.
- I would also recommend the seller be patient. This home has 5 bedrooms and 3 bathrooms. Realistically, this size of home will appeal to families with children. More often than not families relocating prefer to avoid moving in the middle of the school year.
What do you think? If you were the seller, what would you have done?
p.s. This is NOT a horse property. If you are interested in finding out more about this great home, send me an email and I'll provide you with the listing agent's information.
Sincerely,
Sondra Meyer Peterson, CPA
Real Estate Photographer
Home Stager
Colorado Horse Property Specialist
Colorado. See It. Experience It. Live It
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