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Sellers Have You Seen the Homes You're Competing Against?

By
Real Estate Agent with eXp Realty

Sellers Have You Seen the Competition You're Up Against?

Sellers do you often wonder why the house down the street or around the corner sold and why your home Sold Home hasn't had so much as a ridiculous offer?  Have you ever wondered why the house for sale down the street gets so much traffic and yours doesn't.  Well if you haven't seen your competition, then maybe you should.

Within every neighborhood there are dozens upon dozens of homes for sale.  And among them, open houses are routine occurences.   As a seller you should view open houses as great opportunities to:

  1. See what advantages the competition has over your own listed property.
  2. Get ideas about sprucing up your listing so that it shows better.
  3. Learn what advantages your home has over the competition and use that information to your advantage.
  4. Listen (eavesdrop) on what other visitors like and don't like about the open house they are current viewing.
  5. Identify ways that you can tweak your homes strengths so that they really standout during showings
  6. Pick up on ideas about attractive colors and color schemes (you might even be encourage to tweak your own color palette to make your home show better).
  7. Check out the comps curb appeal and upon returning to your own home, look at your home from the street and envsion what prospects might see when they look at your house. 

Open HouseOpen houses aren't just for your own home.  You should take advantage of your Sunday and Saturday afternoons to check out the competition at your local open houses.  How about on that Sunday or Saturday when your house is being shown, instead of browsing around the mall, why don't you browse around other open houses.

Who knows, you might even have an epiphany.

Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Right on!  When I list a property that is owner-occupied by the seller, I take them on a tour of active comps to help them determine a realistic asking price.  Sometimes they think their house is the best in the neighborhood, until they see that a comp has solid granite counter tops, bamboo flooring, new kitchen cabinets, etc.  Then they kind of stare with their mouths open and say ... oh.

Mar 30, 2010 07:15 AM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

With all due respect, Charita - I've tried this strategy and has never worked. Sellers will still think their houses are better than the competition. After several times of trying, I give up. I just tell them how they need to prepare the house.

 

That doesnt mean I don't go check on the competition by myself.

Mar 30, 2010 07:20 AM
Anonymous
Anonymous

I've always gotten more neighbors than buyers at my open houses!

Mar 30, 2010 07:26 AM
#3
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Cynthia I imagine it is a rude awakening for some sellers.

Loreena some sellers will think that their homes are better no matter what and by all means, we don't have a choice but to check out the competition ourselves. 

The way I view it, not all strategies work for everyone.  While it may be very effective for Cynthia, others may not find any value in this effort at all.

Mar 30, 2010 07:31 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

BTW #3, there are probably always more lookers at opens than there are buyers:).  You'd think it was protocol.

Mar 30, 2010 07:33 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

I wrote my own piece on this.  Of course we should have open houses but I think there would be a lot more buying going on if buyers accompanied by their agents had to make appointments to see houses.  However, I agree, seeing what the competition is doing SHOULD be an eye-opener for the seller :)

Mar 30, 2010 07:40 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Jane you might be right about the appointments.  Shoot me the link to the piece you wrote and I'll check it out.

Mar 30, 2010 07:56 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

I see you got there already:)  Not really the same point, but the topic rattled my cage.

Mar 30, 2010 08:28 AM
Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

Charita, I love this post, unfortunately most of my sellers fall into the catagory Lorenna mentions, I always check out the closest competition, but alot of times sellers just don't understand that current market conditions affect thier homes as well. Wait a minute, am I whinning? sorry

Mar 30, 2010 08:56 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Hey Jane.  Yeah I found it.  I can see somewhat of a parallel.  As for buyers, open houses will never replace our personal showings as for sellers, we'll still will have to do our jobs (check out the competition) whether they do or not.

Gerry.  Whining?  You?  Never.  I get your point.  Maybe it's just me, but I've been running into a bit more savvy sellers these days.

Mar 30, 2010 10:15 AM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Charita, 

Great post.  At a MINIMUM, you, the agent should know what the competition offers in comparison.  (The Buyers certainly will.)  

Having said that, I have offered to do this when we were off in list price by a large margin.  The potential seller declined saying his was much better.  So, I literally said, I am not the right agent to help you, as the most I would put your home on the market for is .75X and you are at X.  I respectfully will have to decline this opportunity.  

Being realistic is critical and maybe even the trip around won't help, but it's worth a try!

All the best, Michelle

Mar 30, 2010 11:42 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Hi Michelle.  I don't blame you for walking away.  In today's market as with any other time, we have to be creative in offering solutions.  But the sellers also have to be willing participants and open to suggestion.  Homes can't be sold without their help.  Thanks for your input.

Mar 30, 2010 12:45 PM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Charita - I see this all the time, especially when appraisals come in lower than the sales price.  I have the unfortunate task of explaining to a LA and sometimes their seller that just because they spent more than 60k in upgrades over the last three years that they've owned the home, it doesn't mean that their home is worth 60k more than the dumpy, dated foreclosure down the street that has more square footage and a larger lot.

Apr 01, 2010 04:11 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Donne sellers don't realize that they are not comparing apples to apples.  It's unfortunate that it seems that they don't want to know what they are up against.

Apr 01, 2010 04:22 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Charita - what's even more unfortunate is that most lenders couldn't care less about a homeowners upgrades.  All that hard work and money pretty much down the drain.  That is sad.

Apr 01, 2010 04:34 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Donne I think when I was responding to your comment the other day I was greeted by the Dreaded Proxy Error so I didn't finish.   But I hear you.  Sometimes sellers seem to think that the total of what they spent is just tacked on to what they think the house was worth to begin with.

Apr 02, 2010 03:37 AM
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Charita...The more educated the seller is the more successful the transaction will probably be.  We, as agents, can only tell them so much.  It is important, as you said, for them to really know what their competition is and how to make the most of their home.

You've provided excellent advice for sellers.

Kate

Apr 02, 2010 04:13 AM