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Condition Doesn't Reflect Price

By
Home Stager with Becky Fields Home Staging and ReDesign

I go to Open House to see how homeowners are preparing their homes for sale.    I am so surprise at the way they are "marketing" the listing. Do they really want to sell? Are they really expecting the price they are asking? Many homeowners have the assumption that they can place their home on the market as is and someone will come and buy it for the price they are asking. Well that was the case a few years ago but times have changed and we are now in a buyers market. Buying a home is a big investment and buyers want the best value for their money. With so many homes on the market, buyers can pick and chose.

I am based in Tracy, CA so I enjoy going to Open Houses in this area. One home I went to over the weekend, was in a nice area of Tracy, in a cul-de-sac in a newer neighborhood with Pride of Ownership homes.

The Open House home was a 2 story, 4BR/3BA home, with a nice size lot.  I was excited to see the inside. Sadly it was not what I would have expected for the asking price. Not surprisingly the home had been on the market for over 4 months and the price had been reduced around $50,000 from when it was first listed. Was it originally priced too high? Seemed like a good price and I'm sure the agent had done his job and showed the owners the comps when it was listed. To me the home was priced right for the area but not for the home's condition. It wasn't showing well and there were some "problems" or reasons for buyers to ignore this home.

Although the family was still living in the home (very common) it had a lot of furniture in some rooms and other rooms were empty or used as storage. It had some "bad" color choices and a lot of personal clutter. If this home had been staged , I'm sure this house would be at the top of buyers "list".

So what must these homeowners do in order to sell without another drastic price reduction?

  • Rearrange the furniture throughout the home so it creates a sense of flow and gives buyers a idea of how each room could look.
  • Simplify the home by decluttering and depersonalizing.
  • Neutralize the colors in some of the rooms. Touch up paint in other rooms so the home looks "fresh".
  • Accessorize rooms so they give buyers a sense of interest and desire.  A place where buyers can see themselves living with their belongings.

By just changing a few things here and there, this home could be a great "showplace" that will make buyers offer near or at their asking price. If they keep the house "AS IS", the only way it will sell is with another price reduction and even then buyers may offer them less than that.

I always tell homeowners...Don't lower your asking price; raise your home's condition instead!

 

Show All Comments Sort:
Michele Glavanovits
RE/MAX Affiliates - Naperville, IL

Hi Becky,

 You are so right.  This is a very different time in real estate.  Homes are not flying off the market.  Even the cream of the crop may sit on the market for a very long time.  We need to educate our sellers and discuss with them, if they are unaware, of the market we are in. 

 

Michele

Mar 20, 2007 11:43 AM
Irina Netchaev
Pasadena Views Real Estate Team, Inc. - Pasadena, CA
Pasadena CA Real Estate

Hi Becky,

I am always forever shocked when I see these types of homes for sale.  It's amazing when the homes are not only not staged, but are also not clean.  It seems to me that people take better care of their cars prior to putting them up for sale - by detailing them inside & out - then their homes.

I'm surprised that agents do not discuss staging and their benefits at length with their clients.  I understand that some sellers are hesitant, but it's our job to educate.  I've put together a staging show to showcase the effects of staging and send it to sellers as homework prior to me heading out to the listing appointment.  Here it is:

Staging Show

Mar 20, 2007 12:02 PM
George Tallabas
RE/MAX Advantage - Nampa, ID
Idaho Real Estate
Hi Becky...you are right on.  I am a little surprised that some sellers will tell a Realtor "Our home is lived in and buyers will just have to understand that"!  People will detail their car and shine it all up to resell it but won't put much effort in preparing their home to sell.  Amazes me and always has.  I hope all is well and have a great rest of the week.
Mar 20, 2007 01:07 PM
Janet Thompson
First Team Real Estate - Aliso Viejo, CA
"Let me help you with your real estates neeeds"

Becky, 

You are so right with this blog!   It is amazing what homeowner find to be "okay" with their homes. As the listing agent, it is difficult to tell the seller what the home really looks like.  As difficult as it may be, it is our job. 

Janet Thompson, Aliso Viejo, Ca.

 

Mar 20, 2007 01:07 PM
Kelly Sibilsky
Licensed Through Referral Connection, LTD. - Lake Zurich, IL

First, let me say that I'm all for staging! It works!

However...there are some sellers that are completely opposed to staging and we need to respect that. It is their house after all.

Why won't they do it? The reason they are opposed to staging is not because we don't educate them about the benefits of staging but because they just don't "want" to do it. Maybe they like the way their house looks and think that others will too. Maybe they are elderly and don't want the disruption of fixing it up. Maybe they have small children and just can't "live" like that. Who knows?

At any rate, veteran real estate agents know that there's really only one reason listings don't sell and that's PRICE. We've all sold total dogs that were priced right! And in this market too!!!

We need to take everything into consideration and most of all...we need to LISTEN to our sellers so that we are both on the same page! No staging = aggressive pricing!

Mar 20, 2007 01:09 PM
Adam Tarr
MavRealty - Phoenix, AZ
PC -GRI, ABR, CDPE, RSPS, ePro - Designated Broker

Well put!  We will have to use your advice with OUR sellers!  Just because the neighbors' home sold for "X", doesn't mean yours will sell for "X+" - esp if yours is dated/'poorly colorized'/looks like a storage barn.  :)

SK

Mar 20, 2007 01:17 PM
John Cilladi
Keller Williams Real Estate - Exton, PA
REALTOR, EcoBroker, e-PRO
I have an appointment to list a home tomorrow. Thank you for a timely reminder of what it takes to sell a house.
Mar 20, 2007 01:34 PM
Desiree Daniels
RE/MAX Tri County - Robbinsville, NJ

thanks for the information.  You don't know how much i wish we had a "stager" in my immediate area.  I could use them on a weekly basis with my properties.   Here's hoping.

 

Mar 20, 2007 02:39 PM
Chris Tesch
RE/MAX Bryan-College Station - College Station, TX
College Station, Texas Real Estate

It's amazing how inexpensively some of this comes at.  It is equally amazing how well the house shows after.  There is a home listed (NOT BY ME) in our area that is cute as can be.  Junk clutters the whole thing and the refridgerator is covered with magnets and miscellaneous papers.  I take pride in my pics and would be horrified to have anything like this on the MLS, but imagine having a great starter house and not maximizing potential

 

Mar 20, 2007 02:44 PM
Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon
very well put!  I have asked previously to no avail can you tell me what a stager will cost a seller?  I am not aware of many in our area and they do not typically work in my area.
Mar 20, 2007 02:53 PM
Lizette Fitzpatrick
Lizette Realty - Richmond KY - Lexington, KY
Lizette Realty, Lexington KY MLS - Kentucky Homes
I couldn't agree more! I am always amazed that people can live in udder chaos and filth. I had one seller that I referred out because I could't bear to walk in his house. The smell was unbearable!
Mar 20, 2007 03:08 PM
1~Judi Barrett
Idabel, OK
Houses that range from one end of the spectrum to the other can benefit from preparation for showing.  Thanks for the post.
Mar 20, 2007 03:23 PM
Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes
In today's market sellers need to realize that looks matter - we tell them that if it's not well prepared to sell they are more likely to get "investor" offers which are trying to get them to take the lowest % of AVR (after repair value) - many homes are not really distressed just cluttered, not freshly painted, poor curb appeal - I believe this is one of the reasons the whole "flipping" market boomed.  
Mar 20, 2007 04:13 PM
Teri B. Clark
http://www.teribclark.com - Sanford, NC
stage stage stage!!!! Goodness knows, the word should be out to the general public by now!
Mar 20, 2007 04:18 PM
Leslie Godbold
WZGM AM1350 Independent Asheville Radio - Asheville, NC
Motivation Speaker, Radio host "Positively Living"
We as Home owners aren't always able to see or smell our home, because of our emotional attachment. That is one of the many reasons that they need a Listing Agent. Who will guide them to a home stager for the problem to be addressed, respectfully and professionally.
Mar 21, 2007 02:34 AM
Anonymous
Anonymous
I personally don't like to use the credit approach. Showing a house that is in need a of repairs requires a certain type of buyer and limits marketability. Its always better to freshen the house up first. With the advent of the many TV shows on economically fixing up a home and with the dearth of home stagers available, there is no reason to "not" show the house in the best light. Why give the competition a leg up when its not necessary. I realize that its often a case of not enough money available. I'm not sure how to solve that one but its worth looking into.
Mar 21, 2007 02:44 AM
#38
Terry Haugen STAGE it RIGHT! 321-956-2495
Stage it Right! - Melbourne, FL

Hi Becky great blog and welcome!  I just finished delivering my marketing packages to houses "for sale" around town.  It never ceases to amaze me that real estate agents list a house with deplorable curb appeal, and apparently don't offer any recommendations as to how to clean up and at least plant flowers.  Given that the first glimpse of a house by a potential buyer, is the exterior, how turned off are potential buyers when they walk up to the front door?  I myself have declined to view the interior, knowing that more of the same will greet me inside.

 

Terry Haugen

Mar 21, 2007 04:21 AM
Keith Jeppson - Salt Lake City Real Estate
Everest Realty Group - Holladay, UT
Great post Becky.  A home is sold within the first 5 minutes of showing.  If it's not staged well, chances drop by 50%.
Mar 21, 2007 02:05 PM
Judy Kincaid
Tampa, FL
Welcome to Active Rain, Becky!  What an awesome first blog.  You eloquently put into words what I am thinking everytime I tour homes on Realtor.com. 
Mar 21, 2007 02:06 PM
Luke Constantino
Brooklyn/Manhattan Real Estate - Brooklyn, NY
Residential/Commercial Real Estate Brooklyn NY

Very good points Becky, Welcome to Active Rain!!! :-)

I wish more New Yorkers wouls tage their homes....

They should call this the Pig state instead of the empire state sometimes...OMG!!!

Mar 21, 2007 02:08 PM