Showings and Sales

One of our colleagues has determined a linear relationship between showings in the first week of a listing, and eventual sales price.  While we all know that overpriced listings eventually sell for less than properties priced "correctly", we know now that you can tell that right away, by the interest at the very start of the listing period.  When a listing goes live, it needs to start having showings right away, in order to be statistically likely to sell quickly and at a good price.  If people notified or searching see something that they believe is uncompetitive, relative to other listings that they've seen, they won't rush to see it.  And it won't sell for as much, then or ever.  So pay lots of attention to what you list your property at, and be very wary of the argument that "it's worth trying it first, at the higher price".  You may regret it later.

Preparing Your Home to Show

Since we are in the busiest time of year, it's important to talk about getting your home ready for sale.  If you haven't started yet,  you are really behind the eight ball.  You need to have your home available when the most buyers are looking, and that can conflict with having everything done.  I remember selling a home where the floors needed to be polished, and the people doing it came a week later than they said, and then took longer.  I missed the window of one week, where all the cherry trees in front of the house were blooming, and I think in the end we got less and it took longer.  The moral of the story?  I should have started sooner.

I made another mistake, but maybe it wasn't one.  I didn't let someone in who couldn't wait until the home was ready.  In retrospect, an eager buyer may be too good to send away, even if your home isn't at its best.  That's for you to decide.  Basic decluttering can get done pretty quickly, if you are motivated, but moving furniture, painting, and repairs can take much longer.  Again? I should have started sooner, and so should you.  If you haven't, get a yard service and declutter, paint if you have time, and fix what's broken.

We are often asked whether to undertake major repairs, or change kitchens and bathrooms.  Generally, the answer is no.  You won't have the same taste as the buyers, and you may waste your money.  Only fix what's broken, just like the old adage.  Save your money, and lower the price instead.  Remember that the average seller is 57, and the average buyer is 42, so tastes won't be the same.  White walls are out, gray is in.  Granite is out, soapstone is in.  I could go on, but you get the idea.  Do what you can with what you have.  And don't overprice!

Are You Losing Value?

Recent reports indicate that residential real estate values in our region are declining at around 10-12% per year. That means that a $400,000 home is worth $4000 less every month. Therein lies the real danger of overpricing.

Since we know from experience that the first two weeks of a new listing are the most important from a marketing point of view (since many buyers--and agents--only check for new listings when they search), it's important to begin that period at the correct price. "Testing the market" at a higher amount for a "little while" can lead to months of delay in selling the property, since it doesn't appear as new to those looking to buy, even when it eventually reaches the best price point. Once you factor in the economics of a market that's declining, you can see the true downside of waiting longer for a house to sell. It isn't just the carrying costs, or putting one's life on hold, it's dollars and cents--1% per month, as a matter of fact. And that doesn't even take into account the number of sellers who turn down the first offer (almost always the most motivated offer, and the highest), because they somehow forget that they are "testing the market", and start to think of the higher price as the dollar amount they expect to receive. If we had a dollar for every time a seller tells us later that they regret not taking the first offer, we might not even be taking listings that are too high!