Isn’t this just the most common statement of the past 3 years.

Aside from all you hear in the media.

Aside from what you hear from your friends and family.

Aside from what you hear from agents and mortgage brokers.

What you are left with is Sacrifice, Patience and Technique.

In order to understand why your home has not sold, it is important to view the audience that is looking at your home.  Blaming your agent or blaming the market is just….not working with the limitations you have been given.

Fact is that when my clients say - do you think we can move this home fast and am I up to the challenge? The question I ask them, if they are willing to do the same. Why?  I, as a realtor can host hundreds of open houses, spend endless amounts of money on marketing campaigns, be the nicest guy, always available, always up-selling, reaching out to endless amounts of people within or outside of the US.

If my limitation is an overpriced home, I will never succeed.

If my limitation is an unkept home, limited showing hours, animals smells, or other “unpopular” scenarios - it always comes down to price.

Why is price so important?

Not because realtors like fire sales to make a quick buck. (although there may be some that do)

Price creates a category that buyers see potential, feasibility, value.

The price you list historically was based on your close by sales in the neighborhood. It still is, but keep in mind that buyers do not just look in your neighborhood. They drive all over - from city to city based on:

  • Price range
  • Bedroom/Bath count
  • Location
  • Interior/Exterior features.

With that in mind, lets dissect the buyer profile. Please keep in mind that this profile is very different for every person, as well as the likely hood of the your prospective buyer will vary on your home.

Example: 2 story modern home, spiral staircases lead to the upper level, a 3 tier deck will give you much summer enjoyment. This home boasts 4 bedrooms, 2.1 baths, and is listed at 899,900.

What can I expect from the most probable buyer:

  • The buyer is probably not a first time home buyer
  • The buyer either has children, or likes a lot of space
  • The buyer will be capable of doing lots of stairs
  • The buyer is not an investor
  • The buyer is looking at competing homes between $700-$1mil
  • This price range has a limited amount of buyers, as the audience for this price point is smaller, but the amount of homes listed about $700 may be large.

Based on this information, what can I do, as an agent to provide the most attractive scenario for my seller to be successful:

  • Physically preview the homes in the nearby area that are listed above and below the $899k mark to determine the impression buyers are taking into consideration. (the nearby homes just serve as a sample)
  • If the homes in the area are all $1mil + and are in similar shape and size as our listing, we are looking “probable”.
  • If we are the smallest home in the area, and priced in the same price range, we are unrealistic.
  • If we are the nicest home, but priced $50k over the similar properties, we need to evaluate if our “differences” are substantial enough for a prospective buyer to pursue.
  • Take into consideration media pressure on buyers to bid low, or take advantage of large home inventory.
  • Take into consideration any physical features that may be nicer in our listing, but some nicer in the comparable homes, and how can we stay in the buyer’s viewing eyes.
  • Are we easy to show? …or are there 3 pittbulls protecting the grounds at all times?

Am I scratching the surface of seller dilemma in 2008?

Example 2: 1bed/1bath Condo on 1st floor of 38yr old building. 2 parking spaces included. Coin laundry in lower level. $149,900

Based on this information here are the likely buyers approaching:

  • Buyer may be single or young couple
  • Buyer may be older that has limitations in mobility
  • Buyer may be investor looking to flip or rent and hold
  • Buyer may be parent looking for condo for college grad.
  • Buyer may be looking for a less expensive home post divorce, break up, etc.
  • Buyer may be a first time home buyer

Based on this information, my approach is to look at all possibilities that are most likely to click:

  • Neighborhood amenities for homeowner to enjoy
  • Proximity to train, town, parks, school
  • Special handicap features that the buyer may find helpful
  • Investor programs for investors
  • First time home buyer programs applicable to the complex
  • Preview the surrounding properties that are similar in profile, and see what we can do to stand out.
  • How well does our listing show compared to similar homes
  • Are we priced higher, lower, or same?
  • How do I combat fear of living on first floor (taking burglary or break in into consideration) - encourage alarm?

As you can see, understanding your audience is a key factor is selling a home.  Putting your neighbors price tag on your property because your home is “better” means very little.

Listing high because you want money, and that’s that - sorry, unrealistic.

Taking a serious look at a tactical way of exposing your home realistically, priceless.