So, you're ready to sell your house.
You've been watching the market for quite some time. In fact, if you are like most homeowners, you've put a lot of careful thought into the decision. You didn't just wake up one morning and decide you wanted to sell. Perhaps you've been considering it for weeks, months, or even longer.
Just about everyone has the same goal when placing their home on the market for sale: Sell it quickly for the highest dollar amount with the best terms and the least hassle. Think about it for a half a second. That's what you want, isn't it?
You've already figured out that you don't have the time and energy to do-it-yourself. Sure, there are websites out there like ForSaleByOwner.com and FSBO.com where you can advertise your home all by yourself. However, you realized that this does not give your home the most exposure to the marketplace and you'd be missing out on potential buyers. Yes, you can pay some companies a small flat fee to put your home advertisement on the MLS. However, you'd still be stuck scheduling showings of the home, negotiating the deal yourself, and likely end up frustrated and netting less money than if you worked with a REALTOR (even despite commissions). CONGRATULATIONS! That's step one.
Having made the decision to work with a real estate professional, you've called up several REALTORS and asked them to visit your home. Each of them prepared what we call a CMA or Comparative Market Analysis to help you price your home accurately and competitively to get sold.
WAIT JUST A SECOND! You shout.
As you increduously stare at the dollar figure presented to you by the agent, you stammer:
But... But... My Neighbors Got $X for Their House!
- THEY SOLD 2 YEARS AGO
The market was different back then. Sales from 2 years ago are irrelevant to today's market. Sales from 6 months ago may be irrelevant. Does it matter that a year ago, you paid less than $3/gallon for gas? That doesn't affect things today when you pump $3.82/gallon petroleum into your tank. The real estate market changes rapidly and today's buyers do not care what your neighbors sold their home for in the past. They never knew your neighbors. Like you, they just want to get the best deal possible.
- DID YOU EVER GO INSIDE YOUR NEIGHBOR'S HOME?
Two houses can look practically the same on the outside, yet there can be a world of difference inside. The same square footage, the same number of bedrooms and bathrooms, the same layout -- these are the big things to consider before looking inside the home. Buyers want certain basics and narrow their search based on these broad criteria. However when it comes to buying, it's the little things that matter. Remember when you bought your home? It was the granite counters, the hardwood floors, the remodeled bathrooms, and the fresh paint that sold you. These details can make the difference between a 4 bedroom home for $450,000 and the same model for $569,000!
- IT'S NOT A COMPETITION
Some people view all of life as a competition. Keeping up with the Joneses. Do you want to sell your house so you can move to the next one? Or do you want to impress your neighbors by getting the highest price ever? Why did your neighbor's home sell for the price that it did? How long did it sit on the market? What were the circumstances? Why do you need to sell? What's your timetable? Ask yourself these questions. Maybe you have more equity and can afford to sell for a lower price. It's not a competition. Nobody will think that you are a loser because you sold for less than your neighbor. Even if they do think so, who cares? You're moving away and never have to see these neighbors again!
When interviewing REALTORS to sell your home, you may find that there may be one or two who tell you what you want to hear -- "Sure, we can price your home at $X." You may be tempted to use their services. Pricing your home at $X and selling your home are two different matters. Sometimes, to get your home sold, you need to hear the cold, hard truth.
There are 5 things that are important in a home sale: Location, Location, Location, Timing, and Price.
You can't change the location. Timing is what it is and you may not have a choice.
Concentrate on pricing it right.
Read the following blog posts:
Come on Down! You're the Next Contestant on The Price is Right
If you want my love then take my advice... Adjust Your Price
If you are ready to sell your home, here's a treasure trove of advice: Blog Articles for Sellers
Follow this advice, and soon your neighbors will be talking about how quickly you sold your home in this challenging market.
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If you plan to purchase or sell a home in the Northern Virginia or D.C. area,
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Hi Brian,
Yes, that is what I hear all the time. Sellers still do not get it, how much the market has changed. I try to explain it to them and then ask "do you want your home to sell quickly or do you want it sit on the market for month after month". It still surprises me how many want to "try it at the higher price for awhile and let's see what happens".
Brian - Well said. Sellers still find it difficult to comprehend the market and the reality of pricing.
I just had these same objections yesterday (just when you think this is getting close!) Pulled comps, owner argued, no not my house! I had an appraisal last year :tire screech:
But... But... My Neighbors Got $X for Their House!
That is the thinking of home buyers who use emotion to try to understand home pricing.
Agents know !!
Hey watch what you say about the Joneses. We aren't always the culprits :-)
This is a very informative post. I hope many sellers read it.
Brian -- Love the gas price analogy. . .things change, the market will control the price and keeping up with the market is key! Thanks for a great post, again :-)
Brian I love this post! Also I am wondering how you find the time to go out with your bee bee gun and find FSBO signs when you are selling so many homes - LOL :)
So sad but true... you guys have a tough job of giving sellers the bad news on the true value of their home. I get that alot when trying to refinance them and give them realistic numbers and they sometimes get upset with me when I try to give conservative numbers on refinancing.
Great post. I believe every agent hears those words many, many times.
I just had a seller that listened and they sold in 2 weeks for nearly full price and others are still on the market. Great advice now will they listen.
Brian - As always an educated consumer is our best customer ... Its very obvious that you would go to the end of the earth to educate your's ... another great educational post for the consumer.
Funny, Sellers don't get it that prices have fallen from where they once were, and buyers don't get it that Buyers' Market does not mean houses are being given away as door prizes.
Brian: My most recent listing in Centreville, VA was under contract in 14 days(after rejecting other offers...yes he got multiple contracts). He priced the house according to what had sold in the last 30 days in his neighborhood. Looking at the most recent NVAR trends, he is happy he did so. Another downturn for Fairfax County townouses.
Brian, looks like a few agents took out there frustrations on the FSBO sign.
Brian -You are so on point with this post. Like you said,pricing your home for x$ and selling your home are two different things. Great post.
Brian,
Excellent article to help sellers understand one of the most important steps in the selling process~ listing at the right price.
Jo
Brian, great discussion about what sellers need to know. NEVER underestimate pricing it right which sometimes seems like black magic from a seller, agent, or appraisers perspective. In the end with the right presentation and promotion the market will decide.
Brian, great post and I agree with you completely. I hear all the time "but the comps down the street" and when I look (because I only pull the last 6 months), those comps down the street are over a year old. No good in today's market.
Brian,
I've seen all sorts of signs shot up along the rural roadside, but that's the first time I've seen a FSBO sign in that condition!
Mike in Tucson
CYNTHIA: Ah, the "let's try it at the higher price" routine -- a sure sign of a non-motivated seller.
GARY: Thanks for your comment.
RENEE: Were you able to overcome that argument and price it right?
LENN: Emotion needs to be divorced from the home pricing and selling arena -- that's a big reason for hiring an agent in the first place.
CINDY: Very funny! Nothing personal, of course.
MELODY: Thanks. I hope so too!
LORI: Thanks for your flattering comment. I'm glad you like the post.
BILL: Of course, I would never shoot up those signs!
NAOMA: It can be a constant struggle.
KAREN: Thanks for your comment. I don't know an agent who hasn't heard this phrase.
TERRY: Isn't it great when your clients listen to you? Things work out and homes sell!
KATHY: Thanks for your delightful comment. I appreciate it.
ROSARIO: It's a tough job educating the world!
CHRIS: Congratulations on getting the home sold quickly!
ROB: Ha! Must have been some really angry agents!
LANRE: Thanks for stopping by and commenting.
JO: This advice cannot be emphasized enough!
GARY: Thanks for adding your comments here. Definitely an important discussion to have with clients.
LANITA: Comps definitely need to be recent. Sometimes in a shifting market as recent as 30-60 days. What a property sold for over a year ago has little bearing on today's prices.
MIKE: I guess some agent who didn't get the listing really got upset.
I love this post... everything in this world comes down to a competion in one way or another.
JUDY: Thanks for your comment. It does seem like everyone always wants to be in competition with someone else, no matter what the arena.
Brian,
Great spot on points- love the pics you used to illustrate. I think many people compete, this is so apparent in the suburbs and even in other types of communities. I even see myself do it, if my lawn is getting just a little bit higher than the other neighbors, even if it was cause I mowed a day or two before, it starts to make me feel uncomfortable, and I'll push up the date, even if the lawn doesn't look horrible, because I don't want to be odd man out.
But bottom line is real estate is a financial and business transaction, but one that is very personal. Your comments are right on target and there are things that are beyond control, but pricing and condition aren't.