The right renovations and
incentives can sweeten the deal
In the hot summer months, when home inventory is low and demand
is soaring, your sellers may think that their home will move in mere minutes —
and at a price that defies even the loftiest expectations. Let’s face it: These
dreams of big prices and warp speed sales can spell disaster — and major
disappointment — for you and your clients.
Don’t worry! You’re
not doomed to this fate. With a few smart, premeditated steps — and the help of
a savvy agent — it’s easy to head off seller miseducation and common
misconceptions. Here are five simple must-know facts and tips that your sellers
need to know before their home hits the market this summer.
1. Staging matters — big time!
Every agent knows
the old adage, “Homes that don’t show well don’t close well.” But still, time
and time again we see sellers rail against the time and cost associated with
staging a home. After all, if they love their home as it is, why shouldn’t
everyone else? This is a situation where sometimes showing trumps telling. If
you have a particularly staging-averse client, take them on a two-home showing:
one where the home is staged and one where the home is not.
Be sensitive, but
firm. Their decor may be a beautiful expression of their personality, but
sometimes less is more. You can also download and share Trulia’s 10 Hardcore Staging Tips for Sellers so that they
can reference it before every open house.
Also remember to
stress that when the warm weather comes, it’s as equally important to show off
the outside of the home as it is to highlight the inside of the home. During
the summer selling season, buyers are more likely to value things like a
stellar backyard, a great (but low-maintenance) garden, or incredible curb
appeal.
2. The market sets the price, not the
owner.
It’s understandable
that many home sellers think that their home is above the price that the market
dictates. Sentimental value often translates into an inflated sense of the
home’s worth, but when it comes price, the winning opinion is always the
market’s opinion. Agents know it’s impossible to effectively price a home
without taking into account the competition. Unfortunately, too many sellers
don’t.
First, it’s
essential to determine how much the seller thinks their home is worth. If their
expectation is wildly inappropriate, it may be worth taking the clients to see
a home that is on the market and priced at their expectation. Then, take the
seller to a comparable home that is priced similarly to where you feel their
home should be priced. Take the
time to both educate them on the competition and give them expert home pricing
tips to help them understand your pricing strategy.
3. Small renovations may mean big
bucks later.
In many cases, the
cost of a home repair is less expensive than a potential buyer perceives the
cost of the repair to be. If buyers overestimate the cost of fixing the problem,
it may negatively impact the offer amount and end up costing the seller more in the long run. Be upfront with your seller clients when
you spot unsightly blemishes that could cost your clients the deal.
Before you list and
start marketing the property, counsel your sellers on the improvements you know
will make a difference when it comes to price. If you need a starter list
of simple ways to boost a home’s value and its showing potential, download our
guide on the 10 ways to boost your home’s value to share with
your sellers.
4. Incentives can help close the deal faster.
Offering practical
incentives might not sound sexy, but those that fill legitimate buyer needs
have the power to differentiate a listing from the competition and attract just
the right attention needed to get the home sold for the right price.
Talk to your
sellers early about how they might be prepared to sweeten the deal if the right
offers don’t come rolling in. Talking incentives early and building them into
the marketing plan can arm both agent and seller with the ammunition to jump
potential marketing hurdles and beat out the competition for a fast sale.
5. Real estate is a local business.
The last few years
have turned real estate headlines into high-profile news. Home prices are on
the rise. In fact, last month home prices were up 8.1 percent year over year. While this is
great news for the country as a whole, be sure to remind your sellers that real
estate is a local industry and that asking price isn’t everything. To do
this, consider posting your own local market updates on your personal real estate blog.
For many sellers,
seeing the numbers is just the ammunition they need to see to agree to the
right price.
Tell us! What would you add to the list of seller must-knows?
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