How Not To Sell Real Estate
For the past few weeks I've been preparing what I hoped would be an in-depth article about what it takes to get real estate sold in today's marketplace. I've been observing the activities of good real estate agents, interviewing them about their techniques and generally begging top agents to share their secrets of success in a down market.
Son-of-a-gun if the doggone St. Petersburg Times didn't run virtually the same kind of story a few days ago. I've been scooped! Is my phone tapped? Am I being followed? Is somebody at the paper stealing my e-mails?
Since I am the proud owner of a never-say-die attitude about such things, I've reversed the story and can now give you the top ways to NOT sell property.
1. Always Overprice The Property. Nothing spells failure like overpriced real estate. Agents told me this is the number one reason for a house failing to sell today. Several top agents said that even in a slow market like we have today, if you've been up for sale more than 90 days without an offer or even the hint of an offer, your price is too high. The market is talking to you, say the agents. And what it is saying is "we're not interested in your property at the current price". When the market talks, smart sellers listen ... and act accordingly.
2. Don't Invest A Dime In Marketing. Every agent and broker I talked to this summer told me this: A house could be priced perfectly and be the best looking property on the block, but if nobody knows its for sale you'll never sell it. Every property needs advertising, marketing and top salesmanship from its real estate agent. If you're not getting it, change agents.
3. Make Certain Your House Has No Curb Appeal. Several good buyer's agents told me that prospects make a decision about a property within 10 seconds of pulling up in front of the place. Those first few seconds are vital for the seller ... you never get a second chance to make a good first impression. If your property looks shabby, you're doomed. Spruce it up and maybe you've got a chance.
4. Never Do Any Housework. You should always make sure that the inside of your property has that well-lived-in-look when prospective buyers come to call. Make sure dirty clothes are on the bedroom floor, wet towels are tossed over the shower curtain bar, and three days of dirty dishes are stacked up in the kitchen sink. Yeah, that should impress prospects. Oh, if you could get some black mildew stains growing on the ceiling in the master bathroom, that usually does the trick too.
5. Never Negotiate With Buyers. Buyers quite often want some kind of concessions from sellers. Some concessions are large, some are small. The thing is, they are often very important to the buyer. Smart sellers will negotiate in good faith with the buyer and try to resolve things in a win-win manner. Top agents tell me that sellers who dig in and won't negotiate often find themselves without a buyer.
6. Always Charge Extra For Your Fond Memories. This comment came up several times among the agents I talked with, and that surprised me. A seller's old house probably holds a lot of fond memories. Sellers seem to think those memories make the house worth more than it is. The million dollar memories of the seller are not worth a dime to a new buyer. Agents need to tell sellers to treat the sale like a business transaction. That's what it is.
7. Never Offer Financial Help To A Buyer. Top agents tell me that more and more buyers -- especially first time buyers -- often need a little financial help from the seller to close the transaction. This could require the seller to pay a few closing costs, or allow the buyer to use FHA or VA financing in which the seller has to make contributions for the buyer. It could even mean taking back a small mortgage for a short time. Smart sellers are making these kinds of arrangements for buyers.
8. Always Lie About The Condition Of The Property. Buyer's agents stressed to me that buyers today will absolutely never buy a pig in a poke. They are going to have the property professionally inspected. Since buyers are going to find out about the problems anyway, why not repair them before you put the house on the market? If you don't want to make the repairs beforehand (or afterward for that matter), then sell the house "as is" if you can -- but be prepared to adjust the price downward. Remember, to get top dollar you have to be in top condition.
9. Always Lose Sight Of Your Selling Objective. A really big time selling agent who will remain nameless at his/her own request told me that this is becoming a big problem with sellers today. The more I thought about it, the more it seemed like this is a sure-fire way for a seller to lose a deal. I was told that sellers today often lose their way and lose sight of their selling objective. Some sellers have the objective of selling so they can move to a new home, or to a new city. Others have the objective of selling in order to obtain a predetermined return on investment (ROI). The first objective is a legitimate real estate transaction and generally involves the sale of a primary home. These kind of sellers generally stay on-task pretty well. The second is strictly an investment decision and real estate is nothing more than a mechanism to reach a financial goal. Sellers in this kind of situation need to keep their true goals in mind when negotiating with buyers. Otherwise incorrect decisions can be made and the deal can come apart rather quickly.
Well, there you have 'em. Nine things I discovered about how not to sell property. Essentially, I think I knew all of them, but it's nice to know that other agents are experiencing similar things. If you know of some other ways not to sell property, send them along. I'll do a version two of this story.
If you'd like more information about real estate in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
Son-of-a-gun if the doggone St. Petersburg Times didn't run virtually the same kind of story a few days ago. I've been scooped! Is my phone tapped? Am I being followed? Is somebody at the paper stealing my e-mails?
Since I am the proud owner of a never-say-die attitude about such things, I've reversed the story and can now give you the top ways to NOT sell property.
1. Always Overprice The Property. Nothing spells failure like overpriced real estate. Agents told me this is the number one reason for a house failing to sell today. Several top agents said that even in a slow market like we have today, if you've been up for sale more than 90 days without an offer or even the hint of an offer, your price is too high. The market is talking to you, say the agents. And what it is saying is "we're not interested in your property at the current price". When the market talks, smart sellers listen ... and act accordingly.
2. Don't Invest A Dime In Marketing. Every agent and broker I talked to this summer told me this: A house could be priced perfectly and be the best looking property on the block, but if nobody knows its for sale you'll never sell it. Every property needs advertising, marketing and top salesmanship from its real estate agent. If you're not getting it, change agents.
3. Make Certain Your House Has No Curb Appeal. Several good buyer's agents told me that prospects make a decision about a property within 10 seconds of pulling up in front of the place. Those first few seconds are vital for the seller ... you never get a second chance to make a good first impression. If your property looks shabby, you're doomed. Spruce it up and maybe you've got a chance.
4. Never Do Any Housework. You should always make sure that the inside of your property has that well-lived-in-look when prospective buyers come to call. Make sure dirty clothes are on the bedroom floor, wet towels are tossed over the shower curtain bar, and three days of dirty dishes are stacked up in the kitchen sink. Yeah, that should impress prospects. Oh, if you could get some black mildew stains growing on the ceiling in the master bathroom, that usually does the trick too.
5. Never Negotiate With Buyers. Buyers quite often want some kind of concessions from sellers. Some concessions are large, some are small. The thing is, they are often very important to the buyer. Smart sellers will negotiate in good faith with the buyer and try to resolve things in a win-win manner. Top agents tell me that sellers who dig in and won't negotiate often find themselves without a buyer.
6. Always Charge Extra For Your Fond Memories. This comment came up several times among the agents I talked with, and that surprised me. A seller's old house probably holds a lot of fond memories. Sellers seem to think those memories make the house worth more than it is. The million dollar memories of the seller are not worth a dime to a new buyer. Agents need to tell sellers to treat the sale like a business transaction. That's what it is.
7. Never Offer Financial Help To A Buyer. Top agents tell me that more and more buyers -- especially first time buyers -- often need a little financial help from the seller to close the transaction. This could require the seller to pay a few closing costs, or allow the buyer to use FHA or VA financing in which the seller has to make contributions for the buyer. It could even mean taking back a small mortgage for a short time. Smart sellers are making these kinds of arrangements for buyers.
8. Always Lie About The Condition Of The Property. Buyer's agents stressed to me that buyers today will absolutely never buy a pig in a poke. They are going to have the property professionally inspected. Since buyers are going to find out about the problems anyway, why not repair them before you put the house on the market? If you don't want to make the repairs beforehand (or afterward for that matter), then sell the house "as is" if you can -- but be prepared to adjust the price downward. Remember, to get top dollar you have to be in top condition.
9. Always Lose Sight Of Your Selling Objective. A really big time selling agent who will remain nameless at his/her own request told me that this is becoming a big problem with sellers today. The more I thought about it, the more it seemed like this is a sure-fire way for a seller to lose a deal. I was told that sellers today often lose their way and lose sight of their selling objective. Some sellers have the objective of selling so they can move to a new home, or to a new city. Others have the objective of selling in order to obtain a predetermined return on investment (ROI). The first objective is a legitimate real estate transaction and generally involves the sale of a primary home. These kind of sellers generally stay on-task pretty well. The second is strictly an investment decision and real estate is nothing more than a mechanism to reach a financial goal. Sellers in this kind of situation need to keep their true goals in mind when negotiating with buyers. Otherwise incorrect decisions can be made and the deal can come apart rather quickly.
Well, there you have 'em. Nine things I discovered about how not to sell property. Essentially, I think I knew all of them, but it's nice to know that other agents are experiencing similar things. If you know of some other ways not to sell property, send them along. I'll do a version two of this story.
If you'd like more information about real estate in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
-30-
posted by Terry Ward at 6:15 AM
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