I’ve been thinking….

Between the New Year, and last weeks snowpocalypse, a lot of day to day real estate work was frozen in its tracks; it forces me to think.

One thing that didn’t change was the steady stream of other people thinking about selling their homes, “When the weather is better.” In the process, I’ve spoken with a lot of people who’ve had less than stellar experiences with agents. We’ve heard stories from buyers and sellers about attempts to engage in real estate, but not having appropriate, experienced representation. There’s always a wide variety of issues that can come up, but my observation is that inability to accurately price a home is an area that can affect any client, whether buying or selling.

Pricing to Sell

Experienced professional Realtors know what happens when a home is overpriced.

• Serious buyers don’t look.

• “Looker’s won’t like.

• Agents that show are less experienced.

• Deals (in the event they happen) are more likely to fall apart.

Even if a skilled Realtor is involved, pricing can be less black and white and more grey. In any case, there should be an underlying strategy based upon the level of seller motivation and their concerns. When presented with a price range, a motivated seller typically chooses a lower price and is hoping for a quick sale. The less motivated seller may price the home higher, but if pricing is done correctly, the price range is small 3-5% usually, and the home should still sell.

Understanding Markets

The unfortunate thing is that home sellers listen to the news. In any market, its important to understand that all real estate is local, and the actual market analysis of similar homes nearby(comparables) may not reflect the overall market that makes the news. Even if the market immediate area is reflective of the overall market, the condition of the property could affect (positively and more often, negatively) the market that the property is in. With years of experience and thousands of deals under our belt, we don’t have a hard time helping home sellers understand that the price of their home is based on area, condition, and what type of buyer is most likely to pull the trigger.

Less Is More…

In some markets, pricing “on the money” excites more buyers and instigates a bidding war. That seems to be extremely prevalent in today’s housing shortage. Getting left brain (analytical types) to understand this strategy can be a challenge. Public opinion sometimes misconstrues this idea by suggesting that offers above list indicate the home is under-priced. While that’s possible, the past year our aim was to price homes exactly where the comparable sales suggested the price should be.

Just like spending hideous amounts of money at a carnival to “win” some cheap stuffed animal or meaningless trinket, many home buyers’ desire to win takes over when they’re bidding on a property they want. They react on emotions. In 2021, we received more than one offer on 93.6% of our listings, and were able to elevate pricing and reduce seller contingencies. We regularly saw between 12-27% above list price. It was so crazy that in over half of the remaining listings, we were able to elevate the price above list.

The Scientific Method

My field of study in college was in science. What has surprised me in my real estate career is how much the skills learned in science classes are applied in real estate. In grade school, high school the scientific method taught leaves off peer-review and is often times broken down to 6 steps.

• Ask a Question (like….’how much is it worth’)
• read and analyze existing content (check out other estimates, starting with the county assessor).
• develop a hypothesis (like come up with a price range)
• experimentation (like put it on the market)
• analyze the data (consider the days on market, sale price, number of offers relative to the market)
• draw conclusions & communicate (determine the ‘ups and downs’ of the strategy and let the world know that YOU DID IT!

Whether they realize it or not, ALL SUCCESSFUL REALTORS DO THIS!

What the public usually doesn’t understand is that the average Realtor makes less than the poverty line. The conversations I’ve had with home buyers and home sellers really has me thinking about what separates successful Realtors from the rest, and there are many things; enough for another blog post.

Without a doubt, a major variable is accurate pricing.

Early in my career the answer was different. There was barely an internet, and no social media. A sign in the yard saying ‘open house’ was an opportunity for a listing agent to introduce their listing to the world, meet unrepresented buyers, and ‘nosey neighbors’. Home seller’s would ask, “Are open houses worth it?”

My reply was simple: Open Houses were just a tactic that Realtors had been using to meet unrepresented buyers and your neighbors. They weren’t necessary to sell the home. Despite being a user of the tactic, some home seller’s didn’t want to vacate on sundays and needed to know if it would hurt them to not allow an open house.

My…. how times have changed.

Since 2004, the real estate technology game has changed, and created a shift in the marketplace. Unlike years gone by, buyer’s know about new listings to the market quickly. Some home buyer’s claim to be addicted to home shopping and check for new listings several times a day. Today, a list of open houses can be found on various websites and social media platforms that buyer’s can access directly: including maps and property history. In seller’s markets like this year it’s more common that a buyer will look at a home at the open house, THEN call their Realtor. Other times they view the home with their agent and then double back with friends and family to spend more time taking it all in.

Seller’s Market Must

In the world of low inventory and multiple offers, our open houses have given us a strange benefit to meet the folks making offers, find out who their agents are, and help them understand what the seller’s want. Buyer’s come in asking questions about how they can win out against other buyers. It gives listing agents an opportunity to vet the buyer and find out who REALLY likes the property.

Homeowners vary.   That’s what we’ve learned after helping to sell their homes for the past 17 years.   The extremes are comical:

• the homeowner that thinks everything is fine the way it is.   “If the G– D—– buyer’s want more they can do it themselves!”
• the homeowner going to every extreme to attract the buyer.  ” We’ve only got one shot at this!”

This post is for both.   There’s the over-achievers and the under-acheivers.   Of course, theirs also the condo, loft or villa owner that relishes in not doing anything outdoors.  They’re not completely out of the woods though.

When somone is thinking about selling a (single family)home,  the best thing to do after they call their Realtor, is walk outside and look at the home from the street, take a picture, and look at it with a critical eye.  Buyer’s have a critical eye, and the more items that are addressed and looking good, the more excited buyer’s can get.

Since its springtime now, the rush is on to get the home dressed up and on the market before the market cools.   No one knows if or when the market will cool, but often its weather dependent.

Clean / Powerwash / Paint

Often times in looking at “new things” to do do spruce up a home for sale, people forget that cobwebs and dirt on your fixtures, siding, and doors take the crisp look away from your house.    That part of spring cleaning is important.

Door Hardware and Lighting

We typically don’t think about door handles as long as they’re working.   Getting ready to sell, a homeowner should look to see if they’re stylish and in good condition, and even if they match a house.   The standard brass finish door handle can also take away from the look, and a cheap replacement that’s brushed nickel or bronze tone.   Often times, picking a new lockset and a sconce light that goes with the new lockset can make a huge difference in the buyer’s perception of the house walking up.

Trim  or Plant Trees

Spring is a great time to plant new trees.   Fall is a good time to trim, Usually its better to plant a tree a few years before you sell, so you can get enjoyment from the tree, and know when its looking its best.    Unfortunately, tree planting is sometimes the thing that gets put off, and never done.   A fresh tree planting that’s properly placed can add a nice focal point.

Mulch

Depending upon when you’re going to sell, fresh mulch is a must!   A nice layer in beds and around trees looks great in photos.  We recommend black, due to the high contrast and crisp look.  Even if the home didn’t previously have mulched beds.    Often times mulch beds are understated, and when you’re getting ready to sell, adding to your beds (depth and / or area) can add dimension to the front yard and curb appeal.  Making the beds more noticable for those approaching can form the opinions about the overall condition.   Conversely, if a home looks tired from the outside, the buyer’s concerns grow, and it can shape the overall showing.

Flower Boxes

Adding a pop of color around windows is popular!   Most landscape centers or home improvement centers offer flower boxes that can clamp onto a window sill, and its a quick, easy and affordable way to dress up your curb appeal.

Containers Gardens

Greenery can add to the story when selling.   Raised beds, large pots, verticle gardens can be placed, either in front or back, to show off the utilitarian features of a home, and serve as a focal point for guests and photos.    A barren back yard or front porch can be boring to buyer’s.

FALL HOME PREPARATION

Driveway ReSealing

In suburbia, driveways are common.  For anyone with an asphalt driveway, taking a look at the overall condition in the fall is a great idea.   Re-sealing companies are great, because they have heated up sealant that can go on in pretty much any dry weather.   A nice fresh coat of driveway sealant can be a huge aesthetic step, as well as a great way to show your home is being properly maintained.

Lawn Manicure

Fall can also be a great time to have your yard properly edged.   Edging the lawn right before a sale can be a little messy, and can look a bit unnatural.   Having well defined edges between driveways, mulch beds, and the curb is a top recommendation for landscaping.

Our first advice for fall would be to over-seed the lawn with perenial rye grass and to repair any damages left from invasive species like crab grass.    Having a lush lawn in springtime makes a big difference in curb appeal and work during September and October can go a long way.