I WANT THIS HOUSE FOR LESS!

I was recently told that I needed to convince a seller, through their agent that a home was over-priced. When that is the case, I feel that I do a pretty good job of selling the right arguments. However, whether it is truly over-priced or not, chances are it will remain that way on the market.

Some observations from 14 years in real estate:
1. Sellers don't change their mind about the value of their home. They may acquiesce to the market, but if they do, they feel cheated.
2. Buyers don't change their mind about the value of the home they are buying. If they negotiate up, they almost always feel like they should have gotten it for less.
3. Most people buy for emotional reasons, logic takes a back seat.
4. Sellers have agents that usually study the market, and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
5. Buyers that are represented, have agents that usually study the market and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
6. Agents need to present information to their clients and let them make the decision.
7. Buyers that chase value, often find it.
8. Buyers that chase deals, in a market where there is competent representation on the other side, seldom find them.
9. Buyers that chase deals, often get no value.
10.REALTORS® subscribe to a code of ethics that includes “honesty” and “truth.” Most REALTORS® take it very seriously.

There are others, but the most important thing to remember when making an offer is that everyone has information and has come to their own conclusions based on their thought processes. Those thought processes are usually a mix of logic and emotion, and are often dominated by the emotional side of the equation.

I always welcome your comments.

Qualifying purchasers; Are they able?

The credit challenged buyer. Though there are still some loan programs and remedies for less than perfect credit, not every buyer that may want to buy your home is going to be able to do so within the time period you want. Furthermore, since the rules are changing almost daily, there is a distinct possibility that a person with credit dings approved today, might not be approved tomorrow.

It is very important to have an understanding of the purchaser's ability to get financing for your home, before even accepting the terms of the contract. Then it is equally important to make sure that the buyer proceeds to get financing as soon as possible after the contract is written, to insure that you do not tie the home up with someone that ultimately can't purchase.

There are two sides to most issues, and this is no exception. Qualifying is best done by an objective professional third party. One who is experienced, stays on top of the changes and is reliable. Otherwise you risk alienating the buyer and losing the contract on a qualified prospect.

Qualifying Purchasers; Weeding out the dreamers

You have enhanced and packaged the home for sale, price it with the best market price and exposed the house to all of the potential buyers. Now the buyers are starting to show up and it is time to qualify them or in other words to insure that you are dealing with the right people to sell your home.

This crucial step will insure that you don't tie yourself to the wrong person taking your home off the market prematurely and/or wasting your time and money.

The less than serious buyer

This person likes to feel important and is sometimes a dreamer. They appear interested in buying your home, but are really interested in a great deal, they will buy if it is under market, or includes some fantastically unique feature. Even with these conditions this is the type of buyer that will use anything possible to get out of the contract, when they get cold feet at a later date.

It is important that you qualify the potential buyer as being serious about buying a house. The buyer needs to have a genuine desire for buying a home or better yet a need, such as relocating from out of town. The buyer needs to also have a definite time frame for buying the home. Best of all the buyer needs to be serious about buying your home.

Expose your homes to the widest pool of buyers possible

Market the home where buyers are. Internet (personal and company sites, listing sites, social media sites, advertising sites) agents, neighborhood, print

According to the National Association of REALTORS® 87-percent of home buyers use the Internet to search for homes. A Brokerage with a strong company internet presence is helpful, but any seller will need to utilize:
Listing sites such as Realtor.com, Zillow, and in Richmond, Richmond.com.
Social media sites, such as Twitter, Facebook, LinkedIn, Plaxo and others.
Advertising sites such as Craigslist.
Finally personal blogs and websites, such as this also add a chance to communicate with buyers.

To get the most benefit from each of these sights, requires taking advantage of what they have to offer. If 10 pictures can be uploaded, then 10 pictures should be uploaded except in special circumstances. If a virtual tour can be made available, then it should be linked appropriately. Descriptions that paint a clear view of the benefits of the home and contact information that is readily accessible are absolutely necessary to maximize these sites.

There are still other buyers out there and signs, for those in or canvassing neighborhoods, print, and direct communication with buyers and the agents that have pools of buyers will expose your home to the widest available buyer pool.

However you market your home, be prepared with a plan to tap into the largest buyer pool possible with the maximum market exposure.

Packaging your home for profit

Before you put your home on the market it is important to take time to enhance and package the home for sale.

Once you have made the decision to put your home is on the market, it is important that you look at it as a product for sale. Like any other product the better it is packaged and positioned for the sale the more money and buyers it will attract.

It is critical to enhance the home, even though it may be great, because buyers buy with their emotions and their eyes, and we don't get a second chance to make a good first impression.

Unfortunately, most buyers don't take the time to do this properly. It is unfortunate, because not doing it properly, costs them extra aggravation and sometimes thousands of dollars. They don't do it properly because they feel comfortable there and think that others will also. However, many of these same people would take their car to the carwash to have it detailed before trying to sell it, because they know that properly preparing the car may bring a couple of hundred dollars extra.

To properly package the house, will absolutely require a fresh set of eyes. An objective third party (don't put your friends in the middle of this) will be able to give advise on what changes if any will appeal to a buyer. Someone with experience and knowledge of the market can transfer that knowledge to you so that you can minimize your costs and maximize your profit.

By utilizing reports, checklists, and experience, and when the stakes are really high, possibly multiple sources of outside expertise, you can enhance your home, investing a dollar and returning 3 dollars and sometimes much more.

Yes, this critical step may take some time and some money but in the long run may save much more of both.