Lies Sellers Tell Themselves

What’s it worth to ya?

            Part of the realtor’s job is something we fondly call a CMA. 

No, that’s not the Country Music Awards.

“CMA”, in real estate parlance, stands for “Comparative Market Analysis”.  It’s a tried and true method of determining the approximate value of a piece of property by comparing similar properties that have sold or are currently active listings.  This little document helps both the realtor and the seller determine how best to list a property for the quickest sale at the most money.

            Because that is the goal, right? 

Seller Quote #1: “My neighbor sold his house for Cash….”

            Rumors fly like Superman on speed.  Sometimes, a seller will have heard that so-and-so down the street got $fill in the blank from a “cash buyer” (from out of state, of course).  I suppose there might have been a time when a buyer from out-of-state would come for a visit, see a property, be so amazed at the price (compared to their own state, of course) that they would plunk down cash to buy it right now.

            In the words of an old song, “Those were the days, my friend”.  

            That buyer is as hard to find as Bruce Willis’s hair.   

            In today’s market, buyers are savvy.  They’ve done their homework and know pretty well what every single house similar to what they’re looking for has sold for, when it sold and whether the current owner is happy in it or not. 

Well.  Maybe not that last one.

            Anything that’s a matter of public record is easily accessible these days.  And sale prices of homes are public record.  Anyone, anywhere, can look it up with the click of a mouse. 

            Cash buyers exist, but they’re just as savvy as everyone else.

Seller quote #2: “You can always go down, but you can never go up.”

            It’s true, that it is difficult to raise the price on the house once it’s on the market, but don’t lose sight of the ultimate goal.  It’s the most money in the least amount of time.

There is no more important element when listing a house than determining the right price. 

Buyers have a different goal.  They want the most house for the money they can spend.  "Most house" might mean the largest, or the newest or the prettiest.  All buyers have different priorities. One thing is certain. If you list too high, you will limit your number of showings and may prevent a potential buyer from making an offer. 

            So, ask yourself this.  Do I really want to keep this house sparkling clean all day every day, seven days a week, for six months -- or nine months -- or a year?

Seller Quote #3: “I know the carpet looks bad, but the buyer can replace it.”

He could. 

But he probably won’t.  He’d rather find a house where he doesn’t have to replace carpet. 

This doesn’t apply to all price ranges, of course. But even in a $70,000 house, if the buyer has two to choose from, and one has fresh paint and one does not, chances are really good he’ll pick the new paint. 

Don’t forget the buyer is choosing a home, not just a house.  The quicker he’ll be able to turn it into the home he’s dreamed of, the quicker your house will sell. 

So if your carpet was installed in 1962 or you have an in-home-day-care and the Kool-aid stains to prove it, you’ll need to replace your carpet to get most money from your home.

            If the price of your home doesn’t justify new carpet or you simply can’t afford to spend the money, have it cleaned by a professional at the very least.  You want to make the best impression you can.

Seller Quote #4: “I Want to Sell “As-Is.”

            No, you don’t.  Really.  You don’t.

            Not only will you limit your buyers to people who have enough extra ready cash to complete repairs, you’ll limit buyers to people who are getting loans that don’t require repairs.  That means, no buyer who qualifies for USDA, FHA, Freddie Mac, Fannie Mae or VA loans would be able to buy your house.  All of these loans now require the appraiser to look for things that need to be repaired.

            And repairs have to be completed before the loan closes.

            “AS-IS” means you’re agreeing to sell your house for less than it’s worth.

            That is not anyone’s goal.

Seller Quote #5:  “I Need at least 24 Hours Notice To Show.”

            Do you really need 24 hours?  Or would you just like to have 24 hours? Often sellers think a buyer can wait till tomorrow to look, but what if he's in town for just today?

            Despite all the stress we realtors put on keeping things neat and tidy, if we can’t show it, we can’t sell it. 

            So, unless your living rooms looks like a team of oxen spent the weekend, don’t say no. Say, give me a couple of hours, or the afternoon, or whatever you need to make things presentable. 

            Whatever you do, don’t turn down a showing.

            Showings are like the raffle tickets of the real estate market.  The more raffle tickets you buy, the better your odds of winning. 

            The more showings your house gets, the better your chances at making a sale. So, never, ever say “no”.

Seller Quote #6:  “So-and-So sold his House the First Day it was On the Market, so It must have been priced too low.”

            Sellers want to get the most money in the least amount of time, right? 

            But not on the first day or even in the first week it’s on the market!  That’s too soon!

            Everyone has a tendency to second-guess themselves.  We all do it.  But if you’ve priced your home with the advice and information gathered by your realtor, you priced it right. What realtor would want your house to sell for less than it’s worth?

            So why did your friend get a buyer so quickly?  Because Realtors are pretty savvy too.  We look several times a day for a new listing that we think would be perfect for our actively searching buyers.  And when we find it, that’s the fun part of the job!       

            As the seller, you have no idea how long that particular buyer has been looking for a house.  You don’t know how many houses they’ve rejected before they found yours. The only thing you know is that they think it’s perfect for them. 

            And that makes it perfect for you, too!