how to sell your home

Your home didn’t sell. Are those four of the most depressing words EVER? It certainly is to us, and we’re going to make a safe bet that that’s not something you want to hear, either.

The fact is, it happens more than real estate professionals like to admit. Or, rather, than their clients like to admit. An experienced Realtor® can most likely tell a seller exactly why their home didn’t sell – the problem is many buyers don’t want to hear – or believe – the reasons. That’s because it just might have less to do with the property – than it does with seller.

If you do an internet search, you’ll find a lot of lists that attempt to point out the reasons why a home might not have sold. But in reality, they all boil down to five things.

1. PRICE

As we mentioned in a previous blog post, in our 24-hour-news-cycle age, it’s what is fresh and new that counts. It might seem that starting out with a listing price that’s, shall we say, “optimistic” (aka, high) isn’t a big deal. After all, if it doesn’t sell right away – that’s okay. You’ll just drop the price if you don’t get any bites, right?

Bad. Idea. Why? There are many factors that go into listing and marketing any property – but among the most important is perception. People love, Love, LOVE to be “the first,” to get the gem, claim the prize – and the only time your home is going to be able to be that particular brass ring they want to grab quickly – perhaps even attempting to outbid others to get it – is when it first comes on the market. Buyers and their agents know exactly how long a house has been for sale, whether the listing price has changed, if it’s fallen out of escrow, and many other details specific to your property. By dropping your initial listing price, it can signal to potential buyers that your expectations are unrealistic, which could make them think you’re unreasonable, or even difficult to work with. And this can all take place without even meeting them! Unfortunately, that’s the way our world works. Appearances count – and that applies to the seller as much as the property.

So when your agent explains their reasons for a suggested list price, remember that it’s based on their knowledge of the area and expertise. (That is, if you did your homework and listed with the right agent.) If you don’t agree with the price they recommend – ask them for an in-depth market analysis so you can see what homes like yours, and in your area, have sold for recently. Request a comparison showing how your home differs from the ones that have sold. As a seller, it’s crucial to take emotion out of your pricing decision. Your memories of your home may be priceless to you – but to a buyer, it’s just one of many houses they’re considering that they hope to make a home. And speaking of appearances . . .

2. THE CONDITION OF YOUR HOME

It’s not that there’s necessarily anything wrong with your lifestyle – it’s that potential buyers just want to look at homes much like the perfectly-decorated, non-lived-in models that new home builders have on display. It may be unrealistic – but that’s really not the point. Beauty is in the eye of the beholder. So the goal is to make your home look as appealing as possible. In other words, MORE appealing than any other home currently being offered. Competition is stiff, and whatever you can do to gain an advantage in a buyer’s mind is worth any amount of trouble it takes you to get. (for the most part!)

But when it comes to evaluating the condition of a home, many owners simply don’t see the flaws that others may see. They have a hard time taking an objective look at their home’s condition to determine what needs to be done to prepare it for sale.

Once again, this is where a good agent is invaluable. They can help you identify those things should and must be corrected in order to make your home show well. You might even consider hiring a professional staging company to make recommendations; or at the very least, find some tips online that will be helpful. (And by the way, few things will turn off potential buyers more quickly than smoke or pet odors. Trust us when we tell you that taking the necessary steps to eliminate these problems will be vastly rewarded when all is said and done.)

3. LACK OF ACCESSIBILITY

This is an easy lesson: If the buyer can’t see your home – they are NOT going to buy it! Many times sellers underestimate the effect of not making their home available to show upon request by a buyer’s agent. How to solve this one? Simple: Allow a lock-box to be put on your house to give agents easy access. Through the years, the technology and security of lock-boxes has improved to the point that there are few, if any, reasons for a seller to have a concern about having one their home.

Second Rule: When your home is being viewed – Get Out. Take your family and leave ahead of time. Why? Because it allows the buyer and their agent to freely and comfortably walk through your home, look it over, and discuss it in depth. (By the way, if you have any pets, take them with you, too. Not everyone will think Fido is as wonderful as you do.)

4. POOR MARKETING

If you did your homework in selecting a listing agent, this really shouldn’t have been a problem. But that’s a big “If.” Sellers need to be aware that not all Realtors® work the same. Reaching today’s home buyers may be much different than it was when you purchased your home. The internet has given us new ways to reach prospective buyers, and fully 94% surveyed indicate that they use the web for their new home search. But traditional marketing still counts. Your agent should know the benefits of each, as well as when and how to implement them. No two homes are exactly the same, and no marketing program is one-size-fits-all. Online, print, MLS, advertising, and often just hammering the phone to let other agents know your home is new to the market – these are all important factors in the exposure and the action that your listing receives.

5. POOR NEGOTIATING SKILLS

If you had one or more offers on your house while it was listed but could not come to an agreement with the buyer, then it’s probably worth reviewing the deals to try to discover what kept you from reaching one. Most sellers are, understandably, attached to their homes – and many times this can cause some emotional, and even irrational, reactions to offers from buyers that impede their ability to come to mutual terms.

Don’t take it personally. Try to look at all offers without emotion, and even if it seems you’re too far apart, don’t just give up on the deal. And don’t get hung up on “but it’s the principal of the thing.” Too many times, a potential sale will fall apart not because of anything to do with the price, but because feathers got ruffled on one side or the other. One example: a seller refusing to correct a defect in their home – not because of the cost, but because they didn’t feel it needed correcting.

You may find many more potential reasons to explain why your home didn’t sell the first time around, but when you boil them down, they’ll more than likely fit into one of these five categories. We’re not saying if your home didn’t sell during your listing period, you’re out of luck. What we ARE saying is this: Be realistic, make any necessary changes, and forge ahead! This time, it will happen – because you’re armed with the knowledge you need for success.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

(Or: How To Lose Money By Not Hiring One to Sell Your Home)

Everyone loves “a deal.” In fact, if you’re like most people, finding a great deal on a product or service doesn’t only save money, it just plain makes you feel good. You were smart enough to know where to look, you put in the time to do the research – so you should feel good, because these days we all need to spend our money wisely.

Which means it’s only natural that for any big-ticket expenses, people are going to look around for the best price. But unlike a discount on a new appliance or a smokin’ price on an airline ticket, when it comes to real estate there’s more to take into consideration than simply the commission rate you pay an agent. Or for that matter, you may even wonder if you need to hire an agent at all.

We hear that a lot, actually. And to be truthful, we completely understand the motivation. The mere fact that you are about to sell your home means you’re dealing with big numbers. So it only makes sense to ask questions about the value you’re receiving for those fees.

If you’re like most homeowners, you’ve probably got more than a few more questions on your mind about the benefits of hiring an agent vs. doing it yourself. But whether you decide to work with a Realtor or not, it’s only smart to have all the information in order to make an informed decision. In our experience, many sellers don’t stop to consider some of the following points – and as a result, it can end up costing them money.

1. “Why should I pay an agent’s commission at all?

Naturally, this is a common question. So common, in fact, that studies have been done to see how transactions fare when handled with and without a real estate professional. The results show that when an agent is not used – transactions typically net the seller between 10-20% less cash when it’s all said and done. What does that mean? That working with an agent to list your home will generally pay for itself – and then some.

Part of why that happens is explained below. But it’s not only a matter of counting the actual net proceeds at closing. There are many other ‘intangibles’ that sellers need to consider if they’re going to forge ahead on their own.

2. “What, really, does an agent do for me – that I can’t do myself?”

Great question! Without an agent , here’s what happens:

• Sellers need to determine the value of their home in the current marketplace and neighborhood. Contrary to what people think, it isn’t simply a matter of getting a “Zestimate” on Zillow. For one thing, the estimates calculated by Zillow are created by mathematical formula. That means they don’t take into account the specifics of your property – such as upgraded items, water features, cul-de-sacs, and other potentially desirable features that set your home apart from the competition. Independent research has shown that Zillow estimates can range from 8-20% off actual market pricing. For a $200,000 home, that can mean an incorrect valuation between $16,000-$40,000. (Can you see that money leaving your net profit already?)

On the other hand, not only does a real estate professional have access to Multiple Listing Service (MLS) historical data and proprietary information gathering systems – they also know the area, and in many cases, are even familiar with the specific homes that you will be competing with for a buyer. Providing a detailed analysis of what has sold and is for sale in your specific area is part of an agent’s service – and allows you to ensure your property is priced right, seen often, and gets the best results.

• Sellers need to market their home themselves. Without the mainstream access of the MLS, sellers must spend time and money on advertising and getting the word out that their home is for sale at all. Whether it’s through newspapers, online ads, flyers, direct mail to Realtors – it takes a lot of effort to make your single home noticed in a busy real estate environment. Taking photos, putting up signage – it’s a lot of work; and worse, without a network it might net you only minor results. At best, sellers are able to make a small local part of the market know their home is for sale. At worst, it means that having a much smaller pool of potential buyers limits the offers and opportunities for a speedy sale at the best possible price.

Of course, this is all in addition to the time it takes you, as the seller, to maintain your property in ‘show-ready’ condition at all times. There may be repairs to be made, or even just the day-to-day maintenance of living in a home and trying to make it as welcoming as possible to potential buyers by keeping it clean and clutter-free. (Many sellers consider that a full-time job in itself!)

On the other hand, a professional agent not only has an internal network of support and services that takes care of creating both an online and print identity for your listing – but your home gets marketed to all the other agents in the area. You know – the ones who are representing real, pre-qualified buyers. The combined reach of the MLS and the broker’s own marketing programs mean that once your home is listed, the word is OUT.

• Sellers need to handle the paperwork, contracts, and documentation on their own. That can be a scary proposition if you’re not familiar with the laws concerning real estate transactions. Failure to provide information or contractually cover all your bases can not only result in failing to close the deal – but can involve potential legal ramifications via lawsuits and costly settlements – both now or even years down the road. And all for an oversight you simply weren’t aware of.

On the other hand, real estate agents know the law. And a good one not only knows what is required to meet its demanding specifications, but also knows how to anticipate and head off potential problems – simply by the scale of their experience.

• Sellers may still be working with a buyer’s agent, even if they’re going the “For Sale By Owner” route. If you think about it, here’s what that means: You’re going to pay the buyer’s agent to protect the buyer’s interests – but you’re not willing to pay a seller’s agent to protect yours. Ouch.

On the other hand, having an experienced agent on your side, who knows the market, often knows the other agents, knows the business, and follows-through – can give you a considerable leg up in negotiating a deal more beneficial to you.

• But even if you’re not going to agree to a buyer’s agent fee, there’s another drawback. (And just so you’re aware – that’s how most FSBO listings start, by saying “No real estate commissions paid!” But due to lack of activity, it doesn’t take long for sellers to agree to pay the buyer’s agent commission just to get people to see the property).

The drawback we’re talking about? You need to screen potential buyers. Are they financially capable of completing the purchase? Are there any mortgage lender requirements they cannot overcome? You’ll have to do the footwork, make the phone calls, and ask the ‘uncomfortable’ questions about their personal situation so that you can protect your own position. Believe it or not, people will make an offer, you’ll take the property off the market, and only discover weeks or even months later that they may have to sell their own home first, or they don’t have the ability to get a mortgage loan at all. So the closing never happens. And in the meantime, you’ve lost the chance to sell to a truly qualified buyer.

On the other hand, (are you sensing a pattern here?) your agent knows the dance. They set the conditions, they follow up to make sure they’re met, they talk with the escrow and mortgage companies to keep on top of every single requirement the buyer has agreed to. That means problems are discovered and dealt with quickly – and all on your behalf, because your agent is working for you.

Buying a home is an emotional investment, not only a financial decision. And for that reason alone, it is critical that every step in the process is properly handled – the first time around.

Why is that so important? Because perception matters when it comes to real estate. The length of time a home has been on the market, whether the listing price has changed and why, if it has gone into and then fallen out of escrow – all these facts and many others will collectively play a role in the success of your sales efforts.

If it’s all done right, the property is considered “hot” and “in demand.” If not – as in the case of a failed FSBO effort that is ultimately then listed with an agent for sale – it can give potential buyers the perception that there’s something wrong with your home. And quite frankly – with all the other homes available for sale – it’s not worth the risk to them of finding out.

Much like people – a home doesn’t get a second chance to make a great first impression. If your goal is to sell at the right price in a reasonable time frame, a decision not to hire a real estate professional can be a very costly one, indeed.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!