The Five Reasons A House Sells

Five_Reasons_A_House_Sells.jpg The Five Reasons A House Sells
The Difference Between Success & Failure Always
Comes Down To Proper Execution Of Fundamentals

When marketing a home, there are a tremendous number of emotional, personal and financial considerations with which you must deal.

Without a clear understanding of the fundamental principles that cause homes to sell, it is easy to become confused and make bad decisions.

However, once you realize that there are ONLY five fundamental reasons that homes sell and all other issues are simply sub-categories of the Fundamental Five, decisions become a lot easier and the entire process becomes a lot less stressful.

Whether you are just beginning to formulate your plan or you are re-evaluating your current strategy, it is important that you focus your thinking in terms of the following five simple issues.

The Five Reasons A House Sells

  1. Price
  2. Location
  3. Condition
  4. Accessibility For Viewing The Property
  5. The Real Estate Representative You Select

Reason #1 - PRICE
From the outset, determining the most effective list price is the most important part of the overall home marketing plan.

It's important to keep in mind that almost all home buyers shop by comparison. They will view every single home within their price range. They are keenly aware of what their budget will buy within the community.

Seasoned buyers have a fine tuned sense of market value. They have a good idea of what they should see as far as size, condition and amenities when they step through the front door of every home in their price range.

If a home is overpriced, it will not satisfy the expectations that buyers have for that price range. An overpriced home may have many showings but no offers (or worse yet, if it’s substantially overpriced, no showings at all). This does not mean that there is anything wrong with the house. Instead, it simply means that the buyers who viewed the house were expecting to see more house for that amount of money and the buyers who would have been genuinely interested in buying the house, never saw it because it was out of their price range.

Industry studies indicate the best opportunity to successfully sell a home occurs within the first four weeks of it being placed on the market.

There are always ready-to-buy buyers … serious buyers … in the marketplace waiting to rush to the fresh listings the moment they hit the market. If a property is priced competitively, these ready-to-buy buyers will act immediately and multiple offers could result.

Pricing a home correctly enables a homeowner to stay in control of the home selling process. Correct pricing puts the homeowner in the best position to obtain the highest possible sale price at the most desirable terms in the least amount of time with the least amount of inconvenience, as well as, also having the luxury of being able to select the most qualified buyer.

Remember - Selling A Home Is A Competition.
If you would like to win the competition, then price your home better than the competition.

Do your homework. Fine tune your sense of market value. Know your competition. Drive by, or visit, the homes against which your home will be competing. Price your house according to what the market is indicating, not what you want or need to get. Don't be greedy … be smart.

Reason #2 - LOCATION
"Location, location, location". As many times as you’ve heard this old adage, it's still true.

Location is the first decision in the home buying process. Home buyers will buy a location first and then try to find a home within that location afterwards.

When considering location, buyers will be evaluating:

  • Community amenities & demographics
  • Commuting distances & times, access to major highways & train transportation
  • The school system
  • The neighborhood
  • The specific street (quiet street vs busy thoroughfare, walking distance to train & schools, etc.)
  • The way the house is oriented to the street, to the sun’s path, etc.

While location is an important selling feature and it significantly effects the value of a property, there is absolutely nothing that can be done to change it.

If a home happens to have a valuable location, it is important that "the location" be featured in the marketing materials along with the particular amenities of the home.

Reason #3 - CONDITION
Most single family home buyers are looking for well maintained, problem free, move-in condition homes. Only investors and developers consider buying real estate based upon future potential.

Home buyers are nervous. It is a lot easier for them NOT TO BUY than it is for them to buy. Issues that may seem small or inconsequential to a home seller are catastrophic, deal-killing, costly concerns to a home buyer. A home buyer’s worst nightmare is that he or she will make a mistake and be stuck with a money pit instead of a dream house.

When placing a home on the market, it is essential to do everything possible to convey a feeling that the home is well maintained & problem free. It calms buyer jitters and enables prospective buyers to focus their attention on the suitability of the home rather than searching for costly hidden defects.

For a very specific plan on how to inexpensively dynamize and enhance the condition and buyer appeal of a home, I recommend home sellers obtain a copy of Martha Webb’s book titled “Dress Your House For Success”. It’s available at most book stores for about $12.00.

Or request a copy of my valuable FREE publication 129 Quick Tips - To Make Your Home Irresistible To Buyers .
(129 Quick Tips is available absolutely FREE to homeowners in the Ardsley, Dobbs Ferry, Hastings, Irvington or Tarrytown school districts.)

Buyer jitters can also be minimized with a home warranty. The warranty is essentially an insurance policy that guarantees the mechanical equipment and appliances in the home for a period of one year after the purchase. The warranty eliminates the buyer’s fear of a major costly mechanical failure occurring right after the purchase.

The warranty premium is reasonable and is paid for from the proceeds of sale at the closing. In other words, there isn’t any up front cost to the home seller for the warranty. In addition, the warranty also insures the home, for the home seller, while it is on the market.

Reason #4 - ACCESSIBILITY FOR VIEWING
The customer has to be able to see the merchandise and your home is "the merchandise".

A home seller must make reasonable accommodations to allow the property to be shown.

There's no arguing that selling a home is a stressful inconvenience but a home seller must make a commitment to maximizing the chances for success by maximizing the times when the home is available to be shown and also, the ease with which it can be shown.

Many buyers relocate to our area from outside the community, outside the state and even outside the country. These relocation buyers only have a very brief window of time to view properties and make their decision. They're not able to come back later, tomorrow or next weekend and obviously, they will only be able to buy what they are able to see.

Excessive restrictions on when the property can be shown are sure to reduce the chances for a successful sale.

In addition, excessively cumbersome showing procedures (i.e. owner must be home, 24 hour notice, listing agent must accompany, areas of the home that can’t be shown, etc.) will also significantly reduce the probability for success.

The more buyers that see the house, the greater the probability for success.

Reason #5 - THE REAL ESTATE PROFESSIONAL
For many people selling a home is "the single largest financial transaction of a lifetime" so the selection of a real estate professional to represent you is a major financial decision.

Your Realtor® will be your advocate and advisor therefore the decision of whom to hire should be based upon the Realtor®’s integrity, experience, skills, and marketing plan.

It is NEVER in a homeowner's best interest to select a Realtor® based upon the agent’s price opinion of the home. A homeowner should always select the agent first and discuss the price afterwards.

It is also NEVER in a homeowner's best interest to call a real estate office and simply accept whomever answers the phone as the agent to interview to represent you. The agent answering the phone could be a part-time salesperson or a full-time broker. It's like playing Real Estate Agent Roulette … a high stakes game of chance … with your home as the wager.

Your best bet is to get to know a Realtor® in advance … so when a real estate issue does come up, you’ll know who to call.

Get to know an individual Realtor®'s track record. Ask for references and check them.

It’s Surprisingly Simple!
There are ONLY five reasons that any and all homes sell, (or fail to sell):

  1. Price
  2. Location
  3. Condition
  4. Accessibility For Viewing The Property
  5. The Realtor® & His or Her Marketing Plan

The success of the marketing of residential real estate can only be evaluated in terms of these five fundamentals.

Obviously, the location cannot be changed but the homeowner does have absolute control over the other four issues and the homeowner has the ability to change them at any time.

Fancy logos, company slogans & glossy brochures don't sell homes.

If there's a problem with the sale of your home,
then reanalyze the four issues over which you have complete control.

1) The Price - 2) The Condition - 3) The Accessibility For Viewing - 4) The Realtor®'s Marketing Plan

 

Contact Info
Agent
Bill Boeckelman

Associate Real Estate Broker

Coldwell Banker Residential Brokerage

6 Cedar Street
Dobbs Ferry  New York 10522

Licensed In NY and CT 914-681-5792 Specializing In Successful, Efficient, Problem-Free Home Sales

Contact Info
Agent
William Boeckelman

Associate Real Estate Broker

Coldwell Banker Residential Brokerage

6 Cedar Street
Dobbs Ferry  NY 10522

Licensed In NY and CT 914-681-5792 Specializing In Successful, Efficient, Problem-Free Home Sales