Hey November!
The other day I received an email from a local Realtor stating that a specific property will be on the market one more week before the seller takes the house off the market. The house has been on the market for almost 3 months. I showed the property and my client did not like it – it was a hard NO and she could not get out of the house fast enough. Not only did she not dig the finishes, the layout or even the smell of the house, but there were challenges that could not be overcome.
The email went on to say that the price was not flexible because the sellers invested $100K into the property in preparation for sale. Selling a home can be expensive. Homes that tend to sell for the highest possible prices are vacant and staged, often freshly painted, have refinished floors, shiny clean windows and more. If you move out, you often have the expense of your existing mortgage PLUS any temporary or interim housing costs. When you move out, you will need to continue to pay for utilities and any basic upkeep such as garden maintenance, etc. Bottom line: there is a cost of business and no homeowner should sell their home unless they feel it is the best decision for them and they understand not only the process, but all of the costs. All of the above is why I am a more conservative agent when it comes to providing homeowners with market valuations. While I would love to look at the highest sold home in the area and say, "your home will get the same," that would be really reckless! I have never seen two homes that have the same light, layout, yard space, upgrades, flow and property maintenance. Never! Remember: buyers do not just look at the highest prices of homes sold in the area, they look at each of the homes sold in the area, compare many factors and then determine an offer priced based upon that data and their budget. The term "buying a listing" refers to when a listing agent states a property can fetch a sale price that is much higher than what the home will sell for so they can secure the listing, then introduce a price reduction later... I have seen agents do this over the years and I just can't do it. I like to sleep at night.
Over a year ago I met with a family who wanted to sell their long-time family home. I provided a valuation and they did not like it. I explained in detail how I came up with my valuation and the homeowners selected another Realtor who placed the house on the market for $300K more than my recommendation. Since then, that property has been on the market for a full year, has gone through 2 different real estate brokerages, and several price reductions. Even worse, they lost an additional 10-20% in value due to the major market decline that occurred over the summer. Even though the house is not staged, there is still a cost. The cost of utilities, insurance and maintenance, don't forget the house is still yours until it is sold. There is also another cost, the longer a home sits on the market, the more a buyer will assume that there is something wrong with it and may avoid looking at the property altogether. These sellers have lost their leverage and are now at the mercy of a buyer coming to the table.
Since my last post, my two active listings have gone pending, both in less than 2 weeks and both within the sale price ranges I initially shared with the sellers. As an agent, I too take on the cost long before a homeowner decides to accept an offer. I typically spend $4K – $5K on each listing, before a property even hits the market making sure the marketing is fresh, creative and top tier. And that does not include the countless hours I invest in pre-marketing investigations, planning and design work. Providing a realistic expectation builds trust and rapport and is why you select a professional to partner with. While we are wrapping up 2022 the market will evolve – last week rates dropped a touch, there are still people that have housing goals for a myriad of reasons, and the market will go on. When you call on me to help you make your move, count on me to put a great deal of thought and heart into each step so we both can take the journey feeling confident in the process and the outcome.
Enjoy your Thanksgiving and eat something delicious!
– Deidre
