Wednesday, November 9, 2016

Three little words

 A top of the line kitchen!!!
Three little words...

Newly married couples dream of it, commercial jingle artists sing of it, and busy businessmen fantasize about it… those three heart stopping words that spin the world! Priced to Sell! Interestingly enough, getting to those three words in real estate means evaluating with your head and not your heart.

In real estate, proper pricing makes the difference between a fast sell and a home languishing on the market while the owner incurs months (even years) of extra mortgage and insurance payments, typical maintenance headaches, and pounds of Swiffer wet wipes.

Quite simply, the market establishes price through the condition and location of a home. While Realtors talk of, “location, location, location”, the phrase “condition given a home’s location” more accurately determines the buying price. Current building trends dictate the condition as new/updated or out-of-date. New/updated homes vary by the workmanship of the construction - from top-of-the-line to builder’s grade. Outdated homes vary by the finishes of the period and the level of workmanship applied during the original construction.

Homeowners expect their Realtors to analyze a home’s location and provide market data. Those numbers feel solid, real, unchangeable in the immediate future. However, Realtors can also objectively evaluate a home’s condition through their knowledge of the marketplace and building trends. Condition standards change every few years - often much more quickly than variables in location. Meanwhile, homeowners put  down roots and develop deep emotional ties to their homes - almost like a family pet. They know their quirks and bad habits, but they love them unconditionally, and by golly, they expect everyone else to love them too. Yes, they brush them for the party, but perhaps they didn’t invest in a Westminster groomer. Worse, perhaps they invested in that groomer a while back, and although the perfect style grew out, they’re still paying for it.  Frankly, no one wants to hear the show judges declare that Fifi’s poodle cut is outdated! She’s the sweetest, cutest, most loving animal on the planet! SHE’S THE BEST IN SHOW!

Most Realtors have been there- they’ve been sellers themselves - loving that family home that buyers now walk inside and critique and judge and poo-poo. In many ways, Realtors exist to bridge feelings and emotions between buyers and sellers. However, motivated sellers, those ready to price a home to sell it, dismiss their emotional attachments to a home and ask their Realtors for the honest facts. They look at comparisons and listen to their Realtor discuss the differences between man-made marble and granite, wood floors and carpet. Even if they personally prefer the cozy warmth of carpet in their master bedroom, objectively, they understand that buyers as a whole value wood over carpeting. Homeowners willing to face the facts will price their homes accordingly and hear those other three favorite words: We Sold It!


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