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August 4, 2002

Price, appearance critical factors when selling a home

by Rose Steepleton CRS, GRI - Noles-Frye Realty

One of the most frequently asked questions in the real estate marketplace is "What should I do if my house will not sell?"

Unless market conditions are very poor, which has not been the case in recent years in central Louisiana, the failure of a home to sell in about six months (in MOST scenarios) indicates a problem - usually with price and sometimes with the condition of the property - or both.

The most common reason for a property not selling is price. A house priced correctly from the beginning captures the interest of the REALTORS and the buyers, while overpricing a home chases them away. Even if the seller drops the price later, once the REALTORS and buyers have lost interest, it's tough getting them back. Furthermore, a buyer who might have bought the home at the new reduced price may have already purchased something else by the time the reduction is in place. When a market allows many properties to remain on the market, then a buyer necessarily seeks out the best deals and chooses usually to make an offer on one of those rather than "shoot for the moon" by offering low on something that is priced higher than it should be. Of course, there are exceptions to every rule and there will always be the bottom-fishing buying public.

The second culprit in a slow sale is the condition and appearance of a home. Sellers should not rely on buyers to use their imagination - they need to capture it. Remember that a buyer may see six or seven or even more homes in the same day and they may already be overwhelmed with all the details inherent in the moving process. They will remember the home that seems to be the brightest, most spacious, cleanest, the most cheerful, and even... in our part of the country... the coolest on hot days and the coziest on cold days. This almost always means rearranging and eliminating furniture, knick-knacks, children's toys and more to create a simple streamlined look - you have to convince the buying public that you really don't live there! Fix leaky fauctes, paint the front door, plant some colorful flowers at the entrance or in pots, clean off countertops and shelves, dust from top to bottom and retouch paint where it's marred.

It is equally important to set the stage for the showing. Fresh flowers on the kitchen table, scented candles in appropriate spots, and soft background music (among other suggestions) will encourage a buyer to stay longer and get the feel of the home, not just through it on the way to the next appointment. Pets and animals should be out of sight and out of mind. While the buyer may have a menagerie at his or her home, it is displeasing and offputting to wade through the cat food, kitty litter box, dog hair and to be barked at and physically assaulted by an anxious, attention-starved pet. Board the pet, take him for a ride or bring them outside so the buyer can concentrate on how they fit with the home.

Granted it's a touchy subject for many, but it's a necessary topic of discussion - odors in the home from smoking or cooking (other than brownies or bread). Odor-masking aerosols like Febreeze or scented candles can go a long way toward making a buyer less aware of smoking odors. However, if a home has been inhabited by a long-time smoker, the walls will be slightly yellow around long-hanging pictures and the carpet will have absorbed the smells.

Far and away, however, trying to sell a property at the wrong price, is the key reason a home does not sell. It is only natural to overestimate the value of a home - after all, it's yours. However, when determining price, it is important to be as objective as possible.

There are a number of price indicators, but the one most commonly used here is comparable property comparisons. In other words, if there is a similar or even slightly similar home down the street or in the same general area that recently sold, it can and will most likely be used to price the home when listing it or by the appraiser when it is under contract with a buyer. Don't make the mistake of looking at similar homes listed - the market has not rendered its pricing opinion on those yet, only on those that have closed and money has changed hands. Anyone can list a home at a high price, but that does not mean it will will sell at that figure.

Another pricing mistake is to add the cost of every repair, renovation or addition and what you paid and assume that figure is what the home is worth. Even a swimming pool may only add a small amount to the total increase in value and many items are considered maintenance items and therefore may make the home easier to see quickly, but do not increase the value of the home.

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