1. Your Neighbor’s House is Different
Comparable properties are so important when we price a home. As agents, we look at each home that sold recently in the neighborhood and surrounding areas and use them to gauge the price we can ask for your home. One of the objections we frequently run into with sellers is hearing, “We can ask $x because that’s what our neighbor’s house sold for and they have the same floor plan.”
Sometimes, this is valid. We have so many communities where the homes the builder created are almost identical. But, we also have to look at upgrades. Quite often, one home will sell with every upgrade in the book while the target home doesn’t have those same upgrades. It is imperative that we not only look at floor plans and prices but at the upgrades.
Another factor is the lot that a home sits on. You’ll see this clearly when looking at new construction and the “lot premiums.” Even in gated communities, builders charge a lot premium. If a home is on a preserve, the premium will be far less than the same home on a lot with a long lake view.
These are all factors that must be accounted for when we set the price of a home. Don’t focus too much on the neighbor’s home as it may not be the best comparable property.
2. Your Remodel Won’t Be a Dollar-for-Dollar Return
Another objection frequently heard is, “We just put in a $30,000 kitchen remodel.” This is always great to see and definitely makes a home easier to sell but we can’t simply tack on $30,000 to the asking price. There is some depreciation when remodels are done so we encourage our sellers to do the remodels for their own benefit but do not (in most cases) do them just to sell.
3. Your Home Doesn’t Appeal to Everyone
Most of us love the home we’re in. After all, we picked it! The thing is, your potential buyers may not be completely in love. I see buyers all of the time that go into a home and say things like, “We’d have to gut the kitchen” or “Why in the world would they paint the house this color?” No problem—the buyer can change those things. However, buyers will often reduce their offer by the amount of money it will take to make the home their own and mention it when the offer is presented.
You cannot get offended. Treat the sale of your home as a business transaction and not an emotional or personal one. Who cares what the buyers are going to do to your home! You’ll have their money in your pocket and you’ll have moved on to your next home.
4. You’re Going to do a Lot of Cleaning
Showing requests happen very spontaneously. Just yesterday I had a 1:30pm request come in at 11:45am. Less than 2 hours notice happens and your home needs to be ready for it.
It’s not as hard as you may think. When you list your home, it has to be absolutely perfect for professional photographs. When we send our photographer in, your home will be in tip-top shape! So, keep that going. I recommend a quick 15 minutes every night before bed to straighten up. That’s really all it will take so you’ll be ready if a short notice showing request comes in.
5. Price Per Square Foot Doesn’t Always Work
You’ve seen HGTV. We’ve all seen the agents (I’d almost call them actors) say, “This home sold at $280 per foot so that makes your house worth _____.” Nope. What price per square foot doesn’t take into account is what’s inside. What if one home has a pool and the other doesn’t? Well, clearly we can’t just use price per square foot to come up with your home’s price. We have to look at all of the features and benefits of every comparable to ensure your house is priced correctly.
So why do we even hear about price per square foot? It can definitely be a guide to make sure we’re in the same ballpark. It works well on new construction where two homes may be awfully similar. It works well on high-rises when they’re first built and share similar features. However, I’d rather do things right and price based on the features and benefits of each home.
6. Be Prepared for a Gap Between Selling and Buying
When we have an accepted offer on the home you’re selling and we submit an offer on the home you’re buying, we’ll generally make the closings happen on the same day (or one day later). That way, we close on your current home and the wire comes through. We instantly wire it back out with you as the buyer so you can close on your new home. Easy-peasy! But, what if closing is delayed on the home you’re buying? It happens and it’s awful when it does. Now, you’re homeless and need somewhere to stay.
I really like the PODS moving company or similar competitors because they’ll store your belongings for you if a delay occurs. But, where will you sleep? Staying with family or friends is a good option and you can definitely make a mini-vacation out of it and stay at the Naples Grande! Be prepared and have a backup plan in place if it happens.
Still Want to Sell? Did I Scare You Away?
Selling a home isn’t always the smoothest process which is why you need experienced agents on your side that can guide you through from listing to closing. We’re done this many times before and would love to be your guides!
You can contact us at any time. Let’s chat about your plans and get you on the road to the closing table!