Sellers who expect Buyers to pay top-dollar for a house that isn’t at its best might end up with…just desserts. But there is a way to have your cake…er…pie, and eat it too.
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The personal stories of one Realtor’s battles and triumphs in the highly-competitive Bay Area Real Estate Market, seeking to illuminate and humanize the very real ups-and-downs of homeownership.
“My friends haven’t been successful selling their home,” my colleague said. “They think it’s time for new representation, and I’m too far away to handle the job properly so I’d like to refer you and Sarah.”
Thank you, but when I looked up the address of the property, alarm bells began to ring.”This property has been on the market for more than a year,” I said, “it’s dated, AND it’s at least a million dollars overpriced. Unless the Sellers are willing to reinvent the home, paint out the dark wood, hire a better stager, and adjust their expectations accordingly, we’re probably not the team to take this on.”
At the risk of offending those who think they know best, Sarah and I bring a talented team and a well-honed strategy to our projects, so unless our objectives are thoroughly aligned with the Sellers’, it’s probably a waste of everyone’s time trying to get nonbelievers on board. (Realtors® are only compensated when we successfully sell a property, not for all the work that goes into getting it ready.)
Moreover, as our team specializes in TRANSFORMATIONS, there’s really no reason to pay our going rate unless you’re willing to listen to our suggestions and follow our advice. Looking at the history of this attempted sale, it’s not clear that these Sellers were ever willing to do what was necessary, including competitively pricing the property, and I’m not certain anyone could convince them otherwise (including us).
“It’s just that they spent money on their new house,” she explained, “so they don’t want to spend more on the departing residence.”
“I appreciate that, but without a fresh start and a dramatic change in the narrative, there’s no reason to expect a different outcome,” I replied. “Let’s make sure your friends are REAL Sellers before we go down this path . . .” (I’m reminded of a manager’s advice many years ago: “In life, it pays to be the first born, the second wife, and the third Realtor®!”)
As difficult as it is for many Sellers to admit, most homes need a once (or a twice) over before coming to the market, no matter how special the property is or how well the home has been maintained. I’m a fairly good housekeeper, but nonetheless, my home would benefit from a fresh coat of paint after 10 years of basic use. Remove the area rugs and we’re likely to find lines of demarcation in the hardwood floors, not to mention scratches from the dogs. (I love them but they’re definitely hard on a house.) Chips in the kitchen cupboards and markings on the paint? For sure. Windows that need washing? Absolutely. Garden lights that mysteriously stopped working? You betcha. All homes require constant attention.
By way of example, Sarah and I just put a property into contract for $600,000 MORE than we had been informally offered on that same house in an off-market push. Without the makeover, Buyers and their Agents came in and immediately discounted the house, even though the home met all of their needs and was in relatively good shape. In short, no matter how much Buyers say they can look beyond the furniture, yesterday’s paint colors, or the dated bathrooms, they absolutely CANNOT. Consequently, Sellers who expect Buyers to pay top-dollar for a house that isn’t at its best, are simply chasing “pie in the sky” results. In short, that’s not a winning strategy.
What is a winning strategy?
Investigation, disclosure, repair, presentation, marketing, and most importantly PRICING! No amount of creative staging will overcome a house that’s perceived as overpriced, no matter how beautiful the home is or how well it functions. If your expectations are aspirational, it’s going to require an investment in the property to realize a greater return. And in a market that’s suddenly been inundated with LOTS of good inventory, Buyers have more choices than they’ve had in many years, and at 7% interest rates, they’ve also become very selective, not to mention, far more hesitant.
Moreover, if there are BIG-ticket items that require repair, or objections that are going to prove fatal to the sale, we’re going to recommend that you “cure” the house prior to bringing it to market. This may include correcting rot behind the stucco, remodeling bathrooms, updating the kitchen, opening walls, replacing failed windows, addressing broken systems, or reworking problematic floor plans, just to name a few.
Finally, let’s remember that no matter what we do to a home, the market will ultimately decide the value of a property – not the Seller, and certainly not the Agent, which is why when people ask, “How much do you think our property is worth?” the only true answer is “We don’t know, and neither does anyone else.” If we did, selling a house would be child’s play. (It’s anything but.)
How to have your pie, and eat it too
Listen, we’ve been at this a long time, and we know there’s probably an inflated number we could tell anxious Sellers that would likely secure us the listing on the spot, but it’s not how we choose to conduct business, nor would it be fair to you. Sarah and I are not in the habit of buying our listings and then letting the market “educate” the Seller, or vastly underpricing the home to create a false impression when you’re relying on your Agent to honestly and ethically guide you along the way.
But if you’re truly ready to sell, if your market expectations align with reality, if you can let go and trust in the process, if you are coachable and well-intentioned, then chances are we can achieve your desired result, assuming it’s within reason. Certainly, no one will work harder to do so.
How can we help you?
Julie Gardner & Sarah Abel | Compass Realty
Not just Realtors, but consultants in all things house and home, we’re here to educate, explore, examine and refer . . . In short, you may count on us to take care of your home as if it were our own and anyone who knows us, knows we take pretty darn good care of our homes.
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