June 1, 2006

Today’s Real Estate

REAL ESTATE: Why, oh why, won’t my house sell?

By Donna Nardi
Special to the Times

What’s going on? Last year at this time, the market was sizzling. Buyers’ offers were continually being over-bid by other buyers. And the selling price was much higher than the asking price. Why didn’t I sell then? 

These questions may be haunting many sellers right about now. Don’t shoot the messenger, but this year’s market is not the same as last year. But, that’s not all bad. It’s actually a good thing. The market couldn’t maintain the overwhelming growth of last year for a long period of time and needed to correct itself. Home prices have not crashed; they are merely flattening out. We are now entering a Buyer’s Market.

That said, let's look at some strategies to sell your home. With the market in a more realistic state, sellers, along with their agents, need to be sure they are doing all the right things to have their home stand out in the crowd and sell at the correct price.

So, what can you do to make your home stand up, wave and shout, “Hey, look at me!”

Price – Don’t price your home too low, or you will net less than you should. But you shouldn't price the home too high, or you could overlook your best audience! You also risk the necessary price reduction, which is less than desirable.

Over-improving – Yes, cleaning, good repair, de-cluttering and curb appeal are extremely important. But, be sure the improvements you make are in line with what a new buyer would want in their new home. Don’t install highly trendy fixtures—they may be downright ugly to others. Beauty is in the eye of the beholder. Under-state, rather than over-state. Neutral with a little punch goes a long way. This is where staging comes in very nicely. You should seriously consider it. Staged homes create ambiance. It’s been proven over and over that staged homes net a higher price.

Selling as-is – Using “as-is” on your listing can be interpreted by buyers as a problem—a big problem. It’s better to do necessary repairs before you put your home on the market. Your home needs to be shown at its very best! Why put a Band-Aid on a problem and expect it to go away? It will come out during the inspection process, anyway.

Sweeten the deal - Offer something other sellers may not be offering. Purchase a home warranty for the buyer.

Include an attractive fountain on the patio, a great light fixture or pay points on the buyers’ loan. These can even be figured into the price. But it goes a long way with the buyer. Who doesn’t want a great deal?

Ignoring your agent’s advice – Make the most of your agent’s advice—after all, you’re paying for his or her expertise. They have extensive knowledge of the current market conditions. It’s in their best interest to get the highest price for your home, too. And don’t try selling it yourself. Statistics have repeatedly shown those selling their own home net less than if they use professional services. You will find your agent does much more than you thought—from preparing your home for market, marketing your home, to bringing in qualified buyers, keeping everything on track to the close of escrow. These professionals do earn their fee, and often more.

Often by taking a deep breath, stepping back and taking a fresh, objective look at your “stale” approach to selling your home, you are able to re-package it to attract a whole new audience. The market is ever changing, which is why your agent’s expert advice is so valuable.

Keep in mind that this is not the time for remodeling. Remodeling should be done long before selling your home with enough time for you to thoroughly enjoy it. Preparing your home for market equals good repair, de-cluttering, curb appeal/landscaping and cleanliness. 

If you’re not planning to sell your home for sometime and want to remodel, keep in mind future sales. High on the list for cost recovery are the bathrooms and the kitchen. Don’t go too trendy, but high quality is essential. You can always accessorize and decorate to personalize your home.

In spite of the market changes, it is entirely possible to sell your home when you look at it from a new perspective. Happy “sales” to you!

Donna Nardi is a realtor with Prudential California Realty in Willow Glen. You can reach her at (408) 918-4410, or donna.nardi@prurealty.com, www.happywayhome.com.