Lorena Yeo wrote a great post last week about 'No Joy in taking Listings'. When
I saw the headline of the post I said to myself 'amen to that'. It's been a rough couple of market months and this last listing appointment was like no other that I've recently had.
Distressed Mr. Seller has to sell his home because he has no job, no money, is now physically ill and new employment looks grim. On top of that, he sucked all the equity out of the house because he started a business that has since failed. Credit cards are maxed out totally. Three months behind on the mortgage payments.
He decided that the carpeting was in bad shape and before he let me in to see the home he ripped it totally out and just left the padding with all the wonderful taping. Great decision there guy! How can I sell a home with no carpeting?
Well according to him, I shouldn't have a problem doing that if I just explain the situation to all my buyers. The situation being what Mr. Seller? You're crazy desperate and made a rash decision and went nuts with a box cutter? Hmmmmm.
Let me explain Mr. Seller that the new buyers of your home won't care how much money you have to have when you sell it. They won't care what your situation is, just be out at the suggested closing date please and leave all the appliances.
Just because you need 'xxx' to cover your credit card debt, the buyer isn't going to care. That's right! The buyer doesn't care what's going on behind the scenes (thank God!) because their new home better just appraise out.
The buyer doesn't care how much you 'need' out of the property.
The buyer doesn't care how much you paid for the property.
The buyer doesn't care how much you've 'lost on paper'.
In Reality ...... The buyer does need new carpet now don't they? The buyer would also like to see a fresh coat of paint too - even if your Master Card had to pay for it!
You need to spend money to make money as they say in any business. With 50 other competing homes in your price range, your home better be in the top percentile with condition. It has to be priced right.
When I left that listing presentation I was shaking my head. Here we have a gentlemen that's absolutely desperate financially and will be loosing his home soon. But he has chosen to overprice his house to cover his credit card debt.
I'm glad that I don't have the listing. It was listed by a competitor this weekend for much more than even we had discussed at our meeting. I wish the seller luck.
The buyer doesn't care how much you 'need' out of the property!
6 comments • Lyn Sims - Schaumburg Homes • August 03 2009 02:21PMComments
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Some will take a listing at any price and then try to get them talked down at a later date
Yes, it's a sad situation that some sellers because of their dire finances might agree to. Ever hopeful that for some reason a buyer would pay a higher price for 'their' home. All we can do is educate.
Lyn,
You are so correct - desperation only attracts low ball offers and being taken advantage of. Than you for your thoughtful comments which demonstrate your professional ethics.
Sellers, don't shortchange yourself on your biggest & most expensive asset. If your home is in good shape, de-clutter, de-personalize and ensure your house looks its very best inside and outside. Then, and only then, call a professional realtor who has an excellent reputation in your area for an appraisal and an accurate selling price based on comparables in your area.
Then, ensure the photos of your home are the best they can be; make sure they are posted on the realtor's website and MLS; and either write the listing details or work with the realtor on drafting an accurate and interesting description of your house.
If your house isn't getting any viewers, take another look and see what else can be done to make your property more interesting to potential buyers.
Contact a home stager and listen to their recommendations. A verbal consultation from an experienced home stager is worth the small investment.
A short commercial commentary by Sharon :-)
Some people are just too hard to help. We can have a good laugh about it, but in truth we hate seeing that sort of thing and wish we could have helped them before they destroyed their lives. Maybe we should never have outlawed spanking in school? Might not help, but in some cases - it'd be worth a try now and then.
Glenn: Some people are their own worst enemies and you just can't do anything about it but wish them luck. Their home can no longer be used as a cash station card as equity is no longer a guaranteed thing either. This guy's washed out on so many fronts!