There are three elements to the sale of a property: Location, Price, and Condition.
Lately, and over the past few years, Real Estate agents have made the statement that price is everything in the sale of a property. It is for sure a sales gimmick that allows some agents with absolutely no skill to have a marketing plan. Some of those agents are very successful.
If you read through my articles you know that our companies work on properties. In this past year when the market has been soft we have had the opportunity to work on some homes that were headed to market. A couple of agents are marketing homes that are selling for a higher price than I would have thought. They spend a few weeks before the house goes on the market to get the condition to match the price and location.
The location is set in stone. There are elements to a location such as it’s proximity to amenities. A great cocktail lounge or restaurant can add value. In our city a popular spot is Green Lake. It’s an in city park that features walking, biking, and roller skating paths. In that neighborhood there are pockets of homes near shopping or entertainment. A bakery was a draw for people around the city for many years and it actually attracted buyers who had to live within walking distance.
Location close to job centers, or now public transportation, shopping malls, or medical facilities are common draws. Location is king in terms of value.
Price is a subjective thing. Some properties command a higher price by having expensive features, view, or convenience. Price can over come objections such as location or condition. Traffic is a great objection commonly over come by a lower price.
Last, and the point of my bog, is condition. The holy grail of condition is a well cared for home that has had the same owner for decades who took really good care of the property. Some places who have never had anything done to them in fifty years create the most desire. Many remodels devalue properties.
For a short while there was a saying in Real Estate that the value was tied to terms. Terms such as mortgage terms in my opinion are what drove up the price of properties. The only reason to mention this now is to prepare you for the response that property values are a function of price and terms. It’s a misconception that diverts attention away from the basic principles of Real Estate.
If you are selling you should sell and take your cash to invest elsewhere. Things like owner finance or lease options are great for a stable or appreciation market, but in a time of doubt cash is king.
The best time to sell is in January. People need to pick a school before February 15th. The most corporate transfers happen in the first of the year. It used to be that bonuses were also paid at the end of the year, but now, not so much. There is also the fact your competition is lower. We can address Spring time in a minute.
To get the most exposure putting your home on the market during the holidays gives people a chance to see it on line or in the news paper. To me the 15th of December is a great time to get a home on the market while most people prefer the 27th of December.
The Spring is when most people think of selling a home. If you put your house on the market right after tax time, or before the first of May, the house can sell and close about the end of the school year. You then have the time when the kids are out of school to settle into your new home. For some this is the time of the most selection so many homes trade hands at this time of year.
The elements of a sale are to create desire while calming fears. In preparing a property for sale we routinely address scary stuff. Lose wires, unsecured siding, rusted pipes, a worn roof, bad paint, or broken windows give the impression that you just don’t care or worse, that you don’t have the money for repairs. Either way it opens a negotiating position.
Many people concentrate on the creating desire portion of presentation by staging. Bringing in furniture or decoration is a great idea. The holidays are a good time to decorate and give a festive impression. As long as the staging fits the home it’s a very good thing. What some people have tried to do is mask the homes draw backs by staging. I worked with one stager who routinely brought in three quarter, condo, furniture to make places look bigger.
I’m more in favor of having places vacant with the ability to imagine yourself in the home, with your own stuff. There used to be a saying in real estate that when people began measuring to see if their couch would fit you had a sale. In that regard I recommend spending the staging budget on getting a place as clean as possible.
I never recommend capital expenditures to sell a place. Things like refinishing floors I deduct for. A bad kitchen or bath remodel can really screw with a sale. Everything needs to flow and fit together. Homogeneous is what most buyers look for. Having the perfect kitchen, bath, floors, or even windows in a lack luster place can be jarring.
Take a whole house approach. get everything to look in proportion to everything else. I do recommend cleaning, everything. As an agent told me one time anything will sell if it’s clean enough.
