Three Things I Wish My Listing Agent Had Told Me

By Crissie Cudd

 

Every listing eventually sells.  At the right price, at the right time, under the right circumstances, there is a buyer for every home.  Many times a home is listed and fails to sell during the period of the listing agreement.  Then it’s relisted with another company or agent and it sells.  Why?

 

There are three common problems that can keep a home from selling.  Sellers often say they wish their first listing agent had told them about these things up front so that they didn’t have to learn them the hard way.

 

Sometimes the first listing agent did share these ideas but the seller refused to listen and insisted on doing it their way and the listing agent lacked the confidence to stand by their convictions.  The result is that the original listing agent lost the customer and the customer lost valuable time on the market before doing what was necessary.

 

#1 – Staging.  Staging is an all-encompassing term to describe the appearance of the home.  It involves everything from curb appeal to how the home smells. 

 

Sometimes agents fail to mention what needs to be done to really prepare the home to sell because they don’t want to hurt the seller’s feelings.  It isn’t easy to tell someone that their home smells bad or that they are a lousy housekeeper.

 

Sellers need to clean, clean out, repair, replace, and in general “spruce up” the home so that a potential buyer isn’t rejecting a home based on the work to be done in favor of a home that is move-in ready.

 

Builders know this.  That’s why they go to so much trouble to decorate model homes.  Sellers should look at preparing their home as though it were a model and in some cases moving or removing furniture that doesn’t show the home to its best advantage.

 

#2 – Pricing.  Unfortunately, the laws of supply and demand still dictate price.  Too many homes on the market equals a decrease in price as sellers compete for the fewer number of buyers. 

 

The mistake most sellers make is in not recognizing that early enough.  Their agent fails to convince them to price the home aggressively instead of “testing” the market at a higher price. 

 

Studies have shown that homes get the most attention and showings in the first two weeks on the market.  Homes priced too high during that period miss their best time to find a buyer.

 

The false hope that prices will rise to a dated market value only sets the seller up for a longer time on the market and a bigger decrease in value.

 

Once our market stabilizes and prices are no longer dropping, we will not go back quickly to large appreciation in value each year.  That means that holding out for an unrealistic price today in hopes that it will be worth that tomorrow is prolonging the inevitable price drop.

 

#3 – Contract negotiating.  Sellers are often so focused on price that they fail to address the terms of a contract. 

 

Their agent may be caught up in the same mind set and not advise the seller of the potential consequences of the various terms in the contract.  For example, a 30 day mortgage approval time and a 30 day closing can mean that right up until closing the seller has no assurance that the buyer has, in fact, qualified for the mortgage and is prepared to close.

 

Small down payments or binders also leave a seller with little security that the transaction will close.  If the buyer chooses to walk away from the contract the only risk he takes is the loss of his binder.  The seller cannot legally force the buyer to go through with the contract. 

 

In that case the seller is taking the home off the market and losing valuable selling time while the buyer is risking very little.  When the agent explains this the seller may decide to ask for a second or larger down payment from the buyer at the time of the contract.

 

None of these problems has to occur if the agent is pro-active and honest with the seller.  However, sellers have to be receptive to suggestions and realize that the agent is offering the advice needed, much as a doctor often has to deliver unpleasant news to a patient.

 

It takes a lot of effort on the part of both the seller and the agent to bring about a sale in a tough market.  Agents can help sellers make informed decisions about all the components of the transaction, from how the home shows, to pricing it competitively, to negotiating a solid contract.

 

Hindsight is 20/20 but it’s much better to do all the right things the first time and end up with a sale.