Mission Impossible?

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Selling Your Home in a Buyers’ Market

By Kelly Lucente, CSP, CMP, MIRM


So, you have your home for sale. How’s it going so far? Any offers?  If the answer is “no,” you’re not alone.

At of the end of October 2007, there were 34,042 homes on the market just in the Twin Cities alone—not including homes available “for sale by owner.” This number is up 10 percent from 2006. Break it down to the ridiculous, and it equates to a 10-month supply of homes, up 28 percent from 2006. A 10-month supply means that it will take, on average, approximately 10 months to sell the current inventory without taking into account homes added to the market after the statistic was printed.  Keep in mind that this number is revised monthly and can change for better or worse. You can find out more by going to www.mplsrealtor.com and click on market stats.

What does this mean for you? Don’t panic. There is hope and help available. You just have to keep your eyes and ears open and watch a little HGTV.

I know what you may be thinking: There have been hundreds, maybe thousands of articles written about home selling strategies, ranging from proper staging techniques, kitchen makeovers, the importance of fresh paint and new carpet, to a good-old-fashioned price reduction. Certainly, each of the above mentioned options are good depending on the situation, but today’s seller has to think through the best choices available for the home he or she is trying to sell, and be smart about their execution.

When it was a sellers’ market, all you had to do was put a sign in the front yard and field offers, oftentimes multiple offers. Those days are gone. Now, the sellers of the world have to accept that it is, in fact, a buyers’ market. The reason for the shift is simple: There is currently too much inventory for the number of buyers out there right now. This doesn’t mean that it’s the end of real estate as we know it: Buying and selling real estate is a cyclical business. Sometimes the market favors the seller, sometimes the buyer. Right now, the buyer wins. What does this mean to today’s seller?  Your home has to stand out.

Don’t cut corners

Nowhere is the adage “You have to spend money to make money” truer than in real estate. Nobody wants to spend a fortune fixing up a house he or she is trying to sell. But I’ve been in many homes where the owner makes only enough improvements on their property to get by. That doesn’t fool anyone. When you make tiny improvements such as painting trim and doors white or changing out light fixtures, you need to be careful that you haven’t overlooked the big picture.  

I was previewing several homes recently for an out-of-town client. The only real criteria were price and location; otherwise, she was open to unique and different characteristics of the homes she would see. Her open mind was a good thing, based upon what I saw. Of 12 homes previewed in one day, five were identical in layout and level of finishes. What set these five homes apart from one another? Nothing—and that’s the problem. You don’t want a prospective buyer making a decision by pulling a number from a hat. Make your home special in some form. If you’re one of the five homes that does look the same, why should a buyer choose you? You need to be able to answer that question. Only once it’s answered are you on your way to a quick sale.

The same holds true for over-improving. I was in a home last fall that had high-level finishes, granite countertops, stainless steel appliances, tile flooring, and Moen fixtures.  The improvements were lovely; however, the improvements on this rambler were only to the kitchen and bathrooms.  The rest of the house looked like it did in 1956.  Since the over-improved areas were beautiful, the rest of the house looked completely out of place. As a buyer, would you spend an extra $10,000 on the home because it had a granite countertop? Try to be consistent and make sure your improvements fit the flavor of your architecture as well as your era.

Once you determine improvements are necessary, get the best help. Do the work yourself only if you know you can do it well. Don’t short change yourself by thinking that if you do the work, it will save you money in the end. If you aren’t good at painting, for example, don’t do it yourself. The less-than-professional job will be obvious. Instead, hire painters for a professional, flawless finish. And, make sure you go with a neutral palette.

Media resources

The news is not all gloom and doom. Homes are selling and the market is considered stable, so that it’s fair to both buyers and sellers. Unfortunately, buyers and sellers haven’t realized this yet. All you have to do is read the paper and watch TV.  

Throughout history, the media have taken advantage of the immediate needs of the consumer on things that are most important to them at the time. HGTV is one example of how the media have addressed the housing issues we are currently faced with. Homes have to sell. Because we have too many buyers, they have permission to be picky. Today’s buyer has the need for homes that sparkle. HGTV has taken full advantage of that need. If you have watched HGTV recently, you would have noticed that the network has over 50 shows specifically designed to help enhance or sell a home.  These shows range from “Designed to Sell” to “My House is Worth What?”  On “Designed to Sell,” the basis of the program is to show audiences how to turn a tired house into a showpiece by giving sellers a $2,000 budget and a team of experts to transform their house into the hottest property on the block. The program is chock full of interior-design ideas, home-improvement tips and real estate insider secrets.

Not only does HGTV have around-the-clock television programming, it also has an extensive website offering tips and tools to sellers. The real estate section covers every area of uncertainty as it pertains to selling your home. You can take the quiz, “Will It Sell?” which will determine if your home needs improvements, or “30 Can’t Miss Staging Tips,” which gives the reader simple ways to improve the appearance of their home. You can point and click and have access to everything you need step-by-step to get your home sold. 

Agent versus FSBO

So, you’ve made some improvements and you’re ready to sell. Are you going to hire an agent or sell it yourself? In a sellers’ market, there are definite pros and cons to either having an agent assist you in the sale of your home or selling it yourself. But the current market is not a sellers’ market. Therefore, I would tell you that if you want to sell your home, you’d better get yourself an agent—and not just any agent. Don’t let them razzle-dazzle you with past selling stats.  

The real estate market was on fire for years so most real estate agents sold a lot of homes.  Today, you need to ask prospective agents how they sold those homes: What did they do to get them sold outside of standard real estate marketing practices such as putting the home on MLS, placing a sign in the ground and having an occasional open house? You want an agent who takes this business of selling properties to the next level. Will they list your home on www.realtor.com and www.justlisted.com?  Do they network with other agents within their office or company around the Twin Cities? Is their website interactive? How many hits a month do they get on their website? Are they notifying the neighbors that your home is for sale and are they asking them if they know anyone looking to purchase a home in the near future?  How do they follow up with prospects that come through your open houses? These are only a sampling of questions to ask when you sit down with a prospective real estate professional to determine if they are right for you.

Price it right

You’ve probably heard this before, but it’s true and warrants mentioning again.  You have to price your home right, which is another benefit of having a real estate agent assisting you with the sale of your home. They will do what is necessary to determine an appropriate price range. Determining this “right price” requires research. Your agent will have to look at other like properties that have sold within a specific timeframe. They will also be helpful in showing you the inside of homes that are currently for sale which look just like yours. Remember, you need to set yourself apart from other homes, so seeing the competition will help you determine what, if anything, needs to be done to your property as it pertains to pricing or improvements.

Staging is everything

Work with an agent who has access to a home stager. These people are very good at working with your existing pieces of furniture and often times have filler pieces warehoused that they will loan to you while your home is on the market. Their job is to make sure the furniture in every room is to scale with the room, that it all works together, and that what the consumer sees will leave a lasting impression. They will also be very honest with you regarding the need to de-clutter, repaint or re-carpet, finish unfinished spaces, or depersonalize. Don’t take any criticism personally. Stagers have been trained to think like a consumer, not like a seller.

Just do it

Selling your home really is a science. Today’s buying market demands the best choices available. Buyers will take their time in making the decision to buy.  Do yourself a favor, and put your home in the best possible position of being the home chosen by buyers out there right now looking to purchase. If you do it right, you’ll wind up being one of today’s favorable statistics and celebrating the sale of your current home from the family room of your new one.

Kelly Lucente is a real estate agent in the Twin Cities and a member of the NAHB.  You can reach her at www.kellylucente.com.

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