You’ve probably heard the old real estate adage: “The three most important things about real estate are location, location, location.” Location certainly is the most influential factor in a property sale. It’s also the hardest one to do much about. However, to make yours a hot property (at least compared to others in the same location) there are two other aspects to consider.
Besides location, a good real estate transaction also depends on an appropriate asking price and the best possible presentation. All three factors must by in sync. Otherwise it will be like a 3 legged table with uneven legs. Everything will be off kilter and your deal could slide off the table. Fortunately, home sellers have a lot more control over these last two than they do location.
When it comes to pricing a property, remember that in the end the market always dictates the value of your home. It’s exactly as much as a qualified buyer is willing to pay. When you establish an asking price you must look at comparable properties which have sold in your location and those which will be your competition. Add or subtract to account for different features which may add extra value in buyer’s eyes. Unfortunately, this may not necessarily be as much as you spent to install those features.
It has been proven that the longer a home sits on the market, the less likely it is to achieve it’s asking price. In other words, the more overpriced a home, the more likely it will take a price correction to get it sold. The best course is to price as close to estimated selling price as possible and monitor feedback closely. Here’s why.
The best offers usually come within the first 2 to 3 weeks on the market. If you had a reasonable amount of viewings in that time and did not attract any offers then you need a new crop of buyers. Although new buyers are constantly entering the market, they and their agents will see how long your home has been offered. They may assume there is something wrong with it and not even look. It’s become a stale listing. Bargain hunters might hope you are desperate to sell and shake your confidence with low ball offers. You can break the cycle by making an attention getting price reduction. The trouble is, it’s often more than you would have had to give up in negotiations had you priced accurately in the first place.
The third factor which has to be in balance with location and price is presentation. Presentation is entirely within the sellers control. Even if the property is tenant occupied, there are measures owners can take to solicit tenants co-operation for showings.
Presentation, or how well a home shows, gives potential buyers the perception that the home meets their needs. It starts by ascertaining who the most likely buyers will be, and learning everything possible about their motives, tastes and lifestyles. Then the home can be prepared to reflect, as well as possible, those buyer aspirations. Good presentation means making good first impressions — in photos, at the curb and inside the door. It also requires eliminating distractions, turn offs and red flags to problems. It’s really about smart marketing. Marketers might say you were positioning the home as desirable in the hearts and minds of target buyers.
Presentation is the foundation of all the other marketing efforts. It involves polishing the property into the best product possible given the time and budget available. The process is referred to as home staging, real estate staging, property styling, or even sometimes house fluffing. It’s the only way to make sure presentation doesn’t fall short of location and price. It keeps the three factors in balance and makes the home a ‘hot property’ in any market conditions.
Author, Martha Stanton-Smith, owner of Rearrangements, is a Certified Canadian Staging Professional who helps serious home sellers in Kingston, Ontario get full worth for their homes. She completed her staging training in 2006. Visit her profile here:
