How real estate really works

Maybe it is because this is the only industry I have been in, but there seems to be a lot of misconceptions about what it takes to get a house sold.

Before I begin, let me tell you how it doesn’t work:

  1.  Open Houses and/or Broker Open Houses.  I will occasionally have sellers ask me about these.  Open houses used to be a non-committal way for the public to see inside a house before the internet.  Today, all you get is neighbors, thieves and buyers so early in their search that they are not yet ready to make any decision….which is why realtors that need work love to do them.  They get to meet unrepresented buyers at your house and hopefully sell them something in the near future.   Broker open houses are for social realtors who want to win a $50 gift card and hang out with their realtor friends at your house.  Same deal as open houses, these worked best before any agent can look online and see if your house is a good fit for their client.
  2. Marketing.  Again, thanks to the internet, exposure is never a problem.  Google your address right now and see how many websites your house is on…even it if isn’t for sale, it will be on tons of sites.  Something like 98% of buyers find their house online.  I guarantee you that those remaining 2% have a realtor who is online looking for them.
  3. Gimmicks.  These are things that agents do to make themselves stand out.  Many years ago it was those QR codes.  That trend didn’t last long.  Today it is the 3-D house.  I mean, most people have a hard time figuring out a 2 dimensional floor plan.   They will soon go away and be replaced with something else.  Companies come up with these things to sell  us realtors to make us feel like we are cutting edge.  There is a house listed in town that has a unicorn and a dinosaur in many of the pictures.  It has been shared many times.  Everybody loves it.  It is a lot of fun.  The house has been on the market for 38 days.  Do you think it is helping to sell the house in a market where houses in it’s price range rarely last 3 days?

There are 3 things to selling a house.  If you do all of them right, your house will sell fast in any market.  How do I know?  I have been doing them for nearly 15 years with great success.  Every day I scroll through the old posts on Facebook I made on the same day over many years.  I was posting about selling houses the first day on the market or getting multiple offers back in 2009 when I joined Facebook.    It was a buyer’s market back then.  Selling fast and for top dollar is common now.  So much so that I don’t even bother to post it when it happens.  Any agent can do it since there are so many more buyers than there are sellers.  It is nothing to brag about these days.

The 3 things that matter are price, condition and presentation.

If the price isn’t right, then no amount of work can make a house sell.  You can post it all over social media, have dedicated websites, have a hot air balloon over the house, have Drake make a video at your house…none of it will matter.  The public thinks exposure will sell an overpriced house.  Trust me, nothing will make an overpriced house sell.  I have tried to do that when I was a newer agent and I see many agents try today.  Usually it doesn’t sell.  The seller thinks it is the realtors fault.  The seller gets a new realtor, who talks the seller into reducing the price a little bit.  It usually sells AFTER the price reduction.

Condition is the next big thing.  Buyers are looking at every house in their price range.  If your house isn’t one of the better ones, it won’t sell.  I often see an average to below average house sit on the market  because there is always a better house for a buyer to pick.  Sometimes these houses sit on the market until late fall or winter when there is no new competition.  I have always said the best time to sell a below average house is in the late fall and winter.  That time of the year is like going to a buffet right before the restaurant closes.  All that is left are the least popular items.  Of course, price trumps everything in real estate.  Often, getting real about the value can make a house sell.  A below average house listed for $200k might be an average house when reduced to $190k, and an above average house at $180k.  You can also improve the condition of your house to make it sell.  I often work with sellers and tell them some small adjustments they can make that will make their house more attractive to buyers.

Presentation is twofold.  The house has to look attractive online to make somebody want to come see it in person, and it has too look as good in person as people imagine it does from what they saw online.  I think the big takeaway here is that the public loses interest quickly.  You want to grab their attention and keep it as they look at all the pictures.  That is why I order the pictures beginning with the most interesting one first.  Whatever the best feature of the house is, that is what I use as the lead picture because I know as soon as people get bored, they stop looking.  You won’t see 14 pictures of the water heater in my listings.  The words in the description are very important too.  I try to use those to tell a buyer what they can’t deduce from the pictures and what isn’t already mentioned in the listing.  If the specs say the house has 4 bedrooms, I see no need to tell the buyer again that it is a 4 bedroom house.  I want to use that space to tell the buyer how the house feels while they are inside.  The goal of the listing is to attract a showing.  You’re not trying to sell the house from the listing, only make somebody want to come see it in person.

So, that is how getting a house sold really works.  Get those 3 things right and it will always sell.  Anything else is just a waste of a seller’s time.

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