Top 5 challenges when selling a home, and how to overcome them.

Getting the home ready and keeping it clean

The problem: A common question from homeowners getting ready to sell, is how to present the home in its best light possible. This could mean doing upgrades, or just decluttering and cleaning. Often after living in a home for many years, certain things seem to just disappear.  That outdated carpet, or the wobbling ceiling fan.  These things are simple cosmetic upgrades that may be worthwhile to complete before listing your home for sale.  These days, most buyers are looking for move in ready homes, not homes that come with a built in honey-do list.

Once it’s ready to be listed and shown, then the challenge comes with cleaning and maintaining it in that condition.  For this reason, the first couple weeks on the market are the most critical, so the better it shows out of the gate, the better your chances for a successful quick sale.

The solution: Do take the time to go over your house in detail.  Discuss with your agent what upgrades are worthwhile.  Some upgrades may increase value, while other may simple help the property sell more quickly, both worthwhile investments.

Once a house is clean, the best thing to do is stay on top of it.  Don’t let it get out of hand.  There is no easy way to do this besides being diligent.  One idea is to put together a checklist of items to “prep” before any showings.  For example your list should include, turn on all lights, open blinds, put the toilet seat down, and wipe down the kitchen and bathroom countertops. This 15 minute routine should be performed before each showing.

Unrealistic Buyers

The Problem: The most common scenario where a potential buyer is being unrealistic has to do with the offering price.  There are many potential buyers in the marketplace. Whether a home is priced right or not, will determine the types of offers coming in. Dealing with low ball offers is one of the top challenges seller’s can face.

Another challenge seller’s face when it comes to unrealistic buyers relates to the condition of a home.  There are many buyer’s who not only want to submit low ball offers but they also want the home to be in mint condition.  Many of today’s buyers aren’t interested in doing any work to the home they purchase.  This includes light cosmetic updating such as painting rooms and replacing carpeting.  This can be very frustrating to seller who prices their home to reflect the need of some minor cosmetic updating.

The solution: Price your home correctly. The correct price is the price that attracts the most amount of buyers in that price range.  It’s not necessarily a low price, and typically not way above market value.  If there is anything wrong with the house, have your agent relay these things to potential buyers.  By disclosing “the carpet needs updated and is reflected in price” before the clients even see the property, it’s very clear what your expectations are and should set you up for success.

 

Emotions

The Problem: You’ve called this place home for many years. You’ve raised your kids here, and have made memories to last a lifetime.  It holds a special place in your heart.  For this reason, your home is valued at least $50,000 more than comparable properties…not exactly.  The truth is we are emotional beings and the majority of homeowners think their property is worth more than it is.

The Solution:  What you have to understand is that buyer’s don’t care about who lived there, for how long, and what took place.  All they care about is if they can picture themselves living in the house. They want to know if it works for them, not you. When selling a house, you need to treat it like a business transaction.  Withdraw emotion and value your asset realistically. I know for a fact that buyers won’t overpay because YOU have special memories here.  They pay market value for your property, and you should price appropriately.

Passing inspections

The Problem: A frequently asked question from home buyers is whether or not they are able to have inspections on the home they are looking to purchase.  Buyer’s are entitled to the opportunity to have many different types of inspections such as general home inspections, pest inspections, or radon tests.  A top challenge that home seller’s face is “passing” these inspections.

When it comes to a home inspection, there are no guidelines to whether a home “passes” or “fails.”  The buyer is the one who decides whether a home “passes” the inspections or not.  The reason this is such a challenge that home owners face is because every buyer has a different opinion on what constitutes an acceptable or “passing” inspection.  Some buyer’s will be alarmed because of a “double-tapped” circuit in the electrical box and others will not.  While this one example is a quick and inexpensive fix, there are some buyer’s who will get scared off by a simple fix such as a “double-tap.”

The Solution: One great way to overcome the challenge of a “passing” inspection is by having a pre-listing inspection. This gives a seller the opportunity to correct the items that a home inspector finds and can eliminate alarming the potential buyer of their home.  Do be courteous of a buyers requests. If there are minor low cost issues that are seemingly big issues to the buyers, address them.  It’s worth spending the few extra bucks to give them peace of mind rather than blow the sale. Everyone has a different perspective of important issues, so just because you don’t care about an issue, doesn’t mean all the buyers will feel the same way.

 

Appraisal

The Problem: Depending on the financing a buyer will be utilizing to purchase a home, receiving a satisfactory bank appraisal may be a challenge to overcome when selling.  Certainly if the buyer is purchasing a home with cash, this challenge is typically null.

If the buyer is obtaining a mortgage from a lender, the bank must complete their appraisal of the home.  The bank appraisal not only can make a seller nervous but also the buyer and all parties involved in the transaction.  A satisfactory bank appraisal is one in which the appraiser is able to confirm that the agreed upon purchase price between the buyer and seller is in-line with the market value of the home.

If the bank determines that the home’s value is less than the agreed upon purchase price, this can create problems.  The necessity for a satisfactory appraisal is yet another reason why the pricing of a home is extremely important.  If the bank cannot determine the purchase price is in-line with the value, they are not going to lend the buyer more money than the home is worth, and the buyer may walk.

The Solution: Appraise up front.  Getting an appraisal before you list is often a great idea for difficult to price properties.  This not only can assure you it should appraise properly when it sells, but it can be a great marketing tool to justify your asking price.  It also shows the buyer that the property is worth the price the seller is asking.

By Acknowledging the challenges that may come up when selling a home, you will be better positioned for a successful sale. Remember, no 2 transactions are the same, so you may face a myriad of other challenges to tackle with your real estate agent.