Get That House Sold

Thanks to the national media we now face a situation that we haven’t had to deal with for years: getting your house sold in a down market. Even though, in Pittsburgh (which, after all is the only real estate market most of us need to be concerned with) there is no reason for a down market. Employment is solid, consumer spending is up, interest rates are still as low as they have been in years (at this writing we’re at about 6.25% for a 30 year fixed rate mortgage) and our local values appreciate at a very sensible rate of three to five percent per year. By all rights we should be experiencing one heck of a real estate boom locally, but since the real estate markets in which our national media find themselves are facing the consequences of years of lunacy, the “real estate crash” is all we read, see and hear. The major markets in the east, west and south are definitely facing a challenging time; my only regret is that the national media, being myopic as usual, are intent upon dragging the entire country down with them. You see, if Katie Couric and Diane Sawyer say we are having a real estate crisis, then the average Pittsburgher, who would rather not be confused by the fact, will postpone further thinking on the matter of a home purchase until they receive the national “all clear” from Charlie Gibson. It doesn’t help that the local media falls into the same trap, simply parroting what they read on the AP, rather than doing their own research to determine if Pittsburghers actually should be concerned. Values are not plummeting here: this is one of the most stable markets in the country, always has been.

But to quote a famous American icon, “it is what it is.” So as we gradually slip away from the exciting market of the last two or three years, the astute seller needs to find ways to make his or her home more appealing to the diminishing pool of buyers. It is no longer a matter of improving your home to increase the value (although that still can be done), but rather improvements to increase salability.

Ok, so let’s get started. First, find yourself a knowledgeable and reputable real estate professional. This is definitely not a “for sale by owner” market. Do your research. With their help study your local market; they have access to all sorts of local real estate information that they can obtain through the MLS records. Don’t stop with the sales prices of similar homes that have sold. Of course, that will be an indication of value, but look also at the number of days these homes were on the market. There is an absolute correlation between time on the market and correct asking price.

Further, look carefully at the homes currently on the market, your competition, those homes that your buyer would be comparing to your home. If possible, have your agent show you a few of these homes so that you can get a really good understanding of how your home compares, not just for size and style, but condition and amenities. It’s great to review the stats, but nothing can top a “hands on” examination of the competition. Just to give you an example of what I’m getting at: if the MLS description of a competing property says, forced air, gas furnace and air conditioning and your home has the same, you may be inclined to believe there is no difference. If, however, their furnace and a/c are two years old and yours is 20 years old, then with all other things being equal, that home will sell before yours. Now I’m not advocating replacing all your household components with new equipment, I’m just saying that you may have to take this into consideration when pricing your home. What you are striving for is to make your home the best value on the market so that it sells before the others.

Next, let’s look at condition and distraction. You don’t want anything to cause the buyer to develop a negative impression while viewing your home. We talked before about clutter and deferred maintenance items. You’re moving anyway, get rid of the junk! Buyers are distracted by your stuff, so remove it if you don’t need it. That will serve two purposes: it keeps the buyer focused on the home, not the clutter, AND it will make the home seem larger.

Additionally, try to neutralize your home. I understand that you may find white or beige walls boring, but a clean and freshly painted home tells the buyer they can move in without having to do anything, immediately. They have time to make their own decorating statement, but for now the home is habitable.

I recognize that major items like kitchens, baths and windows may not be in your budget, but you can do everything possible to make them presentable. Repair or remove fading, peeling wallpaper and repair or replace damaged flooring material. Freshen up, paint the vanity, put up a new shower curtain, repair malfunctioning windows. Then decorate, sensibly. Place some flowers, get some pleasent scents going, appeal to the senses. Brighten up dark areas.

Staging has become a whole new industry. This is where a consultant comes into your home to assist you in setting it up to show at it’s best. If a consultant isn’t in the budget, at least try to take a look at your home as if you were the buyer and then take care of those problematic areas.

Of course the exterior creates the first impression, so pay attention to that. Trim up your lawn and shrubbery, repair broken steps, replace damaged gutters, downspouts or cracked windows, paint the front door, etc. Buyers will not necessarily notice that they aren’t seeing any negatives, but they would definitely notice the opposite.

With fewer buyers in the market and an ever increasing inventory of available homes, you’ll have to be smart about attracting potential purchasers and then do what you can to keep them interested.

Gary Straub is an independent real estate consultant and real estate professional for 36 years.