"Potential" Does it sell a house in today's real estate market?

By
Home Stager with Certified Staging Professional

Potential...... Does it sell a house in today's real estate market? 

In my opinion is does not, but I'm looking for other opinions, in agreement or not. 

When I started flipping houses over 35 years ago, determining the "potential" of a house was a one of the most important parts of the buying process.  As flippers/real estate investors we usually bought fixer uppers, but not if they were without "potential". 

Here is an example of what I'm seeing today.  This ranch style home below has potential, but it is truly a fixer-upper and the lack of front yard landscaping is just a small part of what needs to be done. 

Dream Home Staging and Stager Training Fresno CA

Below is the kitchen in the same house.  Yes, it has great potential BUT most buyers wouldn't like the peninsula wall hung cabinets that close off this space.  Buyers want cabinets that are not old and falling apart.  Today's buyers want upgraded counter tops not tile that is chipped and broken. These recessed fluorescent light fixtures are also very unattractive to buyers. 

Dream Stager Training and Home Staging, Fresno CA

When the real estate agent first saw this house she saw the "potential" but she also saw it's needs and she called our Oakhurst based home staging company to help with the appeal of this house. Please keep in mind that when we stage a house we do NOT cover flaws.  Yes, staging helps buyers visualize what a house can be but they should still see the issues. 

In my area, houses with "potential" are plentiful.  They are lingering on the market and prices are dropping significantly which has a negative effect on the local market.   

What about your area?  Do houses with "potential" move quickly or do they linger? 

AND if you know of anyone that's interested in a house with potential, on 41 acres in the California foothills...let me know.   

~ ~ ~ ~ ~ ~ ~

 Dream Stager Trainer and Home Staging, Fresno CA

Dream Interior Redesign & Staging by Ginger Foust is a full service, licensed and insured Professional Real Estate Home Staging and Interior ReDesign company.

Locally serving the Californiafoothill and mountain communities of Oakhurst, North Fork, Coarsegold, Ahwahnee, Bass Lake, Wawona and Mariposa. Also serving areas of Fresno, Clovis and Madera, California.

Providing Virtual and Conceptual Staging Worldwide.

   See our Oakhurst area slideshows with examples of our Professional Staging, ReDesign and Decorating.  When the first show is over click on OTHER SHOWS to see more. 

  Visit our website at http://www.dreamredesigns.com for more information or call 559-877-2442.

                

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Joe Jackson 12/12/2010 04:34 PM
Topic:
Home Selling
Location:
California
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Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Thanks Anna.  I think this is why so many people buy new homes in subdivisions even when there are better buys in the resale market.  Unfortunately there is NO building going on in our area so buyers are limited in their choices.  Thanks so much for your thoughts and comments. 

Patricia, fortunately there are more and more RE agents that understand this, as did the listing agent on this house.  Unfortunately other mistakes are hindering a sale.  Thanks for your support of the staging industry!

Dec 13, 2010 02:29 PM #24
Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Tara, it is REALLY tough when you have competition that gets it and your seller doesn't.  For the most part, it's not working for sellers and their agents here either.  Prices just keep dropping lower and lower.  Have you escorted your seller through those houses that are direct competition? 

Thanks for your thoughts and good luck with that seller and the sale.

Dec 13, 2010 02:33 PM #25
Rainmaker
570,044
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Ginger,  If priced right most buyers can and will see the potntial in a listing.  I just put a tri-plex under contract that looked so bad/funky when we first saw it but the buyer had no problem seeing the up side to the deal.   Hope your Holiday Season is the best ever !

Dec 13, 2010 04:03 PM #28
Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Bill, how great it is to hear that.   Do the buyers have the "vision" themselves or do you create that for them.  When we owned a brokerage only one of our agents (out of many) had the ability to visualize what a house COULD be AND then successfully share that vision with potential buyers.  Good for you and thanks for the input. 

Dec 13, 2010 04:09 PM #29
Ambassador
1,551,544
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Ginger, potential sells when you lower the price enough otherwise it is not competitive.

Dec 13, 2010 04:17 PM #30
Rainmaker
240,807
David Ames
Zephyr Real Estate, San Francisco - San Francisco, CA
San Francisco

That's just it, Ginger.  If your area is "saturated" with homes-of-potential, then adding one more to let it "sit" isn't a great plan unless it's remarkably priced to move immediately.  If the "investors" aren't in plentiful numbers for that area, then a different approach sounds necessary:  Of course, that's where you come in! ;-)

Dec 13, 2010 04:25 PM #31
Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Gary, I agree but all too frequently sellers don't understand that.  Thank you. 

David, somehow I imagined you commenting that potential can sell with your buyers because YOU have the ability to verbally paint a picture for them of what COULD be.  Investors are rare here and no one is building, so the contractors are rare too.  Unfortunately, I still have a long way to go in educating realtors and sellers about the reality of what staging is.  But...I'm working on it, thanks!

Dec 13, 2010 04:39 PM #32
Rainer
25,236
Evelyn Zebro
Beverly-Hanks & Associates - Asheville, NC
Asheville NC Real Estate Broker

Nobody wants potential anymore... or so it seems.  And nobody can imagine a home with minor updating - or even major - if the area is right.  WHATEVER HAPPENED TO LOCATION LOCATION LOCATION????  I work with all price ranges but let's be realistic here.  When it's your first house, don't expect the Taj Mahal.

Meanwhile, sellers will make some improvements to help sell, but often they don't trust an agent with better color sense.  And in my market, stagers are only used in higher price homes mostly.  But what a difference it makes!

Dec 13, 2010 04:51 PM #33
Rainmaker
123,897
Karen Pannell
Real Living / Home Realty - Owensboro, KY
Owensboro KY Real Estate -270-903-2167 Homes, Cond

Potential adds up to more money, more money, more money!  See my Kiss of Death List from a previous blog!

Dec 13, 2010 06:13 PM #34
Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Evelyn, it sounds like you and I are feeling much the same on this issue.  Sometimes I just want to shake these buyers that want it all but don't have the $$ or credit to get it ALL.  Not all houses, at all prices points can justify HIGH-END finishes +++.  Some times I hear the words "OK we'll have to compromise" but what they're willing to go without (or earn over time) frequently doesn't amount to much.  Thanks for your support of the staging industry.  Do you know of Sherwin Williams Color system to help clients visualize color changes?  YOU could learn that system and make yourself more of an expert.   Let me know if you would like to learn more.   

Dec 13, 2010 06:17 PM #35
Rainer
31,875
Eve Rusakova
Studio 74, Home Staging and Redesign - Toronto, ON
Home Stager, Toronto, ON

Ginger, most buyers are looking for a house that's in a move-in condition. The majority of those who are wiiling to do the renovations and upgrades hate the process itself. We all know - it's a hard and messy job. I agree with the comments above that price fixes everything. We have few houses with a potential that currently sit on the market. Some realtors and sellers just prefer to do nothing about it, although staging has been offered as an option to them.   

Dec 13, 2010 06:32 PM #36
Rainer
4,287
Ayesha Sikandar
MadDimensions Architects & Interior Designers - San Mateo, CA

Homes with a "potential" are a hot buy for investors or buyers who have experience with remodeling. I bought and remodeled a foreclosed home in San Mateo CA beacuse the location was great and was able to negotiate the price. But then again, I am a Real estate agent who is also an Architect  and an investor!!

Dec 13, 2010 06:33 PM #37
Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Eve, some of those "hard and messy" jobs just need a little know-how, experience and patience to turn things around.  Home renovations don't all have to be expensive or difficult.  It too bad that many of todays buyers are so BUSY that they can't see the value is learning these skills and having the patience to wait until they can truly afford more of the luxuries that have historically come with time. (unless born with a silver spoon)  I hear what you're saying about people chosing to do nothing, it is tough.  Thanks for your thoughts. 

Ayesha, I would still be flipping and investing today, if things were different.  Good for you!

Dec 13, 2010 06:47 PM #38
Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Karen, don't know how I missed your comment.  I will jump over and visit your link. Thanks. 

Dec 13, 2010 06:50 PM #39
Rainmaker
575,209
Valerie Zinger
House Proud Ottawa-Ontario-Canada - Ottawa, ON
Home Organizer

Ginger:  Most of my buyers are not looking for potential.  Even the one who insisted that she wanted a fixer upper with potential turned away from everything that was within her desired criteria.  I think we are just too busy to see the potential ourselves.

Dec 14, 2010 09:55 AM #40
Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Valerie, it's interesting to hear that it's the same in your area, SO-O far away.  Some folks idea of a fixer is far from what I think of and your client seems to be one of the others.  I keep hearing that same story a lot here.  Show me a fixer because I like the price but don't ask me to buy one...I'm too busy for THAT!  Thank you. 

Dec 14, 2010 10:26 AM #41
Rainer
67,493
Renee Marrs Caperton
Century 21 Marrs & Associates - Corsicana, TX
Realtor - Corsicana Texas Real Estate

Nice pictures and post!

Dec 14, 2010 02:27 PM #42
Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Thank you Renee. 

Dec 15, 2010 12:22 PM #43
Rainmaker
1,033,092
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Why choose potential for a beautiful home when you can just buy a beautiful home to begin with....unless you are looking to save money (or have no choice because you don't have money) and have to buy the potential house and put in the time to fix it up. 

Dec 30, 2010 11:38 AM #44
Rainmaker
358,875
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

Exactly Sharon!  I just don't understand some people's thinking.  Hopefully they just need educating but sometimes their listening skills are a bit off.  Thanks. 

Dec 30, 2010 11:50 AM #45
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Rainmaker
358,875

Ginger Foust

Home Stager Oakhurst CA, Dream Interior Redesign & Staging
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