WHY DID THE HOUSE NEXT DOOR SELL AND MINE DIDN'T?

By
Real Estate Agent with COLDWELL BANKER/PRINCETON

What do you say to your client when they learn that the house down the street just went under contract to a buyer who had also looked at their home?

Sometimes sellers forget that a number of weeks/months ago, when the Listing Agreement was signed, you advised them to respect the information that was presented as part of the Comparative Market Analysis(CMA) and price their home accordingly. And sometimes sellers forget that they decided to ignore the recent sales information and opted to offer their home at the price that their next door neighbor got back in 2007 - "not for nothin' but I have an inground pool" so I should be able to sell my house for more.

Sure location and amenities all have a price tag but the main thing that contributes to the sale of a home, in any market, is the price of the home as compared to others on the market. One of our main objectives as Realtors is to advise and help our clients create a perception of value when they decide to sell their home. If we are successful then our client's home will be sold quickly and for the best price - if we are not then the sale will go to the house down the street.

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Topic:
Real Estate Sales and Marketing
Location:
New Jersey Mercer County Princeton
Groups:
ABC's of Real Estate Marketing
Active Rain Newbies
All About NJ Real Estate
Realtors®
The Art Of Marketing You
Tags:
advice
home pricing
marketing homes
cma
perception of value
home sellers
new jersey
princeton new jersey

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Show All Comments
Rainer
50,384
Ann Bellamy
Hard money lending for investors in NH and MA - Tyngsboro, MA

Everyone sees what they want to see, and they want to see that their house is better.

April 02, 2011 04:05 PM #1
Rainmaker
190,996
Victoria Lorusso
Illustrated Properties - North Palm Beach, FL
Florida and CT Real Estate

Ok so staging is huge!!!!!!!!!!!!!!  And price is bigger!!!!!!!!!!!!!!!!!!!!!!!! Put them together and you have a sure fire winner!  Wish they all could get that!!!!

April 02, 2011 04:05 PM #2
Rainmaker
162,126
Lorinda Ward
Keffer Realty - Norfolk, VA
Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach

Sellers always seem to believe that since they have a pool that means more for them, they must remember everyone does not feel the same, the pool was put in for their enjoyment.  With this market they should never try to price their home with what sold 3 years ago.  Great post.

April 02, 2011 04:11 PM #3
Rainer
207,930
Gloria Laughton Allston
COLDWELL BANKER/PRINCETON - Princeton, NJ
GREEN, SFR

You are so right Ann and it is hard getting them to take off those rose-colored glasses.

I am a firm believer in staging Victoria so I agree that the "art" is putting them together.

You are on point Lorinda - a pool in the northeast is not something to be treated lightly and then to combine it with dated comps is a challenge.

April 02, 2011 04:22 PM #4
Rainmaker
494,150
C. Lloyd McKenzie
Prudential Allstar Realtors - Albuquerque, NM
MBA - Prudential Allstar Realtors -

Price is the most important factor in whether or not a home sells

April 02, 2011 04:44 PM #5
Rainmaker
338,276
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley R since 1976;408-565-8177

Some sellers may blame their listing agent, but most know the truth...it's the price and condition.

April 02, 2011 05:30 PM #6
Rainmaker
268,307
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Leesburg, VA

Oh, if they hava a pool, that is a huge negative for a lot of buyers. Many buyers don't want the liabilty, maintenance, insurance, etc that comes with having a pool. And many people don't want to have to constantly worry about some neighborhood kids or pets falling in and drowning. If it's heated, then the electric bill will be higher some months. If there is a communtiy pool, or a park pool nearby, and someone doesn't swim that much anyway, why would they buy a house with a pool? I knew a family that lived on route 15 in Leesburg that had a pool, and he was tired of hearing  potential buyers complaining and worrying about it, so he had an excavter come in and fill it with dirt. He said it was the best thing he ever did, and the house sold not long after he turned it into a garden.

April 02, 2011 05:30 PM #7
Rainer
207,930
Gloria Laughton Allston
COLDWELL BANKER/PRINCETON - Princeton, NJ
GREEN, SFR

No doubt about it Lloyd M but getting the sellers to the RIGHT price is the key.

Yeah Lloyd B, no matter how much you counsel them the frustration factor can kick in and some sellers will blame the listing agent.

Jeff you and I know that pools are nice to have and enjoy if that is what the homeowner likes but, unless you live in the southern part of the country, pools do not add to the value of a home.

 

April 02, 2011 07:04 PM #8
Rainer
47,685
Jim Courtney
OklaHomes Realty, Claremore Oklahoma - Claremore, OK
GRI, AHWD

Whenever my sellers question why thier listing isn't under contract, I always remind them of the three reasons why a property doesn't sell: Price, Marketing, and Condition. Last night I had this same discussion with my listing that is about to expire next week. We reviewed the three factors. Price is right if not below where it should be. My marketing is waaay over the top (if I say so myself). Which only leaves one thing left.  The seller is now spending nearly $1000 doing the many small things I recommended six months ago. Duh!  :)

April 02, 2011 07:54 PM #9
Rainer
207,930
Gloria Laughton Allston
COLDWELL BANKER/PRINCETON - Princeton, NJ
GREEN, SFR

I have been in your situation Jim - the sad part is now the house may be considered "stale" because it has been on the market for a while. Now your marketing strategy has to be revamped to reintroduce this new and improved home. Did someone say being a Realtor is easy? 

April 02, 2011 08:19 PM #10
Rainmaker
636,105
Adam Malachi
RLO Millennium Real Estate and Mortgage. - Castle Rock, CO
QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR

Great post! Price and condition of property are the mean factors of getting the property sold!

Thanks for sharing,

Adam

September 19, 2011 08:57 PM #11
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Rainer
207,930

Gloria Laughton Allston

GREEN, SFR
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