It's the Competition Stupid!

By
Real Estate Agent with Keller Williams Realty 0575737

In a slowing buying cycle in the residential market I am always curious about the dynamics of why a buyer selects one house over the other. Beyond condition, location, and qualifying for the loan, I probed deeper. Buyers do buy on emotion and that's where their "gut feel" takes over. Many of the women make the final approval since they just seem to have better intuition.

MansionWhat I have determined a key element in choosing one house over the other is floorplan or basic layout. How does the house flow? I saw two houses (one pre-owned, one new construction) that had an EXTREME U-turn rear driveway entrance into the garage. Even I don't think I could get a car in there. They both have been on the market exceeding 200 days. So the floorplan / layout issue comes down to competition. Do I have to live at this price with this wacky driveway? NO. Not when for the same price in the next neighborhood I don't have this problem.

Stealing and modifying from Bill Clinton, "It's the competition stupid!"

Home sellers need to understand this and preview similar properties in their price range. You only can change what you can change, then it's time to lower the price.

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Rainer
103,798
Rosario Lewis
GRI, SRES - DDR Realty - Orange County, NY
DDR Realty
Getting unrealistic sellers to preview the competition should help some see the light.
November 14, 2007 06:13 PM
Rainmaker
340,713
Donna Yates
Real Estate North GA Mountains & Lakes Blue Ridge
Coldwell Banker High Country Realty
Any seller that doesn't understand "competition" by now, well is one who I would rather pass on.   I don't know what more can be done when a Realtor suggests every possible idea to get a house above the others and the seller doesn't do any of them.  What more can a Realtor do when the agent shows the seller comp after comp and they still don't get it.  I say it's time to say "Next" and move on.  The unfortunate thing  is the seller will still blame the Realtor for the house not selling. 
November 14, 2007 07:53 PM
Rainmaker
639,790
Marchel Peterson
Spring TX Real Estate E-Pro
Results Realty

Gary, I agree what a house is worth is whatever other homes in the neighborhood are selling for.  If a house has something quirky the only way they are going to get it sold is for it to be a good deal.  When I have buyers looking to buy the deal with the quirky floor plan I always try to remind them that when they sell they will also have to give a discount to account for whatever it is that is making it a good deal.  Good post!

November 14, 2007 07:58 PM
Ambassador
1,482,704
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Donna: All you can do is educate the buyer. Sometimes they don't listen.

Marchel: Buying something out of the norm will end up selling it at a discount to overcome out of the norm. 

 

November 14, 2007 09:31 PM
Rainmaker
697,750
Barbara S. Duncan
CRS, GRI, e-PRO, Searcy AR
RE/MAX Advantage
Driveways are very important.  I've noticed many houses that you'd have to make several attempts to get into the garage.  They take longer to sell.  Good blog.
November 15, 2007 09:58 PM
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Gary Woltal

Assoc. Broker Realtor SFR Dallas Ft. Worth
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