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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Ambassador
883,569
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

You used Bill Clinton and stealing in the same sentence... people might get made...  I'm not one of those people. 

But seriously, I think that the "gut feeling" is just the manifestation of things about the house that WE should be able to identify even if the buyers can't.   

Nov 14, 2007 09:28 AM #1
Rainer
13,122
Mary Ann Grafft
Keller Williams Realty - Lubbock, TX
It's the smart man that lets the wife make the final selection!
Nov 14, 2007 11:00 AM #2
Ambassador
1,552,707
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth
Mary Ann, I've heard the woman signs off on the kitchen while the garage and the backyard are what the man looks at. Who knows, but I hear these little stories.
Nov 14, 2007 12:25 PM #3
Anonymous
Anonymous
Anonymous

Nice looking house.  You are right about changing what you can and then adjusting price for what you can't.

Thanks for your help today on my post Working on My Outside Blog: TheRealEstateZOO.com  

Nov 14, 2007 05:29 PM #4
Rainer
103,798
Rosario Lewis
DDR Realty - Newburgh, NY
GRI, SRES - DDR Realty - Orange County, NY
Getting unrealistic sellers to preview the competition should help some see the light.
Nov 14, 2007 06:13 PM #5
Rainmaker
356,618
Donna Yates Real Estate - serving
ReMax Town and Country - Blue Ridge, GA
North Georgia Metro & Mountains
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. 
Nov 14, 2007 07:53 PM #6
Rainmaker
640,198
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

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!

Nov 14, 2007 07:58 PM #7
Ambassador
1,552,707
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

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. 

 

Nov 14, 2007 09:31 PM #8
Rainmaker
722,552
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
CRS, GRI, e-PRO, Searcy AR
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.
Nov 15, 2007 09:58 PM #9
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Gary Woltal

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