Las Vegas, like many other areas of the country, is experiencing a booming seller’s market. Many homes, even luxury homes, are only on the market for a few days before receiving multiple offers. Many of these offers are over list price; buyers waive appraisal contingencies and offer leasebacks to sellers who haven’t found a home yet.
Knowing how quickly homes are selling may give you the impression that every home sells for top dollar in any condition. I am here to tell you that nothing could be further from the truth.
While some homes are gone within days, others sit stagnant on the market for a few months. Why, you might ask? These house buyers turnoffs, to name a few.
Even with the housing inventory at an all-time low, the condition of a property still plays a massive part in buyers’ decisions to move forward with a specific property, with the caveat, they are purchasing that home to live in it.
There are still investors that will purchase the nastiest home on the block to flip it. But if they’re looking to rent it out, condition plays a factor.
Why is condition playing such a huge role? When asking my clients this very question, the answer I get is, “if they’re going to pay at the top of the market, they don’t want to fix one thing.” They want to move their belongings in without the added stress of a remodel.
The moral of the story, when you list your home, there is a checklist that I provide all of my clients outlining the items that I believe make the most lasting impression of that home to a potential buyer. It’s a guide for getting your home photoshoot ready. It’s easier than you think. Nothing fancy, just common sense things that might get overlooked after years of living in a home to avoid house buyers turnoffs.
Even when I’ve sold my own homes, I’m embarrassed to tell you about all the useless junk I had to remove from our house to make it presentable. Not even to mention the “hammer” I brought down on my family about keeping the house clean for showings. Luckily, this phase doesn’t last long, and guess what? You’re moving anyway, so you may as well get a headstart on packing and sorting.
What’s the saying, “you only get one chance to make a first impression”? This saying is true even for homes. You could have the most magnificent home inside, but you might not even get the buyers through the door if the outside looks like a hot mess.
The most effective way to see your home through a buyer’s eye is to bring a friend or neighbor over to give you an honest opinion of the impression they get when they look at the exterior of your home. Tell them not to spare your feelings, or this exercise is futile.
Is the yard overgrown? Trim back everything to make it look more presentable. There should be a clear path to the front door, even though most of us never use our front door. Potential buyers will be coming through the front door!
The easiest and most cost-effective items to tackle would be:
- Put a fresh coat of paint on the front door
- Pull the weeds
- Replace any dead plants
- Replace any burnt-out light bulbs
While the items mentioned above may seem pretty insignificant, they make a massive impact on what buyers see when they pull up to what might potentially be “their” home.
I know it sounds counterintuitive as we are watching house prices go up monthly, but it’s true. People are still looking for perceived value. Meaning that if your home shows an AVM(Automated Valuation Model), think Zillow, which is significantly lower than what you’ve listed your home for, it can be a deterrent to some buyers.
To address this AVM situation, I also show my sellers how to raise their Zestimate. Why? The reason is simply that that’s the first place everyone looks to see what a home is worth.
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Yes, you do have some buyers who are coming in with cash, offering over the list price and saying that it doesn’t matter what the home’s actual value is; they’ll pay over the appraised price.
Then you have another camp of buyers relying heavily on the appraised value coming in at the amount they offered because they do not have the cash to pay over the amount the bank will lend them(appraised value). If the home is priced too high over market value, you could lose several very qualified buyers who are more than willing to pay market value.
There is another school of thought on this as well.
I always present my sellers with what I think their home would sell for once I walk through it, see the condition, upgrades, etc.
At this consultation, we discuss the market price and pie in the sky price. Pie in the sky price is the best explanation I could come up with that allows clients to decide about overpricing their property strategically.
You price your home for an amount that would make you smile from ear to ear, be the top-selling price in the neighborhood, and put extra money in your pocket, pie in the sky!
Then we discuss the possibilities of not receiving offers because we priced it too high or the appraisal value comes in low. Then we devise a plan. Not after something goes wrong, but before we’ve even put your house on the market so that emotions and blood pressure aren’t running high. Remember, we’re doing everything we can to avoid house buyers turnoffs.
You, the owner, are in charge of this train. My job is to get you to the station without it coming off the tracks.
When you’re ready to entertain selling your home and would like to sit down and have a strategy session with me, let’s chat.
Note to your buyer…
If you are a buyer, do not get discouraged. You could lose out on a few homes during the current state of our real estate market. But with a clear understanding of how the process works, you can come in with your best offer knowing that you put your best foot forward. And not all sellers are only looking at the bottom line dollar amount. That’s why it’s essential to hire a real estate advisor who is versed in communication so they can find out what the seller is looking for in their perfect offer.
If you are in the market to purchase a home and are looking for an advisor to guide you through the process, I can help!
Contact us and let’s work together to put a plan in place so you can find your dream home.