4 Things that Sell a House

In preparing a house to be sold, whether privately or on the open market, there are 4 parts to the preparation that need to be considered when looking at getting a good price in any market.

4 Things sell a house.

• • Location – this is a fixed item. It is an advantage, a detriment or it could be just average. There are many factors to consider in location. There is the overall general location – inside or outside of a neighborhood, close to shopping, and proximity to a town – and there are the specifics connected to those items, like proximity to the interstate, railroad tracks, a main road or a school. There are also those that benefit a house location like common space behind it, a good fence, or a park behind the house or nearby. These things can be positive or negative depending on the condition and exact location of the surrounding homes, businesses or public spaces. A few of these are a definite advantage, like common space behind a house, or a frequent detriment, like high tension power lines. Many are subjective.

Whatever the location is, it is. We cannot change the locale, nor can we change the neighbors, for good or bad. We may be able to hide something undesirable with trees or a fence, or we may not.

 

• • Condition – this is the livability and desirability of the house based on the year built, the quality of the upgrades, how well the house was cared for, and even the personal design styles as shown in the paint, flooring and cabinets. The outdoor spaces fall into this category as well. The condition can vary widely. What the buyers want and will pay for regarding condition also varies widely. Generally, the buyers in this season lack the skill and/or the extra funds to do many upgrades and tend to prefer houses that are well kept, updated and move in ready, according to their version of what “Move In Ready” is. And they are willing to pay more money for the house that is in better condition and requires little to no work upon move in. At a basic level, condition starts with the house being professionally cleaned and decluttered. Buyers do not like hodgepodge renovations.

If the location is poor or is less desirable to the public generally, the house should be in excellent condition to make up for the location flaws in attracting buyers. The reverse is not as true. An excellent location is very helpful and does help a property sell but will not make up for the fact that a house needs work. Not in the same way anyway.

• • Price – This is where the two factors get equalized. The property for sale has a certain desirability in the market at a certain point in time. Price takes into consideration both of the above items and an agent and a seller must find the sweet spot where a house, in this location, in this condition, will appeal to a buyer in a reasonable period of time. If the market rejects a house, the condition or price will need to change in order to reposition it in the marketplace. The houses in a good location that are in excellent condition will sell quickly and for a good price in all markets. Those houses that are lacking in location or condition and have not reduced the price to accommodate the lesser factors will not sell. People will overpay for an amazing house, but seldom for a house that is needy. If the location and condition are both poor, the price needs to be low enough to entice a buyer who is willing to pay that price for that property.

There is no ability to control Location. The seller had control when they bought there, but there is no control for it now. Condition and Price are both in the control of the seller. The agent will provide data, information and suggestions, but the final decision about condition and price are in the control of the seller.

• Marketing – this is the one item in the control of the agent. The agent does most of their work towards marketing before the house is even listed on the open market. This includes helping the seller strengthen condition and accurately price the property so it enters the market positioned well to sell in a reasonable time. Then the agent should provide excellent photos, with 360 views and a video to give buyers a professional perception of the property. The properties are syndicated to thousands of websites through the internet. An excellent property at a good price will not sell if no one knows about it.

Once the property is listed, if the house gets showings, that confirms that the property was listed in the range that buyers expect to see houses in that area and that size. If it gets no showings, the buyers rejected the house generalities and photos and price combination before even coming into the house. It was priced too high and was positioned in the market outside of the buyer’s expectations for that price. If the house gets showings and gets no offers, that means it was well presented and they hoped it could meet their expectations, but once they got into the house, they found it did not meet their expectations and they rejected it at that price and in that condition. Generally, if they came to the house, they are rejecting the condition, location or floor plan, not the price. Remember though – condition, location or a bad floor plan can be fixed with price.

The market conditions play into this as well. When houses generally stay on the market for 0-3 months, that is called a seller’s market. My home market, Nashville, TN, has been in a seller’s market since 2012. The market has been advantageous to sellers and houses sell fairly quickly. Appreciation has been good. When a house is on the market for 4-8 months or more, that is a buyer’s market, where the buyers have an advantage. Nashville had this type of market in 2008-2012. There is supposedly a balanced market in the middle of those numbers, but we have not seen one of those in many years. In a seller’s market, houses will sell more quickly and for more money, if the Location, Condition, Price and Marketing come together well. In a buyer’s market, which could still be a niche in a general seller’s market, the houses that are the best value will still sell quickly and for a good price.

Agents, sellers, and buyers who work with this framework to understand the market position for the house will generally be able to price it competitively and get a sale with a ready buyer.