Saturday, November 16, 2019 / by Dennis Isip
The first and most important step of the home selling process is the DECISION.
In today’s very hot seller’s market, I have encountered too many sellers who are basically enamored by the prospect of selling their home primarily for the sake of money.
They’ve heard a co-worker or a friend who “sold” their 3BR/2BA house for $400,000. Now their thinking: “Well, if they can sell theirs for that much, surely I can sell my 4BR/2BA for $450,000. After all, my home is newer by 10 years and I have a real fireplace in the living room. Saves a lot on utility bills!” So they go about listing their home, and are determined not to sell for anything less.
There are a couple of myths or fallacies in the above scenario.
- The co-worker or friend actually hasn’t “sold” their house yet. It’s only been listed at $400,000. Only time will tell what the actual selling price will be.
- An additional bedroom does not necessarily justify a $50K difference, if at all. A 10 year age difference, in most cases, is not significant either. As a rule of thumb, the total square footage is a rough indication of the home’s overall value. Keep in mind though, that +/- 500 sq ft may not necessarily be significant.
- Emotional attachment to a feature (the fireplace), may or may not be the selling point that tips the average buyer to submit an overpriced offer. In today’s world, a wood burning fireplace will most likely appeal to a specific buyer.
In contrast, the best reasons for selling are those that have to do with a lifestyle change:
- Marriage or divorce
- A new job requiring relocation
- A compelling need to transfer to a different school district
- A new member of the family (human or otherwise).
Selling a home conditioned on price can be an emotionally draining process. Spokane statistics over the past 2-3 years have clearly indicated that overpriced homes are sitting on the market. Buyers are simply passing them up, even though they have been desperately looking for one.
A big dilemma for home sellers is finding their next home. Being decisive in home buying is actually more critical than being decisive in home selling. Why? Indecisive home buyers will almost always lose out to other competitive buyers.
In summary, it is best to make a solid decision to sell the house, regardless of the selling price. The best reasons are the ones based on a compelling change in lifestyle.