It can be a slippery slope for you as the listing agent to discuss a home’s true dollar value with the owner. They prefer to accentuate the positive and eliminate the negative. But the reality is they should be made aware that buyers will take everything into account, the plusses and minuses. Here are four downers owners should agree to acknowledge when deciding on a list price…assuming they truly want to sell.
Neighbors from hell
Buyers want to know who they’re going to live next to. But just like how you can’t choose your parents, neither can you decide who lives next door (unless you own the houses). A backyard full of junk, an unkempt lawn, a house that’s falling apart, loud music and many more eye and earsores can devalue even the most pristine homes.
Unenviable school system
A great many buyers prioritize a highly rated school system to educate their children. It’s one of the main reasons one town’s home prices are significantly higher than a town nearby. Nothing an owner can do about the school system, but they need to recognize why their house is less desirable than the same one in the better school district.
Too close to negative aspects
Location, location, location. People want peace and quiet where they live, as well as being away from power plants, highways and the like. Plus the perception of safety and cleanliness is critical for homebuyers. Again, very little the owner can do to change where they live, but it is critical to take everything into consideration.
Too-high crime statistics
Especially in urban settings, this can be tricky. There can be a totally different vibe from one block to the next in many cities. Sharp buyers can research statistics for petty theft, vandalism, assault and other crimes. Living too far from commercial areas and accompanying police and fire stations can also have an impact.
Tips for tough conversations
Easing a seller’s mind when it comes to pricing the home can be tricky with negative aspects. The right tone is important, while at the same time being direct in conversations. Discuss the positives before mentioning the negatives. Role-play these conversations with colleagues to build confidence. Have comparables handy to show how location and schools can affect prices from town to town. Present research on local crime statistics. All these things back up a realistic pricing strategy.
