Next up Part 2 - IF IT’S NOT SELLING, IT’S NOT COMPELLING!
Next up Part 2 IF IT’S NOT SELLING, IT’S NOT COMPELLING! In the first home selling post, I stressed the importance of getting the price right the first time listed, and why it’s important to have an agent with DEEP knowledge of the neighborhood. In this segment, I’ll tell you about what to do if you get it WRONG, and the next post how to make it RIGHT. Details matter in real estate! As I said, the EXPIRED/WITHDRAWN category should be avoided, whenever possible. Re-assessing the property’s value should be done asap, by a professional appraiser. Although a knowledgeable agent should be able to use comparable properties to evaluate price, sometimes there are issues missed. Take for example, lake properties built with large walk-out basements, tricked out with fine amenities. But, come selling time, even the finest of finishes do not add value to the “below ground” square footage when appraised, because of regulations by Fannie Mae. Even now, 90% of homes are purchased with mortgage instruments (vs. cash at about 10%), requiring meeting Fannie Mae regulations. So, even though buyers may love the finishes, the lenders’ appraisal will discount the below ground square footage. So whether on a lake, a hill, or an enclosed basement, this below grade square footage will be of lower value compared to the above ground square footage. If the agent is unaware of this requirement, they may give you a high listing price because they’re counting ALL the square footage as equal, and it’s not. Sometimes agent’s will promise you more than they can deliver, just to get the listing. It doesn’t really matter if there’s a contract or not, because if it’s price too high, IT WON’T APPRAISE! Another huge reason to avoid the WITHDRAWN/EXPIRED category is that it can “tarnish” a listing. Agents and buyers alike, want what other people want. Your property can get the reputation that it’s an “undesireable” property, or that there must be something wrong with it. The The biggest risk, is the listing gets stale and agents just stop showing it. The key to avoiding this mis-step altogether is the agent with deep knowledge of the neighborhood. If you should find the need to withdraw or have it expire the listing. Do some research to find out true experts in the area, and they may not be the big companies. Try to get a referral from “someone in the know”. Don’t know how? Give me a call, text or email and I’ll help you find you the right agent! 803 302-7000 RealtyKath@gmail.com Next up: How to Make your Property Compelling!