7 Ugly Real Estate Truths That Only Your Best Customers Understand
There comes a time when the transaction gets too difficult for your customers. Some will complain. Others will blame you for things totally out of your control.
But your best customers will understand. They know that there are cold, hard truths to buying and selling a property.
So, what are these “ugly truths”?
#1. Sellers Must Be Out By Closing Date
Whether you are a buyer’s agent or a seller’s agent, you know that the sellers need to be out of their home by the closing date. But sometimes, sellers will try to negotiate and ask for a few more days in the home to finalize their moving process.
Not only is this unfair to the buyers, but it can also cause a big legal mess if something happens to the property during those days. Your best customers will plan ahead and sometimes be out a few days early.
#2. Sellers Have Different Tastes Than Buyers
Bold colors and vibrant decorations may have appealed to the sellers when they added them to their home, but buyers that don’t have the same taste will turn away from the sale.
It’s important for sellers to understand that neutral décor is most ideal when selling a home. Although some people can look past little oddities, some buyers can get distracted and lose sight of the home’s true potential – a risk not worth taking.
#3. Buying / Selling a Home is Inconvenient
Sellers have to be prepared to keep their home clean, be ready to leave the house for showings, be patient for the right buyer to come along, etc.
Buyers have to go through the process of getting a mortgage (in most cases), view several homes on their day off, choose what home to make an offer on, etc.
None of these processes are convenient for the average working people with families and other obligations.
If your customers accept ahead of time that the process will be inconvenient at times, it will make their life – and especially yours – a lot easier. They will be more understanding if problems and delays arise, and will be lenient if a comprise has to take place somewhere during the transaction.
#4. It’s Easier to Sell Fast for the Right Price, Than Waiting and Reducing the Price
As a skilled real estate agent, you know the importance of pricing a home to sell.
Sellers often don’t realize that the first few weeks of a newly listed property are the most active. That’s the period when the most interested and most qualified buyers turn up.
A freshly listed home will grab the attention of buyers that are waiting for the right home to hit the market. And if the property is priced right, it will also attract those that are just beginning their search for a new residence.
On the other hand, a listing that started out priced a little high can sit on the market for a while and go stale. People will start to wonder why the home didn’t sell. Is something wrong with it? Is it priced too high? An eventual price reduction can signal desperation, and the buyers showing interest at that point will have the upper hand because they know that there are now far less interests on the property.
#5. Overpricing Hurts Your Seller And Helps Their Neighbor
Sellers like to think that their homes are special. And as their agent you will tell them that it is, but not through a buyer’s eyes.
Buyers are qualified to buy a home in a certain price range. That means they are looking for a certain type of home. If the neighbor’s property is similar to that of your seller (or the whole neighborhood for that matter), buyers will be drawn towards the neighbor’s house that isn’t overpriced.
Not only does overpricing steer potential buyers away, but it helps the competing homes in the neighborhood seem like better deals.
#6. Unfinished Repairs Will Cost More Than the Price of the Repair
If the home needs repairs, it will cost the sellers a lot less to actually get them fixed than trying to save money and listing anyways.
Buyers like to move in to a nice, clean home. If they discover that the first thing they will have to deal with after moving in are repairs, they may go looking elsewhere. Repairs needed will also start to affect their thinking.
They will begin to question the prior maintenance of the house, and what else could be broken that isn’t obvious to the naked eye. These factors will make them less and less confident in buying and lead them to make lower offers.
#7. Lying and Hiding Will Come Back to Haunt You
Some sellers love to be sneaky. They will try to hide defects and lie about the condition of the property to sell for a higher price.
As their selling agent, you can steer them away from that mindset if you find out. But in some cases they will lie to you as well.
That’s why it’s important to explain to every seller that honesty is the best way to sell a home. Failing to disclose certain known defects of a property will come back to bite them with a hurdle of legal trouble. That’s not something that they want to get caught up in. Legal consequences can end up costing them several times the amount that they would have gained over the sale by being dishonest.
Your best customers will understand these cold truths, even if they are hard to accept. At the end of the day, these customers will be the ones that you develop successful, career-long relationships with.
To your success!