Gauging Seller Motivation

As a Real Estate professional what’s the best way to gage a seller’s motivation? Here are a few questions you can ask yourself to determine how serious a seller is:

Are the Sellers in tune with the market and your evaluation of a fair market list price?

Determining the fair market value of a home is really no different than analyzing a stock price for a company. Company stocks go up and down with the market as is true with Real Estate. Now granted, you don’t live on Wall Street so there is a certain sentimental value that goes into the equation when purchasing a home. However, the price still has to be in line with the market in order for a buyer to feel comfortable making an offer. I really like Nike sneakers, but am I going to spend 20% over the market value to buy into the company? Probably not.

So make sure the list price is based on the current market and not the market 2 years ago or even 6 months ago. If you don’t, the bank doing the financing and their new HVCC (Home Valuation Code of Conduct) regulations will!

Is the Seller open and willing to learn about and fix defects of the home that could deter buyers from making offers?

This question may be more important than the first? Sellers often invest money in the wrong place such as new carpet or kitchen counter tops. The problem being, the new homeowner will more than likely have different tastes and plans for the home than the original seller. What’s most important to buyers is the bones and systems of the house. In other words, answering questions like: Is the foundation solid, does it need a new roof, how is the furnace, is the electric up to code, etc, etc….is more important than basic cosmetics. People can live with a pink rug for awhile as long as there isn’t a pool of water on the sofa from a leaking roof.

Does the Seller have the financial resources and equity to cover the transaction costs?

Let’s face it, any time someone sells Real Estate it’s going to cost money. This has become very crucial especially in a market that is littered with short sales and foreclosures. Not much you can do in those situations….The good news is those homes are only a small representation of the overall market. For the rest of the market you want to make sure that the seller is capable and willing to invest the time and money to understand the home that they are marketing to the public. Educating buyers is more than half the battle when selling real estate. Giving buyers the right education and solid answers to their concerns and objections will pay huge dividends in the end.

If the answer is no to any or all of these questions you may want to re-think whether or not that house you’re trying to get listed is worth the risk of putting your name and reputation on the line.

For more information on how to maximize your success on listing and selling homes please visit us online at http://www.certifiedhome.com/

Happy Selling,

Stephen Smith
ssmith@certifiedhome.com