The home selling process Part 1 of 3: What are the first steps a seller needs to consider?

Introduction

Like all professional client relationships there are two sides to consider, beginning of course with the client. 

For my part, I like to begin the conversation with the fundamentals as in why, when, and how? Statistically the number one reason a seller will be looking to sell is family but there a great many other reasons too, such as downsizing or a change of location/job change, or perhaps they need to raise cash going into retirement. Regardless of the reason, it behooves the agent to take an interest in their client’s goals and expectations, particularly as it points to motivation and need. 

        

For instance, I have worked with sellers who are just looking to test what the market can bring them and conversely I have worked with sellers who had to sell due to medical reasons, the latter of which are considerably more motivated as far as the timeline. Irrespective of the reasons we are in the relationship business and the more we can learn about our clients and vice versa, privacy notwithstanding, the better we can represent them. 

As realtors we also need to be mindful of the fact that a typical seller, depending on how long they have owned and lived in the home, has a greater emotional attachment to it then we do. With that being said, I make a point of using that to my advantage, while also remaining sensitive to the fact that we are not always on the same side, in as much as it is the realtor's job to treat the home as a commodity as it is to manage the sellers’ emotions. 

With some exceptions the seller is more likely to inflate the value of their home due to what it means or has meant to them while the realtor’s focus will be on how the home compares to other like solds in terms of location, property condition, date sold, and amenities. In order to secure a healthy working relationship a realtor will, depending on the seller’s personality, need to make a strong case for valuation and more importantly the impact that pricing has on the success of a listing. 

Metrics prove again and again that listings that are underpriced, all other variables notwithstanding, sell much faster than ones that are overpriced. The longer a home sits, the less likely it will sell and or the more likely it will require a significant price reduction to overcome the perceived deficit that was created by the number of days it was on the market.       

Outside of that, market conditions such as interest rates and inventory levels/buyer pool size will exert a certain amount of control over the success of all listings. When I meet with a seller for the first time there are some things I make a mental note of and there are some things I choose to make a point of. Ultimately, it benefits the agent to be careful not to cause offense at the expense of focusing on the home’s attributes, but that doesn’t mean the agent should avoid hard truths since it is the agent’s job to sell and or to impart advice when needed or warranted. 

For me, it’s a balancing act in as much as some sellers like to relinquish all control and others don’t, to varying degrees, of course. With that being said, I like to operate from the point of view of teamwork in as much as both parties have a role to play and when one acts in the spirit of co-operation there is a greater likelihood of a positive outcome. For the most part, I prefer to work with a vacant home that can be staged to sell and shown anytime but that is not always possible. 

The Essentials: Preparing an occupied home for sale

        1. De-clutter. The key for any seller of course is to showcase the attributes of their home so others can see it, and it’s much easier to achieve this if there isn’t a ton of furniture or clutter in the way. Within reason, this stipulation extends to countertops, shelving, storage, garages. 

Advise sellers to enter the home as if they were buyers seeing it for the first time. What stands out as “too much,” dirty, or distracting? Those are clues to where decluttering and cleaning should begin. Remind sellers that anything they get rid of now will be something they won’t have to pack later.

If the task of decluttering seems overwhelming, suggest sellers take one room at a time, and not to bring anything new into that room when it's finished. Some organizing experts recommend labeling three boxes:

1. Give away
2. Throw away/recycle
3. Put away

When a box gets full, move it to a staging area. The “Give Away” box can go into the trunk of the seller's car for a trip to a charity or a friend’s home. The “Throw Away” box can go in the trash or recycle bin, and the “Put Away” box can wait until the room is de-cluttered, and then each item should be moved into the appropriate space.

       2. De-personalize/neutralize so that the would-be buyer can visualize themselves in the space. Remove family photographs or anything that might cause offense to the would-be buyer whether it’s political, religious or controversial in nature. This can be a tricky one because there are buyers out there who are of course proud of their beliefs and or might only be interested in selling to like-minded folks. Whatever the case is, the agent should be prepared to have that conversation and to discuss the implications. Having said that, I think a home with personality is a good thing, since you want the would-be buyer to perceive the space as a home and not    so much as a vacuous commodity. 

        The bottom line is it’s a balancing act and each case is different. For my part, I’m always happy to make suggestions and to apply my artistic eye when needed. Taste is subjective but that doesn’t mean one there isn’t a science to it.

        3. Staging: In the case of furnishings that don’t work for the space or take up too much room, I have had sellers store these items in anticipation of a move at which point I bring in stagers to fill in the blanks. Not at all stagers like to do this but they are out there. While this is non-essential, it has worked very nicely for me. For vacant unfurnished homes I recommend hiring a stager or at the very least a virtual stager. In the case of virtual staging, the listing agent is well advised to include pictures of the property in a vacant state with an explanation so there is no disappointment on the part of the would-be buyer. 

       4. Curb appeal. If the seller has a yard, I advise they clean it up and or put in a shrub or two within reason, especially in the case of a front yard because as the saying goes you never get a second chance to make a first impression.

        5. Repairs. Budget and time notwithstanding, I recommend making repairs in order of importance. For instance, you don’t want a front door that is hard to open or falling off its hinges or has a faulty or persnickety lock, just as you don’t want an HVAC system that hasn’t been serviced or is not working as it should, especially on a hot summer day. Similarly, leaks and plumbing should be fixed when possible because it shows the would-be                            buyer that the home was well taken care of. 

        Some of the major electives are large expenses like new windows, flooring or a roof. In the case of these items one would have to price accordingly while also relying on other aspects of the home to compensate. It’s not like the would-be buyer cannot take care of these things themselves, if need be.

        6. Painting and updates. A fresh coat of paint can work wonders, particularly in the case of paint color since a disproportionate amount of buyers lack the vision to look beyond a construction yellow wall, for instance. As far as the expense, the ROI on paint cannot be underestimated, assuming you have the time. 

        7. Odor: Carpets, upholstery and rugs are notorious for holding odor. Have them cleaned if need be. Pets should also be part of the consideration. I cannot stress how important it is to have one’s home smelling fresh or inviting. If you have ever walked into a home that smells of fresh baked cookies you all know what I’m talking about. Odor matters.

        8. Renovation/remodel etc: The ROI, as far as time, effort, and expense on these items is not a straightforward computation. Statistically, it’s very difficult to make the money back on a newly remodeled kitchen or bathroom in spite of their importance. Work arounds can include new faucets, mirrors, backsplash, appliances, cabinet paint, hardware etc. In the event of a home that hasn’t been updated in decades it gets more complicated for today’s buyers. I recently worked on a condo project that had not been updated in 30 years and it showed. 

        The kitchen for instance was virtually non-functional and the overall appearance of the unit seriously compromised the potential of what was a glorious and unique space in a very desirable neighborhood. We had a choice of selling it as is it to a flipper or fixing it from the ground up to attract a much larger pool of buyers, buyers who were more willing to pay top dollar. In the end, we chose the latter and turned in a profit. The condo sold in 6 days when the current average for my market is 40 days or more.

IN SUMMARY

While it benefits the seller to consider all these things when prepping their home for sale, it’s not always possible as far as the timeline, the effort and the expense. It takes a keen eye and some negotiation from a realtor who understands the market to have an impact on that decision, just as it takes oversight on the part of the seller to figure out what is possible or makes sense in light of their circumstances. Every case is different. 

Next up we will talk about showings, pricing working with offers and the process of selling the home itself. In the meantime, feel free to reach out to me with any questions and or to like the post.