Selling your home; one important tip to get it sold.
Let me tell you how to get the result you want: screening buyers.
Our founder Julie O'Donohue passionately believes screening all buyers is vital to the successful sale of your home. So what does screening mean? How do you do this? How could using DIY systems in the sharing economies and online marketplace, such as Next Address be able to provide such screening? And finally, what do you screen for?
There are some great real estate agents, and there are some questionable agents. In this article, we will explore why it is important to screen buyers before they come through your home. Open, honest and transparent communication is the best option for all.
'You don't have a shed!'
The most important inspection is one from a buyer who has been screened properly. There is no point in introducing a buyer through a property who needs a large shed when you don't have a shed or room for one! You only need the right buyer who wants to buy a home like yours, and the house is sold.
Don't fall into the trap of believing that lots of inspections are a great result. 'I'm having lots of inspections, therefore, lots of interest,' that's an understandable, normal conclusion. The only inspection that is of value is the one where the house is sold.
Correctly screened buyers are looking for your type and size of home, and in the right budget and most importantly are in a position to buy. There is no point in holding inspections with buyers who don't have their finance approved. You need buyers who have an approved loan, cash in the bank, or have already sold their current home and are now ready to buy a house.
If you are using or contemplating using a real estate agent, ask the agent what questions they ask potential home buyers before they bring them into your home. This provides you with a very clear idea of the professionalism and thoroughness of the agent.
It is important to avoid scenarios such as these:
Your agent phones and says they have a home buyer who wants to inspect your home. As the agent is showing the 'buyers' around you overhear... "We really love it, but until our place is sold we will not be making any offers." Or, "We like it, but with three kids we need that extra bedroom and 2nd bathroom like we said." The agent has not asked the right questions or hasn't listened to the home buyer, which results in wasting your time, people looking through your home who cannot afford it, or it does not meet their needs, or who are just doing a bit of research.
You need home buyers ready to buy.
Agents often use inspections to 'condition' their vendors. Never heard this term before? Well it's a big one in the real estate sector. After having ten or twenty 'home buyers' through your home, with no offers, you start to wonder what is wrong with your home, why is it not selling? If the agent has loads of inspections but no offers, this provides them with the opportunity to discuss lowering your price expectations.
Actual Case Study
"After the first open house, the agent phoned me to discuss the results. He outlined how many inspections they had and that the buyers had provided the following feedback. "The back yard was too small as were the bedrooms." After the second open house event, the agent phoned with similar feedback plus a bit more, this time saying buyers said the house was over priced. He asked to have a meeting and after only three weeks on the market asked for a price reduction. They set the price not me."
The result is people do feel pressured and obliged to drop their price. The agent has now successfully conditioned you, which often results in a sale very quickly. Remember too; the agent's commission is not overly affected when you drop your price, they only lose a couple of hundred dollars, you are losing thousands.
Again what you need is only properly screened buyers looking for a home like yours.
The better agents will bring the best genuine home buyers ready to buy your home. They will be open and transparent with you. They will continue to keep you updated on those buyers, and if they end up buying another property over yours, at least you know the feedback is genuine, and if a possible adjustment to your price is warranted, it will be based on fact, not fiction.
Control over the whole process
In the case of Next Address we are building a home buying service that does this screening for you, only sending through the leads that are suitable. The right leads, control over the whole process, all the resources you need are all available on the website. Our service is fully transparent. We value open communication, accuracy in the information provided and accurate photography. Only the home buyers who are interested in a buying a home like yours are emailed your property information.
Finally, before you decide which direction to take, the traditional or embrace the new DIY model, remember that it takes on average over 70 days to sell a home in inner suburbs and over 90 days in outer and regional areas. Quick sales are not common.
Screening means working with buyers who are looking for a home like yours.
