Record-Eagle,  June 17, 2006                   Cookie McCullough

Buyers are Looking for Sellers Who Are Motivated
This is the time for "Realty Reality". During these times when there are more homes for sale than there are buyers competing for them – and when inventory is counted in months of supply rather than weeks or days - sellers need to think like buyers. This does not simply apply to presentation, curb appeal, and getting rid of the clutter. It especially applies to pricing.

The usual method of pricing a home is by looking at comparable sales and activity within the immediate location of the home. In a market with increasing inventory and sluggish sales, it becomes increasingly important to look at ALL the competition. Sellers and their agents need a wider perspective than just where the home is located. They need to look outside the neighborhood and to think about the choices of homes for a prospective buyer.

I know you think your home is special, your neighborhood is unique and other areas lack its prestige. Sometimes these things are true – most times they are not. Even if they are true – they may not be sufficient to move buyers in what they are willing or able to pay.

When sellers are discussing pricing with their agent, a good question to ask is, “If you (the agent) were working with a buyer in this approximate price range, looking for a home of this approximate size, what would you show him?” Often, answering that question may help both sellers and agents to broaden their thinking and to look beyond the particular neighborhood where the home is located.

This is the time to be a Motivated Seller. Finding the right house to buy is rarely easy. Negotiating the right price and terms can be even harder. The best deals are made between buyers and sellers who are motivated. A buyer can waste a lot of time and energy with a seller who’s not motivated to sell at market value.

Last year some sellers obtained multiple offers and high selling prices – the result of years of healthy home-priced appreciation. This year is different. In most areas prices aren’t dropping, but they aren’t rising at nearly the pace of past years. Unfortunately, some sellers are still pricing their homes for last year’s market.

Find out why the sellers are selling. Motivated sellers are prepared to sell at market value, whatever that might be. They are sellers who have a pressing need to sell, as opposed to sellers who merely want to sell if the conditions are right.

Sellers who have been transferred or who have already purchased another home are usually motivated. They will be under the gun to sell the home quickly or face the prospect of making two mortgage payments at the same time. Also, those who have experienced a change of life that requires the property be sold, such as a divorce or death in the family.

Beware of the seller who is selling because he’d like to move, but is in no hurry. Or, he’ll sell only if he can get a certain price. Another less-than-motivated seller is one who’ll sell if he can find the right house to buy. If there’s no urgency to sell, the seller isn’t motivated. You’re looking for a seller who will sell, not one who may sell.

The list price can be an indicator of the seller’s motivation. If the house has been listed for several months without a price reduction this could indicate a less-than-motivated seller. Find out the average length of time it takes listings to sell in the area. A listing that has been on the market without a price reduction is a tip-off that the seller might be unrealistic.

Motivated sellers usually prepare their homes for sale before putting them on the market. A well-staged house is a good sign. Buyers are looking for a nice home with charm – one in which they are able to see themselves living. Another positive indicator is a listing that’s easy for agents to show.

Selling a home is a challenge and I think the consumer has to be more educated. The reality is that the market sets the price. Be a motivated seller – think like a buyer - and your buyer will find you.