WHAT THE EXPERTS ARE SAYING
Three Factors to Sell Your House
by Peter Porcelli
In today's real estate market, many sellers are going months without
an offer, sometimes without showings, and are scratching their heads,
wondering what it will take to sell their home. However, of those
homes that are selling, the average time spent on the market is only
Why are some houses selling fast, while others stagnate on the market?
The answer is quite simple.
Three factors apply to selling anything, whether it is soap, office
chairs, computers, peanut butter, or houses. It makes no difference
if your house is made of stacked stone, with a gourmet kitchen and
marbled bathrooms, or if it has a dirt floor and an outhouse; the
sale is predicated upon price, condition and market exposure. Let's
use the bar of soap analogy to look at each, individually:
Price: A surprise to many, the average American does not like
to bargain or haggle. They would prefer to purchase items that are
marked at what they believe to be a fair price. In today's competitive
market, adding "negotiating room" when pricing may only
serve to disadvantage the seller.
If there are 100 like-bars of soap on the shelf (all at slightly
different prices), and 20 people buy a bar of soap per week, then
80 bars will go un-sold. If the shelves are once again stocked to
100 bars, and the demand remains 20 per week, then 80 bars will go
un-sold again. If your's is one of the 80 un-sold bars, you will have
to lower the price to attract a buyer; otherwise, another 20 bars
will replace the ones sold, and your bar will most likely go un-sold
In real estate, the longer a home is on the market, the less attractive
it becomes to buyers, and those offers received usually decrease over
time. The best strategy is to price a home in line with the most recent,
Condition: The condition must match the price; it's the value for
the dollar. If a bar of soap is the same as another, but has torn
packaging, that bar of soap will not sell for the same price as the
bar in the perfect wrapper. However, the bar in the ripped packaging
may sell for the same price, if the packaging is replaced, or it may
sell if the price is lowered to reflect the ripped package.
The same is true in real estate. Waiting for a "serious offer"
before making repairs or updating a house is a bad strategy, and one
that usually leads to months without showings or offers. Homeowners
have two choices: 1) bring the condition up to meet the price or 2)
bring the price down to match the condition. Typically, a seller will
net more return and sell faster by bring the condition up.
Market Exposure: If no one knows a home is for sale, no one
will buy it. A soap seller attracts buyers through advertising. In
real estate, this is achieved through the MLS and lots of online marketing.
Today's buyer is looking online as much as six weeks prior to contacting
an agent and will typically have a few homes picked out. Do not miss
this important step of selling! The more exposure a home has, the
more offers it will receive, thereby increasing the likelihood of
getting full price.
Remember, three things sell a house: Price, Condition, and Wide Market
Exposure. If your house isn't selling, one or more of these factors
must be addressed. Most often, price is the culprit. The market will
tell you if you get it right, for when you do, an offer will appear.
Peter Porcelli is Broker/Owner of Georgia
Elite Realty, located in Kennesaw, GA, a suburb of Atlanta. He recently
appeared in an episode of Flip That House on TLC. His keen interest
in his business and his passion for sales coaching has made Peter
a valued asset to both clients and agents. Visit his site: www.georgiaeliterealty.net.