Why You Should Not Use The Word "Allowance" In A Listing

To many times I come across listings that have the phrase "seller willing to give X amount in "allowance toward (fill in the blank)". What does that say about your listing? Are you doing your listing justice by writing that in there? Is your seller portraying the home in a negative light?

The first thing I think of when I see that is the home needs work. Most times the allowance is designed toward carpet or appliances. However; since the seller cannot actually give you money at the closing table what good does it do to advertise you are willing to give X amount in allowance for floors, paint or aplliances? Why would the seller not jsut price the home accordingly to the condition of the house and let the buyer decide if the work is worth it or not?

A lot of buyers today are looking for homes that are in move in ready condition. By that; unless the price is below market value they want a home that needs little to no work when they move in. So, the question remains are you doing your listing justice by writing that in the remarks section. Are buyers automatically bypassing the home? Most buyers today are asking the seller for concessions on closing costs already. So, they have saved enough money for the downpayment and maybe a little extra for some paint and moving expenses. But do they really have enough money to do the additional updating you are asking for? Probably not.

When you start to write allownace in your remark sections it portays the home immediately in a negative light. I talked with a few buyers who looked at homes online with that phrase in it and they said the first thing they thought of was the home was not cared for or outdated. It could be something simple as not having the time or the money to finish it...yet, it is viewed in a different light among buyers.

I tend to tell sellers adjust their price accordingly to the condition of the house. Let the buyers make an offer knowing the home needs X amount of updating. What you may think is horrible might be a gem to someone else. You do nto know what the buyer feelings are going to be when they walk in the house. If it is priced according to the condition and updating inside the house then the house will sell... Buyers know if a home is priced below market value for the neighborhood there is some work to be done to the house. But,you may never get them in the house to begin with by putting in an allowance for something and keeping your price up to offset the allowance.

Price your home accordingly to the condition of the home and the neighborhood comparables and let the buyer decide if it is something that needs to be done NOW or can wait...You never know your home may sell sooner than later.

Dave dicecco
Realtor/Broker
www.davedicecco.com

Is Your Realtor Marketing Proximity To Stores?

I have noticed a tend recently with buyers I am searching for homes for. They are realizing there are choices out there and sometimes it can be overwhelming considering the options that are availble to them. So, in addition to the standard amount of bedrooms, bathrooms, square footage and schools buyers are starting to ask proximity to shopping and restaurants. As we become more conscious of our surroundings; convience is starting to become a factor in our already hectic lives.

The funny thing is we always talk about how close certain places are to major highways for commuting or distance to major uptown business areas. We know that is a factor in the business professional life when choosing a home or even in considering certain areas. But, do we take into account the convience to walmarts, targets, shopping, restaurants, strip malls? How important is it ot buyer's today? Or do we just figure the buyers looking in that area already know?

Well I found an article talking about this. They surveyed 1000 home buyers. Over 75% of them said it was as important for them to have convience to stores and resturants as it was for them in terms of commuting time. That is a large percentage of buyers. of those 75% over 90% did a drive through the area checking for stores and convience before deciding to look at the house.

As buyers have many choices today. What separates them from purchasing your home over one in another neighborhood? If all is equal it could be the convience to stores. Yet, most Realtors do not advertise that or make any mention of it when marketing a home today. With over 90% of all home buyers starting their search online; this information could be the factor that makes them decide to look at your home and possibly purchase it....

Dave diCecco
Realtor/Broker
www.davedicecco.com

What Do Your Remarks Say About Your Home?

In this ever competing housing market, home sellers are looking for something to separate them from the competiton. As Realtors we are looking for ways to drive traffic to our listings; knowing that if someone would go inside and look at the house it would sell itself. The question we all wrestle with on a daily basis is how to effectively do that.. One way to separate your home from other similiar homes is what your Realtor writes in the remarks section about your home.

The other day, I had sent a client a list of homes through the Multiple listing service that met their criteria in a home. Out of the10 homes that I sent him; he called and said there was one in particular he wanted to see. Now, you would normally say it was priced way below market value or the photos stood out on the house. Well, neither was true. The home was priced slighlty below market value for the area based on the condition that the home was marketed and there was only ONE photo (and it was not flattering for the house). So, why did he want to go and look at the house? The remark section.

The Realtor wrote a one sentence remark for the house. It read "home was "cannabilized" inside & outside, and needs extensive repairs. Indoor pool in basement. Contact listing agent for more information". That was it. My buyer was so intrigued by the phrase cannabilized he had to see it for himself. The house had been on the market for a few days and when I talked with the listing agent prior to showing the house, he told me that he already had 7 showings. Well, when we went and looked at the house, there was one other Realtor there already and 2 other Realtors with clients showed up during our tour of the home. Talking with each of them, we all had the same response.... Our clients wanted to know what "cannabolized" looked like inside.

The home (for the record) was not that bad inside. In fact, the overall condition of the home was liveable and though some reapirs needed to be done to move in; the home was not in a condition I expected to see it in. Now, I suspect that the Realtor will recieve an offer on this home shortly if not multiple offers...Too many people viewed the house; and the ones there with us yesterday were there an extensive amount of time as well.

What this Realtor did was create an atmosphere where he let the imagination of the buyer decide what the home looked like inside and had to go and look at the house.. his choice of a key phrase and wording placed this home on the top of the list for people looking in that area and price range. i would not recommend using the word "cannabolized" unless the home warranted it. But there are many other adjectives out there that can describe a home and separate it form what everyone else is writing in their comments to separate your home form the competitiors...

So, what are the remarks saying about your home?

David diCecco
Realtor/Broker
www.davedicecco.com