Sellers: Learn Home Buyer Habits

According to the National Association of Realtors, 97% of home buyers in 2021 used the internet to shop for a new home. While this may not be a surprise to anyone, the ramifications may be bigger than you think.

Catch ‘em While you Can

For one thing, the internet has created a problem for those wanting to experiment with the market before deciding whether to make repairs and improvements. Now experimenting with the market will diminish your chances of getting the highest price for your home. At least in the Huntsville market buyers overwhelmingly prefer a move-in ready home. While your home may have many great features, many of them will not get noticed if the home is not move-in ready. If you wait on a market response to decide whether to make needed repairs or upgrades, you will miss out on the highest traffic days for internet exposure.

Your home will get more “clicks” on the dozens of home search engines in the first week it hits the market than any other week while it’s on the market. On top of that, if buyers do not like what they see the first time they view your home, they are not likely to come back to it. They have moved on. So, if you decide to make improvements after it has been on the market awhile you have basically guaranteed that many shoppers will not see or know about the improvements.

In our heated market with critical inventory shortages, it might seem that anything will sell. But we are not just talking about selling. We are talking about selling at the highest price the market will allow.

DOM

Experimentation with the market also increases the chance for a higher number of days on market (DOM). Higher DOM can cause your home to become stigmatized in this hot market. Some shoppers will see the DOM, assume something is wrong with it, and move on. So, in general you have the highest opportunity for multiple offers and the highest sale price early on.

Hit the Market with a Bang!

Condition isn’t the only factor in making this happen. To take advantage of the only chance for a first impression:

1.??????Hook home buyers with professional pictures, positioning the most attractive photos first. The first five to ten photos often determine if the buyer will progress to step 2.

2.??????Keep it interesting. Once buyers decide they want to know more they will usually view the rest of the photos and the description. The description field has a character limit so the most sought-after features should be first. Fluff and overuse of adjectives can turn people off, so it’s best to stick to sought-after features with short bytes on the benefits of a few of them.

3.??????Get buyers to act, which is the goal of a well-thought-out listing. You want the first two steps to result in a showing.

As Far as the Internet is Concerned, it’s all about Foot Traffic

Aside from the sight-unseen offers that are becoming more commonplace, the goal of the internet listing is to get buyers to your home, and as many as possible in the shortest time possible. In other words, you want showings stacked on top of each other. You want Realtors and their buyers waiting in line to get in. There is nothing better for creating a trend toward above-list and multiple offers. It’s not the same if the same quantity of showings happens over a longer period.

Also, going active on a Thursday or Friday is key to maximizing weekend foot traffic. Open houses are another good tool.

What is Move-in Ready?

While move-in ready might be a relative term, think in terms of new construction. Visit a model home to get ideas. Before making improvements, though, ask your Realtor which ones should be prioritized. Which ones will make the biggest difference in price and a quicker sale? There are some that could be a waste of money.

While there is always a market for fixer-uppers, keep in mind that buyers expect bargains for homes that need major repairs, or just a lot of minor ones.

Get Trendy

Quite a few times I’ve heard homeowners say that they just do not want to use those trendy colors and features when painting and fixing up. They like what they like. This is completely understandable since our homes are the biggest investments most of us will ever make. As such, they become part of our identity, sort of an extension of us. Some people have difficulty parting with a place where so many memories were created.

Even so, it is time to create a mindset that you are fixing up your home for other people. The home will no longer belong to you (hopefully) in a short time. It only benefits you, the seller, to give the new owners what they will probably want.

What Buyers Want

Below is a list of some of the most desirable features home shoppers look for. While your home may or may not have all of these, it’s important to capitalize on everything your home has to offer.

·??????Desirable location

·??????Open floor plan

·??????Updated kitchen with granite or quartz countertops, an island, and stainless-steel appliances.

·??????Attractive outdoor living space

·??????Energy efficiency: includes windows, insulation, and HVAC

·??????Updated bathrooms

·??????Hardwood floors (or high-end LVP or laminate that looks like hardwood)

·??????A primary bedroom with an ensuite bath and a walk-in closet

·??????Fireplace

·??????Garage

·??????Laundry room

·??????Updated colors, light fixtures, etc.

·??????A separate HVAC unit for each floor or zone

·??????Newer roof, HVAC, and water heater

How to Price Your Home

Determining the market value of your home is not usually too difficult for a trained Realtor. The simplest pricing strategy is to price it right at market value. This is a good idea for many reasons. It will not generally deter willing and able buyers. As discussed earlier, removing barriers to attracting buyers is very important. This is the method I prefer to use.

Another strategy is to price it below market value in hopes of creating an offer frenzy. I have seen this strategy work, but I’ve never used it. Because no one can guarantee the future, there is always the risk that your home will sell at a low price and I have seen that happen. In any case, if it is done at all it should be done only with the most-sought-after homes in the market that are likely to create a lot of interest anyway.

Listing the property above market can work in this heated market. I believe it psychologically prepares buyers to offer more money. But it also limits those willing to make offers and increases the chance of more days on market. It can quickly get ruled out by willing and able buyers who may not come back later to reconsider, even if you drop the price.

Other Items to Make Your Home Sale Easier

·??????Handyman repairs all done before going to market. Buyers will respond to defects found during the inspection with a request for repairs to be made by a licensed contractor. So, it may be cheaper to get minor DIY repairs done before going to market. Or at least you have more time to shop around for the right repairman/contractor as you will have a very limited time for repairs after going into contract.

·??????Consider a professional cleaning. While most of us keep our homes clean enough, our busy lifestyles often keep us from cleaning windows, dusting light fixtures, and deep cleaning. You already have more than enough to do getting ready for the move.

·??????Unclutter your home. You will be emptying the house anyway. Why not make your home look bigger and better by removing some furniture and other belongings ahead of the move? One of the reasons model homes look so grand is their sparse use of furniture. It’s also a good idea to clean out closets so that they are not overflowing. Two-thirds full is a good goal if you can achieve it.

In conclusion, give yourself enough time to prepare to get your home ready for the market. To spend your time and money on the most valuable improvements, consult your Realtor early on. Don’t wait until you’ve already painted and made some improvements. Your Realtor should know the most sought-after colors, features, and upgrades.