When asked what the two most important words for home sellers would be, most would say a combination including "price, location, or condition." Most advice on selling a house centers around these three subjects, and plenty has been written about each. If you want to have an advantage over the other sellers in your price range, I suggest you consider two other words.
What most advice on selling doesn't mention is "perceived value."
Your house is not worth what you think it is worth, or what your Realtor thinks it is worth, or what you need to get for it, or what your neighbor's house sold for. Your Realtor will help you determine a listing price, but the actual worth of your house is what a buyer perceives it to be worth.
What buyers think is the only thing that matters. Buyer's perception is your reality.
The secret to a fast sale is creating a perception of value throughout the house.
Unmatched value, in comparison to the other houses you are competing against, is the way to guarantee that your house sells before the rest.
Here are some examples of ways to make a house appear more valuable:
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Updated light fixtures
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Current paint colors, wall art, window treatments
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New carpet or refinished hardwood
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Updated hardware on cabinets
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Slipcovers for dated furniture
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Organized closets and cabinets
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Impressive and appealing MLS photos
Consult with your Realtor and a professional home stager for more ways to make your house appear more valuable to buyers. Also, you should visit the competition and see how your house measures up.
Don't think of preparing your house for sale as an expense, think of it as an investment.
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Sharon,
Great post.
I especially like this part: "Your Realtor will help you determine a listing price, but the actual worth of your house is what a buyer perceives it to be worth. What buyers think is the only thing that matters. Buyer's perception is your reality."
So true, and something that cannot be stated enough -- Buyer's perception is your reality!!
Very good post. Little basics can make a lot of difference.
Perceived value, it really SHIOULDN'T be a secret, but as you know, too many times it is! Keep on getting the word out!
This is definitely something that most sellers (and even some agents) don't get! My favorites are the sellers who want to price their homes according to what they need to purchase their next home! Sorry, it doesn't work that way! Staging is such a great way to increase the perceived value (because the home suddenly LOOKS so good) for not a lot of investment! Great post, Sharon!
Coleen and Gene: Thanks for the comments, I appreciate it!
Those are two great words and you defined them perfectly. Agents need to be putting that exact definition in front of their clients from the start.
Janna: I guess the fact that still so many sellers are not aware of what it takes to attract buyers is a good thing. It makes it so much easier for those in the know to look better in comparison!
Elaine: I agree, it doesn't even have to cost much. Simple cleaning out of drawers and cabinets and organizing under the kitchen sink will put you a step above the competition. That doesn't cost anything!
Brian: Thank you so much! I would love to see more agents passing this message to their clients.
Great post. Sometimes the truth hurts, but it's still the truth.
Sharon - As I once saw on an HGTV show an agents said, "blah blah blah, it's the price" I don't always believe that to be true. Your concept of perceived value is right on the money in my opinion. After all we don't set the market the buyers do. Right? Just my 2 cents... Oh yeah Great Post!
Great post with valuable information for home sellers-I like the quote don't think of getting your home ready to sell as an expense but an investment this will help it sell quicker.
Great post with valuable information for home sellers-I like the quote don't think of getting your home ready to sell as an expense but an investment this will help it sell quicker.
Sharon, this is a very good post. I was going to recommend it to be features, but noticed it already has a gold star. Congratulations! "Perceived Value" something every seller should understand. Thanks.
Buyers perception is definitely my reality.
Sharon - there is some useful information. As I learned in the CRS class I was just in, market price is what the fool paid for the home, market value is what the buyer percieves the home to be worth in teh current market. So often the focus is on the price.
Jeff
I think the items on your list are musts and not options, in this competitive market you have to do everything in your power to make your home marketable.
You are so right! We have a hefty job of convincing sellers that the value of their home is ultimately determined by what the buyers are willing to pay and their perceptions become the seller's reality! Well said and great post! Thanks!
Sharon,
You clearly know it. I know it. Our sellers still don't want to listen to the message. My phraseology is "The buyers are going to cast their votes. No showings means they have voted AGAINST your price. If you want your home to be elected instead of the competition..."
Still doesn't work all the time. :-( Great post!
Well done! Thanks for a great post!
you hit the nail right on the head with this line I like a lot.
Your house is not worth what you think it is worth, or what your Realtor thinks it is worth, or what you need to get for it, or what your neighbor's house sold for. Your Realtor will help you determine a listing price, but the actual worth of your house is what a buyer perceives it to be worth.
Bettina
Sharon, those are two brilliant word selections, perceived value. Beauty is in the eye of the beholder or in this case the buyer.
I'm been saying this without SAYING it for years! Great post.
You hit the nail on the head! Great post, Sharon.
Kathy
Good job and well laid out. BUt no, how to convey this to sellers, that is the REAL quesiton????!!!
Great post! You may want to see the before and after pictures I posted on my blog-- A picture is worth a thousand words!
Really good post Sharon and definitely right on. You MUST make your home more appealing than your competition. Somebody's home is going to sell, for it be yours, your MUST offer just a little more value than the competition. It's the buyer's opinion that counts.
Great post Sharon. Buyers eyes..........what do they see. In this market sellers need to pay attention to what you are saying (and us too!. Thanks for saying it so well!
Sharon,
You've made an excellent point. I especially like your short list of tips for sellers.
Sharon, excellent post. You brought up a great point with perceived value and the concept should make sense to sellers, although they often have a hard time with this. Staging is a critical step as well to make sure a home is going to show well, or give more perceived value, than the competition. Thanks for the post.
Great post, Sharon. It's incredible what each prospective buyer bring to the homes they view. When I was a kid, our family moved from Magnolia to Mercer Island and purchased a home with a tree house, a pool, a basketball hoop in the driveway, and a boat slip, not mention a great view. BUT, we moved in less than a year because my mom nearly died with the anxiety that one of her young boys might wander unaccompanied into the pool or down to the dock.
When my parents listed the house, there was undoubtedly much to love for the potential buyers, but my mom jokes that the people who bought the home could not have cared less about the water access and panoramic views of Lake Washington; they just wanted to know about the basketball hoop! It sold quickly and we moved to a great neighborhood not far away - but to my dismay, there was no pool.
Oh, well, I still think mom's are always right, and the interests of each buyer need to be understood by those of us who represent them. It's so important for us to ask our clients questions about their needs and wants, so that we can understand this "perceived value". There's nothing more special in a transaction than walking into a home and knowing it's exactly what you want!
Hello Sharon, You should get your real estate liscense and sell real estate .....nice post today.
Patricia Aulson/Portsmouth NH Real Estate
Great Post Sharon! Perceived value is critical, and staging a property certainly makes a big difference in our market. Your point is well taken. Thanks for sharing this perspective.
Sharon: Great information.. Everyone want to reciev top dollar for their home.
Tom: Thanks! The truth may hurt, but a fast sale would ease the pain, don't you think?
Robert: I like your opinion! And you can take that two cents right to the bank! Thank you so much for contributing!
Pat C: I'm glad you like the post. Any work you do in preparation for sale should be considered investing. It really is money you are giving back to yourself!
Michael: Thank you for your intention to mark it as Feature worthy! I appreciate that! It was nice to come home and find the gold star waiting for me this afternoon.
Xinh: I guess you get it, if only the sellers did!
Jeff: It is all about price...we think the buyers have all the power right now, but sellers have the power of creating a greater value. So many sellers aren't aware of the power they do have.
The guy buying at market price isn't the only "fool"...the seller who could have gotten more if he invested a little sweat and time on preparation is an even bigger fool! Thanks so much for sharing the quote from the class!
Aaron: Good news for the sellers who do these things...a lot of their competition isn't doing them. It gives them an advantage and makes it even more worth it!
Sharon, You are so right! I almost laugh when my potential seller says things like, "but if I don't get $XXXXXX I won't be able to buy the house I want." or "my sister in (name a state as far away as possible) says my house is worth way more than that."
Sharon, You are so right! I almost laugh when my potential seller says things like, "but if I don't get $XXXXXX I won't be able to buy the house I want." or "my sister in (name a state as far away as possible) says my house is worth way more than that."
Great article, Sharon. Price is everything and a buyer's perception affects price, plain and simple
Sharon - I have used this phrase myself during listing appointments. Great job!
Jeani: So glad you stopped in, and very glad you enjoyed it. Thanks!
Irene: I love your whole voting analogy...that is brilliant! Seems to me that would trigger an Aha moment for the seller! Thanks for sharing it. If you haven't already, you should consider doing a post about it.
Bettina: Thank you! I'll keep swinging the hammer until I hit all the nails!
Gary: So true! It all about being attractive to the buyer and so many sellers won't let go of their identity and comfort long enough to attract any buyers. Thanks for being here!
Rob: Well maybe now you should start actually saying it! Whatever works, right? Best of luck with it!
Kathy N: You aren't alone thinking I've hit that nail on the head. I guess I will keep swinging the hammer and see how many more nails I can get! Thanks!
An: How about straight out...put it out there plain and simple. I tell sellers that I am going to show them things they can do that other sellers won't be doing so that their house will appear more valuable to buyers. If they do what I tell them, they will end up being the house that the buyer chooses when making a comparison.
Jane: Before and After pictures are a great resource to use to help sellers understand the concept of appealing to buyers. Seeing can be believing.
Scott: I agree 100%. Thanks for the input!
Anna Banana: Love the name, so glad you stopped in! I'm happy you like the post and I hope you take something away from it that you can use in your business! Thanks.
Kate: Thank you. Hopefully the concept is one that can help you in convincing sellers to make some necessary changes.
Dan and Amy: Thank you. I believe staging makes all the difference. It is more than a business to me, it's a passion and I love every minute of transforming from "before" to "after" and helping sellers get their house sold.
Chad: Thanks so much for stopping in and sharing your story. I can relate to your mom's anxiety. I've worried about everything possible when it comes to my kids. Now that they are all grown, I'm finding new things to worry about. Grandchildren are on the way, more to worry about! A mother's love and worry are endless!
Your mother's feelings have influenced the take you have on your business, and probably have made you a better Realtor, certainly a more compassionate one. Sounds to me like your clients are lucky to have you on their side!
Excellent post, Sharon! Funny how as home stagers we don't talk pricing with our clients, but we do spend a lot of time talking perceived value as we make recommendations for them. Smart sellers get this and the others learn the hard way unfortunately.
Patricia A: I wouldn't go quite that far! I give you Realtors a lot of credit...it's not an easy profession and you all deserve medals for investing what you do into your work. I appreciate the comment, thanks!
John: You are welcome, thank you!
Roland: You find out just who really wants to get top dollar when you see what they are willing to do to get there!
Marian: That's funny! The sister in another market always has all the answers, don't they!
Roger: I find that "plain and simple" is the best way to go when it comes to educating sellers. Thanks.
Jason: Nice to know I'm in such great company! Great minds...right? Thanks!
Mary: You are so right, we don't speak price but we must speak value!
As always Sharon, "true that." Nice job and congrats on the feature. Yay for you! Laraine
Your tips were great...I hope to see you writing many more posts in the future!
Too many sellers don't get this at the beginning, which is why their houses sit on the market for months without any action. Then, when the light begins to dawn on them, it is almost too late. I'll need to remember those two words as I continue to prospect. Great advice.
Laraine: Thanks! I love it!
Tammi: I appreciate it! I look forward to seeing you in the comments! Love your hat!
Sharon - Your post was great. I especially like your phrase "perceived value" and I plan to use it in future presentations. I think that it will also help with selling the staging concept to some sellers.
William: Use those words often and use them with conviction! You gotta say it like you mean it! It is frustrating when they realize after months on the market, but you can't force them to do what they aren't willing to do.
Marc: That's what we stagers like to hear! Thank you for your promotion of our profession! We love you for it!
I often say, it is not what price you put on the listing that determines what you will get, the buyer will tell you how much your house is worth. BUT you said it so much better. Thanks for your post!
Sharon - It was certainly worth the wait today. This is a topic near and dear to my heart and you have said it so very well. I gave a talk not too long ago about the perceptions of value and this hit it dead on. There is nothing more frustrating then completing a staging job and have the very first showing that afternoon yield an offer - only to have it rejected because the sellers perceived value for the home was not quite in line with the buyers. Congrats on the feature and keep them coming - you inspire me all of the time!
Amen! Unless a buyer sees the value, a home could sit. I do my best to educate my sellers on the front end. If they are unrealistic to begin with, I don't take them. I've learned the hard way.
You were right on about "Perceived value"! You go girl :)
Great advice, .... perceived value so important any sale. Congratulations on a noteworthy post!
Well done, Jess
Spot on! Glad to see this is featured-so worthy Sharon!!
Hi Sharon -- You hit the very core of what selling a home is all about. Beyond well said!
I like what Broker Bryant says about value - I'm not here to tell you what your home is worth, I'm here to tell you what it will sell for.
Sharon you have really nailed it in this great post!
So true, perception is what people believe is true, does not necessarily mean that it is true. I find that to be the case in a lot more than Real Estate.
Hey there Sharon, Spot on advice from a great stager. Congrats on your feature, well done!
John: Very well put, I like that...price, based on location and condition. Thanks for contributing!
Lynn: I wouldn't say I said it "better" just a different way. Just keep spreading the word and more sellers will get it!
Sheila: That would be frustrating! How exciting to have an offer that same day, though! I'm glad the post was worth the wait for you. Your comments mean a lot to me! Thanks!
Elizabeth: Keep on educating! I love that you are selective and don't take the unrealistic sellers. More power to you!
Jess: I am thrilled to be considered "noteworthy" and thank you for that!
Cathy and Chris: You really know how to flatter a girl!
Christine: Great line, thanks to you for including it and Broker Bryant for saying it!
Amber: Thank you!
Alfred: So true! What we believe to be true is the reality. Like that saying: "whether you believe you can do it or not, you are right."
Cynthia: Thank you for that glowing review! You know how much I love to have you visit!
Sharon,
Excellent advice. Excellent post and congrats on the feature:)
Mike: Thank you so much!
Sharon, you summed it up perfectly: "Buyer's perception is your reality ."
Powerful. Thank you!
Excellent post --Consumer / Buyer behavior is always a fansinating topic for me and I think that home has to live up to the expectations of what the Buyers WANT their life to be like in the future.
Marney: I appreciate the comment, thank you!
Kerry: Exactly! Show them what their life could be in the future, as opposed to what the sellers life has been in the past.
Linda: Well, thank you! What a great comment to receive, it means a lot to me!
Holy Moly, look at all of the comments! Was this a recent featured post? Great job! And I loved the post as well, so true! Can you help me with the perception of a 1970's vacant double wide? lol....
Rebecca: Yes, just posted two days ago. Thank you! 1970's double wide, huh? Piece of cake, you would be surprised by my super powers! I could have it looking like a 2000 double wide in no time. lol
Need I say More? :-)
Great post. I love learning new ideas on here! Thank you!!
Great post. I love learning new ideas on here! Thank you!!
Karen: I am honored! I don't know what's better...the award or how darn cute your little cartoon self is!! I love it! I am deeply touched and I would like to thank my parents, my husband, God of course, and all the little people...
Mitzi: Glad I could contribute! Hope it's useful in your business!
Great Post..I love your comments and philosophy. I am going to use it when I speak with my seller. Thank you.
Jaishree: Use it and make it work for you! Best of success with it! Thanks!
Hi Sharon,
I don't know where I first heard this term, but I use it in all of my presentations as well as most consultations.
Here is an example with visual that would go something like this: "...and that mid 80's sofa on your second floor landing is going to significantly DIMINISH the PERCEIVED VALUE of your $700,000 home..."
Gets their attention every time! ;=)
Janis: A picture is worth a thousand words, and this one does the trick! Thanks for commenting and sharing the visual.
Sharon, don't know how I missed this great post. My husband is a builder and he has always said that a home is "worth" what someone is willing to pay for it. Perception is key.
Kathy: You may have missed it, but you are here now...that is what is important! I'm glad you found me! Your husband knows his business! Thanks.
Glad I caught this the second time around. Very well written and congratulations on the feature!
Bridget: I'm glad you caught it too! Thanks for the well wishes!