Whether it be a home in Ahwatukee, Gilbert, Glendale, or Scottsdale, once every so often you come across a property that simply is in such bad shape or offers seemingly so little appeal that you are challenged as to what to say about it. It’s likely the condition of the property that makes it hard to call out the positives and when a property is so bad, it can be challenging for a Realtor to frame it in the right way as to get it to sell. Now selling a home is not just dependent on the Realtor. The seller also has a critical role to play. So, what do you say when you list a property that doesn’t have anything going for it?
Most critically, it’s imperative that the positioning (price, place, product, promotion combined with access and disclosure) of the home reflects the home’s true value. It is also key that the positioning be adjusted at regular intervals (ex. every 3 to 4 weeks make an adjustment) to move ahead of the market as quickly as possible.
- First, try to get the seller to put money into the critical areas of the home to make it present better. There is an old rule of thumb that when there is a solvable issue with a property, for every dollar spent to correct the problem, $3 are recouped. For every $1 not spent, $3 dollars are lost. Now, in the market we have today, my belief is that the ratio is more like $1/$1.75 but the benefit to doing so is still clear. Unfortunately for a variety of reasons, the seller can’t or won’t make changes to the property so you have to address issues in a different way.
- Second, be straight about the condition and circumstances of the property but tie in the potential. If the property is a fixer, then call that out and talk about any vision for the property. It’s important to be truthful here but not negative. You want buyers to come to the property but you don’t want to lure buyers in who will never buy the property because it was not at all what they expected to find.
- Third, understand what type of buyer you might get for the property in these circumstances. If an investor is your most likely buyer for the property, call out
‘Ideal for the investor looking for a compelling property to fix and turn.”
You do have to be careful not to exclude other potential buyers by the language being too direct. If an investor is not the right buyer, then try something like…
‘Needs significant work and ideal for the homeowner looking for a property to fix up how they want it.”
- Fourth, use the area around the home to highlight positives for purchasing the property. If access to freeways, shopping, and schools might peak some buyers’ interest, definitely mention these. If the property is in a strong rental area and you see an opportunity to for an investor, call that out.
Now, coming back to the overall positioning of the property. When there are serious issues with a property, there is only one factor that can overcome all issues when trying to sell a property. That factor is price. If all other aspects of the property mentioned above leave something to be desired, the Realtor has to rely on working with the seller to price the property in such a way to attract attention no matter what. There are buyers for any property out there if positioned and priced right assuming the seller is in a position to sell. Here’s how language might combine all of the positioning elements…
“This home is a fixer and ideal for the investor looking for a strong return by reconditioning the property and turn it into an investment property in a great rental market near the hospital and in Kyrene School District.”
Or,
“This home is a fixer and ideal for the homeowner looking for a project to make this property, with its great architectural touches and large lot, shine again for much less than similar more expensive homes in this neighborhood.”
As a final example, I recall a property in Mesa that was in such disarray and bad condition that a corner of the home’s foundation was actually breaking away from the rest of the home. In all likelihood, this home was a teardown. Because the issues were so obvious when walking through the property, most Realtors and buyers would come to the same conclusion on the property. How does a property like this sell even with a bad foundation? Assuming that the foundation couldn’t be lifted and repaired (have a structural engineer evaluate the property), the home needed to be priced based on land value less estimates to remove the home and recondition the property.
Again, it’s important to understand up front what you can say positively about the property whether those comments are about the general area around the house or not. It’s also important to understand what type of customer you are likely to need to attract and position the listing to that potential customer. Finally, it’s critical that the positioning reflect the true state of the property and the value proposition make the property compelling.
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