Las Vegas Real Estate News
The Home That Just Won’t Sell
The Real Estate Executive
Camilla McLaughlin
Once real estate's white elephants, homes that just seem to stay on the market are becoming a staple in many locales, sending seasoned agents back to their toolboxes to unearth long-forgotten strategies and leaving many newbies wondering if it will take the wizardry of Harry Potter to turn "For Sale" into "Sold" on some signs. Showings may number in the hundreds or there may be none at all. The price might be too high or perhaps just right. No staging, too much staging, too many bedrooms, too few bedrooms, not enough baths, good photographs, bad photographs. No matter what the circumstances, nothing is more perplexing than the home that just won't sell, but, rather than a magic wand, the solution requires an eye for detail, an inquisitive mind and a good measure of out-of-the-box thinking — and, of course, a solid foundation in all the basics.
"There is no magic bullet to selling real estate. Rather, there are a number of almost negligible elements that combine to create a very signifi cant whole," says Ken Baris, President of Jordan Baris Realtors in West Orange, NJ. "You show me an expired listing, and I often fi nd that the listing information was not completely fi lled out, there might be limited remarks about the property, the photography is bad and it might not have been in the right places on the Web," he observes.
When Chad Goldwasser with The Goldwasser Team/Keller Williams in Austin lists a home that won't sell, he takes if off the market for two weeks to refocus before showcasing it on Realtor.com, as well as a number of other sites including Craigslist. "You have to go back and look at pricing, condition and marketing, and make sure those things are done really well," he says. During this time, he also promotes the property to his database of 8,000 buyers, telling them the home will be coming on the market in two weeks.
"As far as properties that have been on the market for some time, of course the fi rst strategy would be to price aggressively," says Loree Scarborough, a top producer at Coldwell Banker Coastal Alliance in Long Beach, CA. "Then, it would be to give the property a different look on the Web and in print, using new images and different verbiage."
TURN NEGATIVES INTO POSITIVES
Often the issue isn't price or condition, rather it is a problem with the marketing, says Stan Barron, owner of Stan Barron Properties in Austin, TX. He illustrates this point with a home in one of Austin's best neighborhoods that had 300 showings and not a single offer. "Not even a lowball," Barron interjects. A discussion with the seller offered few clues. On site, Barron discovered that "there was no backyard at all;" the fence was only yards from the back door. "I looked at the marketing materials and realized the missed opportunity. The flyer was beautiful," he says, "but it never mentioned the yard. I wondered why they had glossed over an objection the consumer would immediately see."
Rather than hiding the lack of yard, Barron made it the centerpiece of his marketing, which trumpeted: "Tempting buy in Tarrytown if you like the idea of no yard maintenance." The home sold almost immediately to a grandmother who didn't want any yard work, but wanted to live near her grandchildren.
Baris used a similar tactic to promote a Montclair, NJ, home lacking parking or even a driveway. "The house was just about on the sidewalk," he says. An ad that asked, "Do you hate shoveling and landscaping?" delivered buyers, an older couple who had retired their car and didn't want a lot of maintenance. Such marketing is daring but effective, according to Barron, whose pedigree includes a stint on Madison Avenue. "What a good ad should do is make the house stand out in a way that has the strength to attract the right audience. It totally changes the dynamics," he shares. At work is a classic advertising strategy, the principle of sacrifice, which Barron says uses "a marketing message that is so focused that you sacrifice a large portion of the potential buyers, but in doing so you flag the attention of the small group who will buy."
"Professional quality photography is a must as well as a headline that screams ATTENTION and copy that tells the story of the house in an interesting way and allows the consumer to see herself enjoying the house," advises Barron.
For any home that doesn't follow the typical four-bedroom, two-and-a-half-bath model, Barron says it is essential to "go in with an open mind and find out what makes the home different and embrace what the home offers."
QUICK CHANGE ARTISTS
To uncover a property's hidden potential Baris elicits his agents' help. They view the home and then go back to the office for what Baris describes as a "free-wheeling discussion," welcoming even the craziest idea. "We had a property on a busy, main intersection with a lot of street noise, not a great house for families. In the focus group someone pointed out the basement had high ceilings," he recalls. At Baris's suggestion, the owner closed off one room in the basement and made it into a home theater. "We turned the house into an ideal bachelor house and sold the sizzle," he says.
In many instances, the most expedient remedy is to change whatever is preventing the home from selling, whether the obstacle is price, worn carpeting or even an owner's presence during showing. "The days of having an allowance for worn carpeting or painting are over," comments Robert Jenson with RE/MAX Central in Las Vegas. "If you can change the problem, change it," advises Mario Greco with Ruloff Residential Properties in Lincoln Park, IL. "People are often very resistant to it on a personal level. You have to get past the personal aspect as well as any resistance to cost," he says, noting that the solution is often less expensive than any concessions sellers might have to make, and they also save on the costs of carrying the home for a protracted time on the market.
In an older home with five bedrooms and one bath, Baris had the seller turn one bedroom into a walk-in closet and lavish bath. "Suddenly, the home became completely desirable and the seller netted more after the cost of the renovations because they created value," he says.
In spite of attention paid to staging, Carolyn Helmlinger, CEO of Coldwell Banker Mid-America Group Realtors in Des Moines, IA, says many homes are still not presented in their best light. Goldwasser says he frequently discovers baseboards and windows that haven't been cleaned or planting beds that haven't been mulched. "All those little things make a difference and most agents don't realize how important it is to convey those things to the seller," says Goldwasser, who advocates wiping off tops of water heaters and removing screens. In vacant homes, the punch of the vibrant colors currently in vogue can be overwhelming, says Mark Nash, an author and Coldwell Banker agent in Chicago. "That look is OK with furniture and artwork, but it doesn't make any sense when the rest of the picture is gone."
If the home is too streamlined, Nash finds buyers tend to hurry through a showing. "They need a few things in the home to slow them down. Especially with first-time buyers, if there is nothing in the room they can't envision putting their furniture. You have to fill in the blanks for them."
"Buyers still want to see that warm fuzzy feeling," and the home must stand out in a crowded market, shares Scarborough.
CAUSE A HUBBUB
Once a home is listed, "you've got to become like the town crier … call every agent you know in your local board," says Joe Meyer, an internationally recognized trainer and consultant. And, he adds, "beg them to come to your open house. If they see many brokers there, they will feel it's a hot house and bring clients."
To drive traffic to open houses, Helmlinger's agents use unique signage and flags. In the past, they may have used three signs; now they use 10.
Lack of attention from local brokers was one reason why a coop on New York's Upper East Side remained unsold after six months even though sales in Manhattan were brisk. "The home wasn't getting traffic," says Max Dobens, a Vice President with the Jackie Teplitzky team at Prudential Douglas Elliman. Dobens organized a "day of beauty" event at the home, bringing in different vendors. He even enlisted a plastic surgeon. Prizes included a consultation with the surgeon and sessions with skin care professionals. The event brought 40 brokers to the property.
Just before the holiday, Dobens listed a townhouse that had been gutted for a renovation. He turned the bare-bones house into an art gallery to stage an event during New York's busy party season. An artist friend agreed to exhibit her work and invite her customer base. Team members went around wearing Santa Claus hats and Dobens garnered coverage by a local television station.
Successes like this don't happen by accident. Dobens says they take meticulous planning. "Everything has to be managed. Invitations were mailed and all of us were also on the phone personally inviting brokers."
PIQUE INTEREST
Use concessions and incentives a little differently, recommends Meyer. For example, instead of a $10,000 price concession, he might suggest a $5,000 price break paired with a $5,000 gift card to Lowe's or Home Depot. For a luxury property, the price break might go up to $10,000 with a $10,000 gift certificate to a high-end furniture store.
Cars, trips, plasma televisions are all great incentives, he says. Often, prospective buyers will come to see the house simply because they are intrigued by what you are offering and curious to see the house that comes with this bonus.
CREATE A SENSE OF URGENCY
Buyers today are in no rush to buy, says Scarborough. To create the needed catalyst, Meyer takes a clue from retailers. He might advertise an open house as a one-day sale, perhaps offering a price reduction, to both brokers and consumers, writing a little different ad copy for each. For instance, one ad said: "All offers must be in writing with a check. Sorry, no early previews." Then, he holds the open house for just 45 minutes. The end result is usually the same number of buyers who would have attended a three-hour open house but having a number of buyers in the house at the same time creates a feeling of intense competition.
Nothing is more immediate than the sound of a gavel. Chard Roffers, co-owner of SKY Sotheby's in Sarasota, FL, says auctions are "an effective vehicle to drive sales, particularly for unique, one-of-a-kind properties." He recently sold an equestrian property, "perfect for polo," in a new subdivision that was off the beaten path. It had been on the market for two years with three different firms. With four parties bidding, it sold for $6.9 million, almost a million above the previous best offer, and closed in 30 days.
While there may be a scarcity of magic wands, practitioners may find these strategies are the next, best thing.
