Any seller who has not sold a home in the past five years is in for a shock, everything they thought they knew about selling a home has changed.
Home Sellers, here are the new rules of engagement which you could easily make a few costly mistakes and jeopardize our chances of a timely sale.
Three Major Changes that have altered the homebuying and selling landscape forever.
Change 1: HGTV. Buyers spend countless hours watching HGTV and have developed extremely refined tastes. They know what they want, and what (in their minds when they look at homes for sale…”As Seen On TV”.
Change 2: Mobile Devices and HIDEF, Highspeed Internet. Expect No Mercy. Today’s sellers have between seven and 10 seconds to sell their home, and those seconds are on a mobile device anywhere on the planet — not in any home for sale. If a buyer does not like your online listing, they’ll move on to the next, in a heartbeat, never to return or review.
Change 3: Internet Real Estate Web Sites. Realtor.com, Zillow, Trulia, Opendoor and a host of broker-owned sites have populated the internet with user-friendly websites that provide property data, historical facts, HD pictures, automated valuations, neighborhood and school info, and more. All the above has completely removed the need for buyers to visit in person to determine if they like a home.
These three changes have not only revolutionized the way buyers search for homes, they have transformed what they buy as well.
Historically, there were three groups of buyers:
Top-tier buyers: Buy move-in ready homes that had all the amenities they were looking for.
Middle-tier buyers: Buy homes in “original” condition, for a decent price and then improve the home over time with sweat equity.
Bottom-tier buyers: Are contractors and flippers looking for distressed properties they could buy for 60 percent to 70 percent of retail value.
The middle tier, which historically represented a significant percentage of market sales, is disappearing. Todays group is paying more to obtain move-in-ready homes that look like the finished properties they have seen on HGTV.
In the past few years, we’ve seen sweeping societal shifts as homebuyer wannabes, for many reasons, are less willing or even capable of fixing up a home they’ve purchased.
With buyers moving away from “original condition” properties they perceive as needing upgrades, homes that appear in the middle tier are being forced down into the bottom tier and need to be priced accordingly. Sellers who do not understand this new reality stand to end up with far less than they imagined.