No. 769 in a series of true experiences in real estate
It occurs to me that maybe we’ve never said all there is to say about fixing up houses for sale. On a number of occasions we have urged would-be sellers to clean and fix and polish their houses, make them spare and clean and appealing.
This is because many buyers want to buy something with maximum appeal. They are willing to pay more for a house that charms them, one that they can move into without further ado and so, in many cases, the seller comes out ahead after fixing.
The buyers we are talking about here are abundant. Cute and charming houses are bustling with lookers at Sunday open houses. Very often these days, three or six or even 15 of those lookers write offers in an attempt to buy these houses. Prices are driven up; sellers and agents are amazed and impressed.
“It’s that fantasy factor,” as agents say. Houses that show well, particularly those that are professionally staged, capture people, cause them to imagine living real life in what is actually a stage set.
Plump couches, spanking clean and white; multilayered duvet, comforter, shams and sheets; a blowzy bouquet (but nothing else) on a long, sleek kitchen counter. All of these are inviting, particularly because so much is missing. There is no TV in sight, no toaster or crumbs, no stacks of anything. There isn’t much furniture either.
I get sucked in all the time. I look at these houses and embrace them. I want where I live to look like them. If I had nothing but money, I’d buy one of the fantasy houses and move in. I might do it again and again.
But not all buyers are the same and that’s the part I think I haven’t said before. Clients of ours have told us that staged houses put them off. “Too gray and cold,” said one, and another told us, “I guess that’s the kind of house everyone wants but it isn’t for me.”
I think these buyers don’t trust these houses to be true; they see the fantasy and it makes them uncomfortable. Now isn’t that interesting?
One young female buyer has said about several houses, “I’d like to have had this one before they did anything.” This happened enough that we finally caught on: We rejected houses we might have shown her because they looked too good and began to concentrate instead on needy houses which she finds more to her liking.
There are also people who go out of their way to find and buy major fixers. We’ve certainly pointed out to these people on occasion that it doesn’t always make economic sense to buy them. By the time the roof and foundation are fixed, plus the electrical and the kitchen and so forth, the buyer might better have paid more for something in better shape to begin with. But logic doesn’t necessarily mitigate passion.
Are you thinking you might save yourself a lot of trouble and sell your house just as it is? Does this idea hold great appeal? I have to tell you that while it might work, it might not. It really is surprising how much more money you can probably get if, for example, your house is painted, clean and staged.
Unless you happen to have a severely distressed property, one that cosmetics will not help much, you are probably going to sell for a higher net price by appealing to the largest group of buyers out there: the seekers of clean and pretty. But there are circumstances, and maybe these are yours, where selling as is — broken, ailing, full and all — will be to your advantage.
Ask a good agent to look at your house. You will know who the good agent is, at least initially, because he or she will take the time to give thoughtful consideration to your individual situation.
The agent will ask about your abilities, resources and needs, will look carefully at the house and its problems and make recommendations, as well as guesstimates of sale prices.
The guesstimates may be wrong, however. Because the number of people who want to buy fixer houses is smaller, it can be tricky to predict the ultimate sale price and how long it will take to get it.
“Done” houses are easier. It’s usually possible to arrive at a price that they will surely sell for. Then, if there are multiple offers, the price can be higher still.
Pat Talbert and Anet Tarpoff are residential real estate agents who can be reached at 510-653-2050 or at TarpoffandTalbert.com where, if you wish, you can sign up to receive these columns via email.
