In real estate slang it is common to say that a house "is burned". This has become a common phrase - and said too "easily" - but what does it mean? No, you don't need to call the fire department, read my article and learn what to do not to burn your house down, when you just want to sell it on the most favorable conditions.
If you own a house and want to sell it, your first and natural concern is to know the best way to sell it, at the best price and as quickly as possible.
There are those who decide to sell their house by their own means, it is legitimate. And there are those who ponder and end up choosing to ask a professional for help (preferably with experience and proven evidence) and let this one be the one to promote and negotiate the sale of their home.
But there are risks in any of these options and one of them is that the property "ends up" on the market, compromising those that were the initial objectives: to sell quickly and for a good price.
How to prevent your house from being "burned"
The expression "burnt house" originates from the fact that sales signs end up losing their color when exposed to the sun on a continuous basis, that is, when a house remains on sale for a long time, the signs used in its promotion end up being "burned" and not the house, obviously.
Knowing the risks involved in real estate mediation helps you choose the best sales strategy in order to avoid them. But what can go wrong? How to be careful? If you don't want to see your property "burned" on the market, don't repeat the mistakes listed below and follow the solutions presented instead.
Exclusivity contract versus open contract
The problem: When an owner decides to use the services of a real estate company, this is one of the doubts he is faced with. The most tempting and common idea is that, if you establish several contracts at the same time with multiple real estate agencies, competing with each other, you will thus increase the chances of selling better, thus opting for the open contract regime.
Because, contrary to what it seems, this is one of the situations that most contributes to "burning" a property .
When an interested buyer sees the same property listed several times on the same ad portal, with different descriptions, different areas, good and bad quality photos and even different prices (with successive discounts being often visible), he gets the idea. that the owner is either "desperate" or the property has "a problem" or is simply out of market, so it needs a lot of people to sell it.
Additionally, advertisements are not promoted with paid highlighting, because in a "non-exclusivity regime" consultants and agencies minimize investment , as they are not available to "spend money" on a property that may be sold by a competitor. This contributes to making the sale more difficult and extending the "agony" of the owner.In the end, the property ends up being sold to a "smart" buyer, who waits patiently until the price drops to the value he likes, while recording/arguing about the (bad) exposure time of the property.
Added to this problem is another: when the owner decides to promote his property by his own means and in competition with the other consultants he has hired. This sounds strange but, amazingly, it happens with some frequency. In this circumstance, buyers don't even hesitate: they go over the real estate and contact the owner directly, presenting proposals below market value, trying everything to lower the price, haggling in a way they would never do, if they had only to deal with a professional.
The solution: Opting for an exclusive contract, but ensuring that the consultant or agency is available to invest in your property, promoting it with quality and prominently: good photos, virtual visits, videos, easy-to-read floor plans, clear descriptions , investment in the best ad portals on Google and social networks, with paid highlights . Additionally, find out about the sharing policy of these real estate agencies: if they share with other competing agencies and if they practice a "friendly" commission sharing policy that promotes a healthy sharing environment. The fact that a property is exclusively promoted should only place restrictions on the quality of the promotion - which becomes the exclusive responsibility of the consultant with whom the contract is signed - but the policy of that real estate agency "should be friendly" to sharing with other colleagues from other real estate networks , thus maximizing the probability of selling. whereas the overwhelming majority ofproperties that I sell are raised with an exclusive contract, and that the success of my activity is notorious, there will be some advantage in this form of work ;)
Out of market price
The problem: Price is one of the most sensitive issues when selling a property, whether it's an apartment, villa, land or any other type of property. That the owner tries to sell at the highest price is understandable. But when he is badly influenced, sometimes by the high price of the neighbor's property, sometimes by the "good advice" of a friend, sometimes by a real estate consultant whose main objective is to grow his portfolio of fundraisers, he ends up putting the price at a level above what the market recommends , for the zone and time in question.With the passage of time, unable to sell, tired of "tourist" visits from poorly qualified customers and consequent proposals at ridiculous prices "to see if it sticks", the owner finds himself pressured to lower the price, in successive drops , thus contributing to give your property a bad reputation. It is obvious that buyers interested in this area end up realizing this negative history, placing it in the category of " burnt property ". An "out of price" property has only one advantage: it helps to sell the remaining properties in the neighborhood, which are promoted at the correct price.
The solution: It is essential that before a property goes on the air, the owner has access to a serious Market Study , which informs him about the price dynamics in the area in question. It is necessary to analyze the prices of other properties promoted in the area, at least in the last 12 months - which are still for sale or which have been sold in the meantime - and which have similar characteristics: typology, whether or not they have been renovated, type of architecture, state of conservation, if they have a garage, storage room, garden or swimming pool, etc.). This study results in a band with lower and upper limits and the average price. What I advise my clients is to adjust the price according to these limits. If they are urgent, they will have to place it below the average price and above the lower limit. If you have time and want to make a higher profit, in that case you will have to be prepared to wait, as the "passing of time" itself goes hand in hand with the natural appreciation of the market.
If you want to sell your property and you don't want to put it in the "burned property category ", call me and I will try to advise you in the best way. Call (+351) 934 200 400 (call to mobile network) or send an email to ana.macao@kwportugal.pt.