The seller has three tools available to affect the marketability of their home: price, condition and terms. Price is the easiest to adjust for the competing properties, amount of inventory or market conditions. However, lowering the price may or may not be the best decision when trying to maximize the proceeds of sale.
If a home is in poor or outdated condition, updating can be done to make it show favorably with other homes that are currently on the market. Sometimes, sellers rationalize not doing the work by saying they believe the buyers would rather make their own choices. But, most buyers are using all their resources to get into the home and will have to live with it in its present condition until they can save enough to make the changes they want.
Another reason to go ahead and invest the money and effort into improving the condition is that it is difficult for buyers to imagine the home any other way than its current condition. When comparing one home to another, buyers will sometimes label a property as the “stinky house” or the “old kitchen” which may put it at a disadvantage versus others tagged with positive adjectives.
While price and condition are the main things that control the marketability, terms can be equally effective. Terms relate to financial considerations made by the seller to entice a buyer to make a decision to purchase their home.
Seller-paid points or closing costs, interest rate buy downs, and owner-financing where the seller has a large equity position, are examples of terms that may increase the marketability of a home because of the additional benefits they offer to buyers.
Increasing the marketability of your home is a great conversation to have with your real estate professional, especially to help you get the highest price in the shortest time with the fewest problems.