I had many emotional ups and downs during the time it was on the market and I learned a great deal of knowledge. First off, the neighborhood my home is in is very unique. As are all neighborhoods, so having an expert be able to inform you about the trends of the area is very important. After my initial study, I decided to price my home $5,000 more than I thought it was valued at. Reasoning behind this was the amazing seller's market we are experiencing. I thought, what the heck, why not try for it.
I didn't get the amount of calls I was expecting the first week it hit market so I decided to pull back to my original estimate. Now, this neighborhood is full of multiple price points. There have been some foreclosures, total renovations, partial renovations, and homes that still look like they were from the early 80s with no upgrades at all. Price points range from $130s - $310s. Yes, there could be a $130k home next to a $300k home and from the outside you would not be able to tell the difference.
I strongly felt my home fell in the middle. It is a 3,000 square foot, three bedroom home with three living areas and no pool. After numerous feedback calls I learned what I already knew AGAIN. People expected a 4 bedroom house or the possibility of a fourth bedroom when they see that kind of square footage. In this case, no living area could be converted to a bedroom. No way possible. If it could have been then I would have wrote that in the description. This was a 3 bedroom home and I was getting so irritated with all the agents bringing 4 bedroom buyers to see it. However, all agents told me that the home showed beautifully.
The second issue I faced was the number of homes in the neighborhood that had pools. I can't argue that pools add value to a home. How much value depends on the pool. I felt that my home was comparable to a 3 bedroom home with a pool that was not very upgraded. These homes were priced in the $220s and some below. If you have a smart agent they will advise their clients what to offer on a home based on comps in the area. If they did a market study of my neighborhood they would probably agree that my home was not going to sell for more than the upper $220s.
Lastly, I think the biggest hurdle I had to face was the surrounding area. The neighborhood is very well kept but it does have a number of apartments surrounding it and not everyone is impressed by that. Especially when they are older apartments from the 1970s.
I decided that I could probably make some good money just leasing the house again and try to sell it later. This way I wouldn't have to continue paying two mortgages. After the first 30 days the listing was active I decided to list it for lease as well. In the first day it was on the renters market I receive 4 interested lease parties I was like WOAH! I probably didn't list it high enough. I had also dropped the price of the home that weekend as well so I ended up having 5 showings in one day with a few scheduled for the next. This type of interest got me thinking maybe the price is finally right and I need to hold off on leasing it. I took the lease listing off the market temporarily and kept pursuing the sale.
I was really hopeful that one of the parties that came to the home was going to put an offer on it. I was wrong. I let the entire week go by and then decided to put the home back on the market for lease but for $100 more in rent. After doing so, I had two very strong applications submitted from potential renters within 24 hours. I ended up going with the renter that was interested in purchasing the home shortly after her lease commencement. This way I got the best of both worlds, extra cash flow for the next few months and the sale of my home at a price I accepted.
I guess everything always works out in the end but during the process it can definitely be difficult to see. Next time I'll go about telling you all the ways I learned to market a home and put it in my YouTube video as well.
Ciao!
Bina S Beechum
