Listing your home for sale in a neighborhood with new construction can be daunting. How do you compete against a home that is brand new and just two streets over from your home? What are the builder’s home sales people saying today that would sway your potential buyers from making an offer on your home and moving rather to a new construction home purchase?
Do you really want to know? Are you ready for the truth of what the sales pitch is of the new home builder..it is very simple….Ok- so it is a NEW(er), than your, home product. That is appealing. But here is what the sales person in your community is saying to potential buyers as they walk in the door..
1. They will talk talk talk about energy efficiency and 2. They will talk about Financing options- including NO CLOSING COSTS.
OK, so now focus on this- if you have a limited budget when placing your home on the market- or thinking of placing your home on the market in the next 3-9 months what should you be seriously considering doing? Should you:
A. Remodel the kitchen
B. Get an Energy Audit and add or upgrade as needed to make your home ENERGY SAAVY
C. Save Save Save so you can help with closing costs if asked (if not- then woohoo- extra funds for downpayment on your next home) or
D. Both B & C.
I know you figured it out by now- but the truth is YES everyone knows kitchens sell- but most buyers are looking for the obvious- clean, ease of use and new(er) appliances- but in the end appliances are something the average buyer can see themselves purchasing.
What is much harder for a buyer to determine is cost to add Radiant Barrier in the attic, or blow in 6 more inches of insulation in the walls and attic spaces, or add solar, or upgrade Water Heaters or get the SEER rating that is top of the line for your size home or new Low-E windows for the house, with solar screens. These are not everyday purchases and the average buyer can put a dollar figure on and look at a home and say- oh ok- I can fix that for a few hundred. And it is what your competition is talking about- so why aren’t you!?
As for the closing costs this is a tough one- we all want to sell our home for the least amount of money out of pocket, but on the other side are the buyers who want to get the best possible deal at the time of purchase. It is very common to ask for closing costs, or a portion of closing costs, when making an offer. This is something not all sellers are prepared to do- so it is a POINT OF NEGOTIATION. With that said however, if your home is only 8-10K less than the New Home Construction model..and they are offering to pay closing costs as part of the deal- most First time and many other buyers, would simply take the offer with the least amount of money out of pocket. Not paying closing costs, or only paying a portion of them, can be a significant initial savings for the new home buyer.
So have this discussion with your Realtor, before the offer(s) start coming in. Know what your financial tolerance is and what you can offer to a potential buyer. All the while keeping in mind that if they come to your community, where the model homes are at the front entrance, they will most likely stop in them- ya know- ‘just to see’ how it compares to your pre-owned home for sale.
Happy House Hunting in North Texas. If you need a Realtor to list your current home, or are looking to buy or rent in the North Texas region- Give Dawn a call/text 214-604-4561 at Avery Properties/Avery Realty Group- where Sellers Enjoy 4% Listings and Buyers Enjoy Cash Back!! (ask me how…..)