Sharing Few Potential Re-sale Issues - Part II

Published by cravat | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate

Here we go through several considerations of potential buyers objections on a property. It could be the location, neighborhood, limited facilities, etc. Read on so you will know how to move around the area that concerns buyers the most.

Likely Objections

High Tension Wires - The general reaction by buyers to high tension wires crossing near the lot is to simply eliminate the choice.

Steep Driveway- I have shown many buyers who will not get out of the car when the driveway is unusually steep.

Busy Street - The noise related to a busy street is a turn-off to many buyers. This is more of a problem if the busy street is in front of the house.

Too Exposed - Most buyers want a certain degree of privacy in the back yard. If the building behind your prospective home looks down on your backyard or into your family room, this will be a sales objection. This could be mitigated by trees or screening.

Neighborhood Concerns

Declining Values - If you perceive the neighborhood to be declining, this is a must to avoid. Choose areas that show pride in ownership. However, if you see tear downs and new construction, then the neighborhood may be going through a renewal period, and may be a good risk.

Safety or Security Problems - If you sense that there are security problems - drug dealers, robberies, or safety concerns for your children, take a step back and look at the facts and data on these issues before buying. These kind of problems will turn away buyers fast.

Market Matters

Seasonal or Limited Market - Some homes have a limited market - a vacation area, a primarily student market, or an age restricted subdivision. This may suit your needs, but keep in mind that your re-sale will be limited to this set of buyers.

Remote Location - In most cities, areas that are closer to downtown tend to have a larger buyer pool than homes located in remote areas. However, you may choose to trade the privacy and setting of a country home with the resale potential.

No Comparable Sales - This indicates a possible re-sale problem. The home may be very unusual compared to homes around it, or the market may be slow. Understand the underlying reason for few or no comparable sales.

Extended Marketing Time - Has the home that you are considering been on the market a long time? Was the price simply set too high? Has the market been slow? Or, is there a problem with the house that you will need to correct?

Oversupply of Homes - This is a fundamental re-sale problem. If the balance of supply and demand tips in favor of buyers, then sellers will have to compete more aggressively, and prices are usually driven down. A common source of excess supply is from new homebuilders in the area. Or, sales may be slowed by an economic recession or high interest rates. The oversupply of homes on the market may be a temporary situation.

Non-conforming Styles

Lacks a Typical Amenity - In an area where nearly all homes are on the golf course, or have a pool, or include a garage, buyers will tend to overlook homes that lack these features. In an area of mostly older buyers, a home with the master upstairs may have trouble selling. Look carefully at what is generally offered in a given area to the majority of buyers.

A-typical Style - Homes that do not fit in to the neighborhood may have trouble selling. For example, the urban modern style may be a good fit in older eclectic areas, but would be hard to sell a uniform suburban neighborhood.