Selling a Home in a Bad Location
We all know location is often cited as the primary factor determining the ease of selling a property, and it is impossible to disagree. Still, most real estate agents (especially early in their career) will be hired to sell a house in a bad location, such as a neighborhood with a high crime rate, a generally run-down area, or home situated on a high-traffic road.
When you first begin to encounter this challenge, the following strategies will help you close the transaction successfully.
Tap Into Your Network
If your real estate niche has begun to encompass homes in less-than-desirable locations, it is essential that you build or expand your network to include buyers who purchase properties in these areas. Look for buyers who may wish to flip a home, rent it out while they wait for the area to experience predicted gentrification, or have another, likely unique reason for targeting properties in these difficult locations.
Additionally, you will begin to understand just how to market these homes to attract the kind of buyers who are willing to be flexible on location in order to benefit from other positives and save money overall.
When sellers feel confident that your understanding of the market and connections with motivated buyers will make the whole process less complicated, word-of-mouth recommendations will begin to snowball quickly, so continue to reinforce your network of buyers behind the scenes.
Communicate with The Right Audience
As a skilled real estate agent, you must find the best ways to target the buyers who will be most interested in the positive aspects of the property you wish to sell.
A home located within a poorly rated school district will be a no-go for a buyer with a family, but a child-free homeowner will enjoy the reduced price they will pay when compared to a similar home located within a top-rated school district.
Any property located across the street from a busy school with loud bells and the sound of children ringing out will likely be a negative to a child-free buyer but would be attractive to parents or guardians of school-aged children.
For a family with young children, a home situated on a busy thoroughfare would be unsafe, but young professionals may prefer the ease of access to surrounding amenities.
You can use most potential weaknesses as leading strengths to make a particular listing stand out in a sea of competing homes.
As a general rule, strive to flip potential location-related liabilities into marketable strengths that will attract the most beneficial buyers to your listing.
Recommend Updates and Upgrades
Once you’ve flipped locational challenges into benefits, you may find the primary remaining snags are cosmetic issues with the home itself. Recommend that the owner perform any updates and upgrades they can afford, including:
Installing landscaping that makes the backyard feel secluded and luxurious.
Repaint both the interior and exterior.
Replace both interior and exterior doors.
Upgrade lighting fixtures inside and out.
Upgrade all faucets and fixtures.
Place potted plants around the front door.
Power wash all walkways.
Repair, clean, and re-stain fencing.
Ensure that all windows are easy to open and close and lock securely.
Replace carpet with hard surfaces for a fresh, clean feel.
Upgrade window treatments.
Clean the entire house to a high shine.
Stage the interior or hire a professional stager to do so.
If the home must be occupied, place as many personal belongings in storage as possible, then keep what remains impeccably tidy and clean.
Assist Your Client with Reasonable Pricing
It is vital that you communicate clearly with your client regarding appropriate pricing for their home. Even after they have done as much as possible to optimize their home, it simply will not command the eye-watering price it would easily secure in a prime location.
If your seller becomes frustrated by the upper limit they’ll bump against, it is your job to be prepared with data that demonstrates that the listing price you’re recommending is spot-on for the area in which the home is located.
Remind your client that overshooting the sweet spot with pricing will ultimately lead to lost time and money while their home sits idly on the market. On the other hand, an appropriate listing price will make the entire process move in a timely fashion, freeing your client to settle into their new property with as much cash in hand as possible.
The Takeaway
While selling a home in a challenging location will certainly require more finesse than selling a home in a piping-hot location, it is doable. The more experience you gain within this niche, the better your advice to your clients will become, the stronger your buyer network will be, and the more commission you’ll secure overall.
Remember, too, that the realtors of Parks Real Estate have a wealth of experience selling here in Middle Tennessee. If you are serious about expanding into a niche centered around difficult locations, it may be wise to find an agent who has demonstrated that skill to become your mentor.