It’s a conundrum that many home sellers face; do you let potential buyers in to see the property before it has officially hit the market?
If you are getting ready to sell your home, this is a question you may be faced with, so you need to know why it might happen and what to do about it.
Why agree to a property preview
The standard process for selling a home is to get it ready, have photos taken then host an open home.
However, your agent may have some keen buyers on their books who they know are a good bet for buying your property. These buyers are highly motivated and may not wish to wait a few weeks for you to be ready. It could be a matter of ‘now or never’.
Your agent may also be in touch with a buyer’s agent who has purchase-ready buyers on their books and might be able to find someone to make an early offer. Buyer’s agents appreciate the opportunity to see a home ahead of the crowds, and they can be helpful to make the selling process much faster.
Pros and cons of letting buyers in before you are market ready
There are two potential negative outcomes to allowing buyers to view your home and make an offer before you have the place looking its absolute best:
• You may not get the highest price: If your home is not made ready, you may not get the full price. Simple things like a new coat of paint or decluttering can add value to your home in the eyes of potential buyers. Not having the chance to do this can hurt your sale price.
• You may not get an offer: With an unprepared home, potential buyers may not be able to see how excellent the property is and pass up the opportunity to buy.
• Lost opportunity: If a buyer says no on the first visit, they may not be back, even when you have put the work in to present the home well.
However, there are benefits to this strategy:
• Getting it over with: Getting an early offer before you even start getting ready can save you enormous amounts of time and effort. It may even be worth it to you to sell for slightly less if you don’t have to go through the process of fixing up your home. Add to that the costs involved in preparing and marketing your home, and it can be a no brainer to sell early.
Consider that you may spend $50k and four months preparing your home for sale, having it styled and covering marketing costs. If you can get an offer that is $75k less than you want during the preview phase, it still may be worth your while due to the time and money you save.
• The chance for feedback: Even if your early buyers don’t make an offer, there is still the opportunity to ask them for feedback to find out what you can fix when you get ready for market.
• Privacy: If you are selling due to a separation or you don’t want people to know your house is for sale, the preview process can save you from putting up signs and advertisements.
• Competition: If your agent has good contacts amongst buyers and buyers agents, you may still end up with people bidding against each other, which will push the price up.
What to do?
If you want a quick sale and can be flexible on the final price, an early offer may make your life easier.
However, if achieving top dollar is your goal, it might be worth waiting until you are 100 per cent ready, and have invested in styling, repairs and a high quality marketing campaign.
Have a discussion with your agent to find out which strategy makes sense.
Need help to sell your home? Reach out to today at teresa@teresaberger.com.au .
