Want to increase your chances of
buying a home below current real
estate value? Just look for a seller who didn’t listen to his agent!
The
best real estate agents encourage
their sellers to do whatever it takes to get the home in its absolute best
condition before going to market. The better the home shows, the more likely the
seller will get top dollar.

Sometimes, this could be as simple as removing personal items or
decluttering. Other times, an agent will suggest bigger fixes, such as painting,
replacing carpet or upgrading countertops or cabinets. Savvy sellers listen to
their agents, make the changes suggested and go to market in top form. That’s
not always how it plays out, however.
For any number of reasons, many sellers protest
suggested
fixes. Either they don’t want to be inconvenienced, don’t believe the fixes
will matter or don’t have the financial resources to make it happen. Inevitably,
this means the buyer will get a discount on that property.
How to spot a home that might sell below its value
Is there a home for sale in a good neighborhood and in the desired school
district that seems to be well-priced but for some reason isn’t selling? This is
the home you want to investigate, because chances are the seller didn’t listen
to his agent. Specifically, here are some tell-tale signs to look for.
Big furniture or a lot of furniture
Most people don’t buy furniture to use when staging their home. Often a
seller may have a lot of furniture in one room, which makes the room look small
to potential buyers. Real estate agents and professional home stagers know this
all too well. For example, stagers always suggest a small loveseat over a
full-blown couch or sectional sofa. Also, in the bedrooms, king beds often take
up too much space. So a stager will often push the seller to swap it out for a
queen or full-sized bed.
When you enter a house that seems crowded with furniture, imagine the rooms
with fewer or smaller pieces. Be aware that plenty of potential buyers won’t get
past the sense that the rooms are too small, and they’re likely to move on to a
home that feels bigger. In turn, this could give you room to negotiate a good
deal with the seller.
Dark rooms
There was a home in West Hartford, CT on a great block, but the interior was
dark. Three large French doors in the living room led to a deck, but the doors
were stained black, and the carpet was brown. On top of that, the window
coverings were big, heavy and overtook the room.
The house sat on the market for months, even though the price wasn’t far off
the real estate market value. Here’s why: Every buyer walked in and out because
the house was so dark. After the home had been on the market for three months, a
smart buyer made an offer $40,000 below asking and ended up getting it.
Before the buyer moved in, he removed the window coverings, stripped the
stain on the doors and painted them white, pulled up the old carpet and had the
floors stained to a lighter oak. Right away, the dark room became light, bright
and welcoming. The buyer’s total cost: $9,000, which instantly added $31,000 to
his equity.
Grandma or Bambi staring down from the walls
Buyers are looking to see
themselves — and not the current owners — in
a home. Too often, however, the seller hasn’t “depersonalized” his home enough,
or at all. Even though the
listing agent
may have told the seller to clear the house of his possessions, the seller may
be proud of his accomplishments and resist.
And so potential buyers are treated to walls decorated with diplomas, family
photos, awards and trophies. Moose and deer heads hanging on walls are surefire
deal killers, especially when the hunting rifle used to kill Bambi is proudly
displayed, too. At best, buyers tend to see such highly personal stuff as
clutter that takes the focus away from the home. They’re turned off by it all,
and they walk away.
They might also be walking away from a great deal. Are the bones of the home
good? Does it have the floor plan you like? Are the kitchens and baths in
acceptable condition? Is it in the area where you want to live? If you say “yes”
to all of these, hang around a little longer. Imagine the home without the
seller’s junk. Picture yourself living there, without Bambi.
A good home that doesn’t show well = a great opportunity
Ultimately, sellers who don’t listen to their agents or stagers inadvertently
give savvy buyers a discount. For you to see that potential, try to understand
as much as you can about why the seller is selling. Look for sellers who have
ignored their agent’s advice. While conventional wisdom says that a buyer would
be turned off by a home that shows poorly, go against this. Imagine the
potential. And then, once the home is yours, make those small changes the seller
should have made. Right away, you’ll have a little bit (maybe even a lot)
of equity, thanks to the seller.