The Buyers’ Triangle represents the entire real estate market within 10 miles of where you live. It’s broken into three layers: people with “no interest” (70%), tire kickers who are “looking” (25%), and active buyers (5%). Lookers become buyers, and when they buy, they usually drop back into the “no interest” zone (unless they are investors). The Buyers’ Triangle changes every day; it’s a dynamic market. The “Buyers” top of the pyramid shrinks and expands according to your selling decisions.
“All I need is one buyer.”
You need a lot more than one buyer to get the best price. Waiting for someone to fall in love with your home is foolish and often costly in time as well as money. The right price is an irresistible magnet to buyers. You also become the boss; you decide on the price and terms. It is smart, quick, and leads to top dollar, often higher than your listing price. A good Realtor® will help you make sure that “the price is right.”
“I’ll set my price higher and bargain lower.”
Overpricing our home is the quickest way to shrink the top portion of your buyers’ triangle. What you consider a “bargaining” price eliminates real buyers from whom you’d welcome a contract. Buyers don’t bother to look at overpriced homes. Agents representing them don’t bother either.
“Realtors® use Open Houses to get new customers.”
Well, yeah, they do, although most will not admit it. However, if your agent does it right, with your wallet in mind, a “creative” Open House can lead to a fast sale. Want proof? Read this blog post.
“I can sell my house better than any real estate agent.”
No, you can’t. For Sale By Owner is dying a slow, painful death for good reasons. Admittedly, the entry level to becoming a real estate agent in America is surprisingly low: a high school degree or GED (in Sweden it requires studying real estate for four years at a university level). Despite the low entry requirements in America, when you eliminate agents from your process, you reduce the size of the “buyers” portion of your triangle by at least 80%. Plus your life, 24/7, will focus on selling your home.
“I’m not going to fix my house; just sell it.”
Nothing raises the price of a home faster than a few buckets of paint, a nicer entryway, and 100-watt bulbs in all the electrical sockets. If you decide to sell a fixer-upper, get ready to sell your home for peanuts. Obvious teardowns in quality neighborhoods are the exception.