Savvy Pricing, Commission Incentive Help Listings Sell Fast

Thursday, December 07, 2006 - By Margarita Bauza, Detroit Free Press

DETROIT, MI (MCT) - Tracey and Doug Stelkic's real estate agent told them a fast sale in this market would not happen in less than 60 days.
So when the Chesterfield Township, Mich., couple received a call to view the house the day they put it up for sale, they thought it was a fluke.
The next day, they had two offers, one for $500 more than the asking price of $249,900, the other for exactly the asking price. The house sold a week after they put it on the market.
"I wasn't even prepared," Tracey said. "We were very happy of course, and surprised."
With the housing market slowing, sellers have to work harder than they did a few years ago to ensure a quick sale. Price plays a big role, but so do things like home renovations and being flexible with buyers.
What the Stelkics did right is no mystery to them. They believe it was a combination of fair pricing, aggressive marketing and timing. The couple had recently painted the outside of the house, refinished the floors, stained the trim and updated the landscaping.
The house, built in 1997, had many amenities: a brick exterior, 2,100 square feet of space, three bedrooms, a finished basement, an attached two-car garage, an in-ground pool and a six-person hot tub.
Since the couple had already bought a house in a neighboring town, they didn't want to deal with having a house sit unsold and paying two mortgages.
The Stelkics priced their home 3.5 percent lower than similar houses in the area and sweetened the deal for the buyer's agent. They offered a 5 percent commission to the agent - a typical commission is 3 percent - so he or she would push the house more aggressively.
Before the sign even went up, the couple's agent, Hank Mendez of Realty Executives in Shelby Township, Mich., had posted the house on two Web sites and gotten the word out with e-mails and phone calls.
"We marketed and priced it right and we offered a great commission," Mendez said about the incentive to the buyer's agent.
Timing also played a key role.
Buyers Jim and Heather Lewandowski, both 32, had been looking at houses for months. They had seen more than 40 homes and nothing seemed quite right.
They needed a bigger house where they could move Heather's mother, who has cancer and needs care. The night the Stelkics listed their house, the Lewandowskis' agent called Heather. There was no photo and no sign, but she agreed to see the home.
As soon as she saw it, she knew the search was over.
"Everything was neat and clean and updated," Heather said. "I knew I had to have it. I went back three times that night. I'm sure I was bugging Tracey."
By the time she made a bid the next day, the Stelkics were already entertaining an offer.
"I went home, baked a batch of cookies and wrote her a note asking her to please pick me," Heather said.
The Stelkics did. The Lewandowskis closed on the house Oct. 30.
Heather has her own fast-sale tales. Her house sold the week before she and her husband bought the Stelkics' home - in six days. Her mother, who was moving in with them, sold her condo in 12.
The Lewandowskis' old home, a 1,040-square foot, three-bedroom, one-bath ranch with a two-car detached garage, sold after two showings for $152,000.
"The buyers already had an offer on another house that they rescinded because they wanted my house," Heather said.
What did she do to complete the sale?
"We painted and installed new countertops in the kitchen," she said. "We upgraded the bathroom, too. We painted and upgraded the faucets and vanity.
"I think it has a lot to do with the inside," she added. "It has to be de-cluttered and staged."
Her mother's Sterling Heights, Mich., condo got similar prep work - an updated kitchen and bathroom - before it sold.
"The guy who bought it was commuting from Grand Rapids for work," she said. "He just came across it and bought it right away."
Realtors and other market experts advise taking these steps to sell a house or condominium:
Price the home realistically. Remember, what was realistic two or three years ago isn't realistic today. That's especially true of higher-priced homes.
Clean the house thoroughly before each showing.
Fix all the little problems you've been putting off.
Be willing to bargain.
Offer some concessions to buyers. Common ones include paying part of the closing costs, or paying a moving or decorating allowance.
Be patient.
(c) 2006, Detroit Free Press. Distributed by McClatchy-Tribune Information Services.