The "3P's" Home Selling Process

Our friends at GoodLife Realty down in Austin Texas—the folks who specialize in working as those Paperless Agents—have put together a great and simple approach to presenting and differentiating themselves from the competition when it comes to winning listings in their market. They share with prospective clients a “3P’s” Home Selling Process that has a few neat wrinkles that can separate us from the crowd. The 3 “P’s” they focus on are Preparation, Pricing, and Promotion.

Preparation, of course, deals with the specifics of the individual home and getting it ready to compete in the marketplace with the goal being to position it to be the very next one to sell in that neighborhood. The three elements of preparation are Repairs, Staging, and Cleanliness.

Repairs may be needed to correct problems or deferred maintenance in order to compete for full market price against the competition. If repairs can’t be made, then the price will need to be adjusted accordingly.

Staging is also crucial for achieving a timely and full market sale. The goal is the have the buyer be so comfortable they feel like they could move right into the home—just as they might feel walking into a brand new, perfectly staged model home. Professional stagers can bring a high level of expertise to the process—at a relatively low investment to the agent—while also allowing us avoid having to say those things that a homeowner might find . . . well, a bit too direct! Yes, I loved that fluffy pink toilet seat cover your grandmother made, but I think the stager is right and it needs to go!

The final element of Preparation is Cleanliness. The seller will need to make sure their home is fully ready for its debut under the lights! No actor would step onto the stage without their makeup and costume being in perfect order, no matter how great their acting skills, nor how well they had memorized their lines. We can help our sellers by making sure they understand what this kind of Cleanliness really means to the value of their home: they won’t achieve top dollar if the house doesn’t look top dollar!

The second “P” is Pricing, and that will of course depend on how much the seller can do in terms of Preparation, since Pricing and Preparation go hand in hand. Homes that are in poor condition, or are poorly positioned, cannot command a full market price and are doomed to languish on the market and most likely sell ultimately for less than what they might achieve if they had been positioned correctly up front. On the other hand, homes that are positioned and staged perfectly, yet priced above the market—remember, market price demands perfect condition and preparation to begin with—will also languish and often sell for less them optimum. The concept of “Let’s see if anyone might make an offer at this (knowingly overinflated) price—we can always lower it” is usually a recipe for that disaster as the home sits in limbo. The key to pricing is to place the home at the correct market price—“in” the market— given its preparation, so it sells on a timely basis at the highest price for that context.

The final “P” is Promotion. This is where we can begin to get creative and include things like Facebook Ads, YouTube videos, and maximizing Search Engine Optimization so the home will be found by the increasing percentage of buyers who discover their new home online. Professional photography can be a huge plus—again, at a relatively low investment for the agent—given so many buyers are staring at their screens and making decisions based on those photos. The key is to get that surfer to click and save and ask for a showing on your new listing!

So, don’t forget, the best marketing strategy for any home is pricing it right to begin with so that it’s “IN” the market, not out there in overpriced or poorly prepared limbo! Remember those “3P’s” and set yourself apart—and help your client to the best price they can get.

David M. Hassler

VP, Professional Development