The 3 P’s of How A Buyer Searches For Homes
Whatever your reasons are for selling your home and moving, it helps to put yourself in a Home Buyer’s shoes and think about their reasons for house hunting and looking to buy a new home.
Understanding The Home Buyer
With 92% of Home buyers starting their home search online, (according to National Association of Realtors report) you have to have a Real Estate Agent that understands the technology, internet marketing, focuses their marketing of showcasing your home and capitalizes on connecting with Home Buyers early in their home search.
The 3 P’s of Getting Your Home Sold
First, if you have talked with a real estate agent or have been poking around online you might have found another kind of 3 P’s. This is the 3 P’s that the average real estate agent does in marketing your home for sale.
- Put it in the MLS (Multiple Listing Service) *The Realtor Database
- Put it online
- Put a sign in the yard
The 3 P’s I’m talking about though is about understanding the mindset of the Home Buyer that is out there house hunting and could potentially buy your home.
What follows is the equation.
p1 x p2 x p3 = Your Home Sale For Maximum Price
These 3 P’s are all connected and each plays a different importance to the Buyer. The importance can shift and adjust based on other parts of equation, I’ll explain what I mean by that later.
P1 is Price
Pricing Your Home For Sale
Of course, price matters when listing your home for sale. But not in the way you think. I’m not talking about
pricing your home so low that we are giving it away to some investor looking for a “steal.”
What I’m talking about with Price in this context and this article is…
… The List Price and how that Impacts the Buyers home search.
Remember how I said 92% of Buyers are starting their home search online.
Well, there is this weird thing about pricing and online home search.
Majority of home search websites have built in dollar amount defaults in increments of $50,000 or $25,000 it seems. Meaning a buyer starts a search by putting in the location they’d like to live and checking $300,000 from the max drop down box and $250,000 from the minimum drop down box.
See, price isn’t just about affordability. Price is the way Buyers search.
Pricing your home for sale isn’t just about what it’s worth or what it will sell for. Price is also the most impactful piece of marketing your home because of how Buyers search today.
The Importance of Proximity In Your Home Sale
What is proximity?
We’ve all heard the three most important things when it comes to real estate is location, location, location. Now, we might look at proximity as being very similar to the idea of location, but here is the definition of what proximity is: A noun, nearness in space, time, or relationship.
You might be asking, “What does proximity mean when it comes to selling my home?”
Here are things to look at in Proximity:
How far away is the home you’re selling from their work? From their current family and friends? From their favorite vet? From the grocery store? Or just good restaurants and things to do?
How much time are they going to spend in a car? Commuting? In traffic?
What is the school district like? What is the neighborhood like?
Buyers are looking at that formula p1 x p2 x p3 = “This is the one”.
P1, which is price, can be a bit higher if p2, which is Proximity, matches up with where they want to be and the conveniences.
If the commute gets a little long… If the area isn’t super convenient… If the school district isn’t their favorite… Buyers start to deduct dollars off the home.
Home Buyers care about pictures more than anything.
Remember, the home search starts online. And what a Home Buyer is looking at is pictures.
Sure, it’s easy to take photos now.
But if your real estate agent is out taking photos with their camera phone or some old school digital camera and not willing to invest a little bit of money to get professional photography, you’re going to miss out on making your home look great online and attracting the right type of buyer, who is willing to pay Top Dollar for your property.
Studies show that listings with professional photos generate an average of 139% more clicks when compared to similar listings without professional photos. And 83% of buyers said photos were the most valued thing in their home search online.
See other “Home Selling” blog posts: