Vancouver Real Estate – Sticks and Stones may….
Posted August 6th, 2008 in Buying or Selling, Real Estate | 
Words, Words, Words
As a Seller in today’s Vancouver Real Estate market with a plus 40% drop in sales you should inspect words your Realtor is using to market your home. Consider whether they serve a purpose, and more importantly, are they factually verifiable? Are the words helpful to buyers, are they hype or are they just sticks and stones?
Studies
Throughout the web there are many references to Paul Anglin’s study entitled House Prices and Time-Till-Sale. Prof. Anglin’s research concludes that certain words used to describe your home increases the odds of selling your home. Similarly, Jerry T. Haag, Ronald C. Rutherford and Thomas A. Thomson in their study, Real Estate Agents Remarks: Help or Hype?, discusses the importance of selecting the right words when selling your home.
What’s The Point?
Quoting Rutherford et al, they clearly state that “a real estate agent is to convey useful information to help potential buyers in their search for a home”. The right words can influence the Buyer’s decision to turn up or, turn away.
Downside Words
| Motivated Seller | using this term may mean that your home will take 15% longer to sell and may net you 4% less. |
| Good Value | is marginally worse and will net you 5% less. |
| Value or Price | when used to describe your home, will increase the days on market. |
| Move In Condition | has no effect on price or duration of listing |
Upside Words
| Curb Appeal suggests to the buyer, structural integrity, good neighborhood, excellent upkeep | indicates that the home is attractive and will shorten the number of days your home may be on the market |
| Beautiful or Gorgeous | sold 15% faster |
| Landscaping | shortens the sale period by 20% |
| Move In Condition | has no effect on price or duration of listing |
Death Words
| Starter Home | sale time increases 50% – reduces sale prices by 30% |
| Move-in Condition | sale time increases 12% – does not effect sale price |
| Good Value | sale time increases 5% – reduces sale price 5% |
| Starter Home | sale time increases 9% – reduces the sale price by 9% |
Source: “House Prices and Time-till-sale in Windsor,” Professor Paul Anglin, University of Guelph, Ontario.
*The study examined roughly 20,000 listings in Windsor and Essex counties, Ontario, from between 1997 and early 2000. The effects shown are averages; wide variations appeared within categories.
The Key
While it might be implied that the right words will by themselves make the difference, it is rather a combination of the language used and the list price that will determines the sale.
Proper disclosure will to a degree control the message as properties must be described accurately. Finding the right balance is the key. “The single most important message that a seller can send to a buyer is their choice of list price”, Anglin’s study says.
Got a Vancouver Real Estate question? Always happy to answer it. Call, send me an email or twitter (at) yattermatters.
Larry
Hi there,
just wondering if you care to predict the future!! I’m an ex-Vancouver Island girl looking to buy a place back on the island, preferably Victoria, sometime in the not-too-distant future. Any thoughts on when/if the market might start coming down in that neck of the woods?
Cheers,
Lisa
Lisa,
Based on reports it already is. To what depth remains the question?