How to Work Some Magic on a Problem Property

Whether you dub them unsellable, stigmatized or Cinderella homes, the message is the same. Houses and condos that rack up too many days on the market project a negative image that turns off buyers.

By identifying the issues, a listing agent can work with sellers to make the home marketable.

Common issues that make homes hard to sell

Marilyn Gilman

• Overpricing: “Everything is salable at the right price,” says Marilyn Gilman, a Realtor® with Berkshire Hathaway HomeServices Florida Network Realty in Jacksonville. “The market has changed, and you must convince sellers the glory days of ‘name your price’ have gone. A pricing strategy is critical to score an offer.”
• Noisy: A home next to a railroad or major roadway may deter buyers. But Gilman notes that some people don’t mind “white noise.” Buyers who like a quiet environment won’t mind a home next to a cemetery.
• Outdated: Condition counts in neglected, ugly or outdated homes needing work. Bringing a home up to modern standards is costly when kitchens and bathrooms need complete renovations and updating a closed-in layout requires demolition. “Some people don’t want to do repairs,” says Gilman “but negotiating the price down for major rehabbing will attract buyers, if it’s low enough.”
• Smelly: No one likes a smelly house and while scented candles or plug-in air fresheners may help mask some odors, persistent smells from smoking, pets or spicy food are a big deterrent. Gilman recalls dealing with strong pet odors in a home where five cats used one bedroom solely for litter boxes. “We had to replace soaked carpet with a modern floor and paint throughout,” she says. After that, it sold for near asking price.
• Bad vibes: Then, there’s the stigmatized home, site of a murder, nefarious activities or ghosts. “It doesn’t happen often,” says Gilman, who thinks some buyers may be put off and others won’t care. In Florida, agents do not have to disclose murders and ghosts, but Gilman says that her clients expect her to tell them what she knows.

Now, how to fix them? 

Selling a home with a stigma—whether due to outdated features, proximity to power lines, railroads or other concerns—can be challenging. However, with the right approach, you can turn these potential drawbacks into opportunities.

• Guide pricing: Pricing is key when selling a property with any form of stigma. Work closely with the seller to help them set a competitive price that reflects the property’s condition and location, while remaining attractive to buyers. A lower price point can often compensate for issues like proximity to power lines or outdated features. Studies have shown that appropriately priced homes can still attract considerable interest even if they have certain stigmas. Improvements, such as planting tall trees or erecting high fences, can help mitigate privacy and noise problems.
• Enhance the property inside and out: First impressions are crucial. Depending on the budget, invest in improving the curb appeal with fresh landscaping, a new coat of paint or updated exterior lighting. Inside, focus on modernizing key areas like the kitchen and bathrooms, as these are often the most scrutinized by buyers. Even small updates, such as new hardware or a fresh coat of paint in neutral tones, can make a significant difference. According to the National Association of Realtors® (NAR), homes that are staged and well-maintained tend to sell faster and closer to the asking price.
• Be transparent and upfront: Honesty is the best policy when it comes to selling a stigmatized property. Disclose any issues up front to potential buyers. This is legally required for issues materially affecting the value of the property, which are not readily observable and are not known to the buyer. In those cases, the seller is under a duty to disclose them to the buyer. Regardless of whether it’s a legal requirement, disclosing other things, such as murders or proximity to power lines, builds trust with buyers. Highlight the positives while being clear about the challenges. For example, if the home is near a railroad, emphasize the convenience of transportation options nearby while being honest about potential noise.
• Lessen the smells: Check the source of lingering mustiness and possible mold in a smelly house. Suggest changing the air conditioning filter frequently. Online searches provide numerous suggestions for lessening home odors, ranging from deodorizing paint to baking soda and coffee grounds.
• Highlight unique selling points: Every property has unique features that can be leveraged in the selling process. Perhaps the home has a larger lot size, a unique architectural design or is in a desirable location. Focus on these positives in your marketing materials. Buyers are often willing to overlook certain drawbacks if the property has other compelling qualities. According to a Zillow survey, buyers prioritize features like location and size over inconveniences, such as nearby power lines.

By following these strategies, you can turn potential challenges into opportunities, making your property appealing to the right buyers and ensuring a successful sale.

Sources: National Association of Realtors® (NAR), RealTrends, Zillow

Helen Hill is a Boca Raton-based freelance writer.