As we all know, buyers are skittish these days. They think home prices are going to fall and that the home they want will stay on the market forever -- until they feel like buying it. They think that they can get a better deal on their mortgage if they just wait.

As if all that isn't hard enough to overcome, then you've got the homebuyer who is actually out looking, but doesn't buy because the home isn't in perfect condition.

Eighty percent of homes for sale were built before 1980. The median home sold in 2007 was 12 years old. Nearly half of all buyers in 2007 purchased homes less than 10 years old, according to the National Association of Realtors.

That's a problem for most home sellers and their agents. Buyers want new or as close to new as possible. They equate new with perfect.

One reason buyers want newer homes is that size matters.

In 2005, the average floor area in a newly built home reached an all-time high of 2,434 square feet -- up from 1,645 square feet in 1975.

So you know one of the first objections you're going to get when you try to sell an older home is "This house is too small."

Your response? "I know. That's why I showed it to you. This way you don't have to pay for square footage you don't have or that you don't use. You can decide how much you want to add on. Customize this home to fit your needs."

Another objection Realtors get is that a home is out of date.

You can use the same clever response. "I know. That's why I showed it to you. If you buy a house that's already updated, you're paying the seller top dollar. This way you can decide what you want to improve."

What if your buyer says they don't want a certain improvement -- like a swimming pool?

You can say, "I know. That's why I showed you this house. A swimming pool you don't want is a great negotiating tool. We'll tell the seller it's a liability, and get them to reduce the price of the home."

Bottom line -- here's what your buyer needs to know.

You are either going to pay retail to have an updated home, or you're going to pay wholesale to add improvements yourself. Think about it this way: You don't want to pay the seller for granite countertops because they make a house sell faster. They might have paid $45 a foot, when you can get beautiful granite for $25 a foot.

Put in the granite yourself, and get the next buyer to pay you for it.

Published: February 19, 2008

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