In the last installment of this series, we talked about alternatives to a price reduction when a listing isn’t selling. Today we’ll discuss ways to maximize the chances of sale if a property has flaws the seller can’t or won’t fix.

The first thing you must consider is whether or not you believe you can sell the home if the flaw is not fixed. While your heart’s in the right place when you agree to list a home that probably won’t sell, you may have to make the decision to leave your heart out of it. Assuming you do want the flawed listing, what are your options to maximize your chances of selling it? Obviously, price is going to factor into the equation, but let’s touch on some other factors first that might offset the need for a dramatic pricing adjustment.

Maximixe the First Impression: Even if your seller can’t make any major improvements to the home, encourage him to do his darndest to make the entry into his home as appealing as he can. Whatever the buyer can see from the front door should be clean, tidy and in good repair. Smell is critical to a first impression, as is light.

Offering an Allowance: Unfortunately, in today’s market, buyers are well aware they can offer low or ask for allowances, so repair or decorating allowances aren’t all that effective. Allowances are best reserved for items that do not directly affect the buyer’s emotional response to the home. No allowance can overcome a emotionally negative first impression, but might perhaps be effective to overcome more practical objections such as an older furnace, dated appliances or landscaping.

Force the issue: (disclose in MLS) A counterintuitive approach to successfully marketing a substandard house is to be upfront, perhaps even obnoxiously so, about the home’s deficiencies in your MLS description. For example, you might write: “Yep, this home is right next to the highway, so if that’s a concern for your buyer, just pass this one by. But if your buyer is looking for more house than he can afford, with great access to transportation, put this house on your list.” Or: “Tenant-occupied and all that that implies. Tough to show and shows messy, and I guarantee the tenants will be there watching your every move, but it’s priced to be worth the trouble.”

Photos Contrary to what (apparently) many agents seem to think, your MLS listing should always include interior photos, even if the house isn’t terribly photogenic. Here’s the thing—listings without interior photos, regardless of how well-deserved the lack of photos may be, are skipped over by agents and buyers during their online searches. Go ahead and post those photos, even though the home shows poorly. Just do your best to capture the best features of the home without misleading your audience as to its true condition.

Open your checkbook: Of course, you can always pitch in and contribute toward the seller’s efforts to get his home ready for market, either with your own manpower or your checkbook.

Staging While it’s not appropriate or effective to recommend staging to disguise the fact that a home is poorly maintained or needs repairs, it is perfectly acceptable to stage a home that is dated, but otherwise clean and in good repair. Just because the kitchen is vintage 1955 or the bathroom hasn’t been updated in 30 years doesn’t rule out the effectiveness of staging. Grandma’s house that is clean and in decent shape can be an excellent candidate for a little stager-created Pottery Barn flair!

Price And finally, price. How do you price a home that doesn’t measure up to its competition? Well, the first line of attack is to find active listings and sold comparables that were also flawed, and price accordingly. This is by far the most accurate pricing strategy in this situation.

It’s far more difficult (not to mention inaccurate) to price against better-showing and/or maintained homes and adjust for the work needed. Besides the fact that the buyer for the two different types of properties is not the same person, you also have to factor in not only the raw cost of the needed improvements, but also the enhanced appeal and wider audience for the fixed-up property. Enhanced appeal + wider audience = more money… but how much more? That’s a tough one.

At the end of the day, it’s always your decision to choose to take a listing, or politely decline. If you decide against it, don’t worry, someone will take it and they might even sell it. But I encourage you to ask your gut, and then trust what it tells you. If you don’t want a listing, or don't think you can sell it, don’t take it. It’s just the right thing to do.

Published: December 21, 2009

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Jennifer Allan-Hagedorn was a top producing real estate broker in Denver, Colorado before writing her first book in 2007. Since then, she has written several more books about the business of selling real estate including her flagship book: Sell with Soul: Creating an Extraordinary Career in Real Estate without Losing Your Friends, Your Principles or Your Self-Respect, the sequel, If You're Not Having Fun Selling Real Estate, You're Not Doing it Right and her latest, to be released in Spring 2011, Prospect with Soul for Real Estate Agents. Jennifer believes that the secret of success for real estate agents is not in aggressive marketing techniques or hard-core sales pitches, but rather in being competent in one's craft. Competence begets Confidence. And in today's world of increasingly suspicious and ad-weary consumers, having an air of self-assurance and enthusiasm will be far more effective than a slick sales campaign. Jennifer writes and speaks with this philosophy in mind. She preaches that salespeople should follow the Golden Rule in their day-to-day practice of business - treating clients and prospects respectfully, as the salesperson him or herself would like to be treated. Being competent, reliable and fair, and motivated by a true desire to earn a paycheck, not just show up at closing with hand outstretched. She is a regular contributor to several real estate newsletters and magazines, a member of the RE/MAX Hall of Fame and one of the industry's most popular bloggers. You can learn more about Jennifer's "soulful" philosophies at www.SellWithSoul.com. Subscribe Below to Enroll in the Daily Seduction Newsletter Mini-Clinic - Tips and Strategies to Generate Business and Referrals From Your Sphere of Influence! Your Full Name Your Email Address