Sears announced the other day they were going to close 64 Kmart stores because the retailer continues to struggle with declining sales.  

I can remember when Kmart was a dominating retailer and Wal-Mart was just on the rise.  What has happened over the last 30 years that Kmart is now going under and may never recover?  One of the issues I see from the outside looking in is relevancy.  Kmart has lost its relevancy with the marketplace while Walmart and Target continue to make modifications to their stores and marketing in order to remain relevant in an ever-changing world. 

So what do Kmart closing stores and relevance have to do with real estate?  I am so glad you asked.  The other day we went to list a house and pulled all the comparables so the seller could make a decision on the listing price.  The comparables all came in with a list price of $250K - $260K.   The owner decided to list the home at $260.  After several showings, there were no offers.  We immediately started looking at homes that had sold to determine why we weren’t getting offers.  The one noticeable difference is that the homes that were selling had upgraded appliances, flooring, and cabinets.  The home we were listing didn’t have any upgrades, in addition to wallpaper in various places.  

Based on customer expectations, our listing price was too high because similar homes in the same price range had upgrades and ours didn’t.  So in the eyes of the consumer, the listing price was too high.

What is the lesson we can learn from this?  If you are going to live in a home for an extended period of time (5 years or more), make sure you budget for upgrades so your home will remain relevant.  If not, you will struggle when it’s time to sell or you will have to cut your price to compensate for the lack of relevancy.

Selling your home in Murfreesboro?   We are the Murfreesboro Real Estate Professionals.  We can list or find you a home in Rutherford County.  If you list, we do a comparative market analysis for free, in addition to showing you how we target market surrounding cities, counties and states to get your home sold quickly. 

Give us a call – 615-890-8053