As the market has cooled from a hectic seller’s market to a very slow buyer’s market, there have been a number of articles and much word of mouth advice on how to sell your home. Ideas for ways to attract buyers range from milk and cookies to offering the latest Rolls Royce if you buy the house. Trips to Hawaii, the Caribbean or Tuscany seem to be all the rage this season. Some homeowners have tried offering a 10% rate to listing agents in the hope that an agent will drive a customer to their home instead of the one down the street. Another idea resurrected from the ’90s is to bury statues of Saint Joseph on the property. The list is endless, and yet many homes remain on the market with no potential buyers on site.
As some homes remain unsold after the competition has sold them, sellers are looking for answers. The first tendency is to blame the agent when the property does not sell immediately. Some agents are a contributing factor if a home hasn’t sold; especially if the agent did not do a complete market analysis or has done nothing more than put up a sign. Fortunately, these agents are relatively few in number. Most agents take pride in their work. We really enjoy helping you move to a new home or another area or state. That is our job. Every now and then there seems to be no reason why one house on one block sells immediately and another stays on the market for 6 months. However, the market is usually logical and orderly if you can figure out the key. While there are exceptions to all the rules; It seems to me that houses don’t sell for one of four reasons. A house that has one or two of those reasons will stay on the market for a long time. A house that has all four elements will be on the market forever.
THE TOP FOUR REASONS WHY A HOUSE DOESN’T SELL:
1. The property is overvalued:
Nobody wants to hear this. All sellers know that the agent hasn’t priced their house high enough, and all buyers know that the price is ridiculously high. However, there is a middle level that works for all parties. The trick is to find that level. A well-done Market Assessment is a great start. Also, sellers need to look at their competition. If the house down the street is the same price as you would like, then they should be in the same condition. If your competition has a fabulous new kitchen while you still have avocado and chipped Formica appliances, you need to reconsider your price. Testing the market is not a good strategy. While you’re testing a price $100,000 higher than the competition, those other houses will sell and you’ll become a vintage property. When a home has been on the market for an extended period without an offer, buyers believe there is something wrong with the property. Buyers will make an offer even if it is too expensive It is something that all sellers believe and it is not true. Buyers choose a price range they are comfortable with and shop for homes in that range. Many have learned from bitter experience that making a low offer on a high-priced home makes most sellers angry rather than ready to negotiate.
two. Property is not in Market Ready Condition:
Sellers unwilling to bring their property to market condition should not sell or be prepared for a very low price. I’m not talking about remodeling a kitchen or adding another bedroom. The market condition is clean. Clean up all the mess. If you have the resources, you should always paint. This is especially true if your favorite color is mauve and you’ve painted all the rooms in various shades of purple. It doesn’t have to be white, but a good neutral color will update a property. New carpet is a better option than a carpet allowance. Many of today’s buyers work long hours and don’t have the time or energy to think about fixing up a property. They want it clean and fit. $300.00 worth of flowers will do wonders for a home. Most people make half of their decision about a house before they get out of the car. A great interior with no curb appeal will be on the market.
3. The property has a fundamental flaw:
You may not pay much attention to the new highway, but you can bet a potential buyer will. You may love the idea of a separate family room, but it may not be a huge advantage when you go to sell. Rooms that are oddly shaped or bathrooms that are too small or floor plans that don’t flow well will keep a house on the market longer than others without flaws. I remember a house that had four bedrooms upstairs without an upstairs bathroom. The bathroom was downstairs and around the corner. It stayed on the market for a long time in a hot market. You may be used to the quirks of your home, but buyers will always opt for a more conventional home on a quiet street.
Four. The fee for the buyer’s agent is very low:
Of the four reasons listed, the fee paid to the agent is the least problematic and affects how long a home stays on the market minus the other factors by a wide margin. However, this is often a sticking point for many sellers. In a hot market, a low buyer’s agent fee doesn’t make much of a difference. The sale may take two weeks instead of 4 days, but it will generally sell out pretty quickly. In a slow market, a low buyer’s agent fee means you can be in the market for a long time. There are many agents that will show your home at a low rate if it fits the buyer’s needs, but reality is that if there are 40 homes for sale in a neighborhood at a similar rate and you are way below that rate, most of agents will show other houses. first. You would do the same… it’s human nature. This does not mean that you have to review what is customary in your area but you must be close.
I know you all know someone who had all of the above problems with a house and sold it in one day. The fact is that some houses have a certain feeling about them and will sell regardless of their condition, price or location. But for most properties, the list above represents most of the factors that will affect how long it takes to sell your home.