Home
not selling? The top five reasons why not
You’ve
tried most everything to sell your home. But
it is still waiting for the right buyer. In
a good market, there could be a few reasons
why your home hasn’t moved as quickly
as you’d hoped. When you review the price,
condition of your home, the listing agent’s
reputation, location, and marketing plan, you’ll
move closer to getting your home sold.
1.
Price
Prior to listing a home, it’s a good
idea to obtain a market evaluation (or CMA,
comparable market analysis) from two or three
REALTORS®. This should give you
a professional opinion from three reliable sources.
Sometimes a REALTOR® may inflate
the price, in hopes of getting the listing.
This person could suggest that you’ll
get $20,000 or even $30,000 more than the other
agents. This is called “buying a listing.”
If one agent suggests a price that is significantly
higher than the others, it could mean that this
REALTOR® is not your best choice.
Each evaluation should be within a reasonable
amount, compared to the others. The market doesn’t
lie. If you list your house at a value higher
than the market value, you will have more difficulty
selling it. Sometimes buyers perceive such a
home as “market worn.” Your final
selling price could be lower than if you had
listed it correctly in the beginning.
Your house is worth $140,000. You list it for
$150,000. It’s less likely buyers looking
for $140,000 homes will view your home. It’s
not within their price range. Buyers looking
for $150,000 homes will compare your homes to
others that are truly in this price range. Houses
priced correctly are more likely to sell. Sometimes,
an agent will show an overpriced home for comparison
when they want to sell listings that are reasonably
priced.
2.
Condition
A buyer does not see a home the same way as
a seller. As many homeowners have grown accustomed
to their home, along with developing an emotional
attachment, many items may be overlooked. What
looks good to one person does not look the same
to another – especially a buyer. Most
buyers are looking for a near perfect home.
This means clean, in good condition mechanically
and structurally, and in a pleasing decorating
style.
The ideal situation would be for the buyer
to move into a home, without having to do any
work, including cleaning the carpet. When a
buyer looks at a home, they try to imagine themselves
living in the home. If any work needs to be
done they are less likely to make an offer,
when compared to another home that is in model-home
condition. At the same time, a buyer could make
an offer less than the market value, to compensate
for any required work. You could lose money
by not having your home in top condition.
The paint inside and out should be in good
condition. Everything should be kept perfectly
straight and orderly. A seller should walk through
the house as if they are a potential buyer,
being very critical and asking whether they
would purchase a home in this condition.
A professional REALTOR® can
assist you in this task. They can take an unbiased
look at your home and suggest ways to improve
your home, and most importantly, increase your
bottom line. When your home is in its “best”
condition, you are more likely to receive the
best price. While it may seem a lot of work,
repairing these items will benefit you in the
pocketbook.
3.
The listing agent
The reputation and ethics of your REALTOR®
is especially important. He or she could create
big problems if he or she is difficult to get
along. People don’t like to work with
someone who has a bad attitude or a condescending
nature. REALTORS® who are rude
or arrogant, will have far fewer showings than
a cooperative and enthusiastic agent.
Before you hire an agent, be sure to check
out his or her reputation. Ask for references.
Phone the Real Estate Board. It’s worth
spending the time interviewing an agent to ensure
you’ll get the results you’re looking
for. Be sure to read the report, “26 Questions
to Ask A REALTOR®” included
in the Getting Ready section.
4.
Location
The third reason a house may not sell quickly
in a good market is location. Undesirable schools,
higher crime rate, untidy neighbors, busy roads
and close proximity to noise, could contribute
to a delay in selling. The only compensation
available for the location factor is a lower
price. An owner may have to reduce the price
so the home compares to others in more desirable
areas. Your REALTOR®, trained
in these kinds of situations, can recommend
a good strategy to overcome a bad location.
5.
Marketing plan
When the factors of price, condition, location
and agent are correct, the other factor is marketing
plan. It takes more than simply putting a sign
on your lawn to sell a home, place your home
on the MLS® service, run an ad
and then sit back and wait for a buyer to arrive.
If your REALTOR® is doing his
job correctly, an aggressive marketing plan
should accompany your listing agreement. If
the REALTOR® doesn’t perform
as outlined in this document, you can cancel.
Your REALTOR® must make effective
use of the latest technology, plus maximizing
industry and professional contacts, to ensure
your home is placed before the most buyers.
When all the other factors are accurate, the
only thing left in a good market is the marketing
plan.
This also includes showings of your home, proper
qualification of buyers, handling details of
the sale and anything else that could affect
the sale of your home. All of these details
are important. They could affect your bottom
line.
Details
are important
There is, one thing you may not be able to
overcome – a bad market. In this situation,
there are many factors beyond your control.
A good REALTOR®, however, can
offer some ideas and suggestions when faced
with one. For the most part bad markets are
rare. In most cases, in a good market, when
price, condition, your REALTOR®,
location and the marketing plan are established
your home will sell quickly at the right price.
