Home not selling? The top five reasons why not
You have 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 has not moved as quickly as you would have hoped. When
you review the price and condition of your home, the listing agent’s
reputation, location, and marketing plan, you will move closer to
getting your home sold.
1. Price
Prior to listing a home, it is a good idea to obtain a market evaluation
(or CMA, comparable market analysis) from two or three Real Estate Professionals. This
should give you a professional opinion from three reliable sources.
Sometimes a Real Estate Professional may inflate the price, in hopes of getting the listing.
This person could suggest that you will 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 Real Estate Professionals is not your best choice. Each evaluation
should be within a reasonable amount, compared to the others. The market
does not 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 is less
likely buyers looking for $140,000 homes will view your home. It is
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 a seller does. 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 Real Estate Professional 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 total profit and thats the 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 Real Estate Professional is especially important. He
or she could create big problems if he or she is difficult to get along with.
People do not like to work with someone who has a bad attitude or
a condescending nature. Real Estate Professionals 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 is worth spending
the time interviewing an agent to ensure you will get the results
you are looking for. Be sure to read the report, “26 Questions
to Ask A Real Estate Professional” 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 neighbours, 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 Real Estate Professional, 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® System,
run an ad and then sit back and wait for a buyer to arrive. If your Real Estate Professional
is doing his job correctly, an aggressive marketing plan should accompany
your listing agreement. If the Real Estate Professional does not perform as outlined
in this document, you can cancel. Your Real Estate Professional 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 however one thing you may not be able to overcome – a bad market.
In this situation, there are many factors beyond your control. A good
Real Estate Professional, 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 Real Estate Professionals, location and the marketing
plan are established your home will sell quickly and at the best price.
