Mortgage interest rates are near a record low and people are buying
homes every day. So, why is it that some home sell right away while others sit
on the market for months and months?
1. Overpricing. The number-one reason
a house or condominium does not sell is because it is over-priced. If you
listed your home with the real estate agent who recommended the highest list
price, they probably “bought” the listing. Now, they may be reluctant
to admit that your home is over-priced.
Do you wonder why you’re not getting any offers? Today’s savvy home buyers will
either not look at over-priced properties, or when they do, they make offers
that are much lower than the market value. Home buyers are very smart and they
often know more about home values than real estate agents. If your home has
been on the market for more than 30 days, it’s time to review a new market
analysis to check the list price against other active listings and recent
sales. Then, adjust your price accordingly.
2. Condition of the home. The second major
reason homes do not sell is their physical condition. Few home buyers want to
purchase fixer-uppers. Most want a home to be in near-perfect, “model
home” condition. Does your home need a fresh coat of paint or new
carpeting? Is your yard and landscaping appealing? Are the windows sparkling?
Is the garage clean? Have you put off making needed repairs? Take time to put
your home into tip-top condition, so that all a buyer has to do is turn the key
in the front door and move in.
3. Bad location. No matter how
appealing a home might be, if it’s in a bad location it will not sell, or it
will sell for substantially less than comparable homes in good locations.
Negative location factors include bad schools, busy roads, high crime areas,
poorly maintained neighboring homes, lack of public transportation, poor
shopping, power lines and poor parks. The only way to compensate for a bad
location is to reduce the price.
4. The listing agent. Few sellers realize
that their listing agent could be the reason their home does not sell. Some
agents are known among their colleagues as “difficult agents.” The
result is that other agents do not want to show the listings of those agents
unless there is nothing else to show prospective buyers. Sellers may never know
that their listing agent is not liked by other agents and is hurting the home
sale. Experienced, cooperative, friendly, enthusiastic and accessible listing
agents are a major asset to their clients.
5. Poor marketing plan. Some real estate
agents get the listing agreement signed, put it into the MLS and sit back to
wait for other agents to bring a buyer. That’s not enough to sell a home. The
best agents have a written marketing plan and they follow it to be sure the
property sells.
Although the MLS is a powerful sales tool, other resources are essential. The
best agents have Internet sites to market their listings. They also arrange
broker tours or open houses, advertise each listing regularly, send out
“just listed” announcements and actively network their listings with
other agents.
6. Difficult to show. A common saying in
real estate is “If you can’t show it, you can’t sell it.” The more a
home is shown, the faster it sells. And, usually the quicker the sale, the
higher the selling price. The message is clear, make your home easy to show by
installing a lock box. If a lock box is not feasible, ask your real estate
agent to set up a procedure that will make it easy to show your home.
SUMMARY: The key reasons
some homes do not sell, even when the real estate market is doing very well,
can be overcome with savvy marketing. Real estate agents like to show listings
that are priced right, in good condition and easy to show. If your home is not
selling, talk with your agent to find out why. Have your agent ask other agents
who have shown your home what they think of it. For example, a modest price
reduction might be all your home needs to convert it from “for sale”
to “sold.”
