Why Isn't My Home Selling?
If 30 days go by without an offer, it's normal for a seller to ask: "Why isn't my home selling?"
When homes don't sell, there are a host of reasons to explore apart from price, but price plays the most important factor; it's just not the only factor. Because believe it or not, some homes take longer to sell than others. Especially Luxury homes.
Your home doesn't have to be worth a million to be desirable. It could be a $100,000 bungalow, but if it's desirable, buyers will fall over themselves to acquire it. If your home isn't desirable for some reason, it will take longer to sell.
The bulk of email I receive from sellers that asks for tips on selling a home. Many have had their home on the market for months without a showing. Some home sellers have had dozens of buyer previews but not one purchase offer.
In buyer's markets, it is especially important to pull out all the stops and make your home stand out among the sea of inventory on the market. Ask yourself why a buyer would choose your home over all the other homes for sale.
That is because there is only so much inventory that will sell at any given time. We call this an absorbtion rate. Each property will have a special rate and odds of selling. You need to be clear on not just what price per square foot your home is worth but what the current absortbtion rate in which all homes like your property are selling.
Poor Condition of Your Home
Check out your competition. If 90% of the homes in your market are not selling, then your home needs to outshine the top 10%. Look at the homes that are pending sales because that's your current indicator. Sold comps could be two to three months in arrears of market movement. You want to know what is happening right now, and pending sale data will tell you which homes are selling.
Apart from preparing your home for sale, consider its condition. Perhaps you should consider adding updates or doing repairs before selling. (See our article on Improvements That Pay)
If the top 10% on the market have new carpeting and your carpeting is worn and dated, your home is not going to sell. Replace the carpet. Paint the walls neutral -- not white. Check its curb appeal. (See our curb appeal check list) Carpeting, Paint and repairs do not ad value they are maintance issues that will add sellablitiy.
Not Enough Photographs or Badly Shot Photographs
Homes in MLS that have one photo are passed by. Homes with dozens of photographs get noticed. Take quality photos or hire a professional photographer. Shoot wide angles with plenty of light showcasing your home's best features.
You Haven't Paid For Extensive Marketing and Advertising
No single aspect of marketing sells a home. It's a combination of marketing efforts. If your newspaper makes a mistake and lists your home under the wrong section, don't panic -- homes have sold to buyers who found them in the wrong place. For that reason, consider placing an ad under several classifications. However, Magazine and Newspaper ads are not were the majority of the buyers are going to look for real estate. They are on the web. Look where you are looking right now. The National Association of REALTORS® tracks where buyers and sellers are going for their real estate needs at this time it is over 87% of the people go to the web before they go any where else. So, web presence is more and more important when talking to an agent about what marketing they will be doing to market.
You Hired the Wrong Listing Agent
You want to work with an agent who is competent, experienced and honest. There are a variety of ways to find an agent but the easiest way is through referrals from friends and family.
If you desire full-service and want an agent to spend tons of money on the listing, hire a full service brokerage and interview several agents. To find the best listing agent, don't base your decision solely on the suggested sales price or how much the agent charges you because there are other considerations. Discuss home pricing and commission negotiations last. First, find out the agent's strategic marketing plan. Please check out the list of questions you should ask your agent before you hire them.
You Haven't Priced Your Home to Sell
Sellers say, "But I don't want to give away my house." Of course, not. You want to sell it. To sell your home, the price must be right. Don't "test" the market or ask an inflated figure because if you do, your home will probably sit on the market and the DOM (Days on Market) will continue to tick. Dated listings don't generally sell for list price. Unless they are in a highly desired area and the market would support the home in that condition.
To avoid overpricing your home, examine the sold comparable sales. Adjust for square footage, if necessary. If your home has a bad layout or is located in bad location such as next to a school, on or near a busy street, backs to apartments, major power lines, rail road tracks or bordering a liquor store, you're not going to get the same price as homes with a good layout and in a good location.
For example, if the last three homes sold at $250,000 but you feel they are not comparable to yours because they don't contain updates -- but they were located on a quiet street and your street is noisy -- your home is probably worth about the same. A plus-$25,000 adjustment for the updates could wash out the minus-$25,000 for the busy street.
In a buyer's market, price your home a minimum of 1% less than the last comparable sale. If you can't live with that price, then don't put your home on the market and set yourself up for disappointment. Overpricing is the worst mistake a home seller can make.
The honest fact is that if you have a bad location, bad condition all is solved with pricing. Fair Market is what someone is willing to pay and what someone is willing to sell for. A healthy market is 6 months worth of inventory anything less is a sellers market anything more is a buyers market. This is really the best way to know what time frame your home should sell in.
