Some houses that need work sell very quickly, but others, in immaculate condition, stay on the market for months without generating any serious interest among buyers. If you are experiencing difficulties selling your home then there are several common reasons that are most likely to be preventing buyers from paying interest to the property.
The number one reason for a house to remain unsold: it’s been incorrectly priced. With the massive stock of houses for sale, including low cost steals on foreclosures and short sales, and the dearth of active buyers, because of high unemployment, uncertain economy and brutal financing hurdles, the market heavily favors the buyers right now. Simple economics: Huge Supply(Competitive Houses on the market) & Low Demand(Few Buyers) = Buyer’s market. This condition won’t be going away anytime soon. The foreclosure market alone is posting record increases. Many banks are withholding a sizable portion of their foreclosure inventories of houses from the market to prevent an even further slump in home buying. There’s pressure on the banks to get these properties on the market quickly though, in order to get the dead loans off their books. That indicates the current conditions will be with us for a while, as more and more distressed real estate flows onto the market.
No matter what. Price will be an issue in the offer. Everybody thinks they can arrange a slightly better deal. Choose a good asking price for your property before you put it up for sale. Interview a bunch of different Realtors and get them to value your home before you decide which Realtor to use. Should you choose the one who gives the highest value? Not necessarily…Overpricing a home looks good to the seller…BIG TIME! It looks, equally powerfully bad to the buyer…BIG TIME! See if the value they give is much higher than the valuations of the other Realtors, look at the properties they used as a comparison (When were they sold, are they like properties with similar features) then it may be too high and/or they may have used inappropriate properties for comparison. Some agents may give you a high value in order to convince you to use their services, even though they know they will have to lower the price later on. You’ve already signed a contract with this agent, instead of the more realistic Realtors. If your house has already been on the market for some time, then you may need to lower the asking price.
The number 2 reason for a house failing to sell is that it is not in good enough condition. Structural problems or renovations are needed, even simply cosmetic issues, then there will be fewer buyers willing to take it on. Two options present themselves, Be flexible on price in consideration of the buyer’s repair expense or fix them yourself. Even superficial problems can turn off buyers. Exterior condition or curb appeal is a huge factor. Trimmed bushes, neat landscaping, mold on the siding or old peeling paint immediately turn of the buyer before they even enter the house. On the inside, Redecorating in more neutral colors, removing clutter and personal items and making sure that the house is neat and tidy when potential buyers come to view it can have a big impact on the chances of getting an acceptable offer.
The location of your house is also an important factor in its sale. If you’re home is off the beaten track, not conveniently close to any major routes or public transportation, etc. that can be another turn off. There is nothing you can do about the location of your home, but you may be able to make your property more attractive by working on its condition, marketing it’s quiet solitude and/or reducing your asking price(obviously, Last Resort).
Choosing the wrong listing agent is another reason why your house may remain on the market. If you do not have the best Realtor for your property, then they will not be working effectively enough to find you buyers, marketing your property well or dedicating enough time to the sale. In this market, no stone can be left unturned. How do they market?
A. Direct Mail is important, but response is very weak and scattered(a long shot at best). How much junk mail goes in your round file every day?
B. Do they physically work the area? Will they contact your neighbors to notify them of your home’s availability and solicit their help in finding a buyer. Post flyers in local high traffic areas? Hand deliver notes to your community? Old-fashioned, Gum-shoe real estate practices, like these, are still great tools for moving a home.
C. Do they advertise in the paper? As newspapers get less and less circulation, this medium is decreasing in importance. However, there’s a few who still read papers and they can be a source of potential buyers.
D. What do they do for electronic outreach? Most homes today are sold online. Do they have a website? Where do they advertise? Will they show you their ads? How’s their network? What can they show you to prove it’s strong?
E. How strong is the agency they work for? The big national boys have an awesome reach into the national market if you’re looking for someone moving into this area to buy your property. The local guys have the same awesome reach into their local communities. Many, on both sides, have been developing targeted networks for decades.
Causes for slow turnover of a specific property are as numerous and individual, as there are individual properties. For a more in depth analysis of your specific situation, call your agent. If you don’t have an agent, Call me.
Focused on Home Buyers and Sellers in Brockton, Abington, Whitman, Hanson, Halifax and East Bridgewater