So you want to sell your house
As the market has cooled from a frenzied seller’s market to a very sluggish buyer’s market, there have been a number of articles and lots of word of mouth advice on how to sell your home. Ideas for ways to attract buyers range from milk and cookies to offering the latest model Rolls Royce if you buy the house. Trips to Hawaii, the Caribbean or Tuscany seem to be all the rage this season. Some landlords have tried offering a 10% fee to listing agents in the hope that an agent would drive a customer to their house instead of the one down the street. Another resurrected idea from the ’90s is to bury statues of Saint Joseph on the property. The list is endless, and yet many homes continue to be on the market with no potential buyers on the site.
With some homes still unsold after the competition has sold them, sellers are looking for answers. The first tendency is to blame the agent when the property does not sell immediately. Some agents are a contributing factor if a home has not sold; especially if the agent did not do a full market analysis or has done nothing more than put up a sign. Fortunately, these agents are relatively few in number. Most agents take pride in their work. We really enjoy helping you move to a new house or another area or state. That is our job. Every once in a while it seems like there is no reason why one house on a block sells immediately and another stays on the market for 6 months. However, the market is usually logical and orderly if you can figure out the key. While there are exceptions to all the rules; It seems to me that houses are not selling for one of four reasons. A house that has one or two of those reasons will stay on the market for a long time. A house that has all four elements will be on the market forever.
TOP FOUR REASONS WHY A HOME DOES NOT SELL:
1. The property is overrated:
Nobody wants to hear this. All sellers know that the agent has not priced their home high enough and all buyers know that the price is ridiculously high. However, there is a middle level that works for all parties. The trick is to find that level. A well done Market Assessment is a great start. Also, sellers need to look at their competition. If the house down the street is the same price you would like, then they should be in the same condition. If your competition has a fabulous new kitchen while you still have chipped Formica and avocado appliances, you need to reconsider your price. Testing the market is not a good strategy. While you’re testing for $100,000 more than the competition, those other houses will sell and you’ll become an old property. When a home has been on the market for an extended period without an offer, buyers believe there is something wrong with the property. Buyers will make an offer even if it is too expensive It is something that all sellers believe and it is not true. Buyers choose a price range they are comfortable with and search for homes in that range. Many have learned by bitter experience that making a low offer on a high priced home makes most sellers angry rather than ready to negotiate.
2. Property is not in Market Ready Condition:
Sellers who are not willing to put their property on market condition should not sell or be prepared for a very low price. I’m not talking about remodeling a kitchen or adding another bedroom. The market condition is clean. Clean up all the mess. If you have the resources, you should always paint. This is especially true if your favorite color is mauve and you have painted all the rooms in various shades of purple. It doesn’t have to be white, but a good neutral color will update a property. New carpet is a better option than a carpet assignment. Many of today’s buyers work long hours and don’t have the time or energy to think about fixing up a property. They want it clean and fit. $300.00 in flowers will do wonders for a home. Most people make half of their home decision before they get out of the car. A great interior with no curb appeal will be on the market.
3. The property has one fundamental flaw:
You may not pay much attention to the new highway, but you can bet a potential buyer will. You may love the idea of a separate family room, but it may not be a huge advantage when you go to sell. Oddly shaped rooms or bathrooms that are too small or floor plans that don’t flow well will keep a home on the market longer than others without flaws. I remember a house that had four bedrooms upstairs without an upstairs bathroom. The bathroom was downstairs and around a corner. It stayed on the market for a long time in a hot market. You may be used to the quirks of your home, but buyers will always opt for a more conventional home on a quiet street.
4. The fee for the buying agent is very low:
Of the four reasons listed, the fee paid to the agent is the least problematic, affecting how long a home stays on the market minus other factors by a wide margin. However, this is often a sticking point for many sellers. In a hot market, a low buying agent fee doesn’t make much of a difference. It may take two weeks to sell instead of 4 days, but it will generally sell out pretty quickly. In a slow market, a low buyer’s agent fee means you can be on the market for a long time. There are plenty of agents who will list your home for a low rate if it fits the buyer’s needs, but the reality is that if there are 40 homes for sale in a neighborhood at a similar rate and you are well below that rate, most of agents will show other houses. first. You would do the same… it’s human nature. This does not mean that you have to review what is customary in your area, but you must be close.
I know you all know someone who had all the above problems with a house and sold it in one day. The fact is that some homes have a certain feeling about them and will sell regardless of condition, price, or location. But for most properties, the above list represents most of the factors that will affect how long it takes to sell your home.