There are many times in life when we learn things through the trial and error method, yet when selling a home you shouldn’t have to employ this method. In fact, this method should be avoided at all costs.
What are the most common reasons that homes don’t sell?
1. Wrong List Price
Either you didn’t listen to your Real Estate Agent’s recommendation for the right list price or your Real Estate Agent doesn’t know how to price homes to sell. Two detrimental paths that must be avoided.
When you choose to hire a Realtor to sell your home, you should be choosing them due to their level of skill and knowledge within the local Real Estate market. They should know how to price homes. They should have a track record of successfully selling homes within a good ratio of the home’s list price. How do you know, you ask? Just ask them. If they haven’t discussed their success at pricing homes for sale then you can ask them to tell you about their list price to sales price ratios. If their ratios are good, they know how to price homes to sell.
Now, two things can happen regarding setting your home’s list price. Your
Agent can know how to price homes to sell and you listen to their expertise
or you’re dead set at selling your home for the price you want to sell your
home for and your Agent accepts, while silently knowing that price
reductions will be in your future. Do you know which choice predominantly is
a win for you? Let me illustrate so it’s easier to understand.
When an Agent uses an expert, proven pricing method that entails reviewing recent closed sales and pending sales, typically within a 3 month, sometimes 6 month period, by comparing similar homes within a nearby radius of your home and then making any plus/minus adjustments for such things as updates, features, condition and location and how they compare to your home, a fair market value can be determined. Then they will also look at homes currently active for sale, your competition, to determine at what ideal price point should your home be placed to get your home sold.
The second pricing method is when the Agent agrees to your suggested price whether or not it is above market value. I hate to call it a “method” as a method usually means to use a systematic procedure, technique or way of doing something to get a result. Here the Agent is either agreeing with you simply to get your listing to sell your home or because they don’t know how to price a home for sale. Either way it does not benefit you. When you list your home for sale above market value, you are missing a whole pool of Buyers well qualified to buy your home; these Buyers aren’t even looking at your home because they’re looking at your true competition where your home should be priced. With your home being priced above market value, your home is being overlooked as the Buyers in this price range where your home is priced are able to find homes priced right in this price range that will be larger with better features. So again, you’re missing Buyers. As time goes by, you agree to a price reduction, yet now your home has lost it’s fresh appeal as is present when a home first hits the market for sale. As your home lingers, it has become almost tainted as Buyers wonder why your home hasn’t sold. Tainted homes can be seen as fire sales. Offers may now come, but they can likely be at discounted prices. You don’t want to accept such a low offer, so you reject the offer and your home sits and doesn’t sell.
2. No home selling preparation
There aren’t any shortcuts when it comes to selling a home. It takes time and effort to prepare a home for sale. Preparation will almost always result in your home being sold for the most money. Such things as, cleaning, decluttering, making minor repairs or major repairs/updates when the budget allows, sets the stage for your home to be revealed in its most favorable light. If your Real Estate Agent didn’t advise you on what to do to prepare your home for sale, this can be a huge factor in why your home didn’t sell. How much preparation did you do in getting your home ready? What did your Agent recommend? “Nothing”, you say. I was afraid you’d say that.
3. Ghastly photos and/or few photos
I can’t even tell you the number of times that I’ve come across a home for sale where the photos are simply ghastly! The photos reveal dark and dingy rooms. People and pets in photos, toilet lids up, clutter and mess everywhere. I’ll also see homes that have just a few photos for prospective Buyers to see. Buyers want to see photos, lots of photos and high quality photos otherwise, they’ll skip right over your home. Did your Real Estate Agent show you your home’s online marketing presentation where photos are displayed? “No”, you answer. That’s what I thought. Most homeowners aren’t even aware of how poorly their home is being presented over the internet otherwise, they would have fired their Agent.
4. Your home wasn’t splashed in front of prospective Buyers
92% of Buyers search for homes for sale over the internet and if your home wasn’t marketed by being splashed across the internet, your home will be missed being seen by prospective Buyers. The Agent you hired should have a strong online internet marketing presence. They should know how to market themselves well, in order to market your home for sale. Try Googling their name to see what comes up? You should see pages of their presence. If they can’t market themselves how will they every market your home for sale? If they have a strong online presence this means that your home will be seen by more prospective Buyers simply by them being splashed all over the internet. In essence, you’ll be using their strong Real Estate brand to attach your listing to and be seen; it can be very powerful. Do you know if your home was marketed well? I hate to hear your answer, yet I’m sure I know the answer by now.
5. You didn’t believe in being harmonious
When there are so many parties to a Real Estate transaction it’s important to be harmonious as possible. This doesn’t mean that you have to agree to every demand, it simply means that you need to communicate well and understand that there will be a little give and take. When your Real Estate Agent calls, emails or texts you, it’s important to respond in a timely manner; the contact could likely have a contractual deadline attached to it. When you request something of the Buyer and they agree, remember this when they request something of you. There should be balance and not everything your way or the highway. If this is your style, it’s best to bottle it while selling your home and feel free to let it out after you sold your home. I certainly can’t tell you how to live your life, but only guide you during the selling of your home to meet your objective of selling your home for top dollar in the shortest amount of time.
Knowing these 5, all too common, reasons that are experienced by home Sellers when their home’s do not sell can educate you for the next time you sell your home. Or if you’re thinking about selling your home, these reasons discussed here can provide you with valuable insight before you embark on selling your home. Just make sure that you hire the right Real Estate Agent as this doesn’t have to happen to you.
Real Estate article written by Lynn Pineda, a licensed Southeast Florida Real Estate Agent for almost 10 years serving Coral Springs Florida and surrounding Southeast Florida. Keller Williams Coral Springs Realty. Real Estate Promises Delivered. You can speak with Lynn by calling/texting her at 9544641100 or you can email her at: LynnP@ImagineYourHouse.com if you need to sell or buy your Southeast Florida home.
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