Home Selling Guide

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Home not selling? The top five reasons why not

You’ve tried most everything to sell your home. But it is still waiting for the right buyer. In a good market, there could be a few reasons why your home hasn’t moved as quickly as you’d hoped. When you review the price, condition of your home, the listing agent’s reputation, location, and marketing plan, you’ll move closer to getting your home sold.

1. Price

Prior to listing a home, it’s a good idea to obtain a market evaluation (or CMA, comparable market analysis) from two or three realtors. This should give you a professional opinion from three reliable sources.
Sometimes a realtor may inflate the price, in hopes of getting the listing. This person could suggest that you’ll get $20,000 or even $30,000 more than the other agents. This is called “buying a listing.”
If one agent suggests a price that is significantly higher than the others, it could mean that this realtor is not your best choice. Each evaluation should be within a reasonable amount, compared to the others. The market doesn’t lie. If you list your house at a value higher than the market value, you will have more difficulty selling it. Sometimes buyers perceive such a home as “market worn.” Your final selling price could be lower than if you had listed it correctly in the beginning.
Your house is worth $140,000. You list it for $150,000. It’s less likely buyers looking for $140,000 homes will view your home. It’s not within their price range. Buyers looking for $150,000 homes will compare your homes to others that are truly in this price range. Houses priced correctly are more likely to sell. Sometimes, an agent will show an overpriced home for comparison when they want to sell listings that are reasonably priced.

2. Condition

A buyer does not see a home the same way as a seller. As many homeowners have grown accustomed to their home, along with developing an emotional attachment, many items may be overlooked. What looks good to one person does not look the same to another – especially a buyer. Most buyers are looking for a near perfect home. This means clean, in good condition mechanically and structurally, and in a pleasing decorating style.

The ideal situation would be for the buyer to move into a home, without having to do any work, including cleaning the carpet. When a buyer looks at a home, they try to imagine themselves living in the home. If any work needs to be done they are less likely to make an offer, when compared to another home that is in model-home condition. At the same time, a buyer could make an offer less than the market value, to compensate for any required work. You could lose money by not having your home in top condition.

The paint inside and out should be in good condition. Everything should be kept perfectly straight and orderly. A seller should walk through the house as if they are a potential buyer, being very critical and asking whether they would purchase a home in this condition.

A professional realtor can assist you in this task. They can take an unbiased look at your home and suggest ways to improve your home, and most importantly, increase your bottom line. When your home is in its “best” condition, you are more likely to receive the best price. While it may seem a lot of work, repairing these items will benefit you in the pocketbook.

3. The listing agent

The reputation and ethics of your realtor is especially important. He or she could create big problems if he or she is difficult to get along. People don’t like to work with someone who has a bad attitude or a condescending nature. Realtors who are rude or arrogant, will have far fewer showings than a cooperative and enthusiastic agent.

Before you hire an agent, be sure to check out his or her reputation. Ask for references. Phone the Real Estate Board. It’s worth spending the time interviewing an agent to ensure you’ll get the results you’re looking for. Be sure to read the report, “26 Questions to Ask A Realtor” included in the Getting Ready section.

4. Location

The third reason a house may not sell quickly in a good market is location. Undesirable schools, higher crime rate, untidy neighbors, busy roads and close proximity to noise, could contribute to a delay in selling. The only compensation available for the location factor is a lower price. An owner may have to reduce the price so the home compares to others in more desirable areas. Your realtor, trained in these kinds of situations, can recommend a good strategy to overcome a bad location.

5. Marketing plan

When the factors of price, condition, location and agent are correct, the other factor is marketing plan. It takes more than simply putting a sign on your lawn to sell a home, place your home on the MLS service, run an ad and then sit back and wait for a buyer to arrive. If your realtor is doing his job correctly, an aggressive marketing plan should accompany your listing agreement. If the realtor doesn’t perform as outlined in this document, you can cancel. Your realtor must make effective use of the latest technology, plus maximizing industry and professional contacts, to ensure your home is placed before the most buyers. When all the other factors are accurate, the only thing left in a good market is the marketing plan.

This also includes showings of your home, proper qualification of buyers, handling details of the sale and anything else that could affect the sale of your home. All of these details are important. They could affect your bottom line.

Details are important

There is, one thing you may not be able to overcome – a bad market. In this situation, there are many factors beyond your control. A good realtor, however, can offer some ideas and suggestions when faced with one. For the most part bad markets are rare. In most cases, in a good market, when price, condition, your realtor, location and the marketing plan are established your home will sell quickly at the right price.