“Frank, I had my home on the market now for 3 months and nothing happened …”
“Why my home didn’t Sell!”
I get asked these questions at least one a week.
When a home does not sell, Sellers’s can be very frustrated, disappointed and maybe even very upset with the real estate community and the market.
I find that there are 4 areas to look at when a home does not sell:
1. Price along with Market conditions
2. Condition of your home
Price and market conditions
I have to be honest. Correctly pricing a home for a given market is absolutely essential in having a successful sale. Your agent needs to be an EXPERT in the market. They need to understand the market trends. For example, where is the inventory headed? What is the time to market a home? What is the current absorption rate? In your market for example are 2 homes per month going under contract?
Are there other factors that are having an influence in the market? For example if interest rates are rising, there will be less available buyers to purchase your home at a given price. Lending practices and guidelines also affect the market. For example, if lenders are now allowing conventional loans at a lower FICO score for a borrower. In this case, there will not be more buyers in the market.
Are there new housing developments in your area? Are these new homes competing with your home?
Along with pricing, the condition of a home has a direct impact on getting the home Sold. Also given the condition of the home, the property needs to be correctly priced for the condition. Most buyers expect to find a home that is bright, clean, upgraded and has no repair issues. I know that is not always possible to make repairs or do costly upgrades. But I like to help my clients prioritize repairs and inspections prior to placing the home on the market.
Sometimes spending $500.00 on a roof inspection and repairs will open the buyer pool for your house. If we can increase the number of potential buyers, then we can increase the demand for the home. Another example could be getting a pest inspection and clearance prior to listing the home for sale. These inspections cost less than $150.00. And if you are going to sell your home to a VA buyer there is a lender requirement to have a clear pest report. Again we now have increased your buyer pool.
When I talk about “access” for example, how easy can a agent and client make an appointment and view your home? Both the listing agent and the occupant of the home both HAVE to make the home accessible. As a listing agent, I have to respond promptly to inquiries from other agents. When I am showing a home to a prospective buyer, I always call ahead to the listing agent to try and get more insight on the home. If the listing agent does not respond, I am less likely to show the home. As a listing agent, I try and make sure that I have a reputation as an agent that is easy to work with during an escrow just for this reason.
Also the seller (and or occupant) must make the home EASY for the buyer’s agents to show. Selling a home with tenants IS ALWAYS difficult.
I know that some clients may want to have restricted showing hours or only show on certain dates. Doing these restrictions will have a negative impact on getting your home Sold!
The purpose of marketing a home is to get buyer’s through your door. In today’s market 99% of the buyers are looking on the internet. Having an agent who is knowledgeable on digital marketing and how to make your home go “vryal” is critical. Your listing agent cannot just stick the home in MLS. Knowing how to use third party websites, IDX technology, and getting your home indexed for search engines is required. High quality pictures are a must!!!
If your home is being shown, usually that means that the marketing is working. If the your getting showings and no offers, then maybe we have to look at the condition and/or pricing of your home.
I hope this information helps, Please call or email Frank at 916-257-0893 or email@example.com