Why do homes not sell?
So your home was on the market forever and did not sell. There are several reasons this happens and you're not alone. Several home owners across America have this problem too. You have to look at it objectively and not be emotional about it. You must ask what is the major cause of the problem? There are typically 5 reasons a home does not sell.
- The home is overpriced. No one wants to hear their home is overpriced and frankly some Realtors are too embarrassed to admit they over priced the home. Fact is the market can change and market values can be a moving target. THAT IS WHY It's call the "Real Estate Market". We all want to sell high, but it only takes one bad sale to lower the neighborhood value. Some Agents just don't follow market trends or have the courage to confront the issue and let a home owner know the listing is priced too high. As a result, they ask for only small price adjustments and just hope a buyer makes a move. The problem you face with not having a home properly priced is buyers have access to soooo much data. Every Real Estate consumer website like Zillow, Realtor, Trulia, etc. All show homes sales and give estimated values.
2. The home is in Poor Condition. Real Estate is a Price war and a Beauty competition. People want to spend their money on homes that are well maintained and esthetically pleasing. If it's anything less than "Good Condition" the price should be adjusted. This also means the home should be updated to current market standards. Granite counter tops, Large tile flooring, and wood cabinetry is now actually the market normal. If your home does not have these features the price should reflect it. Now, I am not saying to go out and put $20K into your kitchen; however, don't expect to make the same profit or more than the home that did. The appraiser who is hired by the bank will also take note of Condition when putting a value on your home. You really can not escape it.
3. Lack of Market Exposure ! Your agent simply took your listing and put it on the MLS. After that you had a few showings but no real activity. This is ALL the Agents fault. There are so many ways an agent can promote and market your home. The number one issue we see is poor photography. The agent took the photos themselves or with their phone. The photos are dark or over exposed. Even worse, they don't look natural. Marketing your home all starts with Professional Photos that show the home in the best light possible. From that point, Target marketing should be used and the agent should know the type of buyers to market to for your particular type of property. There are so many ways to market to specific buyers and identify what agents are working with those buyers. Just putting a home on the MLS and on websites should not be the only forms of marketing. Sadly most agents are stopping there. Is that really worth what you're paying them for?
4. LOCATION! LOCATION! LOCATION! Let's face it! People will often buy a home based on the location of the property. Is it far from town or close to everything? Does the home match the neighborhood? Is it a desired property in the area or is it unique for the area? Some areas just take longer to sell. The buyer pool may just be lower for the property type. This is not uncommon for Luxury homes or Rural Farms/acreage properties. You either have to wait it out or adjust the price to trigger a response .
5. You hired the wrong Agent. People often go with an Agent they know or someone they found on the internet. The Problem is the average agent is not great. We're not all the same and we all have different levels of training. You should hire an agent based on experience, expertise and proven RESULTS. The number of transactions they have completed is more important than number of years in the business. It's like going in for surgery. Do you want the Doctor that has 20 years of experience but only 200 surgeries or the Doctor with 7 years of experience and 1000 surgeries. You got it ! The Doctor with 7 years of experience. The guy who keeps his hand on the best practices and procedures!
If you are looking to put your home on the market and don't want to make the same mistakes, please reach out and we can get together and go over a plan to get your home sold. We will evaluate why it failed to sell and give you options. I will provide you with a list of things we can do differently and reposition your home Like a NEW Listing. Chances are we have helped a home owner in your same position.
Bobby Tyler
RE/MAX Destination Realty
239-850-2629