4 Reasons Your Home Is Not Selling In Todays Market
There is great news for people looking to sell a home. The housing market is back.
Housing is back. The market is starting to hum again—even roar in some areas, with demand outstripping supply. A new report from the National Association of Realtors shows that sales of existing homes in February saw the most growth in more than three years. But a stronger market isn't a guarantee that you can sell your house. There will always be reasons people won't buy what you're offering. If you've been having bad luck on the market, you may want to cross the street, hold up a mirror and take a good, long look.
In other words, this is a seller's market, and there are lots of interested buyers. The good news is that there are tangible reasons homes do not sell, and this article will explain those reasons, and help you get more money for your house.
1) You Need to Come Down on the Price
The number one reason that a house doesn't sell is the price. When selling your house, it is important to price it objectively. That is hard for many buyers, because they have an emotional attachment to their home (which is perfectly understandable), and they tend to price it too high. Remember, there is no better time to sell your home than your first few days or weeks on the market. If you price your home too high and you do not receive an offer, most sellers begin to reduce the price of their home until it sells.
Once you start reducing the price of your home, it invites low-ball offers because a buyer sees you as more "desperate" to get rid of your home. If you price the home reasonably, you may end up with more money in your pocket in the end than you would with a price too high with subsequent price reductions.
2) Your House Needs Too Much Improvement
When people are selling their house, they are loath to put too much money into it, because they are selling it, and they feel like they will never see that money again. In some cases, that is true. If you renovate your kitchen before you sell, you may not get a full return on your investment. As a matter of fact, you will probably lose money. On the other hand, a fresh coat of paint in certain areas may allow you to see nice returns on your money. At the end of the day, there are fixers-uppers out there that sell, but the type of people searching for fixers-uppers love finding a great deal, and they may not be willing to pay what you are looking for. If you are looking to maximize your profit, it is better to target people who are looking for convenience and are willing to spend a little bit of extra money in order to obtain it.
As a general rule of thumb, buyers are lazy. With over ten years of experience in real estate, I can promise that buyers are generally beaten down by the end of a home transaction. So, doing work on a home they purchase becomes less and less of a desirable option in their minds. Buyers want "turn key," or as close to "turn key" as possible. I would estimate that fewer than 10% of buyers really want to do much work on a new home.
Speaking of a fresh coat of paint, I advise all my sellers to check out a few new construction open houses. Take note as to the paint colors builders use in their homes. Remember, builders sell to the masses so they use soft, neutral paint tones to attract the largest number of possible buyers to their projects. They do this on purpose. They don't choose paint colors at random. Most builders actually use licensed, professional designers as consultants to their paint choices. This is strictly a business to builders so they do mostly the right things to sell a home.
Your home should mirror builder paint colors when it is time to sell. Purple, green, pink, polka dotted, striped paint and old wall paper just yells "WORK" to potential buyers. If you don't want to do the work to fix these issues, what makes you think potential buyers want to do the work? They don't want the work and they simply will not do the work. Buyers will simply move onto the next listing.
3) You Need to be a Little More Flexible
If a house is not being shown to prospects, then it will not get sold. This is one of the golden rules of real estate. If you are only showing your house by appointment or at designated times, then you may be damaging your potential to make a sale. Your house needs to be clean and ready for prospects at all times. No matter how you want to slice it, showing off your house frequently is priority number one.
Declining showings on your home leaves a bad taste in the mouth's of buyers. Buyers are emotional and if you decline their showing, they take it personally. They shouldn't, but they do. I cannot tell you how many buyers I've had in the past who will not go back to a home if their original showing request is declined.
Another thing I tell all of my home seller clients, "Do not require me (the listing agent) to be at every showing." Most homes are sold by another agent (besides the listing agent) bringing the buyer to the property. When you require me to be at the showings, the buyers will feel pressured. I make this analogy to my seller clients... when you walk onto a dealership lot to buy a car, do you want a salesperson rushing up to you immediately? Most people answer "no." That's exactly how buyers feel when they look at your home if your representative (me, the listing agent) is present.
If you require your agent to be at every showing, the buyers will not talk freely with their agent, they will not stay at your home as long, and they will not like the pressured feeling they get just from the listing agent's presence.
4) You Are Not Advertising Your Home Properly
The power of words and photos are amazing. If you are not trained in copywriting, then you may not be utilizing words that will emotionally resonate with your prospects. If you are not trained in photography, the pictures of your home may not be displaying your house in the optimal way. This stuff matters. Large companies like Apple, spend millions of dollars on copywriting and photography, and for good reason. You would be remiss to ignore these elements.
I used to think I took good pictures of homes. I have a very nice camera and tripod. HOWEVER, professional photographers put my photos to shame. I now use professional home and real estate photographers for every home I list. I eat the cost as part of my listing package. I cannot urge you strongly enough to get professional photographs of your listing prior to putting it on MLS.
Social media has become a fantastic way to advertise listings. I actually build individual, advertising campaigns for my listings and they generally attract around 8,000 views per listing. Everywhere you look today, you will see people's faces almost lodged into their cell phones. Most of the people are checking out their social media and keeping up with friends. Why not place your home right in front of their eyes and where they're looking (social media)?
Almost ONE MILLION people per day log onto Facebook. Why in the world wouldn't you put your home front & center for that kind of audience? I do for my listings and the results are nothing short of amazing!
Contact us (Richard McKinney - Atlantic Shores Realty Executives 772-370-8631) if you would like to learn more about selling your home.
About the author: Richard L McKinney - Realtor, Local Real Estate Expert & Nice Guy
I’d love to hear from you. What do you think about this topic?
Richard L. McKinney P.A.
Atlantic Shores Realty Executives
Selling the Treasure Coast - Port St Lucie, Fort Pierce, Stuart, Jensen Beach, Palm City and Hutchinson Island --- Homes, Condos, Townhomes & Land.
Sell Phone: (772) 370-8631
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Author: Richard McKinney
June 22nd 2015
About Richard: I have been selling real estate in South Florida since 1998 with a specialization in homes, town hom...