5 REASONS WHY YOUR HOME DIDN’T SELL
Posted by New Home Resource on February 11, 2016 in
The fact is, it happens more than real estate professionals like to admit. Or, rather, than their clients like to admit. An experienced Realtor® can most likely tell a seller exactly why their home didn’t sell – the problem is many buyers don’t want to hear – or believe – the reasons. That’s because it just might have less to do with the property – than it does with seller.
If you do an internet search, you’ll find a lot of lists that attempt to point out the reasons why a home might not have sold. But in reality, they all boil down to five things.
As we mentioned in a previous blog post, in our 24-hour-news-cycle age, it’s what is fresh and new that counts. It might seem that starting out with a listing price that’s, shall we say, “optimistic” (aka, high) isn’t a big deal. After all, if it doesn’t sell right away – that’s okay. You’ll just drop the price if you don’t get any bites, right?
Bad. Idea. Why? There are many factors that go into listing and marketing any property – but among the most important is perception. People love, Love, LOVE to be “the first,” to get the gem, claim the prize – and the only time your home is going to be able to be that particular brass ring they want to grab quickly – perhaps even attempting to outbid others to get it – is when it first comes on the market. Buyers and their agents know exactly how long a house has been for sale, whether the listing price has changed, if it’s fallen out of escrow, and many other details specific to your property. By dropping your initial listing price, it can signal to potential buyers that your expectations are unrealistic, which could make them think you’re unreasonable, or even difficult to work with. And this can all take place without even meeting them! Unfortunately, that’s the way our world works. Appearances count – and that applies to the seller as much as the property.
So when your agent explains their reasons for a suggested list price, remember that it’s based on their knowledge of the area and expertise. (That is, if you did your homework and listed with the right agent.) If you don’t agree with the price they recommend – ask them for an in-depth market analysis so you can see what homes like yours, and in your area, have sold for recently. Request a comparison showing how your home differs from the ones that have sold. As a seller, it’s crucial to take emotion out of your pricing decision. Your memories of your home may be priceless to you – but to a buyer, it’s just one of many houses they’re considering that they hope to make a home. And speaking of appearances . . .
2. THE CONDITION OF YOUR HOME
It’s not that there’s necessarily anything wrong with your lifestyle – it’s that potential buyers just want to look at homes much like the perfectly-decorated, non-lived-in models that new home builders have on display. It may be unrealistic – but that’s really not the point. Beauty is in the eye of the beholder. So the goal is to make your home look as appealing as possible. In other words, MORE appealing than any other home currently being offered. Competition is stiff, and whatever you can do to gain an advantage in a buyer’s mind is worth any amount of trouble it takes you to get. (for the most part!)
But when it comes to evaluating the condition of a home, many owners simply don’t see the flaws that others may see. They have a hard time taking an objective look at their home’s condition to determine what needs to be done to prepare it for sale.
Once again, this is where a good agent is invaluable. They can help you identify those things should and must be corrected in order to make your home show well. You might even consider hiring a professional staging company to make recommendations; or at the very least, find some tips online that will be helpful. (And by the way, few things will turn off potential buyers more quickly than smoke or pet odors. Trust us when we tell you that taking the necessary steps to eliminate these problems will be vastly rewarded when all is said and done.)
3. LACK OF ACCESSIBILITY
This is an easy lesson: If the buyer can’t see your home – they are NOT going to buy it! Many times sellers underestimate the effect of not making their home available to show upon request by a buyer’s agent. How to solve this one? Simple: Allow a lock-box to be put on your house to give agents easy access. Through the years, the technology and security of lock-boxes has improved to the point that there are few, if any, reasons for a seller to have a concern about having one their home.
Second Rule: When your home is being viewed – Get Out. Take your family and leave ahead of time. Why? Because it allows the buyer and their agent to freely and comfortably walk through your home, look it over, and discuss it in depth. (By the way, if you have any pets, take them with you, too. Not everyone will think Fido is as wonderful as you do.)
4. POOR MARKETING
If you did your homework in selecting a listing agent, this really shouldn’t have been a problem. But that’s a big “If.” Sellers need to be aware that not all Realtors® work the same. Reaching today’s home buyers may be much different than it was when you purchased your home. The internet has given us new ways to reach prospective buyers, and fully 94% surveyed indicate that they use the web for their new home search. But traditional marketing still counts. Your agent should know the benefits of each, as well as when and how to implement them. No two homes are exactly the same, and no marketing program is one-size-fits-all. Online, print, MLS, advertising, and often just hammering the phone to let other agents know your home is new to the market – these are all important factors in the exposure and the action that your listing receives.
5. POOR NEGOTIATING SKILLS
If you had one or more offers on your house while it was listed but could not come to an agreement with the buyer, then it’s probably worth reviewing the deals to try to discover what kept you from reaching one. Most sellers are, understandably, attached to their homes – and many times this can cause some emotional, and even irrational, reactions to offers from buyers that impede their ability to come to mutual terms.
Don’t take it personally. Try to look at all offers without emotion, and even if it seems you’re too far apart, don’t just give up on the deal. And don’t get hung up on “but it’s the principal of the thing.” Too many times, a potential sale will fall apart not because of anything to do with the price, but because feathers got ruffled on one side or the other. One example: a seller refusing to correct a defect in their home – not because of the cost, but because they didn’t feel it needed correcting.
You may find many more potential reasons to explain why your home didn’t sell the first time around, but when you boil them down, they’ll more than likely fit into one of these five categories. We’re not saying if your home didn’t sell during your listing period, you’re out of luck. What we ARE saying is this: Be realistic, make any necessary changes, and forge ahead! This time, it will happen – because you’re armed with the knowledge you need for success.
New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!