3 Reasons Why Homes Don’t Sell (Part 1-Price)

“What’s wrong with this house?”

By Sean Current, Windermere Homes & Estates

This is a question I often get asked when working with buyers as we are looking for a home. They ask this when viewing a listing that has a longer market time than others we might visit that day. Many buyers believe a longer market time means there must be something wrong with the home. Generally speaking, nothing could be further from the truth. Here are a few reasons why a listing might have a longer market time:

It’s Price, Silly!

That Darned Agent! Agents! {Sigh}

frustrated home seller

worried real estate agent and house for sale

Sometimes it is the agent who has recommended the high price. They might not know enough about the area or neighborhood. Or they might agree to list high in order to get the listing, otherwise lose the listing to their competition. Another reason is pricing a home is not an exact science. Unless your home is in one of the cookie-cutter neighborhoods where there are four models and there are sales happening, sometimes determining a market value can be tough. Some homes are harder to price out than others, it’s as simple as that. Different factors can affect pricing these types of homes: age of the home, the style of architecture, an unusual layout, or a location in an area that does not have a lot of turnover. It is the agent’s fiduciary duty to their client to get the best possible price they can for the sale, however this fiduciary duty should also include the integrity and responsibility on the agent’s part to be realistic with the sellers about the pricing of the home from the beginning.

home priced too high

Reasons why a home is priced too high

That Darned Seller! Most often a listing languishes on the market because of price. Simply put, it is listed at too high a price based on the comps in the market. Unfortunately, there are many sellers out there that have an over-inflated idea of what their home is actually worth in today’s market. Perhaps they are not serious sellers and are testing the market to see if they can get a nibble on their home at a price they know is too high.  I have also heard sellers say, “I just put $30,000 for new flooring, so I should be able to get another $100,000!” In any case, the seller is doing themselves a disservice by listing at this high price, as neighboring listings are going into escrows and closing, while their home is sitting there on the market and no longer getting the showings to potential buyers.

What Can I Do? If you are a seller with your property currently listed and it is languishing on the market, not getting the showings you think it deserves, or you are not receiving offers from potential buyers, then the best thing you can do is honestly evaluate the pricing of your home based on what recent comparable sales are showing you. Talk with your listing agent about your pricing strategy going forward. Hopefully you have not waited it out too long that your home is now stigmatized in the eyes of buyers. Pay close attention to what the market is telling you. If you received offers early on in your listing period, that is a very good indication of what the market is telling you. The best-or at least- most appropriately-priced offers often come in soon after listing goes active.

Next: Part 2 – History

 

Posted on November 2, 2017 at 2:55 pm
Sean Current | Category: Uncategorized

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