Why Isn’t My Home Selling?
If you are asking why isn’t my home selling and your home is still sitting on the market for significantly longer than average, the market has spoken. And it’s saying: the price is too high vis-a-vis the current condition of the market and the property. Period!
There are only three variables in this equation – which is helpful, because it means there are really only three ways to fix this situation:
-change the condition of your property
-wait until your market conditions change to support a higher price
-change the list price.
That’s it. That’s all there really is. For most sellers the simplest, most sensible of these three variables is to modify is the list price. This is especially so in cases where the home is in good basic condition, is well-staged, and other homes nearby are flying off the market. The fact that you don’t want to hear that your home is overpriced doesn’t mean it’s not the truth.
These are some of the most common mistakes sellers make when setting a price:
Price based on need
What you want to make from selling your home means absolutely nothing to buyers or the marketplace. So setting a price based on what you want so you can retire, move up, start a business, etc. will almost certainly fail.
Price based on ego
Your neighbor sold for $250,000 last year so you want $295,000 because you “know” your house is better. Regardless that the market dropped five percent since your neighbor sold. Nearly every owner thinks their house is the best on the block, or at least better than any of the ones that have recently sold or are on the market. Unfortunately for sellers, your opinion doesn’t carry any weight with buyers. Only their opinion matters.
Price based on greed
Even if it’s been shown that your house will likely sell for around $250,000, you insist on listing it for $295,000 because “you never know, someone could come along who just has to have it. Besides, if we don’t get any bites we can always lower the price later.” The problem is it won’t take long for buyers to realize your price is unrealistic and think you are, too, and won’t want to deal with you unless the house is “a steal.” The listing languishes, so you drop the price, but not enough, it sits even longer and pretty soon you have a listing that’s been on the market so long buyers decide there is something wrong and steer clear.
The solution is to get the price right. This is done by using what is called a Competitive Market Analysis (CMA). A CMA breaks down the sales price of homes that are similar to yours in location, size, age and condition.
Your agent will also consider the listing prices of homes on the market, but these are used more to identify the competition. Even with a strong agent and CMA, your price may not be on target. That’s because the market is always changing and your agent should be updating your CMA whenever anything comparable to your property sells.
Not every reason your home isn’t selling will be the price, although they will be related to it. Here we have that value vs. price issue. If buyers perceive imperfections in your listing, they will want a discount, so if they’re not buying, your price is not discounted enough for buyers to believe the value to them at least equals that of your price.
Here are some of the most common reasons buyers are turned off by a particular house, so make sure these are addressed before lopping thousands of dollars off the asking price:
Put on a good show
This is the second biggest reason a home isn’t selling. Buyers often talk of “connecting” to a house. This is not likely to happen if your house is not company-coming-over clean and ready to show like a model. This goes for the outside as well. If you don’t want to put the effort into doing this, then you’d better adjust your price to compensate because buyers will only consider your house because it’s a good deal, not because it “speaks to them.”
Can’t buy what they can’t see
If you make it difficult for people to see your property, then chances of a sale at the price you want drops considerably. Selling can be a nuisance, but it’s a necessary one. If you don’t allow a lockbox or require appointment-only showings, you are the culprit to the house not selling.
Out of your hands
It’s not always the seller’s fault that a house isn’t selling. Sometimes the market changes and buyers disappear. Maybe a new home development has opened nearby and they are “stealing” the customers. Any of these can affect whether your house sells, which means you need to consider the reasons and make the necessary adjustments.
If you are considering Selling your home,it is very important to price your home right. I am a Phoenix Metropolitan Area Specialist, focusing on residential homes in all areas of the Valley. Call for a no obligation consultation. You will be provided with all the information necessary to make an educated decision in these changing cycles of the real estate market.
Call today at 602-317-2960 or Visit us at www.InzalacoTeamAZ.com
“Connecting Families with Communities”