A wise man once said selling homes is about 3 things: Price, Condition, Location. While certainly many more aspects of marketing go into selling a home many of them do fall into these three categories. Put another way- Does your price suit your home’s condition and location?
Therefore the #1 reason a home doesn’t sell…… yes you probably guessed it- it’s overpriced!
What are some ways you know your home is overpriced?
1) You aren’t getting showings. Especially if your Realtor is updating you that you are getting lots of online views, or ‘virtual showings’ as they are often referred to, but no one is asking to see it in person, this is a good indication the price is too high and people aren’t willing to come look at it.
2) When you request a CMA or professional appraisal the other similar homes that have sold in the area are not in close range with yours. Looking at the recent sales is a better indication than the other homes on the market because the other homes on the market are simply other properties also not selling. So there is no guarantee their homes are appropriately priced to the market either.
3) People cringe when you tell them the price. Ok this was meant to be funny but is often true. Good to be socially aware of people’s reaction and feedback to your price.
#2 Reason your Home isn’t selling….. Condition
Now Condition could mean a few things. What if your home is actually very nice and buyers will love it but your pictures are terrible? That is a poor representation then of your condition. But all points generally relate to the same issue of how your home is being presented. Here is a simple comparison of photos-
Photo A Photo B
(photo credit Harry Lim)
Photo A looks dark, smaller and unfriendly. Photo B light, bright, big and the buyer feels they can move right in!
Sometimes the condition has nothing to do with the photos and the home has not been kept up competitively with other homes in the area. I.E. the home for sale has formica counters, brass hardware, and white appliances from 1990. Vs. Other homes on the market that have granite or the more and more popular quartz counters, stainless steel appliances purchased in the last 5 years, and chrome or nickel hardware.
One other issue I would raise in relation to condition would be clutter and personalization. Buyers want to see themselves in the home. They can’t do that if when they walk in the tables are covered with homework and empty glasses, and your beautiful family photos are all over the walls. A good Realtor or stager can help you to get a clean palette and de-personalize so that buyers can visualize it as their next home. This includes repainting the crazy orange wall you might love to a more neutral look that has a wider appeal. Save it for your next home!
Finally #3 Location.
Everyone has heard over the years that Real estate is all about location, location, location. Truer words have never been spoken. Particularly at a time when the largest buying generation, millennials, are about to eclipse the marketplace. Studies have shown this Gen-Y group is willing to sacrifice size and space for location and lifestyle.
Now of course you can’t move the house. If it backs up to a highway or is not close to a town center you probably at some point made the same compromise that your buyer will decide to ultimately make. But that compromise has to be for some other incentive….yes that’s right back to our other two favorite words- better condition (meaning less work and updating on the buyer’s part) or better price.
While I said top three reasons at the top and I am holding to that, I will also add that using a Realtor is crucial in selling your home. This is your biggest investment and putting it in the hands of a professional that knows the marketplace and is going to work hard for you is very important. You wouldn’t operate on your own appendix and hopefully you value your home as much as your health. Therefore, please seek out the help of a true professional when listing your home.