5 Reasons Why Homes Don’t Sell
5 Reasons why Homes Don’t Sell
Listing Expiration
Even with all the benefits of listing on the MLS, thousands of listings expire nationwide daily. A common listing term is 180 days or 6 months, starting when property is first marked active on the MLS. An Expiration on the MLS usually triggers an open floodgate of hungry listing agent calls. Expired status and Days on Market are always recorded in the property’s history (PRD). Needless to say, expiration should be avoided at all costs, to do this you will need to limit days on market.
Avoid High Days On Market
Buyers jump at the chance to offer a reduced asking price when they see extended days on market. High days on market results in a downward slope of attractiveness. Every counts on the MLS
.a but can be a red flag to buyers that suggests something is wrong with the property
In the digital age, all market data is a click away for most realtors. So selling within a reasonable timeframe is highly important.
5 reasons Why Homes Don’t Sell And How To Avoid Them
-
Pricing
-
Curb Appeal
-
Photos and Video
-
Specific Problems
-
Bad Advice
-
Pricing
Less is More
Pricing higher than what the market can bare is fairly common for sellers to do. However, being overpriced is a surefire way to limit your ability to sell. Pricing is the #1 sale killer in real estate. When the pricing on a home does not fit, it will not sell.
A good rule of thumb is to look at changing price after a few days or more of little to no activity.
Over-pricing leads to extended days on market, which results in a downward slope of attractiveness. Although days on market does not technically affect the value of the home, it will affect the value of buyer offers.
Owners often believe that the money put into the home increases its value, this is false. Putting money into the home can increase the value, but $150,000 in upgrades, does not equate to a $150,000 price increase.
Pricing Solutions
A good way to avoid pricing issues is to make sure your Realtor prices it correctly. Realtors have access to all the comparable sales and can adjust for some differences in houses for the market.
Local Realtor professionals have accurate, real time data that allows them to value your property better than websites like Zillow.
-
Curb Appeal
Why is Curb Appeal Important?
Curb appeal is the attractiveness of a property when viewed from the street, hence the “curb”. Since the outside of a home is the first thing buyers see, putting extra time into a properties curb appeal can significantly improve it’s desirability. If the exterior catches a buyers eye, the odds of them viewing the property in person skyrockets!
Unfortunately, the saying “don’t judge a book by its cover” does not apply here. An exterior’s attractiveness is key to establishing a good first impression for buyers. If the exterior looks bad or needs work, buyers will likely skip over the listing entirely.
Improving Curb Appeal
You don’t need to put a ton of money into a home to have good curb appeal (unless there are serious issues). Maintaining the lawn and doing minor exterior maintenance is usually all it takes.
When a home goes up for sale, sellers should walk around the yard and see what can be done to improve it. Standing on the street as a buyer would is a good strategy for addressing potential
Curb Appeal Check List
Questions sellers should ask.
-
Does the outside need a power wash?
-
Are there any tripping hazards?
-
Is there fading or chipping paint?
-
Do the windows need to be cleaned?
-
Are the gutters empty?
-
Is there any rotting wood or siding coming off?
-
Do trees or hedges need to be trimmed?
-
Any bald spots on the lawn?
-
How does the roof look?
-
Photos and Video
Today, buyers and their agents will almost always see photos and video before scheduling a showing. High quality media can instantly spark a buyers interest, while low quality media can instantly turn off potential buyers. Investing in good photos and video can improve listing activity significantly.
Cell Phone Photos
Though it is true that many cell phones today are fully capable 4k cameras, it’s recommended to avoid using them for listing photos.
Phones and mobile editing apps are still very limited compared to professionally enhanced photos and videos shot on a DSLR Camera. Mobile formats are also often not aligned with MLS upload requirements so it is best to find correct settings online or let a professional handle it.
Too Much Photo and Video
Understandably, many sellers want to post as many pictures as possible of their property. No matter the size of your home, overwhelming potential buyers with an abundance of photos is not advisable.
25 – 40 photos can easily represent your home, along with a video. Buyers can get bored and lose interest in the home when clicking through the photos. Use the best photos that show the best features of the home. Videos should not be movies. They should be short walk throughs of the home focusing on top selling features.
Hire a Pro
To improve interest and desirability for a listing, professional photos and video can do wonders.
Hiring a professional photographer/videographer is helpful to ensure a home sticks out and captures the attention of buyers . Many Realtors will pay for these photos and videos to be taken, but if they pay, they own the photos and they cannot be used in the future without their permission.
-
Too Much Work
Every home is unique and may have it’s own problems requiring attention. As homeowners, It is fun and exciting to customize our homes to represent ourselves, or just to be different. However, specific problems arise when it comes time to sell the home. Any Item that a buyer will want to change or update becomes a point of negotiation since it will equate to time, effort and money on the buyers side. This not beneficial to the seller
Solution
Since most buyers go into a home with their own visions in mind, creating as much neutral ground early on is important. Items like paint, appliances, fixtures, and other miscellaneous items should be attended to prior to marketing a property. Prioritize what you can and cannot do. The more updates, the better the pricing will be on the home. By putting the money into the home before, it will help make the home more appealing to buyers and many times allow for a quicker sale. Money in before saves on holding costs of a home sitting on the market.
-
Bad Advice
Bad advice can heavily add to the stress of selling a property. Avoiding bad advice in real estate will reduce headaches and get you to the closing table faster. The trick will be differentiating the good advice from the bad. Selling your home is stressful enough so getting accurate information from a professional is advised. An experienced real estate professional will have all the answers you need, or are connected to someone more experienced who does.
Conclusion
In the end the goal is to sell. This is a multi-step process that involves more people than just a seller and a buyer. It takes a team of professionals, from Realtors to photographers to title companies to inspectors, appraisers and administration people (and probably more that we do not see) to close a property completely. If just one thing above helps guide you to this amazing place we all love called the closing table, then we did something right today.