Our Newsletter: December, 2007!
LazrWeb Newsletter - HAPPY HOLIDAYS
These are the reasons your home is not selling
Trying to Sell - - READ THIS ARTICLE
Reasons Why Your Home is NOT SELLING
You are suffering because your home has been on the market week after week with no reasonable offers.
Listed here are six of the most-common reasons why homes do not sell and what you can do now to bring about offers.
1. You are asking too much money compared to comparable homes in the same neighborhood - Your home is overpriced
The buyers, not the sellers, establish the market value of a home.
You can set your listing price well above comparable properties in your neighborhood,
but it will be up to you, the seller, to accept what the buyer thinks your home is worth
Overpricing a home is the number one reason a home does not sell.
When you are asking a higher price then the market is selling at - for a comparable
home, - it sets in motion a process that will work against you.
The reason why:
Real estate agents, and nearly all qualified buyers, will see your listing within
30 days. If it is overpriced by as much as 5%, it will be obviously too high and
interest in your property will vanish, particularly if you show no motivation or
negotiability in the asking price.
You already priced out buyers who might have qualified for financing at a certain
amount, lower than your asking price.
Even if you are able to find a buyer at your overblown asking price, the property
may not appraise and their bank or mortgage company will kill the deal.
Your real estate agent may have agreed or even suggested the inflated asking price
to secure a higher commission and your listing.
The fact is other competing agents will often use overpriced properties like yours
to promote and sell their own listings.
If your home remains on the market too long, the agents and buyers begin to question
if there are more serious reasons why the home is not selling.
2. Your home does not 'show' well
Your home is competing against shiny new houses down the street in those pristine
subdivisions with their attractive prices, incentives and community amenities.
Face the facts: Even the greatest house needs a makeover if it hopes to attract
a qualified buyer.
Most of the work to bring a home around is cosmetic and relatively cheap:
A new coat of paint, a few attractive window boxes, a thorough cleaning of floors,
windows and carpets. The place now looks good enough to bring in the offers.
A reputable real estate agent will inform you on where your time and money are best spent.
Paint is a seller's best friend because it makes things smell and look fresh.
It is simply a seller's best return on investment.
3. You're in a really bad location
Nothing has a greater effect on your home's value than its location. Your home
might be worth a million were it located in Palm Beach, Aspen or San Francisco.
It might even jump thousands in value just two streets over into the next school district.
The basic fact is, location always rules in real estate.
If your home's location is less than optimum, your options are limited.
A good real estate agent will do their very best to accentuate the positive and
eliminate the negatives of your location, by using foliage to screen off offensive
adjoining properties or quiet traffic noise.
The best way to compensate for an unfortunate location is to reduce your asking
price or offer attractive incentives such as seller financing or a lease option
with rent credit.
4. You have a lousy listing agent
Yes, they do exist: A Real estate agent who misleads, lies or otherwise misbehaves.
Their bad counsel can cost you time, money and the hassle of keeping the place
The crummy agent allows you to charge too much your home, not market it properly,
fails to screen qualified buyers, be unresponsive to other agents and keep you
totally in the dark throughout the whole process.
If your agent is abrasive, arrogant or otherwise a problem to work with, other
agents will not want the hassle of showing your home to prospective buyers.
5. You are battling overwhelming competition and market conditions
You have heard the terms "buyer's market" and "seller's market." In real estate,
market conditions are directly influenced by any number of external forces, some
of them predictable, some of them unpredictable.
In a "hot" or seller's market, homes go fast. Available homes on the market may
be few, meaning less competition. Chances are that you will get your asking price
in a hot real estate market; in fact, it is not uncommon to even be offered
considerably more than your original listing price.
But in a "flat", "cold" or buyer's market, sales slow down, inventories grow
and buyers can find many bargains, especially when they know the seller is motivated.
If you are to selling in a slow market, you are not only competing against all that
nice new construction, but against affordable rentals as well. So, be prepared to
settle for less than your original asking price, or wait to sell until the market
moves back into your favor.
6. You have little or ineffective marketing
Long gone are the days when real estate agents simply place your listing with
the local multiple listing service, hold a token open house and wait for another
agent to bring forward a buyer.
Today, top real estate agents launch serious multi-leveled marketing plans that
includes listing tours for area agents, newspaper and even TV ads, weekend open
houses, listing fliers and placements in local real estate publications with
detailed pictures and tours.
Computers and the Internet have completely changed the face of real estate.
According to the National Association of Realtors, more than one-third of all
home buyers use the Internet to find and inspect their new home from the comfort
of their own domicile. The best real estate agents are very computer-savvy. They
have your listing in color on their laptops to show clients and communicate
via e-mail to prospective buyers, a big plus when dealing with out-of-town
If your real estate agent is not listing your home online through their company's
Web site as well as with the local MLS, you may not be getting the minimum exposure
required today to find a buyer.
There are agents who put the listing up on multiple and will pray the home sells
and there are those agents that put a whole lot of professional effort into marketing
So, bottom line, carefully research what an agent is willing to do to sell your
home, if they offer a comprehensive marketing plan, including multiple listing,
internet, print ads, open houses, and incentives, then you stand a much better
chance of receiving offers and moving your home.