The top 5 reasons are listed below. When I say real estate, I'm referring to single family residences, condos, vacant land, manufactured homes, multi family and commercial.
In this example, lets say you have a house on the market but there has been little or no activity. If the house is listed with a successful agent, at a successful brokerage, I would consider these important factors:
- Price. The number 1 reason a house does not sell is because the asking price is too high. Pricing a house too high is detrimental to only one party, and that party is the seller. Statistics show that you get the most amount of activity in the first 30 days. You're far better off pricing at fair market value than above market value. Buyers are going to shop, just like you'll do when you're the buyer. A buyer is going to submit an offer on the best house, for the least amount of money. Pricing is extremely important. Hire a qualified agent and ask for a free CMA report. This report will show comparable homes, much like an appraisal. Comparable homes are homes that are similar in size, square footage, number of bedrooms, number of bathrooms, year built, condition and location.
- Make sure your listing agent is making the house easy to show. All houses should have an electronic lock-box and listing agents do not need to be present for all showings, unless there's a reason to be. Realtors are held to a strict code of ethics so let buyers and agents tour.
- The condition of the home is the 3rd reason a home may or may not sell. Buyers want a house that's ready to be lived in, and does not require a bunch of work. Of course there are situations where a house is a fixer, but then you'll need to price it accordingly. Fixers usually attract investors, which are looking to pay rock bottom and then make a profit by improving and flipping (reselling)
- A home that's being sold "as is" can be a real turn off to potential buyers. If a home is being sold "as is" buyers might suspect that there's something wrong with the home. Remember, after the inspection is performed, you'll have the opportunity to decide what you're willing to correct and what you're not willing to do. A good listing agent will advise their seller. Pre-inspections are becoming more popular. This is where you have a home inspection done prior to putting the house on the market. From there, you can advertise that your house has been inspected, and all findings have been corrected.
- Marketing is the final reason homes do not sell. By marketing, I mean lack there of. Statistically speaking, almost 80 percent of all real estate sells because of the MLS and internet. It's extremely important that you have a presence there. The other 20 percent consists of open houses, yard sign, flyers, brokers opens, an office tour, paper printed ads and word of mouth.
Bottom line: There's only so much a listing agent is able to do. If your house has been put out there, and people are not coming, then you should strongly consider a price reduction. If your house has been put out there and the buyers have come but not bought, then you need to look at price and/or condition.
If you have any questions, at any time, we'd be more than happy to help!