Hey everybody. Thanks for stopping by and I hope you all had a great weekend.
Today we're going to talk about some of the reasons that homes won't sell. I don't think it is any secret that we are facing a challenging market, even here in Southern Indiana. But just because it is challenging, it doesn't mean your home won't sell. There are still houses being sold every day, just not as many as there were over the last five years or so. So what does that mean? It means that if you need your home to sell, it better stand out and be better than everyone else. So basically, nothing has changed.
There are different factors that affect every home sale. Some of those we can control while others we can't. The factors you can't control are:
- Market Conditions*
*Even though some think we do, we Realtors do NOT control the market.
The factors that you can control are:
- Condition of the Property
- Ease of Showing
- Listing Price
- Terms Offered
- Choice of Realtor
Remember that all of these things affect your home sale, whether you can control them or not. You can't control where your home is. Well, you can, but only before you buy it. This is something you need to take into consideration before you make your purchase.
The market conditions are another factor you can do nothing about. I'm convinced that some people think their home's value will appreciate no matter what the market conditions are. I don't know why they think this, but I know there are some that do. Instead of thinking that, think of your home as what it is, an investment. Just like stocks or bonds, your home can lose value. Hopefully it won't, but it definitely can.
Lastly, your competition is another factor you can't control. The more homes on the market that are comparable to yours, the more attractive you need to make yours look to stand out from the rest.
OK now we're going to get into what you can do to help give your home it's best chance to sell.
First off is condition. Be sure that the overall condition of the home is in good shape. Fix all the "little things" that need to be attended to. Update things that need to be updated (carpet, paint, utilities, etc.). Remember this though, there is normally a range to which the price of your home could be. If it is in excellent condition, then it can be placed towards the top of the range. If it is in bad condition, it will be closer to the bottom of the range. Just because you spent $3,000 on new carpet, doesn't mean you should add that cost to your listing price. You are making your home easier to sell and putting it closer to the top of your range. Also be sure to get out all the clutter. People need to see the house, not your stuff.
Ease of showing is important. If you make it difficult for buyers and agents to see the property, they could forget about it. Also, they could be thinking "If it is hard just to get in, imagine trying to work out a transaction" and end up walking away.
The listing price is by far the number one thing you can do to help get your home sold. Your listing price is affected by every other factor on this list. You have to get it priced close to, or even a little under, market value from the get go. There are many that happen if you overprice. The first problem is that you could scare away potential buyers. Your home will receive the most amount of attention in the first month. If your house is priced too high, your buyer may not even see it. That means you will have to start reducing, reducing, and reducing some more and could potentially end up getting far less than market value. If you price it right in the first place, you will have a much better chance at receiving an offer early, and a chance at a multiple offer situation (which could be more $$$).
One option that is becoming more prevalent in today's market is offering terms on the property. Basically you are going to handle your buyer's financing. When I first started in this business about four years ago, I could count on one hand the amount of homes listed offering terms. That number has grown considerably since then. Sellers are having to do this in order to attract more possible buyers. I will say that if you do this, be careful and work with your Realtor and Real Estate Attorney to make sure you have the correct paperwork filled out.
Lastly is your choice of Realtor or agent. Make sure you are getting someone who will work hard for you. They should have a plan. I show my clients an exact list of how their home will be marketed and when. I keep them advised of what is happening and touch base with them on a regular basis.
As I said earlier, homes are selling everyday. Be sure you give yours a chance or it could be a long and frustrating process.