So You Want to Sell Your Home..

As the market has cooled from a frantic seller market to a very slow buyer market a number of articles and lots of word of mouth advice has appeared on how to sell your home. Ideas on ways to entice buyers vary from milk and cookies to offering the latest model Rolls Royce if you buy the house. Trips to Hawaii, the Caribbean or Tuscany seem to be big this season. Some owners have tried offering a 10% commisson to selling agents in hopes an agent will steer a client to their house instead of the one down the street. Another idea resurrected from the '90's is burying statues of St Joseph on the property. The list is endless and yet many homes continue to sit on the market with no prospective purchasers in site.

As some homes continue to remain unsold after their competition has sold sellers are looking for answers. The first tendency is to blame the agent when the property doesn't sell immediately. Some agents are a contributing factor if a home has not sold; especially if the agent didn't do a thorough Market Analysis, or has done nothing except put up a sign. Fortunately these agents are relatively few in number. Agents really want to sell your home and take pride in their work. We really enjoy helping you move to a new home, or another area or even a new state. That's our job! Occasionally there seems to be to no reason why one home on a block sells immediately and another stays on the market for 6 months. Yet the market is usually logical and orderly if you can figure out the key. While there are exceptions to all rules; it seems to me homes don't sell for one of four reasons. A home that has one or two of those reasons will stay on the market for a long time. A home that has all four items will be on the market forever.

THE FOUR MAJOR REASONS A HOME DOESN'T SELL:

1. The Property is Overpriced:

No one wants to hear this. All sellers know the agent has not placed a high enough price on their home and all buyers know the price is ridiculously high. However there is a mid-level that works for all parties. The trick is finding that level. A well done Market Evaluation is a great start. In addition, Sellers should look at their competition. If the house down the street is at the same price you would like then they should be in the same condition. If your competition has a fabulous new kitchen while you still have avacado appliances and chipped formica you need to rethink your price. Testing the market is not a good strategy. While you are testing a price that is $100,000 more then the competition, those other homes will sell and you will become an old property. When a home has been on the market for a long period without an offer buyers believe there is something wrong with the property. Buyers will make an offer even if it's over-priced is something all sellers believe and it isn't true. Buyers pick a price range they are comfortable with and look at homes in that range. Many have learned from bitter experience that making a low offer on a high priced home makes most sellers angry instead of ready to negotiate.

2. The Property is not in Market Ready Condition:

Sellers who don't want to put their property in market condition should either not sell or be prepared for a very low price. I'm not talking about remodeling a kitchen or adding another bedroom. Market condition is clean. Clear out all clutter. If you have the resources you should always paint. This is especially true if your favorite color is mauve and you have painted all the rooms in various shades of purple. It doesn't have to be white but a good neutral color will update a property. New carpet is a better choice then a carpet allowance. Many of today's buyers work long hours and don't have the time or energy to think about fixing up a property. They want it clean and in move in shape. $300.00 in flowers will do wonders for a home. Most people make half of their decision on a home before they get out of the car. A great interior with no curb appeal will sit on the market.



3. The Property has a Fundamental Flaw:
Maybe you don't pay much attention to the new freeway but you can bet a potential buyer will. You may love the idea of a detached family room but it may not be a big plus when you go to sell. Rooms that have odd shapes or baths that are too small or floorplans that don't flow well will all keep a home on the market longer the others without the flaws. I remember a home that had four bedrooms upstairs without one upstairs bath. The bath was downstairs and around a corner. It stayed on the market a long time in a hot market. You may be used to your home's quirks but buyers will always go for the more conventional home on a quiet street.



4. The Fee to the Selling Agent is Very Low :

Of the four reasons listed the fee paid to the agent is the least problematic and affects the time a home stays on the market less then the other factors by a wide margin. However this is often a sticking point for many sellers. In a hot market a low selling agent fee doesn't make a lot of difference. It may take two weeks to sell instead of 4 days but overall it will sell fairly fast. In a slow market a low fee to the selling agent means you may be on the market a long time. There are many agents who will show your home with a low fee if it fits their buyer's needs but reality says that if there are 40 homes for sale in a neighborhood with a similar fee and you are well under that fee most agents will show other homes first. You would do the same.. it's human nature. This doesn't mean you have to go over what is customary in your area but you should be close.


I know that everyone knows someone who had all of the above problems with a home and sold it in a day. The fact is that some houses have a certain feeling about them and will sell no matter what their condition, price or location. But for most properties the above list represents most of the factors that will affect how long it takes to sell your home.