Ten reasons your home has not sold
Originally appeared in Hills Publications, Oct. 12, 2007 and ANG Newspapers, Oct. 7, 2007
In today’s slowing market, there are numerous explanations why your property may be sitting unsold while other sellers have closed and moved on with their lives. Here are ten possibilities out of what could be a much more extensive list.
1) Location
This is the most important variable related to value. When the market is heading in a southerly direction, properties in areas perceived as best generally sell more quickly.
Despite being in a premier area, a house near or across from a public school, park, or church is less sought after because of the increased traffic and activity. Likewise, a property on a major, busy street commands less attention.
Throughout California, homes at the lower end of the price/location spectrum are the softest part of the market. These sellers are finding that buyers have the leverage.
2) Expensive problems in an “As Is” sale
Large termite reports and/or high foundation, drainage or sewer line bids can seriously affect your sale. As a seller, this is a difficult situation.
If you opt to have the work done on a $40,000 pest control report before putting your home on the market, you will have eliminated a huge buyer objection. Nonetheless, doing so will be a costly gamble, even if you get the job done for $35,000. In addition, the termite report fix might necessitate other repairs, such as interior and/or exterior painting or roof patching.
The time and money you will have invested gets rid of the problem, but, unfortunately, does not add any value to the house. If, conversely, you sell “As Is,” the buyer must deal with the issue. Clearly, this creates an obstacle to buying.
3) Style, charm, character
Although charm sells, a relatively small percentage of homes would be described as charming by most real estate professionals. The rest run the gamut from appealing to truly unattractive. Ask your Realtor® for an honest opinion and market your property accordingly.
4) Floor plan
This is another item where your Realtor® can give you invaluable information. Does your house have a bedroom off the kitchen? A dining room used as a sleeping room? A converted garage used as a family room? Outside-only access to a bedroom? These and other floor plan troubles could be causing your home to sit.
Sometimes, the floor plan works well for you but is not suitable for a certain group of buyers. As an example, a home with many interior steps on three levels will not be satisfactory for a family with young children. This is especially true if the bedrooms are on different floors.
5) Outside living
Good outside living is an important feature for most buyers. This could be a large, level backyard with a lawn and space for gardening or a smaller, but attractive, area. Families with children look for a backyard.
Access is also a factor. Level out to a lovely yard from a family room or bedroom can add significant value and may enable a fast sale. On the other hand, if the only entry to the yard is from the basement, three stories below, this would be a possible barrier to a sale.
6) Too many steps
My personal rule of thumb is twenty-five steps; more is too much for most buyers. If you have lots of steps and your home has been stagnant on the market, this could be one of the reasons.
7) Too much clutter
We all have more stuff than we need. Get at least half of it out of the house. It will make your home show bigger and better.
8) Presentation
After you remove the clutter, consider hiring a professional to help “stage” the home. Remember, once you decide to sell, it is no longer your place; it is merchandise that needs to be properly presented. Unless the house is a major fixer, staging often leads to a faster sale at a higher price.
Ask your Realtor® to recommend several stagers to come by and explain how they would arrange the property. Relative to how much you might gain or lose in a sale, staging is an excellent investment.
9) Failure to provide full exposure and marketing
In the real estate arena, there are many business models. Some entail limited service by the agent.
If you have hired a full service Realtor®, however, you should expect just that. Nevertheless, in the real world of real estate not all licensees provide full exposure and marketing. This includes activities from obtaining top quality photographs and posting them on the MLS and various online sites, to newspaper advertising, broker’s tours, open houses and many others. Make sure your agent is doing a total marketing job.
Choose a Realtor® who lives in the area. This will make it more likely that he or she will network with others to help get the home sold.
10) Pricing
The one element that will either get your property sold or keep it on the market indefinitely is pricing. Regardless of its problems, it will sell quickly if the price reflects what and where it is.
A fast offer does not mean you “gave it away.” On the contrary, it reflects the fact that the price made sense to one or more buyers. If your house remains unsold, and you are not getting the service you expect and deserve, talk to your agent. Regardless, assuming you are serious about selling, take a hard look at the price.
Final Thoughts
Although the seller’s market has been over for two years, some still have not received the message. Make your Realtor® your partner and accept the reality of a changed market.
Related Articles:
When the Market Speaks, Listen
Condition: What Your Agent Should Tell You
Clutter Can Cost You Cash