Are you getting frustrated with your home sitting on the market? This blog is for you. There could be a number of reasons why it’s not getting offers, OTHER than your listing price. I believe every home has a buyer for it, but sometimes there are obstacles that are preventing the home from attracting the right buyer.
The first obstacle to discuss is the condition. Condition – can be a number of things. The condition can refer to the cleanliness (always have your home professionally deep cleaned before listing), the amount of clutter (less is more, begin packing and remove as many personal items as possible, no picture collages or tchotchkes out, limit decor items), it could refer to the design or outdated materials within the home (not current with today’s styles or trends), it could refer to bad odors, or it could refer to the homes functional obsolescence. The good news is most of these can be cured with a little money or effort.
If people walk in and are immediately met with an unpleasant odor, it completely alters their mindset for the rest of the homes visit. They view everything with a negative lens. The key is to appeal to as many senses as possible (sight, smell, feel/touch). With a deep cleaning, carpet replacement, fresh paint, new air filter, and a wallflower with a fresh linen scent can cure most interior smells. One of the more challenging or costly things to fix is a home’s functional obsolescence. Have you ever walked into a home and realized the floor plan is quirky or unconventional? Or perhaps the backyard is too small for the size of the house, or there are other oddities within the house that are not common (like low ceilings, narrow doors, add-ons that ruin a homes flow, etc). I have found that these fixes can generally cost quite a bit to fix.
The second obstacle is the accessibility or traffic. Not enough people are able to get into the home. This is another reason the home may not be selling. Are you getting consistent active consumer traffic on a weekly basis? If not, do you have home showing restrictions? In studying company models like OpenDoor, one of the reasons they are having success in selling their homes is because they make them accessible for viewing daily, 8AM to 8PM. In a seller’s market, buyers have to act fast. If you’re not allowing buyers in, they may be discouraged from trying to view or may offer on another home first. If your home is not a 10/10, restricted or limited access is hurting you. Another way to increase the traffic into the home is by having an open house and properly advertising the open house.
The third obstacle is Time. Sometimes, it’s just a matter of time and this is one of the hardest things to comprehend. But it may be that the home is unique and just requires the right buyer for it. That buyer may not be looking to move for six months and therefore it’s going to require the seller to be patient until that buyer is ready to come to market and buy a home.
Something home sellers need to understand is neighborhoods or subdivisions sell in ranges. A home in one subdivision may sell for less than another because of the year it was built, the upgrades, or because of the builder that built it. For example, the average price point for a KB Home is much different than a TOLL BROTHERS home. If a home is priced too high for its condition or location, the buyers will be aware of that. Consumers are much smarter today with the internet and technology that we have at our disposal. People have much more information at their fingertips than in the past. We have found buyers are hesitant to make an offer if they feel the home is way overpriced. What it is, is that they don’t want to insult the seller, or create a hostile transaction by offering considerably lower than the list price. This is where the real estate professional expertise comes in.
Ultimately, adjusting/lowering the price can overcome any issue the home may have. In other words, at a low enough price, you will find multiple investor buyers (iBuyers) that will be interested in buying the home. iBuyers have the means to fix and improve the home. So, lowering price will always sell a home but isn’t necessarily the best thing for the seller. If the seller has the desire, the financial means, the time and ability to make the home more accessible for buyers, then those routes may be more beneficial. If you would like more information or a free consultation contact me today (602-428-7200).