3 Reasons Your Home Will Not Sell
If a home does not sell during the course of the contracted listing term, it becomes and expired listing. For someone that is trying to reach a life goal or make some type of transition, this can be very frustrating. But it is not uncommon. The average real estate agent only sells about 60-70% of their inventory. Up to 40% of listing agreements may expire before the end of their term. The home owner who is trying to sell the property then has to decide between 4 options: Relist and try again; continue living at the property for an indefinite time period; re-list with another agent; or try to sell the property on their own as a FSBO (for sale by owner).
Here are the main 3 reasons a property won’t sell during the listing term:
The condition of the home can be either a big plus or a big deterrent in the decision of a buyer to present an offer. Has the home been updated in the last few years, or does it still have counter tops and kitchen cabinets from the 70’s or 80’s. Listing a home that is not in great condition or is very outdated will attract fewer buyers, you may get low ball offers, and will be in an uphill battle to show the buyers that the home is worth a fair price. However, if the home has been updated with current trends, it will both sell faster and will sell for more money than one that has not been updated. It’s not impossible to sell a dated home for top dollar, but you will have to balance it with the next 2 reasons below.
How is your property being marketed? Most agents put the home on the MLS, put a sign in the yard, and pray that it sells. The problem with this is that this will only get the word out to other local brokers in an attempt to gain exposure. This problem is that we live in an age where technology, and the way people use it, changes rapidly. To have the best chance at selling your property quickly and at a good price is by focusing on the software, applications, social media and networking sites that will give your property the most exposure.
The #1 reason why most homes don’t sell the first time around is…
Price is the #1 reason most homes don’t sell. If the price is correct based on other neighborhood comps, but the condition is not as good, it is essentially overpriced. If the market is shifting downward and the property is priced accurately today, it could be overpriced within as little as 2-4 weeks. Real estate markets can shift rapidly, and the probable selling price of a home will change with it. If the home is priced correctly, but the marketing is not good enough to get it sold, it becomes overpriced because of the lack of marketing.
These 3 reasons work together to either get the home sold, or to end up as an expired listing like before. The best thing to do is choose an agent who knows the market well, and is able to market the property well to gain as much exposure as possible.