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Thursday, November 22, 2007
What Should You Do If Your Home Isn't Selling?
It can be very frustrating to put your home on the market, expecting a fast sale, only to find that after six months youre still waiting for an offer. What can you do?
First, determine if its a result of timing. You may have started worrying too soon. If it has been only a month and you havent gotten a bite, not to worry. The time a home stays on the market is related to the markets strength, which varies regionally. According to The 2003 National Association of REALTORS Profile of Home Buyers and Sellers, two-thirds of all homes sold in the United States in 2003 sold within two month, with the average sale taking place within five weeks. However, homes in the Northeast and West sold slightly faster (four weeks) than those in the Midwest and South (five weeks).
Of course, other factors may be responsible for your home not selling.
Inaccurate pricing. A house priced at market value piques the interest of real estate professionals and buyers, while overpricing chases them away. Even if the seller adjusts the price later, its difficult to recapture peoples interest.
Because its only natural to overestimate the value of ones home, homesellers should depend on factual reference points, such as an appraisal and comparables (Comparable Market Analysis or CMA) to help estimate market value. Real estate professionals prepare comparables by examining similar properties that recently sold in a neighborhood. This practice is the best way to arrive at a realistic asking price.
Insufficient exposure. If youre selling your home on your own, you may want to consider using a real estate professional. As reported in the previously mentioned NAR study, buyers were most likely to learn about the home they purchased through a real estate professional. Sales professionals develop comprehensive marketing strategies to sell a home. They generally use open houses, yard signs, MLS, newspaper ads, the Internet and brochures to give a property maximum exposure. Limited interest and thinly attended open houses may indicate a need for more exposure.
Condition and appearance of a home. Sellers shouldnt rely on buyers to use their imagination; they need to capture it. Remember that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious, the most cheerful. This invariably means rearranging and eliminating furniture, removing excess knickknacks and so on, to create an open, uncluttered look. Outside, do a visual check of the front of the house from across the street. Does it have curb appeal? It should look inviting, with a trimmed lawn and a freshly painted front door. A real estate professional can offer some guidance in this area.
Terms/conditions. Even if the home is accurately priced, and the buyer is delighted with what he or she sees, if the buyer cant live with the terms of the sale, he or she may walk away. What sort of terms or conditions have you placed on the sale? Evaluate how this may be affecting a potential sale.
Less-than-desirable neighborhood. Normally, theres not much a homeowner can do about the surrounding neighborhood. But if your home is not selling and youve examined every other factor, this may be something to consider.For homeowners who can postpone selling and are aware that certain issues need to be addressed on the neighborhood level, now is the time to join or organize a town beautification group. By the time youre ready to sell, todays eyesores will have been eliminated.
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