Why won't my home sell?
Category Expert Insight
A house that's seen minimal movement on the market for months is frustrating. In fact, frustrating might be an understatement. For some, a home that won't sell can be a desperate situation - especially if selling it was a last-ditch effort by a distressed seller. That's why, if you have yet to find a buyer, it's important to take a step back and assess exactly why your house isn't selling.
So let's dive in and discuss some of the main factors that hinder house sales and how you can manoeuvre your way around them so you can offload your home - hopefully sooner than later.
Ask your reputable real estate agent these questions.
If your house has been on the market for months with no offers, the first factor you want to consider is the market. Does the current market favour buyers or sellers? Talk to your real estate agent about the average days on the market in your area for comparable homes. Perhaps things just aren't moving quickly in the current market. Sometimes, real estate is hot, and other times it's not.
You can also discuss any showings by your agent and the feedback given by potential buyers. Their feedback could help you rethink how you and your agent are marketing the house.
Some other questions to ask your agent include:
-Is your home listed on all the web portals?
-Has every inquiry turned into a showing appointment? If not, why?
-How does your property look compared with the homes priced similarly?
-Since the day you listed, what properties have accepted offers, how many days did it take, and what price were they asking?
Reassess your expectations
While you might think your house is a steal of a deal, make sure you're able to objectively look at the situation. The buyer has to perceive the value to be there. If not, no offers unfortunately. How do you stand up to the comparables in the neighbourhood? Be honest in your assessment, because stubbornness could be costing you money.
Is the price right?
Beyond the temperature of the market and your marketing efforts, the most likely factor when it comes to a lack of offers on a home is price. Properties sell when they are priced correctly. The value of your home is determined by what a buyer is willing to pay for it. If it is too high, you won't get any offers. Marketing makes a big difference too. If you have had a lot of showings with no offers, it is a pricing issue. If you are having very little activity, it can be a pricing or marketing issue. Is your house being marketed on all the major websites? How is the quality and quantity of the photos?
How low can you go?
If you determine your home was overpriced out of the gate, then lowering it might help. You do however need to be strategic in terms of just how much you drop the price. You can slash your price by R250 000, but if it's still above your competition or there are major repairs that need to be done, your chances of selling remain low.
Consider new representation
If your agent isn't responsive or doesn't have a good explanation for why your property isn't selling, then you might want to consider a new agent. Just don't expect a new agent to have the magic solution. If you speak with another agent, keep in mind that they are motivated to tell you what you want to hear. If they are telling you that they can get you the price you want, ask them for data to justify their claims. Buyers know what is out there.
While it might not always happen as quickly as you like, your home will eventually sell. You just need a strong strategy, a healthy dose of patience, and, let's face it, a bit of good luck.