8/19/2017

Why isn't my house selling?

In this market, as noted in last week's post, people selling their home should be very happy. Values are up an average of 8% , The lack of housing inventory is causing houses to sell quickly and with multiple bidders, sometimes literally overnight! With all this action in such a hot market, why are there some homes that are having trouble selling?

The number one reason that the house isn't selling is usually, because the homeowner is just plain asking too much. In the current housing market conditions, if the property is priced right, it will sell. It is very difficult to use an objective opinion, when evaluating your own house, that you have lived in for any period of time. The homeowner has put in time, repairs, updates, and has sentimental attachments to the property.

Some agents, may promise the world, going to get people top dollar for their house, help fulfill your dreams, etc. These agents probably know what the homeowner's house is worth, but are either too polite to tell their clients they are asking too much, or they are afraid that they will lose their listing. So unfortunately, their house sits for too long, wasting the time of the homeowner, as they watch their neighbors home's sell around them. Sure the market is strong, and values are on the rise, but, people aren't going to buy a house when the one around the block is twenty percent cheaper.

Sometimes people overvalue their houses because of the extravagant, over the top, updates they have put into their house. I keep telling people, “I live in Taylor, I could spend thousands of dollars to put up marble columns in my front yard, but, I will never see the value out of it.” If you are planning on living at your house, for life, sure, go crazy, make it your own, and enjoy the envy of your neighbors when they see the scale model of the Sphinx, in your yard! If you ever plan to move out of your house, try to be more reasonable with the updates, keep in mind, your interests, although unique, may not line up with prospective buyers.

Another scenario that I have come across, is that some people don't want to put any effort into selling their house at all. This was the case in one situation, that happened to a friend of mine, from my office. Her clients, an elderly couple, decided it was time to move into an assisted living facility, and left it to their daughter to sell their house. Their daughter told my co-worker, that, the house next door sold for “X” amount, so that is what she wanted to list their house for. Unfortunately the daughter didn't actually see the inside of the neighbors house, to make comparisons.  If she had, she might have noticed that, the next door neighbor's house was in much better shape than her parent's house.  She left nails and hooks in the walls from pictures, did not paint, and had carpet in the house with large stains. The stains might have been red-pop or wine, but, it appeared as if it had been the scene of a multiple homicide.  I was invited to do an open house there, this house did not make it to becoming one of my “Open House Online's!” After the open house, I suggested to my co-worker, to remove the carpet, because, it had hard wood underneath, and to remove the nails from the walls. The homeowner's daughter, spent the next weekend, taking my advice, and accepted a full price offer the following week!

When buyers see that a house has been sitting on the market for much longer than the others in the neighborhood, they typically assume that there is something majorly wrong with the property.  The same is true when buyers, or their agents, see that there have been multiple price adjustments.  Every seller wants to get the highest and best value out of their home, but, it is better to price it within reason the first time! This is why it is always a good idea to hire a REALTOR to do a proper “Comparative Market Analysis,” for your property!

By: Demian Allgeyer