Why Your Property Isn’t Selling
If a property sits on the market without interest or offers, the problem isn’t the agent, the marketing, the photos, or the condition. The three things that affect the sale of a property are location, condition, and price. The most common reason a property fails to sell is simple: it’s priced too high for the location and condition. No matter how much effort is put into staging or marketing, an overpriced property will not attract the right buyers.
Some sellers have a difficult time accepting the right price for their property because of the emotional connection sellers have with their property or their plans are made based on the price they will think they will get for the property.
It’s a tough truth for sellers to understand, but buyers, not sellers, determine market price. They have access to real estate data on their own and through their agent and know exactly what similar properties are selling for. If a property is priced above comparable properties, buyers will move on. Even if they love a property, they won’t overpay when they have options. The longer an overpriced property sits on the market, the worse it gets. Buyers start to assume something is wrong with it, leading to fewer showings, lowball offers, or the property not selling at all.
Sellers, on the other hand, are the last group to enter the market so they are the last group to get in line with current market trends. Here is the process. The buyer for a home is already in the market when a new listing comes up. They have had time to evaluate other properties, go see them, contemplate the value as it relates to the features and benefits for the price, and have usually done this several times before even stepping foot in a new listing. According to data from the National Association of Realtors, the average home buyer typically looks at around 10 properties before making an offer, while the search process usually taking around 10 weeks. So when a buyer comes to your property, they have already been thinking about, researching on, and learning what properties should sell for while a seller is just starting, hasn’t seen all the other properties, and may only have an idea of what they “hope” to get for a sales price.
The best way to sell your property quickly and for the most money is to price it correctly from the start. Do not leave room to negotiate. When a property is priced right for its condition and location, it generates immediate interest, gets more showings, and can result in multiple offers in almost any market. It can also push the sales price higher than the original asking price and result in more favorable terms for the seller. On the other hand, pricing too high leads to price reductions, lost time, and ultimately selling for less than if it had been priced correctly in the first place.
If your property isn’t selling, you have a few choices. You can adjust the price down to meet buyer expectations about what the price should be for the condition, features, benefits, and location or you can change the condition, features, and benefits to meet buyer’s expectations. Ignoring the market won’t change the result. Buyers won’t pay more just because you want them to. If you’re serious about selling, pricing accurately based on an objective evaluation of your property is the key.
We provide a comprehensive COMPARABLE MARKET ANALYSIS comparing properties similar to your property based on size, age, and features in the same area that have recently sold to assist you in determining the best list price for your property. You can request a COMPARABLE MARKET ANALYSIS from your under Listing Tools.
