Poor Condition of Your Home
Check out your competition. If 90% of the homes in your market are not selling, then your home needs to outshine the top 10%. Look at the homes that are pending sales because that’s your current indicator. Sold comps could be two to three months in arrears of market movement. If you want to know what is happening right now, the pending sale data will tell you which homes are selling.
Apart from preparing your home for sale, consider its condition. Perhaps you should consider adding updates or doing repairs before selling. If the top 10% of the market has new carpeting and your carpeting is worn and dated, your home is not going to sell. Replace the carpet. But ask your agent first because 9 times out of 10, today’s buyers prefer wood or wood-like laminate over the carpet.
Not Enough Photographs or Badly Shot Photographs
Homes in MLS that have one photo are passed by. Homes with dozens of photographs get noticed. Take quality photos or, for optimum marketing, hire a professional photographer. Shoot wide angles with plenty of light showcasing your home’s best features.
You Haven’t Paid For Extensive Marketing and Advertising
No single aspect of marketing sells a home. It’s a combination of marketing efforts. If your online media outlet makes a mistake and lists your home under the wrong section, don’t panic — homes have sold to buyers who found them in the wrong place. For that reason, consider placing an ad under several classifications.
You Hired the Wrong Listing Agent
You want to work with an agent who is competent, experienced and honest.
There are a variety of ways to find an agent but the easiest way is through referrals from friends and family. If you desire full-service and want an agent to spend tons of money on the listing, hire a full-service brokerage and interview several agents. To find the best listing agent, don’t base your decision solely on the suggested sales price or how much the agent charges you because there are other considerations. Discuss home pricing and commission negotiations last. First, find out the agent’s strategic marketing plan.
You Haven’t Priced Your Home to Sell
Sellers say, “But I don’t want to give away my house.” Of course, not. You want to sell it. To sell your home, the price must be right. Don’t “test” the market or ask an inflated figure because if you do, your home will probably sit on the market and the DOM will continue to tick. Dated listings (homes that have been on the market too long) don’t generally sell for list price.
To avoid overpricing your home, examine the sold comparable sales. Adjust for square footage, if necessary. If your home has a bad layout or is located in a bad location such as next to a school, on or near a busy street or bordering a liquor store, you’re not going to get the same price as homes with a good layout and in a good location.
For example, if the last three homes sold at $400,000 but you feel they are not comparable to yours because they don’t contain updates — but they were located on a quiet street and your street is noisy — your home is probably worth about the same. A plus-$50,000 adjustment for the updates could wash out the minus-$50,000 for the busy street.
In a buyer’s market, price your home a minimum of a percent less than the last comparable sale. If you can’t live with that price, then don’t put your home on the market and set yourself up for disappointment. Overpricing is the worst mistake a home seller can make.
SOURCE: The balance