6 Reasons Why a Home Will Not Sell - Even in a Hot Market

Price

Pricing a home properly is critical to the success of a home sale. A properly priced home always sells and an overpriced home usually does not.

The advantages of pricing a home properly offer several benefits, one of which includes selling in a timely manner to avoid the inherent inconveniences with a home sale; constantly cleaning up a home, making everything look its best for every showing, open houses, being absent during the showings (including kids, dogs, etc.) can be a major inconvenience. Therefore, getting a home sold in a faster period of time is not only easier but as more importantly, financially beneficial because a home will receive the most attention and highest buyer interest when it is first listed for sale.

The opposite is true. When a home is priced too high, agents and buyers will label a home as “overpriced” and wait to see if someone else will “overpay” for the home and in most cases, nobody does. A homeowner then needs endure all the inconveniences, for a longer period of time. Adding to that dilemma typically results in a lower sale price, because the home sold with lesser interest than when it was first listed for sale.

In order to price a home properly, an accredited real estate agent that is familiar with local real market will thoroughly review with a homeowner a Comparative Market Analysis (CMA). A CMA provides data for comparable homes that are on the market, in escrow or have recently sold. This data helps understand how agents, appraisers and buyers are going to evaluate a home’s value and assessing this information will suggest the smartest asking price for a home.

For a FREE Comparative Market Evaluation (CMA) of your home, call Robert Radcliffe at 310-255-5454.

Marketing

This is the responsibility of a real estate agent.

Most homeowners believe all agents do basically the same thing. If this were true, then all homes would sell.

Also, most homeowners believe by meeting one agent from one company means that was all that company has to offer. I have been told from potential home sellers, “I am already meeting with ABC Real Estate Company” or worse, “Our friend just got a real estate license. We thought we would give him/her a try.”

Be aware that all agents are not alike, even within a brokerage house. Brokerage firms give agents boilerplate methods of how to market a home, but it is up to the individual agent to master and create custom marketing plans, even better, ones with a supporting staff. This will insure the home’s marketability and a successful sale.

The difference in representation can either make or cost a homeowner hundreds of thousands of dollars … or more.

Condition

It is important for a homeowner to understand that the way we live in a home and the way we sell a home are two totally different matters.

Having a show-ready and staged home is best accomplished by first consulting with a talented and forthright agent that will explain and counsel a homeowner on how to “stage” a home for sale is critical.

A “show-ready home” will help with the sale and as importantly, selling for the highest price because of tapping into the buyer’s emotions. When a buyer sees a home that they fall in love with; “from floor plan to furnishings” they will typically pay their top dollar price for that home.

Access and Showings

Understanding how buyers view homes is important.

One of the toughest obstacles when working with our buyer clients is scheduling their showings, which is typically arranged with a listing agent.

Some agents have not properly informed their seller clients to understand that buyers want to see thee home on their (buyer) schedule because that buyer may buy another home in the meantime.

To avoid this unfortunate possibility, it is helpful to understand the mindset of buyers and their agents:

If a buyer schedules to view several homes in a day (not including yours) and they see a home they love, how likely do you think their agent will say, “Before you buy this home, I need you to see one that is difficult to show?” This is not going to happen. Why should it? A buyer loves a home and ready to buy it. What adds to that disappointment, what if that buyer was the most eager and would have paid the most amount of money for your home … if only they had seen it?

This will typically happen when listing agents tell the homeowner they will be the only person showing their home. I understand this sounds great in theory; in reality, it does not work for the benefit of the homeowner wishing to sell their home.

Here are the facts: If an agent has more than one listing, (you would hope they do, otherwise they are not active in listing and selling homes) and they have a request to show a home, there is the high probability the agent will have other appointments during the day, i.e. spending a day showing other buyers homes, attending inspections, meeting with another client, etc. An agent cannot duplicate themselves and sadly for some homeowners, the buyer that could have been their best, ends up purchasing another home.

This experience alone has made a significant difference in getting homes sold when other agents failed. In almost all occasions when I listed a home previously and unsuccessfully listed with another agent, I heard my new clients say, “I cannot believe how many showings we now have since we have listed with you. We did not have half the amount of these showings before.” The reason, my team and I created the most effective system to show a home and will be happy to explain this easy process.

Communication

A real estate agent’s ability to communicate correct information to the brokerage community and buyers is important. The opposite is true. Poor communication equates to poor results.

Sales are either delayed or prevented by some listing agent’s inability to communicate.

Some agents are simply uninformed or unable able to provide important information on a home that was needed to help it sell. I have also witnessed listing agents say, “I do not know the answer to that question, and you will have to do the research.”

Bottom line: When it becomes too difficult to buy (anything), people lose interest. The same holds true when buying a home.

Other examples of poor communication: A listing agent presenting false information, which can potentially lead to a legal dispute or, to the benefit of a buyer and cost of a seller, the listing agent shares too much information.

When selling a home, choose an agent that you are confident is a good communicator and one that can properly “sell” the best features of your home.

Terms

As disappointing as it can be for all involved, sometimes the simplest reason that can prevent a home sale is a matter of timing. An example: A buyer needs to close in 30 days but the seller cannot move until 60 days.

I have witnessed unsuccessful negotiations, because of this small yet important issue and as you can imagine, there are many other terms that can get in the way of a transaction.

To avoid losing the sale, an experienced agent is better equipped to explore every option and can typically find a solution to every dilemma. This is when your agent’s experience does matter.