Why is My House Not Selling?

photo credit: ohhhbetty

I’ve found in my years of interaction with the human race that people will buy almost anything if the price is right.  My wife has been amazed at the items I’ve Craigslist-ed or Ebay-ed that have gone to the “highest bidder”, OBO.  You know as well as I do what things are really worth.  Yes, that’s right, things are only really worth what someone is willing to pay for them. 

Take your home for instance, if you are trying to sell it you want the most you can get for it.  If you want to buy a house you want to get a good deal.  That’s why Buyers need to think like Sellers and vice versa.  This puts things into perspective. 

So, if your house isn’t selling here are some factors you might want to consider:

1) Are you using a Realtor?

• If not, consider seriously getting one.  Most people don’t know the market intricacies or have the time to properly and successfully market their own home.  Most FSBOs (For Sale By Owner) are on the market longer and sell for less (including Realtor commission) than they would have if represented by a Realtor. Yes there are cold stats supporting this.  Look I support some DIY but I still have a professional do my wiring.

• If you are using a Realtor, speak to that person to understand why you haven’t moved yet.  Communicate honestly and make sure you both are listening.

 2) Examine your motives.

• Why do you want to sell your home? Write it down.

• Even though the market it down it’s a good time to sell your home especially if you’ve been in it awhile and have equity.  Remember those homes you couldn’t afford before may now be within your price range.  It’s all relative.

 3) The house is priced too high.  Lower the price.

• All the other houses that are cheaper and comparable will sell before yours does.

• You’ve also got to ask yourself why you liked this house and why you think others will.  When you are thinking of buying your next home always think of resale…always!

4) Your house is located in a less than desirable area.  Lower the price.

• You can’t change the neighborhood. Get out and move somewhere nicer.

5) Your house is in need of repair.  Lower the price or fix it. 

• Be careful here because you will rarely recoup your expenses at a 1:1 ratio.

• It is often better to negotiate repairs or price reductions after the Buyer’s inspection.

Don’t forget the longer your house is on the market the more:

• Mortgage payments you are making
• Utility costs you are paying
• Insurance costs you are paying
• Maintenance costs you are paying
• Taxes you are paying
• Prospective buyers you are losing
• Opportunities you are losing
• Time you are wasting

By now you are getting the point that PRICE is the cure all.  Well for the most part it’s true.  Look, banks are tightening their loan parameters almost daily.  Buyers who were able to get a loan a month ago are not qualified now.  So people who were once able to buy your home if the price was right are now not able to buy it even if you’ve reduced the price to where it should have been a month ago.  Now you’re chasing the market instead of leading it.  The houses that lead the market get sold.

Identify what is important to you… money or moving on with your life.  If you are realistic you could have both!