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There are several factors contributing to why your home isn't selling as quickly as you may have hoped: pricing strategy, poor inspection results, market conditions, insufficient performance from your realtor, significant home defects, the list goes on. Some of these aspects are outside of your control, however a significant portion of the key factors that lead to a slow home sale, or no sale at all, can be intentionally optimized. Selling a home does not have to be a rigorous activity and finding a realtor who can take the pressure off you is a great place to start. You will be ahead of the competition if you just keep a few things in mind when looking to sell your home and fortunately for you, we will cover the basics here.
Poor Pricing Strategy
Pragmatism prevails. The importance of keeping your expectations in check is high, it’s very high. We would all love to sell our homes for triple the acquisition price with minimal effort, however that’s just not the reality we inhabit. Keeping an open mind as to the market value of your real estate is important. Realistic expectations of what you may profit from the sale will keep you from driving qualified buyers away immediately with an overpriced listing.
The market is king. Realtors do not determine the value of your home, instead the market does. Market conditions are one of the most important concepts when it comes to selling real estate and you have zero control over this. However, choosing a realtor is 100% within your control. You must have a real estate agent on your side who is experienced in navigating the market properly. By analyzing recent sales data and comparing your property to similar homes that have sold in the past, we can put together what is called a Comparative Market Analysis, or CMA. A CMA will provide an accurate depiction of what your home value should be given the current market conditions. You do not want to compromise at this step of the journey or else you risk leaving money on the table.
Updates matter. Potential buyers will pay far more for a home with freshly updated plumbing free of leaks than a home with a brand new, top of the line fiberglass front door. Be careful where you spend your money when wrapping up last minute repairs/updates before listing your property. Trying to decide between installing new bedroom carpet or a brand-new electric panel? Your realtor is there to help guide you through these critical decisions that will ultimately impact the pricing strategy that you employ. Lean on your real estate agent to provide insight on what the best home improvements to add value to your home may be. These seemingly miniscule decisions will make all the difference when you’re deciding on a list price.
Defective Systems
Quality over everything. The most important systems of a home that should always be prioritized if you want to optimize your sale price are HVAC, roof, foundation, electric, plumbing, and windows/gutters. Potential buyers value quality in these aspects because they will be the most expensive to repair or replace when the time comes. They will also be using these pieces of the home every single day. The market doesn’t care how big your home is, how new your home is, where your home is; if these components of your property are compromised, your home sale may be as well. Defective systems could be contributing significantly to why your home isn't selling.
Transparency is paramount. Attempting to hide defects in your home is not a smart move. 86-88% of home buyers utilize a home inspection before purchasing, and the inspector will find ALL defects in your home. It is necessary to make sure you are correcting defective systems with a licensed professional to mitigate any potential issues going forward. Depending on the market conditions, supply, demand, etc., you may be on the hook to either fix the defects that are found, pay for them to be fixed, or drop your list price to compensate for the condition that your property is in.
Preparation is key. Get your home pre-inspected. Your realtor should be all over this. It is far better to have an idea of your home’s defects ahead of time before it hits the market. Roughly 86% of all home inspections find at least one thing that needs to be fixed. Get ahead of these statistics and give yourself some peace of mind when going on the market with your most valuable asset. Pre-inspecting before selling your home will give you a chance to make any crucial improvements ahead of time before listing and can help a ton with justifying your list price.
Your Realtor Should be Working for You
Marketing matters. Finding a realtor from a credible brokerage who is willing to go above and beyond to optimize your home sale is an absolute must. Please do not work with a realtor if they say something along the lines of “It’s okay, I’ll just take your listing pictures with my iPhone”. Marketing your home is crucial in a Buyer’s market but is equally important in a Seller’s market if you want to attract as many qualified buyers as possible. Professional listing photos, a compelling listing description, and competitive pricing based on real-time data will be a good place to start, but sometimes you must go even further. Hosting open houses, dispersing ‘For Sale’ fliers around town, and perhaps it's even best to consider staging your home. Numbers don’t lie and 81% of Buyer’s agents state that it is easier for their buyers to visualize the property as their future home when properly staged.
Communication is everything. You should be getting regular updates from your real estate agent regarding feedback from Buyer’s agents who have conducted showings on your home. It is important that you are looped into what prospective buyers think of your home and what the demand signals are telling you. This will help provide an idea of whether your property is priced appropriately and/or if any adjustments need to be made to your listing before the next showing is scheduled.
The Bottom Line
This insight is by no means an all-inclusive list as to why your home may be sitting on the market, however if you’ve checked all these boxes, it’s likely to be smooth sailing to the closing table. It will make all the difference to have a trusted advisor in your corner who can guide you towards success. Any home will have defects, but the key is to mitigate the impact, get ahead of the defects, and address the issues before heading to the market. Arguably most important, deriving a solid listing price from real-time market data and a thorough CMA will put you in a great position to execute the sale of your home with little stress and a lot of confidence.
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Sources
· Porch
· Zillow