3 Reasons Why Your Home Won’t Sell –
In the real estate world we call a property that does not sell within the contracted listing term an Expired Listing. For the home owner who has been trying to sell a home in order to reach an important life transition or goal, an Expired Listing can be a very frustrating thing. These home owners, however, are not alone. The average real estate agent unfortunately sells only between 60% – 70% of his/her listing inventory. This means that during a balanced market up to 40% of listing contracts expire before the home sells. The Seller of an Expired Listing is then forced to make two decisions: to re-list and try again; or to stay at the property for an indefinite period of time and to re-list with another agent or to attempt to sell on their own, as a FSBO (For Sale By Owner).
Here is a countdown of the top 3 reasons why a property will not sell during it’s listing contract term:
The condition of the property can either be a huge deterrent or an appealing factor in a buyer’s decision to bring an offer. Has the home been updated in the last 5 to 10 years or is it sporting shag carpet from the 70’s? The Retro look is making a comeback but most buyers are not all that down with purchasing a home with counter-tops and cabinets that show 40 years of wear-and-tear. In general, if you keep the home updated with current trends, not only will it sell faster but it will sell for more money than a home that has not been updated. Selling a home that is dated for the most possible money is not impossible however… in order to do this, you have to be “on-point” with the next 2 reasons.
How is your listing being marketed? Most agents will put your home on the local MLS System and rely on their broker’s marketing systems to do the rest. Unfortunately, most brokers follow a standard IDX (Internet Data Exchange) marketing campaign that merely shares the listing with all the other local brokers in an attempt to promote more exposure. The problem with this is that we currently live in the Information Age where trends in mobile apps, social networking sites and social media sites change faster than you can say Twitterpated! If you are looking for the best chance to sell your home in this fast-paced internet age, you will have to focus on the software and applications that give your property the ultimate market exposure.
And now for the #1 reason why most homes do not sell during the first listing contract term…
In a tight race with Marketing, Pricing ends up being the #1 reason homes do not sell during the first listing contract. There are many reasons for this. If the home is priced accurately according to the neighborhood but it doesn’t line up with the Condition of the property in relation to comparable homes then is it essentially overpriced. If the market is heading in a downward direction and the property is priced well today, it will not be priced well in as little as 2-4 weeks. If the home is priced right but the Marketing does not line up, then the home actually becomes overpriced considering the lack of marketing… In short, these 3 factors work together to either create success or to create another expired listing. If you would like to ensure your real estate sale goes smoothly, the best thing you can do is to take these three factors in to account and either find an agent who knows his/her stuff or make sure you have the time to do it on your own.