Why Homes Don’t Sell

If you have had your home on the market for several months and haven’t seen much activity or any offers, it's probably due to one of the following reasons:

Price is too high

The most common reason for a home not selling is that the asking price has been set too high. The reasons for setting your price too high to begin with are many, ranging from over enthusiastic listing agents to unrealistic seller expectations.

Regardless of the reason, if you’ve priced your home too high, you’ve set yourself up for a number of obstacles to selling your home. Even if you do get an offer for a high asking price, the sale may fall apart before closing because the buyer may have problems obtaining financing, if the appraisal does not come in at the contract sales price.

Take an objective look at other homes for sale, ones as similar and as close to yours as possible. If they are going for less than you are asking, you may be priced too high.  The fact is, your home is competing against these other homes, and what buyers are willing to pay is what will determine final sales prices.

The condition of the home

There is a lot of competition in the marketplace now. Your home has to compete against other similar homes for sale, as well as new homes.  The more you can do to make your home look appealing to a buyer, the better your chances for a quick sale. 

Look at your home with a critical eye – put yourself in the buyer's position.  A buyer doesn’t want to have to do anything except move in.  Your best investments in improving the condition of your home are paint and flooring.  Make sure that all of the paint is in great condition, both inside and out.  Repainting doesn’t cost too much and will usually make the biggest impact on buyers.  Make sure all of the flooring looks good.  You may want to consider putting in new carpet.  Again, it’s not that expensive but it does make an impact on buyers.

Location

It’s the oldest cliché in the world, but it’s true.  When it comes to real estate, it’s all about location!  When it comes to homes, qualities such as how good the schools are, crime rates, visual appeal of the neighborhood and noise  can all effect how desirable the location is.

If you’re in a bad location, a good real estate agent may help to minimize some of the impact by suggesting improvements to the home.  But the only really reliable way to overcome a bad location is with a lower price.  Simply put, an identical home in a bad location won’t sell for as much as the same home in a better location.

Lack of Marketing

The best listing agents all use an aggressive marketing plan to market their listings.  If your listing agent isn’t making sure your home can be found easily on the internet, isn’t actively touting his or her listings to other agents in the area, isn’t running ads in local publications, then it might be time to change agents.  If all your agent has done is put a sign in your front yard and add your home to the local MLS, then that agent isn’t coming close to doing all that can be done to effectively market your home.

The market is slow

The terms "slow market" or "buyer's market" mean the same thing--that home sales in the local area or market are slow.  Simply put, there are too many homes for sale and not enough active buyers.

There are several things you can do to combat a slow market.  The most effective strategy is to sell at a lower price since buyers have more choices.  Making sure your home is in pristine condition will help you obtain a better price. New renovations such as new kitchen appliances, a new roof or patio should be emphasized to let potential buyers know that your home has recently been updated.

Home isn’t easily accessible or in show condition

To get your home sold quickly, it’s important that it be shown as often as possible, which means that not only your agent but other agents in the area will be showing the home.  You should do anything you can to make it as convenient as possible for agents to show your home.  One important aspect of showing the home is making sure the home is clean and tidy. Taking the time to clean and straighten your home prior to a showing will improve your chances of impressing potential buyers.