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Why isn't my home selling?

By
Real Estate Agent with RE/MAX Tri County

 

                                                                                                                        

A client recently asked me, "Why isn't my home selling?" 

She is a very nice woman, a pleasure to work with, and she is intelligent.  She knows this is a buyers' market.  But she is dismayed because her townhouse has been on the market longer than some others that have sold, one of which is an end unit.  I always say I wish I had a crystal ball and could tell you exactly what price your home will sell for and when.

 Here's my advice for everyone in my seller's situation:

 You have to ask yourself the hard questions.  Is the property REALLY priced appropriately? Is the condition the absolute best it can be?  Those are the only two things you have control over -  you don't have control over location and you certainly don't have control over the market. 

Ask yourself, if you were a buyer would you pay the price you are asking for that home?  Another hard question, are you listening to your Realtor?  My personal, experienced opinion is that you can never underprice a home.  That is to say, if you underprice your home you will create a bidding war and the price will go up to where it should be.  If you overprice your home just to test the waters and then have to lower it, buyers may take that as a sign that something is wrong with the home or that you are desperate to get rid of it at any cost.

Finally, for my Catholic friends, do you have a St. Joseph statue planted in the ground?  Do you know which way he must be facing?

All kidding aside, in times like this it is crucial to listen to the advice of an experienced Realtor, while at the same time recognizing that they can only give you the best advice possible but, sadly, do not have a crystal ball.

Harold "Hal" Place
A1 Connection Realty, Inc. - Sun City Center, FL

Hi Pamela,

You are so right in all aspects of your post. In today's market being priced right today may not be right tomorrow or next week. To Test the waters, will only necessitate an even larger price reduction at a later time. It has always been my position, Realtor's most always remember the original price and seldom remember the reduced price!  

Apr 10, 2008 06:34 AM
Christina Moock
Cutler Real Estate - Canton, OH
REALTOR - Cutler Real Estate
Sigh.....  if only our sellers would take our advice, homes would fly off the market!
Apr 10, 2008 06:44 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

I take it one step further.  If I cannot get everything I need to sell a home on the front end, paint, clean, updates and price, I do not list!  This market is a very scary market that you may only get one time at bat!

Apr 10, 2008 07:19 AM
Patrick Johnson
Windermere - Bellingham, WA
Your post is right on. I have a listing I took two months ago and come back with a CMA that was 35k less than the "recent appraisel" that the sellers got a week before they called me. I told them what it should be priced at, but since there were multiple parties involved, some wanted the 'appraisel price' to be where we started. I said ok, as long as we reduce it to "X" by this date. Low and behold, we reduced it to "x" and two days later got word of an offer coming in.................its ALWAYS about the price.
Apr 10, 2008 10:25 AM
Tanya Johnson
Tanya & Co./Keller Williams - Ashburn, VA

Great post. If a home isn't selling, then the market isn't accepting the price. Buyers can buy a larger home with more amenties at the same price. If the market is declining, then the seller has to get in front of the curve, not chase it down.

Apr 10, 2008 10:47 AM
Tim Rogers
Coaches Corner Radio...The Real Estate Guy - State College, PA

You are correct about under-priced homes correcting themselves.  Of course the only sellers underpricing homes at the moment are REO banks that need to dump properties.  I just wrote an offer on an under-priced REO and I needed to use an escalation clause because we were competing with two other offers.  An escalation clause in this market!  We got the deal but we paid above list price for the property which was under-priced by the bank to move it off their books.

All of my traditional sellers don't seem to get the pricing thing even after numerous discussions with them.  They are all certain that the April showers will bring May buyers even with overpriced listings.

Tim

Apr 10, 2008 01:09 PM
Patrice Estess
PB APPRAISALS - Kerhonkson, NY
AARRGGHH, my house is for sale and I am facing those questions, much to my chagrin...hope spring brings better results
Apr 10, 2008 01:35 PM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com
Yes you need to plant St. Joseph in the ground upside down.  Good luck in all your endeavors
Apr 10, 2008 10:21 PM
Jon Miller
United Country-Marshland Realty - Beaufort, SC
You're right about the market forces determining pricing.  My wife just ran into that same situation with pricing a home.  This fixerupper... the owner's wanted over $600,000 to start.  She told them it would never sell for that and priced it below $500,000.  It still didn't sell.  Priced it at $350,000 and the bidding war started.  To make a long story short,  She ended up getting $355,000 for it. 
Apr 10, 2008 10:44 PM
Shannon Whitley
RE/MAX OAK CREST REALTY - Plymouth, IN
RE/MAX OAK CREST REALTY
I agree pricing and condition is critical in this market.  I had a client not bury St. Joseph and set him in the window facing out out. My client felt funny putting a religious statue in the ground. The house sold 2 days after the statue was placed in the home. The house had been on the market for over a year!!!
Apr 11, 2008 12:04 AM