We all know this is a tough market, but the fact is: homes sell every day. Every day homes go under contract. I continue to sell condos, townhouses and houses as people move to and from Northern Virginia.
A home seller who has a property on the market for several months and hasn’t seen much activity or any offers, has to wonder why isn't my property selling?
The price
On average prices in the Northern Virginia area have 10% to 20% from the high-water-mark. In some neighborhoods prices have been hammered with 50% to 30% reductions in price. The truth is most of the worst-hit neighborhoods are worth MORE than what they are selling for.
But the fact is price and value are not the same thing. Value is what a product is worth. Price is what someone will pay for the product. A few years ago, prices were greater than value. That is to say: things were selling for more than what they were worth. Now, the price is lower than the value---which is why it's a good time to buy. Condos, houses and townhouses are selling for less than what they are worth.
No matter what value a property may have, if the price is too high, the property will not sell.
There are too many other good options available to buyers. In the unlikely event that a seller can actually get an offer at a higher asking price, there remains the chance that the sale might never happen. This is because if the appraiser can't support with the price with comparable data, then the lender won't make the loan and the sale won't close.
Your property, your home is competing against similar properties: what buyers are paying for similar properties will largely determine the final sales price.
All of the other potential problems with selling the house can be overcome by adjusting the price.
- Bad location? No problem. Lower the price.
- Blown-out condition with burst pipes? No problem. Lower the price.
- No windows? No problem. Lower the price.
- High price? Problem. No one will buy it.
If the price is low enough someone will buy it. On the other hand, if you have your back against the wall and can't lower the price there are a few other things to consider.
The condition
Not only is your condo, house or townhouse competing against similar homes for sale, your property is competing against brand new houses or condos. Builders are lean mean and hungry right now. Buyers will measure the appeal of your condo or house against the amenities and condition other homes.
Those who are actually selling homes must focus a critical eye on the subject property. Buyers love homes in move-in condition. If nothing else make sure that your walls and floors are in best condition. New paint and carpets can make the biggest impact for the least amount of money. Kitchens are expensive but in many cases the kitchen sells the home.
Marketing
Condo 1 uses an aggressive marketing strategy to sell our listings. We ensure that our properties (houses, townhouses and condos) are easy to find on the Internet. Most sales these days begin on the net and there are few companies that have as big an Internet footprint as we do. We actually create a property specific web page for your property. We actively actively touting our listings to other agents in the area. Of course, the MLS is the single best marketing tool at our disposal.
Access
This is a very inexpensive way to impact your sale which is completely in yoru control as a seller.
It's incredibly simple to provide access to the property. Still, some sellers don't fully understand the buyer's mindset. A lockbox is a device which holds a key to the home, that only local real estate agents can access. Notes in the MLS tell agents which home have a lockbox, no appointment needed and which homes are shown by appointment only.
Buyers don't like hassles and if access to your house is a hassle (i.e. by appointment only), they probably won't be back to see the property on your terms. This is because a buyer can choose from 10 more on the list that are available on lockbox right now.
Your agent
It sounds almost silly, but if people don't like your agent, they are less inclined to buy your home. If the selling agent is a jerk, or arrogant or has a reputation of being difficult to work with, agents may be less inclined to show your property to their clients. Personality matters.
The bad news ...
In most places in Northern Virginia we have a buyers' market. In a slow market like this with declining home values you might be in a position where you've done everything (except lower the price) and the property still won't sell. If you can't lower the price because of mortgage obligations, then you're only left with a handful of choices:
- Short sale --- I can help you negotiate with the lender to sell for less than what you owe. This isn't easy and will only work when you can prove that your income cannot support the payment you are paying.
- Rent the property --- If you need to move, but cannot take the hit to your credit, then your best bet will probably be to rent your home. The risks and work of being a landlord can be mitigated by your property manager.
- Take it off the market --- If yours is a move of convenience rather than a move of necessity, and you can't find a way to make the numbers work, then you're helping yourself, your market and your agent by postponing your dream.
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