There is still only one reason a house does not sell

By
Real Estate Broker/Owner with Richard Weisser Realty

Why do some houses sit on the market month after month while others have multiple offers on the first day they are listed?

If there is one guiding principle to selling ANY product, regardless of whether the market is steaming hot or icy cold, it is this:

The only reason a house does not sell is that it is priced too high.

That is to say that the actual value of the property considering all its intrinsic qualities does not support the price being asked.

Which leaves the seller of an unsold property with ONLY two options:

The seller must lower the price OR increase the value of the product.

Of course, there are certain property attributes that a seller cannot change: These include location, schools, and the condition of proximate properties. Negative incurable qualities can only be compensated for by price.

The other thing a seller can do is increase the value of the property by improving its condition. But sellers need to to be aware that NO amount of money spent will increase the property significantly beyond the value of other nearby houses that have recently sold. There is a threshold for updates and improvements beyond which the return on investmest is negligible.

There is a fine line between being market savvy and market stubborn. But the lesson is taught every day a property languishes on the market:

There is still only one reason a house does not sell!

 

Comments (6)

Gwen Fowler-864-638-3599 SC Mountains Lakes Homes
Gwen Fowler Real Estate, Inc - Salem, SC
Gwen Fowler Real Estate, Inc.

This is so simple but true, if sellers would only listen.

Sep 08, 2016 11:34 PM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

I think a high price is the most common reason by far, but certainly not the only one.  I once was the fourth agent.  I had them send Fang, the Realtor-eating hound, off for a vacation to Camp Waggy.  I raised the price by $40,000, put a lockbox on the front door, held an open house, and by the end of the Open had five offers, three above the list price.  It's important to look at the big picture.

Sep 08, 2016 11:46 PM
Richard Weisser

That actually supports my corollary rather than disprove it. The house with "Fang" sells at a lower price. When you remove the dog you increase the value of the property.


Houses sight unseen sell on the courthouse steps all the time but the price offered will assume potential risks.

Sep 09, 2016 12:02 AM
Richard Weisser

If a seller chooses to make a house unavailable, undesirable, and unmarketable then it commands a lower price.

Sep 09, 2016 12:13 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

True. I have one like that now...eventually this market will come to it though.

Sep 09, 2016 12:01 AM
Richard Weisser

Sellers are free to ask any price they wish! When we trade stocks we establish an "ask" price and if and when it meets someones "bid" price we have a trade!!!

Sep 09, 2016 12:11 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Richard Weisser - Normally I wouldn't disagree with what you have said. But I have found by personal experience that all it took was marketing the home.  This has happened more than once.  As the second agent, I always take professional photos and vrtual tours.  Two homes had accepted offers in one week. So unless you consider that you are adding value by better marketing. I would have to say that there are exceptions to your premise. 

Sep 09, 2016 02:24 AM
Richard Weisser

There are no exceptions to the premise. With less marketing, which translates to less demand, the house sells at a lower price.


One again, houses sell on the steps with NO marketing, no photos, no viewings etc. My premise states that you either have to decrease the price or increase the value.

Sep 09, 2016 03:49 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Richard, you have not lost your touch.  We need to see you here more often my friend

Sep 09, 2016 11:54 AM
Linda Metallo DiBenardo
RE/MAX Impact, Lockport, Illinois - Lockport, IL

Amen.  Richard you are correct.  It's so simple really.

Jan 13, 2017 03:54 PM