While we are currently in a great Home Seller's Market in the Salt Lake area, we still see properties that sit on the market for ages, while other properties sell the day they are listed, but why is that?
Well the truth is it can be for any number of reasons, some of them under the sellers / Realtors control and some of them the seller / Realtor can do nothing about.
You are Asking Too Much Money
This is the number one reason homes don't sell quickly. Even in the very best sellers market buyers will only pay so much for a home, no one likes to think they are over paying. Sellers in a good market are tempted to push the envelope and ask for more money, which is not usually a problem, unless they ask for too much.
This can be seen in today's market where some homes are sitting unsold often for several months. You much remember that even if a buyer does make an offer on an over priced home, the chances are that the buyer will need a mortgage, which means the home will have to appraise. The mortgage company may come back and say that the home is not worth the purchase price. In which case the seller may have to reduce the purchase price, the buyer will have to come up with the extra money, or the sale may fall through.
Another sign of this is the number of price reductions I am seeing coming through, this is where the seller asked for too much and after a while decides to lower the asking price.
Sometimes homes are overpriced at the request of the seller, but other times it’s the Realtors fault. A well know Realtor practice is where they buy the listing. This is where they go to the listing presentation and tell the seller they can get way more for the home than the other Realtors are suggesting. This obviously appeals to the seller, but in truth they know it will never sell for that amount, and after they get the listing they will soon request that the seller lowers their asking price. A way to ensure that your Realtor is not pulling this trick is to ask for supported documentation on recent sales in your area that support the Realtors suggested valuation.
There is Something Wrong with the Home
This covers many areas, it could be something as serious as foundation problems, or it could be something minor like it just needs to be tidied. Remember you should still prepare your home for sale exactly the same in a good market as in a slow market. Make sure it's clean, clutter free and any repairs are taken care of. Buyers want to see a property that requires little or no work that needs to be done.
Geographic / Demographic Impacts
Some homes just take longer to sell. While some geographic areas are well sort after by buyers, others see less demand and because of this homes in these areas can just take longer to sell. Also, the price of your home may impact how long it takes to sell. Unless you are lucky a 3-million-dollar home in Salt Lake will take longer to sell, then a $300,000 home. There are just way fewer buyers in the higher price ranges.
There are many different reasons why a home should not sell quickly, some of them can be controlled and others cannot. Picking the right Realtor and ensuring your home is in the best possible shape goes a long way to ensure that it sells as quickly as possible.
The original Why Do Certain Properties Sell Fast While Others Take Longer appeared on my Salt Lake Real Estate blog.