The #1 Reason Homes Don’t Sell (and How to Fix It)
You heard it’s a seller’s market right now so you couldn’t wait to sell your home. Except it’s sitting and you don’t know why. You have plenty of people walk through it or inquire about it, but you aren’t receiving bids.
What’s the problem?
The price. It’s the number one reason homes don’t sell. Sellers price homes too high and buyers are turned off. They don’t even want to see the home. So how do you know how much to sell your home for without losing? Here are the ways.
Know the Comparative Sales in the Area
The market dictates how much you can ask for your home. Buyers not only want to pay the ‘market rate’ but lenders won’t approve a mortgage if the sales price is too high.
The market value plays an important role in the transaction. Do your research or work with a licensed professional who can research comparative sales. Knowing how much comparable homes sold for in the last six months will be your guide when pricing your home.
Work with a Reputable Real Estate Agent
Working with just any real estate agent won’t do the trick. Not all agents have your best interests in mind. Some worry about their commission checks and price the home high to make the most commission.
This won’t work for you. It’s easy to tell if it’s happening. Here are telltale signs:
Few visits to your listing pages
Few inquiries about the home
Other homes in the area selling, but yours isn’t
Cut the Price
If you’ve already listed your home and feel stuck or you notice other homes are selling and yours isn’t – consider a price cut.
It may not need to be much. Even a 5% cut may bring in more attention. It depends on the difference between the average value of homes and your asking price. The listing will show the price history and that there was a recent drop. This may bring more attention.
The even better news is you still may get the price you wanted or close to it. Buyers place a bid and you may negotiate. In today’s competitive environment, there are often bidding wars too. This naturally drives the price up, getting you closer to the original price you wanted.
Don’t get Caught Pricing your Home too High
The simplest way to avoid this issue is to price your house right from the start. It’s not easy, but with the right support, you can do it.
If you make the mistake, don’t worry, it’s always fixable. Price adjustments happen all the time in real estate and it’s not a bad thing. Most buyers will see that the home was overpriced to start. If they ask, just tell buyers you made a mistake but dropped the price to make it more attractive.
In the end, you’ll sell your home faster and may even walk away with profits close to what you hand in mind.