Top 5 Reasons Why Some Homes Don’t Sell

If your house or condo is listed for sale with a successful realty agent in your vicinity, there are five key reasons your home might not sell although nearby comparable residences are selling:

1. THE ASKING PRICE IS TOO HIGH. By far, this is the top reason a home doesn’t sell. Although you might be just testing the market, prospective home buyers are very smart and they know an overpriced listing when they see it. Worse, their buyer’s agents may not even bother showing homes with asking prices above recent sales prices of comparable nearby homes.

For this reason, if you want to get your home sold during this peak sales season, it is vital for your listing agent to keep you informed on a weekly basis of recent comparable home sales prices. Perhaps it’s time for an asking price reduction.

2. THE LISTING AGENT DOESN’T MAKE THE HOME EASY TO SHOW. The majority of home sales involve a listing agent and a buyer’s agent. If the seller, the tenants or the listing agent make it difficult to show a home, this discourages buyer’s agents.

A related problem can be the listing agent wants to “double end” the home sale by getting both the listing portion and the selling portion of the sales commission.

3. CONDITION OF THE HOME. Most home buyers want to purchase a residence in near “model home” condition where all they have to do is turn the key in the front door and move in. However, if the residence requires considerable work, that turns off all but the most die-hard bargain hunting home buyers.

Fixer-upper homes appeal to a very limited market of home buyers. Sometimes known as “bottom fishers,” they will purchase such homes only at bargain prices, well below what can be obtained with modest fix-up work such as painting (the most profitable improvement of all), repairing, and cleaning.

Word quickly spreads among local real estate agents when a home “doesn’t show well.” Buyers’ agents will only show that residence to their bargain hunters, usually investors, who want to purchase far below market value.

4. “AS IS” HOME SALE CAN BE A RED FLAG TURN-OFF. Closely related to homes that don’t show well are those listed for sale in “as is” condition. The term “as is” means the seller offers the residence in its current condition and will not pay for any repairs. However, the seller must still disclose in writing to buyers all known defects, such as a leaky roof or a bad foundation.

Whenever possible, home sellers should not offer their homes for sale “as is” because it is like waving a red flag in the buyer’s face. A better alternative is for the seller to obtain a professional inspection report and have the recommended repairs made before listing the home for sale.

Of course, when a home needs a major repair that the seller either can’t afford or doesn’t want to make, then an “as is” sale at a reduced price is advisable.

5. INEFFECTIVE MARKETING METHODS. In today’s home “buyer’s market” in most communities, listing agents and do-it-yourself “for sale by owner” home sellers must use every marketing resource available. Most effective is the for sale sign on the front lawn. A close second is weekly newspaper advertising, especially for a weekend open house. In third place is Internet advertising.

In addition, listing agents have the local MLS and their special networking among agents who represent prospective buyers for the type of house or condo listed for sale. The local Association of Realtors is an especially effective resource to spread the word about a desirable home listed for sale. A key part of this sales technique is the “broker’s tour” where only local agents are allowed to inspect a home for possible later showing to their buyers.

The best listing agents also use additional marketing methods, such as advertising in real estate magazines and color brochures and postcards mailed to nearby homeowners who may have friends who want to move to the area.

CONCLUSION: Selling houses and condos in any market requires hard work by successful listing agents. If your home has been listed for sale with a successful realty agent over 30 days and without any purchase offers, it’s time to discuss the five key reasons some homes don’t sell with the listing agent and make adjustments to get your home sold.