Why Didn't My House Sell??

It may seem like an eternity since you have had your home on the market. Your palms are getting sweaty as the last showing you had on your property was when Bush was President. Listed below are a few possible reasons why your home is still sitting for sale.

1. Your asking price is too high

This is the number one reason why homes do not sell. Maybe by now you have reduced your price a few times but all you are doing is chasing the market.  SPOILER ALERT: the housing market has steadily declined so each time you drop your price, the market has already decreased.  The reasons for setting your price too high to begin with are numerous. Reasons range from over enthusiastic listing agents to unrealistic seller expectations. Regardless of the reason, if you’ve priced your home too high, you’ve set yourself up for a potential failure in trying to sell your home.  Even if you do get an offer at your high asking price, the buyer may not get financing as the home has to appraise high.  Look at other homes for sale similar and as close to yours as possible.  If they are selling for less than you are asking, you may be overpriced. The hard fact is, your home is competing against those other homes including short sales and foreclosures. Remember, neither you nor your agent determines the selling price.... it is the buyers and the current housing market.

2.  The condition of your home

No surpise but there is a lot of competition out there to sell homes. It is just like a first date, first impressions really do matter.  Your home has to compete against other similar homes as well as against shiny brand new homes.  The more attractive you can make your home (inside and outside) to potential buyers, the better your chances for a quick sale.  Look at your home with a buyer's eye and try to remove your emotions.  Most buyer do not want to have to do anything except move in and start grilling hot dogs.  Your best “bang for the buck” in improving the condition of your home are paint and flooring.  If you are a true Vikings fan...that is awesome but not many buyers want a room painted purple and gold.  Make sure that all of the paint is in great neutral condition, both inside and out.  Repainting doesn’t cost too much, and will usually make the biggest impact on buyers.  Make sure all of the flooring looks fresh and clean.  You may want to consider putting in new carpet if yours is worn and dated.   FYI: green shag is not a selling point.  Again, it’s not that expensive but it sure does make an impact on buyers coming to look at your home.      

3.  Location, location, location

We have all heard the "3 L's" but it is true.  When it comes to real estate, it’s all about location!  When it comes to homes, things like how good the schools are, crime rates, visual appeal of the neighborhood, convenience and noise or the smell of pollution can all effect how desirable the location is to buyers.  If you’re in a bad location, a good real estate agent may help to minimize some of the impact by suggesting improvements to the house to offset the negatives.  But the only really reliable way to overcome a bad location is with a lower price as the buyers can obviously see and/or smell the negatives.  Simply put, an identical home in a bad location won’t sell for as much as the same home in a better location.    

4.  The market is slow

You’ll hear it described as a slow market, buyers market, or maybe a cold market... it is all the same thing with different verbage. Buyer's market means that there are too many homes for sale and not enough active buyers.  Simply put in high school economic terms: supply and demand.  There are several things you can do to combat a slow market.  The most effective strategy is to sell at a lower price.  Buyers are expecting to find bargains and they have a lot of homes to chose from including short sales/foreclosures.  Another common strategy is to pay for buyer's closing costs.  The current down economy has left many buyers with less cash to purchase so being flexible with closing costs can give you an edge to sell.  The ultimate way to beat a slow market is to simply wait it out but that’s not always an option for many sellers.