Hank Miller

Why Didn’t Your Home Sell?

Homes fail to sell for any of a number of reasons but there are those more common than others. Price tends to be the most common followed by appeal/condition and poor exposure. Other factors tend to be either functional or external. Functional issues are deficiencies within the home; low ceilings, a steep staircase, outdated design and they may not be curable. There are functional curable items – those that can be corrected and the cost of correction typically be recovered; mechanical updates, kitchen/bath updates, a new roof, siding, or windows. External issues are those issues outside of the property; power lines, busy roads, airports and similar items. There is rarely an option to correct those influences and they will impact the home.

If a home has already expired and the plan to relist, then critical decisions must be made. Again, it is critical for seller’s to look at their home objectively; the market will have the final word and if the home has already expired, the market is talking. Considerations include:

• A candid assessment of listing price – consideration should be given to getting an appraisal or an opinion of value completed in the same manner
• A candid assessment of the real estate agent – are they competent?
• A review of marketing strategy – was the home adequately marketed
• A candid evaluation of the home’s appeal – would you buy it at the list price?
• A review of all feedback – were there items consistently noted as adverse during feedback?
• Evaluating the active and closed competition – what is currently competing and what sold ahead of this home?

A home that’s relisted does so with a stigma, buyers will be curious why it didn’t sell the first time through. While one previous listing might be understood, more than one undermines the credibility of the listing; agents and buyers will begin to wonder “what’s wrong”. Homes sell after initially expiring, but those that do have sellers that understand the market and adjust as needed. As noted throughout this section, the key is to properly position the home so that it attracts legitimate buyers. That’s done by:

• Assessing the reason for selling – what motivates the sale? Is it necessary to sell?
  
• Acknowledging and adjusting price – does it reflect the current market?
• Properly qualifying the listing agent – is the agent effective? The 7 Questions to ask
  
• Review the proposed marketing plan – what’s different from the first time through?
  
• Look at the home as a buyer – fix what needs to be fixed
• Understand that this market is struggling – assuming efficient marketing, adjust price until the buyers start pinging

If the home continues to languish, it will be noted by agents and buyers alike, there will be a demonstrated impact on price. Note as well, appraisers are required to note previous listing history and days on market; that will be reported in the appraisal and may influence the appraiser’s opinion.

Owners control price, the single most important variable in the home selling process. Owners also need to understand is that this is a joint effort. The best agent can’t sell a home that’s not well maintained, isn’t show ready or is overpriced. Quality, accurately priced homes listed by competent professional agents are selling, the key is getting them on the buyer and agent radar.

A final point concerns owners “underwater”; there’s no expectation for any substantial recovery in home values. The despicable attitude of the banks and lenders is nothing short of criminal and their combative stance when “working” with distressed owners is shameful. That said, there is no point in overpricing a home, other than to delay the inevitable foreclosure. Even if a buyer wanted to pay well over market, the deal would fall apart during appraisal. This is an understandable tactic but one that often just delays the looming foreclosure.

Please feel free to contact us VIA EMAIL or by phone at 678-428-8276 with any questions.