Why Can’t a Real Estate Sell a Home in a Seller’s Market?
Why can’t my real estate agent sell my home in this market?
Real Estate Agent Dan Skelly Evergreen, CO
It’s a seller’s market and homes are moving fast. If a home doesn’t sell is the home priced too high? Is the real estate agent not marketing my home properly? Is the real estate agent not aggressive enough? Is the real estate agent overpriced my home?
You might be surprised to know that a real estate agent’s ability to sell your home has very little to do with the market and a lot more to do with the skills and experience of the real estate agent.
I’ve seen it time and time again and I’ve seen it in my own career, that a seller’s market has nothing to do with selling homes quickly. Every market is different, what sells today may not sell tomorrow. A seller’s market is just a trend in the numbers; I’ve seen plenty of markets where homes are taking months or even years to sell.
There are some great real estate agents out there who can’t seem to move their listings in this hot seller’s market, but there are also many bad agents who can’t seem to sell their listings either! Bad agents don’t get results because they’re bad at what they do; they get bad results because they don home priced too high or too low? There are many reasons a home does not sell in a seller’s market.
Homes are selling too fast
One of the most common reasons a home is not selling is the home is selling too fast.
When there is a strong demand for homes, any home that sells is a great home. If a home sells in a single day, the market has deemed that home to be a great home. The problem is that most buyers who are in that market are also in a hurry and this pushes up the price of the home. If a home sells in a single day, the real estate agent is likely overpricing the home.
Homes are priced too high
Another common reason a home does not sell is the home is priced too high.
There are two issues here, one is the home is priced too high for where it is located, and the second is the home is priced too high for the competition. It’s very easy for a real estate agent to price a home too high in a hot market. A home could be in an ideal location, right by a great school or close to a big employer and the agent will price the home high hoping to demand a higher price or negotiate a price that is lower than the original listing price. It’s also not uncommon to price a home too high in a hot market.
Homes are priced too low
Another common reason a home does not sell is that it’s priced too low.
When a home is priced too low, it usually means the home is located in a market that’s not a seller’s market.
When a home is priced too low, the market conditions are not right to sell a home quickly. Hot markets like we are seeing now are usually up against a market that’s cooling down. Hot markets like we are seeing now are usually up against a market that’s cooling down.
The listing presentation is not good enough
Another common reason a home doesn’t sell is that the listing presentation is not good enough.
A home must be open and available to show to the public. When people are looking at homes in a seller’s market, they do so with an open-minded attitude. They aren’t looking for a reason not to like the home and they aren’t looking for a reason to buy the home. The listing presentation must be open and available to the public.
Open houses are a great way to get feedback on the listing presentation. Open houses can also be used to gather staging and decorating ideas. At the end of the open house, ask everyone who attended for their feedback on the listing presentation.
The real estate agent is not aggressive enough
Another common reason a home doesn’t sell is the real estate agent is not aggressive enough.
It’s very easy for a real estate agent to think that a home should sell all on its own just because it’s listed at a certain price. If a real estate agent isn’t aggressive enough, the home sits on the market for a long time without being shown and usually ends up being re-listed at a lower price than the original listing price.
The best way to know if you are being too passive is to set a goal on how much you want to make on your home sale. Have the goal in mind when you list your home so you know you are aggressive enough.
The real estate agent has overpriced the home
Another common reason a home doesn’t sell is the real estate agent has overpriced the home.
Some real estate agents are great at marketing a home but they are bad at pricing it.
The home price is important, but so is the comp. A home that’s in great condition and located in an ideal neighborhood could be overpriced compared to the market
The market conditions are not right
Another common reason a home doesn’t sell is that the market conditions are not right.
A seller’s market is usually when the supply of homes for sale outnumbers the demand for homes. The market conditions for a seller’s market are usually not right for a home to sell quickly.
There’s too much supply
Another common reason a home doesn’t sell is that there’s too much supply.
The supply of homes for sale is usually high in a seller’s market. When a home doesn’t sell in a seller’s market, there is usually not a good reason why. It’s usually just that homes are staying on the market too long and homes are priced too high or the home looks like it hasn’t been kept up.
The home isn’t in the right neighborhood
Another common reason a home doesn’t sell is that the home is located in the wrong neighborhood.
A home that is priced too high or priced too low is usually located in the wrong neighborhood. A home priced too high is usually located in a market that’s a seller’s market and priced too high. A home located in a bad neighborhood is usually priced too low.
Is the Home In too bad of a condition?
Another common reason a home doesn’t sell is that the home is in too bad of a condition.
When a real estate agent thinks the home is in too bad of a condition, they usually mean the home is in bad cosmetic condition.
If a home is in bad cosmetic condition, it could be because the owners haven’t had time to start cleaning it up, it could be because the owners are moving and they haven’t started moving yet, or it could be because the owners just don’t care about the condition of the home.
Is the Home Too Small or Too Large?
Another common reason a home doesn’t sell is that the home is too small or too large.
A home that’s too small is usually a bungalow, a semi-detached or a townhouse. A home that’s too large is usually a single-family home, a row house or an apartment building.
The home doesn’t meet the buyer’s needs
Another common reason a home doesn’t sell is that the home doesn’t meet the buyer’s needs.
When a home doesn’t sell in a hot seller’s market, chances are great that the home doesn’t meet the buyer’s needs. If a home doesn’t sell, chances are it doesn’t meet the buyer’s needs.
Is the home in a gated community?
Another common reason a home doesn’t sell is that the home is in a gated community.
If a home is in a gated community, chances are great the home doesn’t meet the buyer’s needs and it doesn’t sell.
Is the home too big?
Another common reason a home doesn’t sell is that the home is too big.
A big house takes longer to sell and usually costs more to sell due to more advertising and more coordination of showings. A big house usually takes longer to sell and usually costs more to sell due to more advertising and more coordination of showings. A big house usually costs more money to buy and more money to maintain.
Is the home in a bad neighborhood?
Another common reason a home doesn’t sell is that the home is in a bad neighborhood.
If a home is in a bad neighborhood, chances are the home doesn’t meet the buyer’s needs and it doesn’t sell.
The home is too old and dated
Another common reason a home doesn’t sell is that the home is too old.
A home that’s too old takes longer to sell and usually costs more to sell due to more advertising and more coordination of showings. A home that’s too old usually takes longer to sell and usually costs more to sell due to more advertising and more coordination of the show.
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Might not be your listing agents fault
There are a multitude of reasons your home might be selling when it is on the market. It is true that in most of the country, Colorado especially, the market is crazy. Most reasonably priced homes are selling with less days on market than previous years. The first knee jerk reaction for many sellers is to blame the listing agent for their home being on the market longer than the average. That is a very irresponsible conclusion to come to.
It’s a numbers game
The first thing sellers need to understand is if you are getting people through the home the listing broker is doing a good job. The purchase of a home is most likely the biggest investment potential buyers will be doing that year if not the biggest for them in 10 years. It is not something a listing broker or buyer agent can force a buyer to do. A buyer will never be convinced to buy a home. This is not the same as other purchases where a good “salesman” can convince a person the want and need for the product. This is a huge deal and no one actually “sells” your home. The listing broker’s job (at least in the beginning) is simply to get traffic through home.
Sometimes sellers are their own worst enemy
As a seller you have some responsibility to help sell your home. A number of deals that could have happened don’t because of the seller. The first thing a seller needs to understand the market does not care how much you want or need out of your home. The market also doesn’t care what your neighbor’s home sold for in July. The market value is a fluid thing. As the world realized on ’08 the value of your home can change drastically over night. Besides your neighbor’s home might have been nicer than yours. Another huge, huge mistake sellers make is not taking the advice of their listing agent about the value of their home. Yes it is true some agents “buy” a listing by telling a seller that their home is worth way more than it is. If you interview 3 agents and one tells you your home is worth way more than the other 2 then that agent is buying your listing. Remember real estate agents don’t set the value of your home, the market does! If a seller puts their home on the market for way over value to “test the market” with the expectation of dropping it later they have missed a huge opportunity. The most important time of any listing is the first 2-3 weeks.
Never decline or reschedule a showing request
People don’t understand the process agents go through setting up showing tours for their buyers. It is most likely your listing is not the only home that agent is showing that day. As mentioned earlier, it is a numbers game. The more people through your home the sooner you will get an offer. When an agent is setting up 8 homes and your reschedule they may not be able to get your home in at the time that is convenient for you. They may have already had 3 other sellers on the other side of town approve for the time you are available.
Always keep your home in “show ready condition”
A seller should always presume that there will be a showing while they are at work. Keep your home clean and neat at all times. It also cuts down on a frantic stressful cleanup right before a showing. Keep your driveway plowed and yard picked up.
Give your home time to sell
Just because the average days on market is 55 days, don’t pull your home after 45. Especially if you have been dropping the price. The average days on market are connected to your home being priced correctly. If a seller starts at an unrealistic price and lowers it to a price closer to the actual market value, that is when you should start counting days on market. A seller can’t expect the home to be listed for 30 days and lower the price to a reasonable price and expect the home to sell the next day. The market needs to be exposed to the proper price, then it goes to the numbers game.
Taking your home off the market for a couple of days is a horrible idea
There was a time (pretty much before computer) a seller could take the home off the market, lower the price ever so slightly and putting it back up and the days on market would reset and it would look like a new listing. Those days are long gone. Even if you change agents the days on market and your listing history will reflect this. It is an old trick that went out of date about the same time calculator watches did.
To sum things up as a seller you are responsible for helping your home sell. A Realtor can not sell your home if you are not cooperating. Don’t stand in the way of your home being sold and sold for a good price. Always listen to your broker. You may be a smart person but this is what real estate agents do all day long. You would never let one of your clients come and and tell you how to do your job. You would expect them to listen to your recommendations. A home is a huge investment. Sellers need to listen to their professional agents.