I Just Don’t Understand It, Why Didn’t My Home Sell?

Last weekend was the official close to the summer real estate market season.  Congratulations to all you local clients, friends and neighbors who successfully listed and sold your home this year.  For those of you still on the market you may be more than a bit discouraged and wondering if your dream to sell is ever really going to happen.  If yours is one of the remaining homes in Newtown that is still on the market you may be asking yourself, “Why didn’t my home sell?”

Today’s home shoppers make no bones that they are looking for the best possible deals that they can get while interest rates remain low and volume of properties remain high.  Research and experience shows that there may be one or more reasons for a home to linger on the market while surrounding neighbors have moved on. Here are some of the culprits that may be keeping buyers away from your door.

Your home is overpriced.

There is an old saying, “There's a buyer for every home,” but they often leave off the qualifier: "At the buyer's price."  Buyers, not sellers, ultimately determine the market value of a home. You can set your listing price above the comparable properties in your neighborhood, but at some point if you truly want to sell your home, it will be up to you, the seller, to negotiate and then accept what the buyer thinks your home is worth. 

Overpricing is the most common reason today why homes don't sell. Here's why: real estate agents and their most qualified buyers will see your new listing within the first 30 days. If it is overpriced by as little as 10 percent, interest in your property will weaken, especially if you show no intention of coming off your asking price. You have likely priced out buyers who might have qualified for financing at a slightly more reasonable price. Even if you manage to find a buyer at your higher asking price, I can guarantee your property will not appraise at that number by the mortgage company and the financing will fall apart.

Let me give you another example of what can go wrong.  If you have a house that should really be priced at $400,000 and you've listed it for $460,000, you’ve set yourself up to compete against homes that really are worth closer to the $500,000 range.  At this price, your home will pale in comparison to others at that price point and the buyers will see greater value for their money in your competition.  So what you have done by testing the market and over pricing your home is to actually increase the chances of selling your neighbors home instead of yours.  You should want to be the best value out there for those preciously few qualified buyers looking for homes most similar to yours.

Your home doesn't show as well as others.

Your home is competing against those newly painted, newly floored and recently upgraded houses with that clean and fresh just turn the key and move right in feeling. In a buyer’s market you must be without question the prettiest girl at the dance.  Even the very best house needs a little makeover if it hopes to attract a qualified buyer away from the competition.  Thinking that the buyers will have some reasonable understanding that you’re not a compulsive Mr. Clean, or that you truly do live in this home with your growing family will put you at a disadvantage.  Homes sell, when the buyer wonders out loud just how you keep the place so impeccably clean and organized even though you have two jobs, three kids and a dog.

The good news is most of the work will be cosmetic and relatively inexpensive to do.  You start by packing up all your inessential clothing, kitchen supplies, furniture and toys into an impressively organized yet inconspicuous storage area.   Better yet you should try for an offsite storage unit.  A new coat of paint, some updated yet inexpensive window treatments, a thorough cleaning of floors and carpets, some properly staged pillows, plants, mirrors and “Presto”, the place becomes the home the buyer can’t forget and to which all others are benchmarked.

Your buyers could not get in.

Did everyone who wanted to visit get the opportunity to enter your home at their convenience?  As a Realtor, I wish I could always set an exact appointment time with tons of notice, but unfortunately that seldom happens. This common obstacle can be overcome simply.  The more flexible you are with your showing times the greater the chances for your home to sell.

Did you give the buyer free and clear access to the home?  Time after time I hear from my buyers that it makes them extremely uncomfortable to tour a property when the owner is on site.  Staying in your home while the buyers walk through does not allow them to see themselves living in the home because they can only see you.

Time and time again the buyer puts so much focus on not offending the owner; they rush through the visit and never get the chance to bond with the property.  Buyers need to feel comfortable and "at home." They need to select the children’s bedrooms and place their own furniture throughout the house. They want to see themselves cooking in the kitchen, watching TV and working in the yard.  My best advice is to leave the property. Let the Realtor professionally demonstrate your home. We know our clients’ wants and likes, and are sure to point out just how your home will match everything on their wish list.

There is never a single reason why one home sells verses another.  The list of possibilities can go on and on.  You must review all the “why not” comments from past visitors, discuss them with your realtor and create your new action plan.

Now it’s time to get working on what needs to be done to make your dream of selling your home a reality.