Why a home does not sell is a recurring question as many homeowners deal with this issue everywhere. All of them share a common denominator: Something is deterring potential buyers to write an offer on a property. Let us dive into the most common reasons why a home fails to sell.
1). Issues that will divert potential buyers to see your property
Overpriced homes are properties that are listed at a price higher than their market value meaning at a higher price than the listing and/or the selling price of properties with similar characteristics in the same neighborhood.
I believe it is important to understand the main reasons why some sellers overestimate the value of their homes.
Sellers may have invested a significant amount of money in upgrades or renovations. As a result, they expect a high return on investment (ROI). Tip# 1: You never want to be the nicest house on the block as it would mean that you spent too much money upgrading your home instead of moving to a new home in a neighborhood where the types of upgrades you made in your house are the norms.
Sellers sometimes want to list their home at a higher price with the expectation that they will receive lower offers from potential buyers, which they can then negotiate to a more reasonable price. Tip #2: If potential buyers don’t bother to come and see your house because of its asking price, you might never receive an offer at all until you drop your selling price.
Sellers are afraid of underpricing their property and leaving money on the table, leading them to list their home at a higher price to ensure they will receive what they perceive as being a fair price. Tip #3: No seller is obligated to accept an offer and your agent is here to provide you with reliable data to ensure that you will sell your property for a fair price.
Overall, potential buyers perceive overpriced homes as not worth the price tag, leading them to avoid making an offer as they fear losing money or making a poor investment. Overpriced homes may also discourage buyers from negotiating or making an offer, as they are under the impression that the seller is being unreasonable or unwilling to compromise. Finally, buyers may apprehend overpriced homes as being out of line with the overall real estate market trends, leading them to wait for a price reduction.
1-2). Lack of curb appeal
Front curb appeal refers to the visual attractiveness of a property as seen from the street or the pictures of the street and influences greatly a potential buyer's perception of the property before they even step foot inside. As a result, a home with poor curb appeal will not attract as much attention from potential buyers, leading to fewer showings, longer time on the market, and fewer offers.
The good news is that this issue is probably the easiest one to solve when selling a home. Just spruce up your outdoor space with some new plants, flowers, or potted arrangements. You can also add outdoor seating or update your outdoor lighting to create an inviting atmosphere.
For the record, the condition of the backyard aka the “back curb appeal” is not as important as the condition of the front yard for a simple reason: You need to enter the home to see it. As a result, you can get by as long as the grass is cut and the backyard is clear of debris, dead trees, etc.
2). Issues that will NOT divert potential buyers from buying your home although you think it might
Scenario 1: The front curb appeal is great, and the backyard is in good condition BUT the inside of the property needs work because it is either outdated or very taste-specific.
I sold many of these homes which had not been updated for decades and/or were outrageously taste specific. The secrets to selling these properties are quite simple: they must look clean and, decluttered inside out. Always, bear in mind that cleanliness triggers a positive perception of the home for potential buyers mostly for the following reasons:
The home was been well taken care of and will most likely only need cosmetic work;
An empty clean house help improve the visual appeal of the property and it can make it easier for buyers to assess the real potential of the property and visualize what they could do to it to fit their needs.
Scenario 2: The front curb appeal is good, and the backyard is in good condition BUT the property has structural issues such as foundation cracks.
I also sold many of these. The secrets to selling these properties are quite simple: Before you put your property on the market, have professionals come on-site and inspect it. Pest and home inspections should also be done before putting the property for sale. This way, if a serious issue is reported such as foundation cracks, a structural engineer can put together a report outlining what the issue is, how to fix it, and for how much.
Disclosing issues build trust and demonstrates transparency as well as honesty which can lead to smoother transactions and fewer legal issues down the road.
When sellers are aware of structural issues and most importantly know how much it will cost the buyers to fix them before the property goes on the market, they can make a more informed decision on how to price the property accurately and fairly.
When buyers are aware of structural issues upfront and have an estimate of how much it will cost to repair them, they can factor the cost of repairs or renovations into their budget and timeline and won't be caught off guard by unexpected expenses or delays.
By following the above simple tips, potential buyers will know what to expect and if the property is priced right it will sell for top dollar without you having to handle any of the renovations or repairs.
If your house did not sell and you are considering putting it back on the market I would welcome the opportunity to be interviewed by you and review with you what could be done to sell it at the highest price possible.