One of the most frustrating things is going through all the steps of selling your house and not getting any offers. This can be a tough question to answer and a hard pill to swallow.
The reason your house isn’t selling is a problem with what most agents call the 3P’s. Price, Product or Presentation. If you have a Realtor the first two, price and product, are mostly on you. The presentation and marketing are the real estate agents responsibility.
7 Reasons Your House Isn’t Selling
If your house has been on the market for several months and hasn’t received and offer here are 7 possible reasons:
- House doesn’t show well– If your house needs cleaning or is cluttered that can be a major turn off for a buyer.
- Hard to show the property- Your house needs to be accessible to show within a 2 hour window. You need to be on the buyers schedule when allowing the house to be shown.
- Photos are not good quality– Photos on the Multiple Listing Service MLS, Zillow, Realtor.com and others are the first thing home buyers see.
- Location not idea– Buyer’s might not like the location of the house like on a busy street, across from a school, noisy highway or trains.
- Not marketed correctly- The house may not be reaching the targeted audience. Is it on the internet, open houses, and Facebook to name a few.
- Current market is bad- A bad time of year to list the house, is it a seller’s or buyer’s market?
- The Price- This is the number one reason most houses don’t sell quickly. Your house needs to be priced based on the current market.
Price the Number One Problem
The price is usually the biggest point of discussion when listing a house. I usually ask buyers what their thoughts are on sales price, the typical answer is I want to see what you say first.
I know in today’s market most people have looked at prices of houses in their neighborhood, Zillow Zestimate® and other web sites. In some cases they have talked to an out of area relative that’s a real estate agent so they have an idea of what they want to list their house for.
Most agents will do what is called a comparative market analysis CMA and look at houses that have recently sold within a half mile of the area in the last 3-6 months. If they can’t find good comparisons they will spread out a mile or more to get good comparisons.
The comparisons will also include what is currently under contract, the contract price is usually not disclosed until closing. Active listing in your area are also looked at so you can see your competition.
From these three, active-under contract-sold, an agent can calculate a price range and most probable sales price. If given a range where your house falls is depending on the condition and amenities. The more dated and need of work the lower the price, the more updated with bells and whistles the higher the price.
Home Depot, Lowe’s, Ace Hardware mostly have the same products, so how they win you as a customer is sales price. If there are 4 houses in the same subdivision that are basically the same, the lower price will always win.
Yes most Realtors will look at Zillow and other Automated valuation model (AVM) websites because they know you will look before meeting with them. The problem with most AVM’s is it’s based on information on the internet and assumes all houses are in average condition. If your house is below average the price is too high, if it’s remodeled with upgrades it’s under priced.
Let’s Tackle Some of The Other Reasons
What does it mean when someone says your house doesn’t show well? It could be several things and it’s sometimes awkward for an agent to mention it after feed back from a showing agent. Clean, Clean, Clean is what your moto needs to be until the house sells. Remember you only have one chance to make a first impression.
It’s a major turn off when a buyer walks into a messy or cluttered house. If you watch Property Brothers on HGTV they always ask buyers to de-clutter the house and have it show room ready when they leave everyday. People get busy and in a rush but this is extremely important in the house selling process. You never know when an agent will call to show.
Good and bad smells live a lasting impression on us. Does your house smell like a wet dog or a litter box? Do the carpets smell because they haven’t been cleaned in awhile, does the house reek from cooking fish or smoking cigars watching football. Air fresheners and deodorizers are fairly cheap.
Access to your house has to be simple and without a lot of restrictions. Agents and buyer’s will skip looking at your house if it’s complicated and has too many restrictions. Keep Fido in a crate or better yet at your parents house.
Buyer’s are busy and have jobs too, so you need to work around their schedule. Early evenings and weekends are the most popular times for house hunting. I usually cut it off at 6-7 pm depending on what the seller feels is acceptable. If it’s vacant I have seen later showings.
On several occasions I have had short notice from agents about showing a house I have listed. They may be in the neighborhood and saw a sign or the buyer may have noticed it on a website and brought it up. I usually ask for a couple hours notice but some times the seller is out of house and allows a shorter notice.
It is always advised that the seller not be present when the house is shown. Loose lips sink ships and too much information and history about the house can scare a buyer. The Realtor showing is licensed and would not have access to the lock box if they weren’t. I do recommend putting all your valuables and things like guns in a safe place out of sight.
Photos are one of the most important thing when it comes to marketing your house. In the old days buyer’s had to attend open houses and go to each house to see the interior. Not today, with the many websites available, a buyer can get a real good idea of what a house looks like and pass over ones that aren’t appealing.
My broker requires a minimum of 25 photos to be in the MLS and other sites like Zillow. Photos should not just be of rooms but of unique items, detailed back splash, exception flooring, and tray ceilings. Aerial and outdoor photos are extremely important, a new buyer wants a beautiful yard.
Curb appeal is also very important to potential buyers. Here’s an article I wrote on the importance of curb appeal when selling a house. Buyer’s will drive by potential houses they are interested in before setting up a showing with their agent. An overgrown lawn or junk in the yard is a turn off, if the outside isn’t cared for then the inside must be the same.
Sometimes It’s Just Out of Your Control
If your house is on a busy street or noisy area there isn’t much you can do about it. To compensate you may have to sell at a lower price to get buyers to overlook these issue or offer other incentives like paying their closing costs or a fence to drown out noise.
The market has a big role on the selling of your house. Here’s an article on the three different markets you may face. If it’s a seller’s market your in luck, you just need to tighten up on some of the other issues to get your house sold in a reasonable amount of time.
Your agent should be able to come up with an average days on market specific to your area. The absorption rate should also give you a good idea how soon your house should sell. The markets article above will explain this in detail.
Marketing and getting your house out to potential buyers is the responsibility of the listing agent. There are many websites that show residential houses for sale. There are other websites that advertise farms, cater more to military, and water front houses.
Broker and regular open houses are another tool. Signs, newspaper, magazines, and flyers are old school but still work. If your house is high end there are special advertisers for distinct properties. Of course higher end houses have a smaller buyer pool so could be on the market longer.
The most critical time when a house is listed is the first 2 weeks. If all your ducks are in a row and the house is priced right you should get an offer in that time. If you have a bunch of showings and no offers that’s usually an indicator your house is priced too high or there’s a major defect people don’t want to deal with.